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 |
The Fastest 2 Minutes in International Franchising
Posted on Jan 5th, 2015 in Predictions and Trends | Comments Off on The Fastest 2 Minutes in International Franchising
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 |
The Fastest 2 Minutes in International Franchising
Posted on Aug 13th, 2014 in Predictions and Trends | Comments Off on The Fastest 2 Minutes in International Franchising
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 |
