Our GlobalTeam™ of highly experienced international project managers – on the ground in 32 countries – contributed to the following brief summary of the franchise world opportunities for 4th quarter 2015.
Asia | China Japan Malaysia Mongolia The Philippines Thailand Viet Nam |
Watch the consumer economy not the overall GDP growth. Large corporations are investing in new consumer projects. Ringgit drop of 25% against the US$ plus political unrest. US pizza and coffee franchises flourishing. Seriously. Middle class buying power accelerating. Stable politics. Military dictatorships often are stable. US sailors on shore leave, 6%+ GDP growth. |
Americas | Argentina Brazil Canada Chile Colombia Mexico Peru USA |
You still get paid in soybeans, if at all. Economy is stalled, inflation climbing, corruption rife. Tim Horton’s and Burger King are now one??? New President negative on business. Investment stopped. Show me the money and where it came from. Mexico City, Monterrey and Cancun booming. Lima is a city of cranes and new foreign F&B brands. US$15/hour minimum wage means no margins, less jobs. |
Europe | Ireland Germany Poland Russia Spain Turkey United Kingdom |
GDP growth of 3.5% projected for 2016. Difficult to find investors/risk takers for new foreign brands. 3.5% GDP growth for 2015 is the highest in the EU. Foreign brands with US$ denominated rents are closed GDP growth for 2016 estimated to be 2.6%. Political unrest leading to drop in new project investment. 2.4% GDP growth, but normal investment analysis paralysis. |
Middle East | Egypt Saudi Arabia Dubai |
Pent up consumer demand, high growth but scary 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 2.6% but falling commodity exports. Jobs iffy? Not another country, another universe. Low growth, high unemployment (25%), low new investment |
For 2015, EGS’ U.S. clients are seeking licensees in over 20 countries. Our GlobalTeam™ of highly experienced international project managers on the ground in 35 countries contributed to the following brief summary of the world mid-2015:
Asia | China Japan Malaysia Mongolia The Philippines Thailand Viet Nam |
Citizens: you didn’t really lose money in the Shanghai market. Large corporations are investing in new consumer projects. Prime Minister didn’t really put US$1B in his bank account. U.S. pizza and coffee franchises flourishing. Seriously. Subic Bay is operating again, U.S. Embassy doubling in size. Stable politics. Military dictatorships often are stable. U.S. sailors on shore leave, 6%+ GDP growth. |
Americas | Argentina Brazil Canada Chile Colombia Mexico Peru USA |
You still get paid in soybeans, if at all. Economy is stalled, inflation climbing, corruption rife. Tim Horton’s and Burger King are now one??? New President negative on business. Investment stopped. Still ‘show me the money and where it came from.’ Mexico City, Monterrey and Cancun booming. Lima is a city of cranes and new foreign F&B brands. US$15/hour minimum wage means no margins, less jobs. |
Europe | Ireland Germany Poland Russia Spain Turkey United Kingdom |
GDP growth of 3% in 2015, high for the EU. Difficult to find investors/risk takers for new foreign brands. 3.4% GDP growth for 2015 is the highest in the EU. Foreign brands with US$ denominated rents are closed GDP growth for 2015 of 2.9%. Major 2016 comeback. Finally realized they should shoot at ISIS. 2.4% GDP growth, but normal investment analysis paralysis. |
Middle East | Egypt Saudi Arabia UAE |
Pent-up consumer demand, scary security and future. Challenges to get new businesses open due to regulations. New building push, large expat influx, airport & airline soaring. |
Elsewhere | Australia India South Africa |
Economy soaring but tied to commodity exports. Jobs iffy? Not another country, another universe. Low growth, high unemployment (26%), low new investment |
Updated: July 27, 2015