U.S. quick-service restaurant chains experiencing slow domestic growth due to tight credit or saturated markets are instead finding opportunities overseas, according to a story in The Wall Street Journal.
For example, Subway has reported double-digit expansion abroad, particularly in Brazil and Central and Eastern Europe. Other hot markets for franchises include India and China, where new middle-class customers are emerging.
Since January 2008, Subway has opened 1,432 locations abroad, 202 more than in the United States. In the past five years, the chain has nearly doubled its overseas presence, to 8,817 stores.
From The Wall Street Journal:
For overseas investors, big U.S. chains are attractive because of their brand recognition and proven profit potential. That, in turn, makes it easier to sell individual franchises in a foreign country. Chains like Subway say a turnkey model helps, too. "We've kept costs and fees low, and our operation very simple," says Don Fertman, Subway's director of development. "It's the type of business that just about anybody can get into."
