CHICAGO – A new report from foodservice consultant Technomic reveals that restaurant chains consider franchise agreements to be a primary means for growth, as the recession has prompted franchisors to offer franchisees incentives that include enhanced credit support, fee reductions, and reduced royalty rates.
“A focus on growing the franchise system allows franchisors to spend less on restaurant-level operations and redirect capital toward system wide marketing and brand initiatives,” said Darren Tristano, executive vice president at Technomic.
The "2010 Technomic/Restaurant Finance Monitor Top 400 Restaurant Franchise Company Report" was produced by Technomic in conjunction with Restaurant Finance Monitor and includes details such as the following:
- The Top 400 restaurant franchisors realized a 1.6 percent lift in sales in 2009, to roughly $31.8 billion.
- NPC International, a franchisee of Pizza Hut, was the top franchisee company, with sales of $845 million, a 22.5 percent increase over 2008.
- McDonald's, Subway, and Burger King franchisees recorded the greatest sales--$26 billion, $10 billion, and $7.7 billion respectively.
The report is designed to help operators identify the top restaurant franchise opportunities and understand where franchising opportunities exist with restaurant brands. It also details sales, units, and growth against top industry performers.