Franchise Royalties

WHY FOOD COURTS GIVE MANY FRANCHISE OPERATORS INDIGESTION - FRANCHISE OPERATOR VERSUS FOOD COURT MANAGEMENT

Published in the Carolsonreport,March 1993

There is an old axiom in the food business that says that strong sales cure all. However, there are times when that is not entirely true. In the last several years, declining customer traffic and frugal shoppers have put this axiom to the test. Surprisingly, few have been tested more than the franchisee of a major franchise food company. Nationally known franchise units, with instant recognition, appear to be excellent for food courts. What you may not know is that flat or declining sales affect them more than the other non-franchise units, even if they have high sales levels. Many of our franchise clients are frustrated with food courts, while our mall clients are upset with franchise operator's menu changes. What is the cause of this deteriorating relationship?

Syndicate content