Global Business Development
The Fastest 2 Minutes in International Franchising
Posted on Feb 1st, 2016 in Predictions and Trends | Comments Off on The Fastest 2 Minutes in International Franchising
Our GlobalTeam™ of highly experienced international specialists on the ground in 32 countries contributed to the following brief summary of the franchise world opportunities for 1st quarter 2016. Countries to watch for franchise opportunities in 2016: Argentina, the Philippines, the UAE, Spain, Poland and Peru.
| Asia | China Japan Malaysia The Philippines Thailand Viet Nam |
Consumer economy growing at 8.2% per year Only large corporations are investing in new projects Political unrest, declining Foreign Direct Investment Many new US F&B brands opening 4% GDP growth expected in 2016 6.5% GDP growth, prefer US franchise brands |
| Americas | Argentina Brazil Canada Chile Colombia Mexico Peru USA |
Dramatic change, new positive government Economy is stalled, inflation climbing, political uncertainty Declining investment in F&B, tax focused new government 3.7% GDP growth for 2016. Government regulations? Show me the money and where it came from Mexico City, Monterrey and Cancun booming Lima is a city of cranes and new foreign franchises US$15/hour minimum wage kills margins. Election year |
| Europe | Ireland Germany Poland Russia Spain Turkey United Kingdom |
GDP growth of 3.5% projected for 2016 Difficult to find investors/risk takers for new foreign brands 3%+ GDP growth for 2016. Slow new franchise investment Not now 2.7% GDP growth for 2016. Recovery speeding up Political unrest leading to drop in new project investment 2.2% GDP growth, but normal investment analysis paralysis |
| Middle East | Egypt Saudi Arabia Dubai |
Pent-up consumer demand, high growth, iffy security Challenges to get new businesses open due to regulations New building push, large expat influx, airport & airline soaring |
| Elsewhere | Australia India South Africa |
GDP growth of 2.5% but falling commodity exports. Jobs iffy? Not another country, another universe. But opportunities. Low growth, high unemployment (25%), low new investment |
