MINNEAPOLIS -- Three convenience-store chains7-Eleven, Circle K and ampmare among the 2007 Top 200 Franchise Systems as rated by Franchise Times magazine.
Based on worldwide sales, 7-Eleven was ranked No. 2 with $38.4 billion in sales ($6.3 billion for domestic units), Circle K No. 10 with $8 billion ($3 billion domestic) and ampm No. 39 with $2.7 billion ($1.2 billion domestic). McDonald's topped the list with $56.8 billion in sales ($13.8 billion domestic).
"BP is honored that ampm is included in the Top 200, said Fiona [image-nocss] MacLeod, BP's president of convenience retail, U.S. and Latin America. "The brand is successful in the western U.S. and internationally, and we are building on that by introducing an ampm-branded franchise in the eastern U.S. Extending the ampm brand presence will add to the 30-year success the brand enjoys in the western U.S., where 96% of West Coast consumers are familiar with the brand."
The ampm rollout in the East, as previously reported by CSP Daily News, will begin with the introduction of ampm sites in the Atlanta and Chicago marketing areas starting this November. "We see great growth potential in the future," MacLeod said. "We intend to climb even higher in the Franchise Times ranking."
The companies in the Top 200 managed collective worldwide sales of nearly $445 billion, a 6.4% increase over 2005, according to Franchise Times. The Top 200 retains 184 companies from last year, 81 of which improved their ranking along with 18 that held pat and 85 that edged down. 7-Eleven maintained its rank from last year, while Circle K moved up one notch from 11, and ampm dropped from No. 28 in last year's ranking.
In terms of industry representation on the Top 200, restaurants again reign supreme. Despite the myriad problems faced by the casual dining sector last year, the 71 Top 200 restaurant chains accounted for $188 billion in sales, a 7% increase over 2005, according to the Minneapolis-based magazine.
The quick-service sector can take credit for much of the increase in restaurant sales, benefiting as it has from consumer anxiety, in addition to rapid international expansion. McDonald's reported systemwide sales growth of 7% across the globe in 2006, and Yum! Brands' KFC chain (No. 4) expanded heavily across India and China. A total of 17 fast-food companies on the ranking had sales in excess of $1 billion last year.
While restaurants generated the most sales, the 41 hotel chains on the Top 200with a combined 20,000 domestic and 4,000 international locationsgenerated the most sales growth. Smith Travel Research estimates that domestic hotels managed to raise rates 7.4% on average last year, at nearly twice the rate of inflation. This helped the industry to grow domestic revenues to just under $100 billion last year despite occupancy rates that were essentially flat.
The ranking's retail companies managed collective sales of $76 billion last year led by 7-Eleven, operator of some 25,000 international convenience stores. Five retail chains on the rankingAce Hardware, Matco Tools, The Athlete's Foot, Cartridge World and Play It Again Sportsboast 100% franchised systems.
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