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The Fastest 2 Minutes in International Franchising

Our GlobalTeam™ of highly experienced international specialists in the USA and on the ground in 32 countries contributed to this summary of today’s world business opportunities. Countries to watch for excellent business development opportunities in 2017: the Philippines, the UAE, Spain and Poland.

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Asia China
Japan
Malaysia
The Philippines
Thailand
Viet Nam
Consumer economy growing at over 8% per year
Corporations are seeking consumer investments
Political and currency unrest
Many new US international businesses opening
Starting a comeback from post-coup recession
6%+ GDP growth, USA franchises desired
Americas Argentina
Brazil
Canada
Chile
Colombia
Mexico
Peru
USA
Dramatic change, new government, improving economy
Economy, stalled, inflation up, government problems
New tax-focused government
Government regulations increased
Uneven growth, low new investment
Post US election new investment stoppage
New pro-business government, US brand friendly
Renewed business confidence: lower taxes, regulations
Europe Ireland
Germany
Poland
Russia
Spain
Turkey
United Kingdom
Good GDP growth, slow to see new investment
Difficult to find investors for foreign brands
Highest EU GDP growth
Not now!!!
Recovery speeding up, heavy new investment
Political unrest and terrorism = no new investment
BREXIT & election fallout slowing new investment
Middle East Egypt
Saudi Arabia
United Arab Emirates
Security and hard currency problems
Difficult to get new businesses open once built
New US brands entering, strong new investment
Elsewhere Australia
India
New Zealand
South Africa
Challenge to find investors for foreign brands
Challenge to find licensees who follow system
Few consumers, but pro foreign brands
High unemployment (25%), low new investment

 


A Global Franchising Update for Selected Countries

Our company, Edwards Global Services, Inc., is honored to work with some of the very best U.S. franchisors to take them global.

We closely monitor consumer spending in over 50 countries as consumers are the target market for the U.S. franchise brands we represent. Often media reports look at a country’s economy from the macro or 30,000 foot perspective. We look at a country’s economic activity from about 50 feet: what is the consumer doing and are they spending?

Here are a few updates on our clients’ recent and planned international openings, plus, an update on a ‘new’ or ‘reawakened’ market: Argentina.

Argentina – For decades, this European-style country has experienced political and economic challenges. After only a few months in power, Argentina’s new government has already taken significant steps to address the country’s economic problems. Argentine President Mauricio Macri has removed export taxes for agricultural products, slowed the printing of pesos, abolished most currency controls, and taken steps to remove subsidies on electricity, food and natural gas.

He has removed export tariffs on beef, soybeans, wheat, and corn, giving exporters greater leeway to sell their products abroad. Macri also plans to eliminate subsidies on electricity, food, and natural gas, thereby reversing the inefficiencies that have burdened Argentina’s economy in previous years. (“Argentina’s New President Lays the Groundwork for a Better Economy”, Stratfor, January 19, 2016)

Argentina was a strong franchise market in the past, and we are beginning to see interest by U.S. franchisors in re-entering this large, well educated, and sophisticated market in Latin America.

Italy – While Italy is considered a slow growing market in the European Union, with significant economic challenges, there are opportunities for new consumer brands in certain sectors. Burgers are one of those sectors. Just over a year ago, Fuddruckers® burger brand opened its first European location in Milan, Italy. Today there are two locations in Milan and a new location in Warsaw, Poland. Europe loves Fuddruckers’ burgers and wings!

Near Milan

Near Milan, Italy

Japan – This is generally considered a slow growth country that has been slow for several decades. That is not true in the consumer sector, and certainly not in the burger sector, where several U.S. brands have entered recently to challenge McDonald’s 3,000 unit monopoly. Carl’s Jr.® recently announced the opening of its first restaurant in Tokyo. In this photo, Ned Lyerle, President of CKE Restaurants International, is on the right, along with our company’s Japan Associate, Ichiro (Roy) Fujita.

Carl’s Jr.®

Carl’s Jr.®

Philippines – In December 2015 it was announced that Denny’s® has signed a license agreement with the Bistro Group, who also is the Philippines licensee for TGI Friday’s® and Buffalo Wild Wings®. The first Denny’s® restaurant in the Philippines will open in Manila in mid-2016. The Philippine economy is expected to grow at 6.5% in 2016. U.S. food franchise brands are greatly desired.

Denny’s®

Poland – This is the one country in Europe where GDP growth did not turn negative between 2008-2012. This year the country’s economy is expected to grow at 3.1%, the highest in the European Union. This is driven almost entirely by consumer spending.

International Dairy Queen entered Europe last year. This 75-year old brand, with 6,500 stores in 28 countries, now has three stores in Warsaw. Yes, the iconic Blizzard® is present in Poland and selling well, even in the winter!

International Dairy Queen

International Dairy Queen

Turkey – Two years ago, Build-A-Bear Workshop®, the world’s largest children’s entertainment retail brand, opened its first store in Istanbul. Today there are three stores in Istanbul and one in Ankara. Turkish families love to spend money on their kids and Build-A-Bear Workshop® helps!

