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I'll have a large order of Franchises please! Yum Yum. News&Opinion
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by djermano | July 31, 2008 at 05:14 am
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I'll have a large order of Franchises please! Yum Yum. News&Opinion
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The International Institute of Nonviolence
By Rev. Jermano
I have been thinking of all the great business success stories that are in the United States and how none of that is seen in PR China. China is actually a snapshot photo that represents a couple here and there franchises that are quite successful here in PR China. You can find McDonalds, KFC, Pizza Hut, and in some places Starbucks Coffee, and Walmart. But on the grand scale of things here in China where the population out numbers America's population by a billion plus more people, franchises are really no where to be found.
I am quite astounded to the lack of growth in the area of franchise growth in China. Everything is so focused on Beijing and the Olympics instead of the whole country.
Perhaps this growth will begin after the Olympics has faded off into the sunset. But right now, it seems like I am stuck in the the 1920's here in China. That is if you are outside Beijing and Shanghai, where most of the one billion plus more people live.
In America:
300 New Small Businesses Enter the Franchising Industry
More than 300 companies began franchising for the first time between 2005 and 2006—evidence of franchising’s continued growth since 900 companies started franchising their concepts from 2003 to 2005. The first report in the “Profile of Franchising: 2007” series will appear in the November issue of IFA’s Franchising World magazine. According to the report prepared for the IFA’s Educational Foundation in cooperation with FRANdata Corp., the industry is steadily diversifying in the United States as well. The profile will include four additional reports that expand on the six-part 2006 study.
The first installment of the study determined that there are now more than 3,000 established franchise brands spanning 230 lines of business, particularly outside the food-service category. About 30,000 units were added to the industry, with a noted 4 percent average increase in unit totals overall between 2005 and 2006.
While the fast-food service category still remains the largest in the industry, the services category has gained the most market share. Composed of health and fitness, publications, security and consumer services, this category saw its health and fitness concepts experience the largest spike whereby unit numbers increased by 156 percent between 2000 and 2006. Commercial and residential cleaning concepts still remain the largest segment. Other industries within franchising are also receiving large numbers of new concepts, which verifies the diversified expansion of the industry overall. The only industry to experience a slight decline was retail stores.
For more than 15 years, FRANdata has been a leading authority on trends, analysis and information about the franchising industry. The research firm drew from a database of nearly 3,000 franchise concepts. The remaining three reports from the study will vary depending on the sample size.
In January, the foundation also plans to release the second phase of the “Economic Impact of Franchised Businesses” prepared by PricewaterhouseCoopers to measure jobs, payroll and economic output generated by the franchising industry in the United States. The 2004 edition revealed that there were more than 760,000 franchised establishments creating jobs for more than 18 million Americans and generating more than $1.53 trillion to the U.S. economy.
Whenever I see a McDonalds Restrauant in China it is always busy. There are more people standing waiting to get food from the counter than you can imagine. And KFC is the same way. Where I live in Nanning I have seen 3 McDonalds here serving this city of 6 million plus people. They would do better to have more.
The problem here in China is lack of money. So many people not working with no jobs can not buy stuff to keep business going. This is why I think the franchise business is a boom industry here in China, if it got the investment from the USA.
With the huge competition in the USA and its limited size population in comparison to China, and the said housing and economic doldrums because of the War in Iraq and Afghanistan, I would highly recommend people in the USA to to invest in China with franchises.
The USA is worried that China owns America because of its massive debt financing, I can only see that turn around, when America comes into China and invests in China with its Franchise operations. Granted the currency is about 7 rmb to 1 usd, but considering the volume of sales made, and the jobs it creates for Chinese it becomes a very valuable asset in China. Chinese are able to make more money by working in a foreign owned business.
It is a win win for American Franchise Business, and for China's economy. I look at it as an insurance policy. When things are bad there it is good here, when things are bad here it is good there. It is just a good idea to develop these Franchises here in China. If we have more investment in China, with more stores and money influence, then we have the leverage to make currency adjustments so the Chinese can afford to buy American products.
If we want America to be the leader in the world we need to get American investment in PR China.
With the ability to create more jobs, in PR China, it makes Americans wealthier at home. When American dollars start pouring into China, in means more dollars will pour into the US treasury as the trade deficit is reversed from this trend. More jobs are created to support the franchise development in China and it makes us become the owners of PR China instead.
There are many franchise opportunities to include Arby's, Blimpys, Subway, Little Caesars, and my favorite Burger King. Boy- oh -boy what I wouldn't give for a Whopper Burger that I haven't had in nearly 7 years now. In fact I am trying to see if I myself can open a Burger King Franchise here in Sichuan where they had the earthquake and in Nanning. Here is a link to my favorite Burger King....http://www.qdi.com/burgerking/bkstoreloc.htm at least I can see a picture of my Big Whopper. Better than nothing. I relish the day I can sink my teeth into and smell that delicious first Big Whopper from a Burger King here in Sichuan Province.
http://www.chinadaily.com.cn/bizchina/2006-03/23/content_550462.htm
Burger King opens its first store in Shanghai. http://www.thestandard.com.hk/stdn/std/China/GF28Ad06.html
Hurray......... Burger King......
Most RecentMost Recommended Comments (12)
at 05:25 on July 31st, 2008
djermano, I like this story. It's good stuff.
