FRANCHISING AS A FORM OF RESTAURANT BUSINESS INTERNATIONALIZATION: A WORLD EXPERIENCE
Abstract
The level of franchising activities in Ukraine and internationally has been investigated and analyzed in this article. It has been reflected that at the present stage of the development of world economic relations, franchising is a form of internationalization of business. The essence of the IFA business index has been analyzed. The dynamics of global franchisees based on the grouping of franchisees in 10 broad lines of business, such as: cars, business services, commercial and residential services, housing, personal services, fast food restaurants, real estate, retail food, retail goods and services, original service have been developed and characterized in this paper. The number of franchisees, level of employment in franchising, production of franchising enterprises and GDP of franchising industry for the period 2014-2018 have been analyzed. Business leaders have identified fast-food restaurants as the largest category, accounting for 26% of all franchise businesses, and accounting for 46% of franchise employment. This line of business is expected to account for 34% of total output in 2019. The second largest number of establishments is the personal services line, which is 15% of the total, however, these are smaller companies. The personal services group accounts for only 6% of franchise employment and 5% of output. The full-service restaurant group occupies the second largest share of employment, accounting for 13% of the total. The business services segment, which has higher production ratios per enterprise and per employee, is the second largest product value in the franchise sector, accounting for 14% of the total. The top 5 franchises in the restaurant business in the world have been analyzed: Subway, Pizza Hut, Auntie Anne's Hand-Rolled Soft Pretzels, KFC, McDonald's. The features, quantity and cost of franchises of these establishments have been distinguished. Conclusions have been made regarding the prospects for the development of the franchising activity of the restaurant business. Further areas of research have been identified regarding the development of franchising activities in Ukraine.
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