Taking U.S. Franchises Global

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

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

 


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