It is an interesting story, yet I for one do not favour Franchises nor Wallmart or the likes, it is a form of exploitation and slavery that is not desirable!
Hope China wont embrace Franchises as the US did! Family businesses and so on are far better and care much more for the community and the workers as well!
at 05:39 on July 31st, 2008
Thanks Paschen, you know the idea of having a franchise is not a bad one, when a family owns and operates it. As long as the owners of the business idea allow families to do the work the store can be a very valuable community based restaurant. There is a huge demand for jobs in China and gearing China up to the developed stage. China is as large as the USA but has less than 1/4 of the business saavy and operating functions society embraces. They are still quite primative in fact. Image sitting in a close quartered alley sucking down noodles, on a hot day. It not only smells bad and hot, but it makes people unhappy. America needs only to come in to make an investment to make China better instead of always complaining about it. Now if I can find some money, I would open a Burger King myself and have my family work with me there. I Hope some Burger King Officials will come support me to open the business, with the knowledge they will make very good profits with me.
at 06:02 on July 31st, 2008
We used to have a McDonalds Restaurant as an investment and you can not own the thing, the Land will always belong to the Franchise licence not to the Franchise owner, then they ask for 17% or more of the gross Revenue and always have that pressure since they can kick you of the land even though you own building and material! Still having to pay high franchise fees and are not even allowed to make any changes even if those would make sense and help the business! You cannot even buy the fridge you want, you have to buy from them and only from them even if their fridges are a piece of junk. Franchise are nothing but trouble and modern slavery!
The franchise head office will even dictate the Price you have to ask and make this one so low in order to push all the other businesses out that you wont make any money any more! Yet you have a contract and have invested and now you are their slave!
at 06:12 on July 31st, 2008
Thanks Paschen for your interest and information. I can agree with you on this in America, but in China no business can own the land. They can only rent the land from the government in China. The land belongs to all the people, so people can not own land in China. They can only rent it. The rules are different in China. Perhaps getting into the right franchise is the order of the day, because I am sure not all franchises are the same.
at 06:06 on July 31st, 2008
That is true Zichi. My wife who is chinese always tells me not to go eat in a restaurant when there are no people inside, because she says it means the food is not good tasting. But then I see a busy place with needing to wait to be served, and then no table to sit at quite inconvenient, so naturally I want to go into the place where there are no people. I think to myself it can't be that bad tasting, and to have instant service and no people bumping into me or thinking they might run off with my bag when I'm not looking is a welcome relief to me to go into. I now try to find places that have some people but not a lot of people so my wife can't say that to me. But I don't know that from an American restaurant, because they are always full of people in China. She likes McDonalds. Now if I could get a Burger King...That would be something.
at 08:17 on July 31st, 2008
djermano, I like this story. It's good stuff.
at 17:13 on July 31st, 2008
Thanks Azzayindia. Now if we can get President Bush and McCain or Obama and Hillary and others to start talking about Hamburgers and opening stores in Earthquake Zone Sichuan instead of threatening people with bombs and this crap about terrorism, then maybe we will have enough burgers for all the little kids. Better to drop burgers in Afghanistan than kill innocent kids. I see it coming the EARTHQUAKE BURGER, A frosty cool vanilla shake, and some Fries. We need to get the China leadership to accept our offer for investment into China to help the people.
Get them to realize that shipping goods from China to the USA is not really helping Chinese and the China economy. They need American investment in China and to help build a big China economy with American firms. This means good paying jobs to Chinese and Americans.
at 17:09 on July 31st, 2008
djermano, I like this story. It's good stuff.
at 17:23 on July 31st, 2008
Thanks PEP, for the flag. I just hope this catches the eye of many people who have money to invest and do something. Here in China there needs to be much much more investment. The people here need it. What better way to show human concern to China by bringing in investment into Sichuan. Do American's know how much gas potential is in Sichuan? Why don't we solicit to invest in areas in China for gas and Oil? The same with Russia. Why can't America get Oil wells in Russia? You know we threaten people for resources instead of being up front and telling it truthfully that we have the best technology and the quickest means to deliver aid to people around the world.
Ditch the guns and bullets. It is a ball and chain. Break the hold of militarism and be a human being and begin building our fabulous world. It is a wonderful world, not a sad, fearful existence. We only live so long, so let's be happy and help each other. Our business and control of everything is what hurts us as a people. Stop controlling freedom President Bush and perhaps you will discover what you have always wanted... real freedom.
at 17:38 on July 31st, 2008
Pep is there a reason you don't accept messages?
at 17:25 on July 31st, 2008
djermano, very interesting piece. Sounds like a good opportunity for Canadian franchises, too. Swiss Chalet, Nanjing, anyone?
at 17:36 on July 31st, 2008
Thanks julianw again Thanks Guy; I am trying to change American politics. Get people to stop the Violence. Get people to support bad places in a friendly way. Get investment into China for American firms. Reverse the trade gap. Create jobs for Chinese means jobs for Americans. There is lots of places to make China better. China likes Americans. All we need to do is go and get it, and make it America too. Get beyond the greed, get beyond the bullets, threats, and worries. We can make a better world, because it is our destiny to do. Hope you see the better wisdom to this. Thanks again .