For 2015 EGS’ US franchisor clients are seeking licensees in over 20 countries. Our GlobalTeam™ of highly experienced international development project managers contributed to the following brief summary of the franchising environment around the world for the New Year:
Asia | China Japan Malaysia Mongolia The Philippines Thailand Viet Nam |
F&B franchises iffy, as is the investment climate Carl’s Jr. signed a 150 restaurant license New mall developers are seeking US franchises Pizza and coffee franchises – now 2 each! A focus on more US F&B brands Overall stable politics, but economy is iffy F&B franchises desired |
Americas | Argentina Brazil Canada Chile Colombia Mexico Peru USA |
You still get paid in soybeans Economy is stalled, new investment stopped for now Tim Horton’s and Burger King are now one (???) New President seems negative on business Still ‘show me the money and where it came from’ Mexico City, Monterrey and Cancun booming A focus on more US F&B brands Franchise model with individual owners remains in peril |
Europe | Czech Republic Ireland Germany Poland Russia Spain Turkey United Kingdom |
Prague has a high GDP/capita, other large cities lower GDP growth of 3% in 2015 is high for the EU Difficult to find investors for new foreign brands 3.3% GDP growth for 2015 is the highest in the EU Foreign F&B brands have US$ denominated rents GDP growth for 2015 of 1.7% is high for large EU countries US F&B investment and high-end malls growing Build a pilot first, then investors come |
Middle East Egypt | Saudi Arabia UAE |
Interest in new franchise unit investment for 2015 Challenges to get new businesses open due to regulations New trend of neighborhood malls in Dubai |
Elsewhere | Australia India New Zealand Nigeria Pakistan South Africa |
90%+ local franchises, difficult to get foreign brand investors New government equals a very positive business attitude Few consumers, but pro foreign franchise brands Foreign franchises have numerous operating challenges Not now for foreign brands 90%+ local franchises, but hope for foreign brands |
In 2014, EGS’ US franchisor clients are very busy finding licensees in over 25 countries. Our GlobalTeam™ of highly experienced international development project managers contributed to the following brief summary of the franchising environment around the world.
Asia | China | Food quality stinks; new F&B franchises shrink |
Japan | New, large scale US F&B investment | |
Malaysia | Government barriers for foreign franchises | |
The Philippines | New professional companies seeking US brands | |
Thailand | What coup? New franchise investment by major groups | |
Viet Nam | Just bring coffee brands | |
Americas | Argentina | You get paid in soybeans |
Brazil | 95% local franchisors, government barriers to entry | |
Canada | True regional development beginning | |
Chile | Perfect market, except for the lack of people | |
Colombia | Show me the money and where it came from | |
Mexico | Selected areas booming | |
Peru | GDP/capita growth and resulting investment wonderful | |
USA | Franchise model in the birthplace of franchising in peril | |
Europe | Czech Republic | Small market, but a perfect European brand showplace |
Ireland | Investors not quite back to investing | |
Germany | English not spoken and ‘We already have it’ | |
Poland | Good franchise growth outside Warsaw | |
Russia | Really? Now? | |
Spain | Fast recovery, many investors seeking brands | |
Turkey | US F&B booming, despite tin pot ruler | |
United Kingdom | Analysis paralysis. Build a pilot first, then investors | |
Middle East | Egypt | Next year, really… |
Saudi Arabia | New F&B brands entering. Permits to open units??? | |
UAE | Abu Dhabi and ‘More fast food, please’ | |
Others | Australia | 90%+ local, locals like local brands |
India | Separate universe | |
New Zealand | The opposite of Australia, but few consumers | |
Nigeria | Really??? | |
Pakistan | Not Karachi | |
South Africa | 90%+ local franchises to date, but a change is coming |