Franchised fast food brands: An empirical study of factors influencing growth

Abstract

Orientation: Franchising is a popular and multifaceted business arrangement that captures a sizeable portion of the restaurant industry worldwide. Research purpose: The study empirically investigated the influence of various site location and branding factors on the growth of franchised fast food restaurant brands across the greater Gauteng region. Motivation of the study: Researching which factors influence the growth of franchised fast food restaurant brands is important for an emerging market context such as South Africa when considering the marked increase in the consumption of fast foods. Design: A sample of 140 customers was surveyed from 12 leading franchised fast food outlets. Primary data were collected for various items representing site location and brand factors. Regression analysis was used to test the hypotheses. Findings: The overall findings showed that convenience and central facilities of a retail location are positively and significantly associated with the growth of the franchise fast food outlet. Practical implications: The study findings have implications for practitioners who need to take into account which factors influence revenue growth, since targeted interventions may be required to implement sustainable strategies by franchisors. Contribution: The findings may serve as a catalyst for this growing and important activity in South Africa and other emerging markets.