Restaurant Franchisors Converted Corporate-Owned Units to Franchised Stores in 2009, Says Technomic

CHICAGO--()--An updated report from foodservice consultants Technomic found that many top restaurant franchisors reduced corporate ownership of retail units in 2008 by converting them to franchisee locations. Top chains doing so included DineEquity, owner of Applebee’s, and Yum! Brands, owner of Pizza Hut and KFC.

Franchisors also offered their franchisees enhanced credit support and easier terms. Some chains reduced or waived franchise, marketing and store-opening fees, offered small loans and payment deferrals, and temporarily reduced royalty rates as incentives to encourage successful franchisees to purchase additional locations during the credit crunch.

“The shift toward a heavily franchised business model presents new opportunities for suppliers,” says Darren Tristano, EVP at Technomic. “Strong, successful franchisees will be expanding their market presence and growing sales by acquiring formerly corporate-owned units. Suppliers who focus on building and strengthening their relationships with these franchisors can participate in that growth.”

These and other findings are detailed in the 2009 Technomic/Restaurant Finance Monitor Top 400 Restaurant Franchise Company Report, a joint product of Technomic and Restaurant Finance Monitor. It features Restaurant Finance Monitor’s Monitor 200, which ranks the 200 leading restaurant franchise companies by sales. In addition, Technomic reports on the Future 200—a ranking of the 201 through 400 leading restaurant franchise companies. Select findings include:

  • The Top 400 restaurant franchisees generated $31.4 billion in sales in 2008, which accounted for 8.6 percent of the total restaurant industry’s $365.6 billion.
  • Pizza Hut had the most franchised units within the Top 400 companies with 3,627, followed by Burger King and Taco Bell, with 2,758 and 2,391 units respectively. Among full-service restaurants franchisors Applebee’s had the most franchised units at 1,423.
  • NPC International was the largest franchise company in 2008. A major franchisee of Pizza Hut, NPC had sales of $690 million, up 1.5 percent over 2007.

The 2009 Technomic/Restaurant Finance Monitor Top 400 Restaurant Franchise Company Report covers both major franchisors and leading franchisee organizations. It will help operators identify the leading restaurant franchise companies; discover the brands behind the Top 400 franchise companies; understand where franchising opportunities exist within restaurant brands; benchmark sales, units and growth against the Top 200; and benchmark units and growth against the Future 200 companies.

The report’s comprehensive appendices sort the Top 400 companies alphabetically and offer concept breakdowns by franchise company and brand, region(s) of company operations, and selected franchise cost-structure analysis for leading restaurant brands. A complete listing of franchise company contact information is also included.

To purchase or learn more about the 2009 Technomic/Restaurant Finance Monitor Top 400 Restaurant Franchise Company Report, please visit www.foodpubs.com or contact one of the individuals listed below.

About Technomic, Inc.

Technomic provides clients throughout North America with the facts, insights and consulting support they need to enhance their business strategies, decisions and results. Its services include numerous publications and digital products, as well as proprietary studies and ongoing research on all aspects of the food industry.

www.technomic.com

About Restaurant Finance Monitor

Published monthly, the Restaurant Finance Monitor provides its readers with an in-depth analysis of the restaurant financing marketplace—the most complete understanding of financing markets that one can find anywhere in the restaurant industry. The Monitor is read by growth-minded CEOs and CFOs, as well as VPs of development and franchising.

www.restfinance.com

Contacts

Technomic, Inc.
Press Inquiries:
Darren Tristano, 312-506-3850
or dtristano@technomic.com
Purchasing Details:
Chris Urban, 312-506-3929
or curban@technomic.com
Report Details:
Naomi Van Til, 312-506-3844
or nvantil@technomic.com
Restaurant Finance Monitor:
Jonathan Maze, 612-767-3209
or jmaze@franchisetimes.com

Contacts

Technomic, Inc.
Press Inquiries:
Darren Tristano, 312-506-3850
or dtristano@technomic.com
Purchasing Details:
Chris Urban, 312-506-3929
or curban@technomic.com
Report Details:
Naomi Van Til, 312-506-3844
or nvantil@technomic.com
Restaurant Finance Monitor:
Jonathan Maze, 612-767-3209
or jmaze@franchisetimes.com