Truemors
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.
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 wouildn'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 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 Nanning.
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......
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