A weekly roundup of franchise news and notes. We hope you enjoy it.
Yum! Brands Goes International
Did you know that Yum! Brands gets 70% of its profits from outside the United States? It’s true!
David Novak recently interviewed with USA Today, and while the brand that brought you Taco Bell and KFC is doing well domestically and is targeting 5% growth in the near future, it’s overseas where it really makes its mark. The company does huge business abroad, especially in Japan, where KFC is a huge part of daily life for many.
There’s a compelling argument here for taking franchises worldwide. Subway does well in Europe, for example, and McDonald’s is truly global in every sense of the word. Just because you’re an American brand doesn’t mean you can’t do well across the world.
Of Boomers And Restaurants
Baby Boomers buy a lot of food from restaurants. In fact, about 70% of America’s wealth is tied up in that generation. That’s a staggering number.
What do these middle-aged folks get for their trouble? Not an awful lot of recognition from restaurants, QSR Web suggests, which might be the most surprising thing of all.
Intuitively we know this. Commercials and marketing tend to revolve around perky young people or seniors, with Boomers getting the short shrift. What QSR argues for is overcoming any pre-conceived ideas about Boomers and their spending habits and targeting them. It’s not like you’ll have a ton of competition:
People in this age group are working, spending more time outside the home, and definitely cooking fewer meals. They have more disposable income, and spend it on themselves. Restaurant occasions are integral to their lifestyle, no longer unusual or special. Most of them get excited about new restaurants opening in the neighborhood, and are willing to try new tastes offered by their favorite places.
If you have the ability to, consider tailoring your message to the Boomers. You may just find success.
Financing And Equipment
Yesterday, we looked at why equipment financing is a good idea if you’re looking for an upgrade at your franchise location. We hope you’ll give it a read.
If you have suggestions for future editions, feel free to leave them in the comments!