Although we are already more than halfway through the first quarter of 2009, I finally had the opportunity to read the 2009 Franchise Business Outlook prepared by PricewaterhouseCoopers for the International Franchise Association Educational Foundation. If you don’t read yearly business outlooks or forecasts, I highly recommend it. It can be easy to get lost in the shuffle of your daily tasks and responsibilities and lose sight of the big picture for the past, present, and future. When you read this title, you may have thought, “Well everyone can find info on the Internet to make themselves feel better about whatever they are into!” That’s one of the beauties of the Internet!
However, the facts and figures about the restaurant industry in this report in the face of such uncertain economic times make me proud to work in an industry that, although affected, is not completely shaken by the economy. The restaurant industry is one of the largest industries that affect every person, since we all have to eat and we don’t always eat at home, I get a great sense of community knowing that I am somehow play a part in this industry in some small way.
In the 2009 Outlook, both the quick service and table service franchise business lines are the only franchises expected to grow by building more establishments, employing more people, and producing more output. Why? For one, many industry leaders lean on the strength of the franchise business model. Well established brands have well established training and support systems. Think about it – even with local franchises, the same could be said on a smaller scale. When I am traveling, sometimes I choose a local chain which gives me the best of both worlds: a taste of what and where the locals eat, as well as the comfort of knowing that I should expect a certain level of quality. I know that there are several places in the area that are serving the same recipes, which usually means that they have perfected a repeatable process. Also, franchise owner operators generally do well because of their own personal stake in the business.
Even among the tightened budgets and relentless quest to cut costs, this type of economic environment also proves to be a breeding ground for fearless entrepreneurs. Even now, my own husband is constantly thinking of ideas for the next great restaurant chain, with hopes and dreams of franchising – so I know these fearless types are out there. Funding and financing is still available, if you have the tenacity to seek it out.
