ARLINGTON Va. —The rate of growth of new franchised restaurant concepts has slowed dramatically in the past year, the result of an anemic economy, the lending crisis and growing franchise opportunities in the health and fitness industry, a franchise research group reports.
Though foodservice by sheer volume of active franchised brands remains the franchising industry’s most dominant sector when stacked up against eight other popularly franchised fields, the fast-food and full-service segments generated few new franchised vehicles in the past year, according to Frandata. The Arlington, Va.-based group specializes in researching macroeconomic trends that affect franchising. —The rate of growth of new franchised restaurant concepts has slowed dramatically in the past year, the result of an anemic economy, the lending crisis and growing franchise opportunities in the health and fitness industry, a franchise research group reports.
In its 2009 forecast entitled “The State of Franchising,” Frandata reported that 232 fast-food chains with franchised operations since 2002, a group that includes fast-casual players, introduced just six new concepts in 2008. —The rate of growth of new franchised restaurant concepts has slowed dramatically in the past year, the result of an anemic economy, the lending crisis and growing franchise opportunities in the health and fitness industry, a franchise research group reports.
Full-service restaurants, which Frandata reported debuted 12 new franchised concepts in 2007, did not roll out a single licensed concept in 2008. After the report’s deadline, however, WingHouse, an Orlando, Fla.-based sports bar concept, and First Watch, a family-dining concept, announced franchising initiatives. —The rate of growth of new franchised restaurant concepts has slowed dramatically in the past year, the result of an anemic economy, the lending crisis and growing franchise opportunities in the health and fitness industry, a franchise research group reports.
Frandata’s research database includes 143 full-service brands that have been franchising since 2002. —The rate of growth of new franchised restaurant concepts has slowed dramatically in the past year, the result of an anemic economy, the lending crisis and growing franchise opportunities in the health and fitness industry, a franchise research group reports.
The health and fitness industry is the third most prolific franchised industry, with 134 operations in business since 2002. Only one new franchised concept was debuted in the sector in 2008. —The rate of growth of new franchised restaurant concepts has slowed dramatically in the past year, the result of an anemic economy, the lending crisis and growing franchise opportunities in the health and fitness industry, a franchise research group reports.
Darrell Johnson, president of Frandata, who presented the forecast at the recent Franchise Leadership & Development Conference in Chicago, pointed to the weak economy, the lockdown on lending and investors’ fears as the main factors prohibiting franchise growth in all industries. —The rate of growth of new franchised restaurant concepts has slowed dramatically in the past year, the result of an anemic economy, the lending crisis and growing franchise opportunities in the health and fitness industry, a franchise research group reports.
He projected that franchising growth will remain flat until after 2010, when the federal government’s $700 billion investment to bolster the banking industry and loosen credit is expected to also boost confidence among entrepreneurs and chain operators interested in starting new businesses. —The rate of growth of new franchised restaurant concepts has slowed dramatically in the past year, the result of an anemic economy, the lending crisis and growing franchise opportunities in the health and fitness industry, a franchise research group reports.
But Johnson said he is concerned that the fear provoked by the current economic environment could last far longer than that created by the short-lived recession that followed the terrorist attacks of 2001. —The rate of growth of new franchised restaurant concepts has slowed dramatically in the past year, the result of an anemic economy, the lending crisis and growing franchise opportunities in the health and fitness industry, a franchise research group reports.
“I think we have a crisis in confidence,” he said. “High gasoline prices, war, terrorism attacks, these are shocks whose negative impacts on business and confidence ultimately wither. But we are looking at a fundamental change in the way things used to be done, and it’s all new ground. —The rate of growth of new franchised restaurant concepts has slowed dramatically in the past year, the result of an anemic economy, the lending crisis and growing franchise opportunities in the health and fitness industry, a franchise research group reports.
“We’re in a new reality, looking at things that just don’t seem to have an end or go away or may take some time just to get back to normal. A 30- to 40-percent drop in the stock market can create a confidence crisis of which no one can say when it will recover.” —The rate of growth of new franchised restaurant concepts has slowed dramatically in the past year, the result of an anemic economy, the lending crisis and growing franchise opportunities in the health and fitness industry, a franchise research group reports.
He also predicted a shakeout of mediocre franchisees across all industries that could result in an increase in franchise-related litigation. —The rate of growth of new franchised restaurant concepts has slowed dramatically in the past year, the result of an anemic economy, the lending crisis and growing franchise opportunities in the health and fitness industry, a franchise research group reports.
The so-called “business-related” franchised industry, a broad swath of businesses that include everything from computer repair to home-based accounting services, was the fifth largest franchised industry, with 106 brands franchising since 2002, and opened four new concepts in 2008. —The rate of growth of new franchised restaurant concepts has slowed dramatically in the past year, the result of an anemic economy, the lending crisis and growing franchise opportunities in the health and fitness industry, a franchise research group reports.