Monday, March 22, 2010

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.

1 comment:

  1. Restaurant franchise is the better option to expand the business using the company's logo, products etc but the main problem in this franchise is food poisoning. So this issue will make your franchise poor and wrong.

    what are the disadvantages of franchising

    ReplyDelete