FRANCHISING AS MARKETING TECHNOLOGY FOR PROMOTING DEVELOPMENT AND STABILITY OF RESTAURANT BUSINESS

PDF (Українська)

Keywords

franchising
franchisor
franchisee
franchise
restaurant business
marketing analysis
franchising trends in restaurant business

How to Cite

Vovchanska, O. M., & Ivanova, L. O. (2018). FRANCHISING AS MARKETING TECHNOLOGY FOR PROMOTING DEVELOPMENT AND STABILITY OF RESTAURANT BUSINESS. Entrepreneurship and Trade, (23), 130-136. https://doi.org/10.36477/2522-1256-2018-23-22

Abstract

The article is devoted to the specifics and modern trends of franchising development in the restaurant business. The advantages and disadvantages of restaurant business on the franchise basis were revealed. The marketing analysis of franchising in Ukraine in 2007-2017 was conducted and determined that in the structure of franchising 56,3% belongs to foreign franchising companies operating in the segment of fast food restaurants, 13,1% are full-service restaurants. Among all the franchises presented on the Ukrainian market, about 40% of the offers are in the restaurant business, the most popular of which are compact restaurants such as coffee shops, bakeries, street and fast food, usually working in middle and lower price segments. The primary reasons for the closing of restaurant businesses operating under the franchise system are unsatisfactory location (low visitor traffic), lack of control over personnel and finances, unwillingness and inability of the owner to solve current problems of the restaurant business. In the near future, we shall expect the wave of mergers and acquisitions caused by the entry of powerful international franchising companies into the market, which will focus on the most attractive locations. Apart from this dominant factor, such trends will be of the high importance in the restaurant business, as those specializing in mono products, vegetarian cuisine, take-away breakfasts and others. The high level of competition among franchises in the restaurant business contributes to the creation and development of new projects related to the promotion of a unique brand, attracting and retaining consumers. The market will continue to see the development of new formats of franchise companies, greater transparency of franchisors and franchisees towards their consumers, active development of fast-casual formats, and menu expansion in fast food restaurants. It is noted that the development and deepening of certain trends may lead to innovative changes in one of the most significant areas of the franchising market.

https://doi.org/10.36477/2522-1256-2018-23-22
PDF (Українська)

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