OUR CONSUMPTION, THEIR GAIN
In Pakistan, the culture of food expanded from just desi cuisine to more western flavours when American and other European franchises started opening up in the last 90s. Steadily we have seen our local businesses competing with the international food chains.
Here are some interesting facts on some of our favourite franchise eateries and how their sales have increased and decreased globally.
McDonald’s remains on the top of the 2016 statistics charts with Franchise Times with $2.3 billion surge in its sales the previous year. Wendy, another brand which does not have its franchise here in Pakistan yet, had sales of $43 million but still failed to compete with sales of its rivals and lost its place in the top 10 franchise of USA. Domino’s Pizza, however, became the 9th largest U.S based franchise.
When businesses in their home country reach a saturation point, they start to expand in the global markets generating bigger sales. However, Subway and Pizza Hut saw sales declines globally in 2016. Subway’s global sales declined by 0.6 percent which is around $ 100 million! Pizza Hut’s sales dropped to two tenths of a percent. Both franchises however, retain their position in the top 10 US based franchise list.
McDonald’s retains its top spot in the Franchise Times with a 2.8 percent gain in sales. The fast food chain has over 36,899 units which makes it the 3rd largest by unit size. The other fast food chains, KFC and Burger King hold their position at number 3 and number 4 respectively in accordance with their annual sales globally.
The Franchise Times lists franchises of all kinds around the world with their base in US. The top companies that make it to the charts are non food businesses as well. Some of their names we are familiar with – 7 Eleven, Ace Hardwares, Marriott Hotels and Resorts, and also some fitness brands.
In 2016, the top 200 franchises set up 926 units only in USA that gave only a 0.3 percent increase in sales. However, some 11, 124 news locations opened up outside of the US giving a boost of 6 percent.
Now just imagine the revenue generation of these giant names, their international expansion, unit set ups globally, their sales profits, and on top it all our consumption!