Franchising in Consumer Foodservice: The Rise of the Global Franchisee

With the exception of Burger King, which already had a high proportion of franchised outlets in 2004, many of the world's largest chains have steadily reduced their ratios of company-owned to franchised outlets over the last four years. McDonald's, for one, moved from more than 25% company-owned to 20%, while Starbucks has steadily added to its licensed store count, with more than 45% of its stores operated by licensees in 2008.

While still dwarfed on a global level by the larger independent sector, chained restaurants as a group have seen strong, steady growth over the last five years, with double-digit annual growth rates common over the review period. This expansion has taken place across a wide range of markets, both developed and emerging alike -on a global level, there has been a move towards more standardisation, better quality, and more coherent branding, with major global chains like McDonald's and YUM! Brands joined by increasingly competent local/regional operators such as Nando's in South Africa and the UK, Chipotle Mexican Grill in the US, and others.

This is partly due to strong, steady growth among the largest global brands -rising disposable income and greater time constraints have boosted demand for chains such as McDonald's and KFC, while exposure to these chains has, in turn, created greater demand for the kind of consistency and quality chained brands offer. As this report will show, the success of chained foodservice has also boosted demand for local partners, with the dominance of the franchise business model making competent local operators a priority. As a result, many of the largest, most successful franchisees have become sizable businesses in their own right, creating a whole new category of innovative, well-capitalised operators.

While developed markets such as the US, France, and Canada will remain important, emerging markets are expected to lead in both absolute and percentage growth of chains over the forecast period. China is projected to lead all markets in absolute growth, adding more than US$7 billion in chained sales over the next five years, while Romania is expected to lead in percentage growth, expanding more than 120% over the forecast period.

Franchising in Consumer Foodservice: The Rise of the Global Franchisee report examine stand-alone restaurants and eating establishments in which the consumer can freely choose to eat. The Franchising in Consumer Foodservice report looks at market trends by sector (cafes/bars, full-service restaurants, fast food, home delivery and street stalls). It profiles the leading companies in the market and analyses factors influencing eating out patterns. Forecasts illustrate how the market is set to change.

Buy online to access strategic market analysis and an interactive statistical database of foodservice value market size, company and brand shares and number of outlets and transactions.

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Regional coverage

Western Europe; Eastern Europe; North America; Latin America; Asia-Pacific; Oceania; Africa and the Middle East