Franchises Eye Growth in 2010

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ATLANTA—Casual-dining and quick-service franchisees report optimism regarding 2010 restaurant sales and many are making plans to open more units next year, according to a recent survey of some of the largest U.S. franchise operators representing nearly 5,000 restaurants.

As reported by Nation’s Restaurant News, the results are turnabout from the prevailing trends of 2009, when sales fell and large franchised systems were weakened by unit closures, bankruptcies and slowed or halted expansion plans, mostly because of the macro-economic environment and the lending lockdown that was so prevalent this year.

According to the survey, almost half of the franchisees responding to the survey are targeting 2010 same-restaurant sales to be flat to up year-over- year. Casual-dining franchisees anticipate same-store sales to hit a range of between negative 2 percent and positive 2 percent.

Among surveyed franchisees anticipating above-average same-store sales growth in 2010 were McDonald’s, Papa John’s and Popeyes. Sales gains likely will be driven by lower-priced menu items or discounting.

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