Build-A-Bear Workshop®

Build-A-Bear Workshop®

United Arab Emirates – The UAE continues to see annual Gross Domestic Product (GDP) growth in excess of 3% per year. Dubai is the center of tourism and financial business in the region. New U.S. food brands are continuing to enter this lucrative market.

In December 2015, Denny’s® opened its first restaurants in the Middle East in Dubai. In this picture are John Miller, the CEO of Denny’s®, and Steve Dunn, The Denny’s® Global Chief Development Officer.

Denny’s®

Denny’s®

Vietnam – With a GDP annual growth rate of over 6% and a very fast growing middle class consumer market, Vietnam is one of the top developing markets in Asia. U.S. franchise brands are highly desired. Recently our company finalized the country license for PJ’s Coffee of New Orleans® to open 10 or more high end coffee shops in Vietnam over the next 5-7 years. Vietnamese are very big coffee drinkers and love the social aspects of meeting for coffee and pastries with their friends.

PJ’s Coffee of New Orleans


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 Business

Our GlobalTeam™ of highly experienced international project managers – on the ground in 32 countries – contributed to the following brief summary of the franchise world opportunities for 4th quarter 2015.

Asia China
Japan
Malaysia
Mongolia
The Philippines
Thailand
Viet Nam
Watch the consumer economy not the overall GDP growth.
Large corporations are investing in new consumer projects.
Ringgit drop of 25% against the US$ plus political unrest.
US pizza and coffee franchises flourishing. Seriously.
Middle class buying power accelerating.
Stable politics. Military dictatorships often are stable.
US sailors on shore leave, 6%+ GDP growth.
Americas Argentina
Brazil
Canada
Chile
Colombia
Mexico
Peru
USA
You still get paid in soybeans, if at all.
Economy is stalled, inflation climbing, corruption rife.
Tim Horton’s and Burger King are now one???
New President negative on business. Investment stopped.
Show me the money and where it came from.
Mexico City, Monterrey and Cancun booming.
Lima is a city of cranes and new foreign F&B brands.
US$15/hour minimum wage means no margins, less jobs.
Europe Ireland
Germany
Poland
Russia
Spain
Turkey
United Kingdom
GDP growth of 3.5% projected for 2016.
Difficult to find investors/risk takers for new foreign brands.
3.5% GDP growth for 2015 is the highest in the EU.
Foreign brands with US$ denominated rents are closed
GDP growth for 2016 estimated to be 2.6%.
Political unrest leading to drop in new project investment.
2.4% GDP growth, but normal investment analysis paralysis.
Middle East Egypt
Saudi Arabia
Dubai
Pent up consumer demand, high growth but scary 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 2.6% but falling commodity exports. Jobs iffy?
Not another country, another universe.
Low growth, high unemployment (25%), low new investment

 


The Fastest 2 Minutes in International Business

For 2015, EGS’ U.S. clients are seeking licensees in over 20 countries. Our GlobalTeam™ of highly experienced international project managers on the ground in 35 countries contributed to the following brief summary of the world mid-2015:

 

Asia China
Japan
Malaysia
Mongolia
The Philippines
Thailand
Viet Nam
Citizens: you didn’t really lose money in the Shanghai market.
Large corporations are investing in new consumer projects.
Prime Minister didn’t really put US$1B in his bank account.
U.S. pizza and coffee franchises flourishing. Seriously.
Subic Bay is operating again, U.S. Embassy doubling in size.
Stable politics. Military dictatorships often are stable.
U.S. sailors on shore leave, 6%+ GDP growth.
Americas Argentina
Brazil
Canada
Chile
Colombia
Mexico
Peru
USA
You still get paid in soybeans, if at all.
Economy is stalled, inflation climbing, corruption rife.
Tim Horton’s and Burger King are now one???
New President negative on business. Investment stopped.
Still ‘show me the money and where it came from.’
Mexico City, Monterrey and Cancun booming.
Lima is a city of cranes and new foreign F&B brands.
US$15/hour minimum wage means no margins, less jobs.
Europe Ireland
Germany
Poland
Russia
Spain
Turkey
United Kingdom
GDP growth of 3% in 2015, high for the EU.
Difficult to find investors/risk takers for new foreign brands.
3.4% GDP growth for 2015 is the highest in the EU.
Foreign brands with US$ denominated rents are closed
GDP growth for 2015 of 2.9%. Major 2016 comeback.
Finally realized they should shoot at ISIS.
2.4% GDP growth, but normal investment analysis paralysis.
Middle East Egypt
Saudi Arabia
UAE
Pent-up consumer demand, scary security and future.
Challenges to get new businesses open due to regulations.
New building push, large expat influx, airport & airline soaring.
Elsewhere Australia
India
South Africa
Economy soaring but tied to commodity exports. Jobs iffy?
Not another country, another universe.
Low growth, high unemployment (26%), low new investment

Updated: July 27, 2015


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