Sorry for bumping, but the issue that you have raised is a genuine problem for any franchisee investor. I am trying to build a case around different scenarios:
- If they cancel the franchisee, they disrupt their market share as there will be turmoil among suppliers, employees.
- How can they get other stores in same location(largest outside US) even if they do how will they create a delivery network.
- Company like Tata, Adani know that QSR is a low margin business where efficiencies play out over very long term like 10-15 years and it is easier to buy the franchisee player or develop a new category (like Vada Pav), like starbucks.
- All said and above they still have to get the local taste right, then pamper to the local government authorities(food control, trade licence etc.). In addition they take the liability if any untoward things happen(food poisoning etc.), which is a huge risk for an international company.
If I were the CEO then I would rather chase growth through new markets, new categories or new products rather than go through hell and then be accountable if anything in the line goes bad.
Thanks for the question as it made me think.
| Subscribe To Our Free Newsletter |
