CHICAGO -- Many top restaurant chains in both the limited-service and full-service sectors grew their 2007 sales through signing more franchisees instead of relying on same-store sales increases, according to a new report from foodservice consultancy Technomic.
Select findings include:
The Top 400 restaurant franchisees generated $31 billion in sales in 2007, about 8.5% of the total restaurant industry's $364 billion. NPC International, a major franchisee of Pizza Hut, was the largest franchise company in 2007, with sales of $679 million, up 12.9% over 2006. Burger King, Taco [image-nocss] Bell and McDonald's were the restaurant brands most often franchised.Technomic teamed with Restaurant Finance Monitor to produce the Technomic/Restaurant Finance Monitor Top 400 Restaurant Franchise Company Report, featuring Restaurant Finance Monitor's Monitor 200 report, which ranks the 200 leading restaurant franchise companies by sales. In addition, Technomic reports on the Future 200—a ranking of the 201 through 400 leading restaurant franchise companies.
The report covers both major franchisors and leading franchisee organizations.
"Restaurant chains are facing an increasingly challenging environment and higher costs," said Darren Tristano, executive vice president of Technomic Information Services. "Expansion through franchising transfers some of the downside risk of a slowing economy to the franchisees, while the franchisees benefit from managing a restaurant brand that is tried and true both operationally and with its consumer base."
Chicago-based Technomic Information Services provides foodservice industry intelligence, forecasts, data and training support to manufacturers, operators, distributors and others allied to the field. Technomic provides food and foodservice clients with the research, insights and strategic consulting support they need to enhance their business strategies, decisions and results. Its services include category and channel analyses, customer satisfaction studies, opportunity assessments, benchmarking programs and brand equity enhancement.
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