Technomic: Franchising Key To Sales Growth

QSR Web:

A new report from foodservice consultants Technomic found that many top restaurant chains grew their 2007 sales through signing more franchisees, instead of relying on same-store sales increases. This held true for both limited-service and full-service sectors.

“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.”

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.