U.S. restaurant chains turn attention to consumers abroad
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A woman looks at a poster offering a half-priced bacon and lettuce hamburger -- from $3.20 to $1.60 dollars -- during a monthly discount at a McDonald's restaurant in downtown Tokyo
There's an Applebee's in Athens; a Papa John's pizzeria in Karachi, Pakistan; two Ruby Tuesdays in Bucharest; a Denny's in Christchurch, New Zealand; a Chili's Grill & Bar on a riverboat on the Egyptian Nile. And always there are the seemingly ubiquitous outposts of McDonald's, Domino's and KFCs that keep popping up, like tourists on holiday, wherever one goes.
As the restaurant industry in the U.S. turns increasingly dour, major brands are turning their attention abroad, where business remains relatively robust and growing middle classes are creating large pools of consumers eager to taste affordable American-style fare.
Not only do the companies encounter less competition there than in the U.S., but newly arrived brands also typically enjoy a novelty aura that attracts the curious. Finally, many franchisers sell operating rights to local
Not only do the companies encounter less competition there than in the U.S., but newly arrived brands also typically enjoy a novelty aura that attracts the curious. Finally, many franchisers sell operating rights to local
businesspeople, who assume responsibility for the restaurants day to day and send royalty payments back to the chains' home offices, often giving the corporate owners a superior return on their investment.
"Trends continue to be in our favor," says McDonald's Corp. President Ralph Alvarez. "We're growing (abroad) because demand exceeds our supply."
Many investors in McDonald's and multi-fast-food giant Yum Brands Inc. are holding those stocks precisely because of the perceived opportunities overseas.
Many investors in McDonald's and multi-fast-food giant Yum Brands Inc. are holding those stocks precisely because of the perceived opportunities overseas.
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