Disadvantages of Franchise Restaurants

Despite the fact that there are many advantages and benefits to opening up a franchise restaurant in the United States or other country in the world, there are also disadvantages for society and its economy. There are customers out there who love going to these franchise restaurants because of the consistency and efficiency of the businesses, but they don’t always realize the impact they are causing on the rest of the world.

From the owner’s viewpoint, they are often required to give a portion of their profit from their individual restaurants back to the company. This keeps the corporate part of the company strong and in control of the franchise restaurants. These payments can many times be much more than is actually needed, causing the store owners to be more sparing with their products, and possibly not giving the customer the proper proportions. Store owners and workers also have to follow the rules and guidelines of the company rather than operating their business on their own. Even if there is a policy that the owner or employees don’t agree with, they still have to comply so there is no risk of being fired or closing of the store.

Because of the fact that these franchise restaurants are chains and can be found all over the nation, if something negative comes up in the news about the company, it can affect the business of all the restaurants, even if they had nothing to do with the issue. For example, food poisoning and other food related illnesses can be a big problem because the whole franchise is supplied with products from the same company. The chance of spreading diseases and bacteria increases even more when products are shipped to international countries because the supplies go through so many different areas and transportation routes.

Another important issue with franchise restaurants is where they get their food from. Since the suppliers have to provide thousands of restaurants with the same type of food, this means that they need to find farms that can produce these large amounts of food. Farms or companies who grow and produce the food often don’t follow the ideal working or growing conditions. Their main goal is to make the largest profit they can, and to do this, some companies will go to major extremes. When producing meat, the poultry or cows on the farms are many times fed hormones and bred to be bulky and mature fast so that they can be killed and made into food. As for vegetables and other plants, they are genetically engineered and given inorganic pesticides to ensure that the farmer can produce a large crop. If these practices continue, it could ruin the way our animals and produce develop in the future and could possibly cause many global problems. Overall, our society shouldn’t be so obsessed with money because it causes us to forget about all the good things our world provides for us.

Sources:
Food, Inc.
Franchising
Advantages and Disadvantages

Click HERE to open the feedback tool.

benefits of the globalization of franchises

As history and our society clearly shows, the globalization of franchises is very successful. What causes these companies to profit so easily from consumers? And what benefits are there to having chain franchises all over the world? One of the main reasons why they are so profitable is that their business structure is focused around having consistent performance standards that aim to provide the customer with the service they need every time they visit any one of the company’s store or restaurant. For example, when you walk into a McDonalds, you always expect their dollar menu, trademarked McFlurries, fries and burgers, and of course the popular Happy Meals. Along with the food, you know that the service will be quick and easy so you can get your meal and go on your way. With some variations, this is basically what all fast food restaurants aim towards, because they know it is what the customer wants.
Another reason why franchises have become so popular is the simple fact that they can be found all over the world. When tourists are in an unfamiliar city, especially when the culture is different from their home town, they may feel uncomfortable with trying new foods. Luckily for them, in most major cities, it is still possible to find a fast food chain that also has restaurants back where they are from. The Subway franchise has about 32,500 restaurants, in 91 countries! McDonalds, also has about 31,000 restaurants in 118 countries! Out of 193 countries in the world, McDonalds and Subway restaurants can be found in roughly every other one. These types of trends are sought after for other franchises as well. Our society responds positively to there being so many franchise chains in the world, so the companies will continue to build them.
Opening up a franchise is becoming easier every year. Basically all you need is a business plan, money (most times a loan from the bank), and a place to put the restaurant. With the American economy not doing very well, many people are losing their jobs and finding it hard to get a new one. I believe this has lead to more franchise restaurants opening because it can be so profitable. There are tons of success stories out there of regular businessmen making a lot of money from opening up a restaurant, and other people like this idea since the main goal in our society is to make money. When opening up a franchise, the owners never have to worry about getting their name out to the public like they would if they started up their own type of restaurant. This helps incredibly with increasing business. Along with the name, the suppliers, products, training programs, and basic look of the store is already provided, which also makes the start up go much smoother. For these reasons, the globalization of these popular franchise restaurants has “exploded” very fast.















Sources:
Subway
McDonald's
Franchising and Globalization
Benefits of Owning a Franchise
picture:
McDonald's Across the World

Click HERE to open the feedback tool.