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Fast food firms revealing record profits thanks to franchises 18-03-2009
   

One business sector is booming in the recession – and the driving force behind this success is an army of hard-working franchisees.

Fast-food firms are revealing record profits and increased sales as hard-pressed people turn their backs on costly restaurant meals and opt for good value, fun food.

Sales figures for pizza delivery firm Domino’s in January – traditionally the slowest month in the restaurant trade – showed an increase of 15 per cent.

Crunch

McDonald’s said sales increased by 7.6 per cent in the final quarter of 2008, despite the credit crunch.

Sandwich chain Subway has announced plans to open 600 new stores in the UK and Ireland, creating 7,000 jobs, and fried chicken chain KFC is investing up to £150m to open up to 300 more restaurants, with 9,000 new jobs.

They all have one thing in common – the bulk of their branches are run by franchisees.

Typical is Atul Pathak, who opened his first McDonald’s franchise in north-west London in 2003. “I used to run a hotel in Paddington where McDonald’s staff stayed,” he said. “I realised the company was run differently than other businesses so did some more research and realised they offered a great opportunity.”

He became a franchisee, first spending nine months getting to know the business by scrubbing floors and cooking burgers. “The big difference between a good franchise and running your own business is the great support structure.

“I’m an entrepreneur but my entrepreneurial skills have not been frustrated by McDonalds.”

That’s proven by the fact that six years after opening his first franchise he now runs 15 branches, employing 900 workers and turning over £20million.

“No business is recession-proof but ones that offer value for money while maintaining quality are seeing growth,” said Atul.

He’ll pass on some of the lessons he’s learnt about making a success of a franchise at the British & International Franchise Exhibition, at Olympia London on March 20 -21.

 
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