Restaurant Franchises to Advertise in More Local Markets

By any measure, the recent recession was unkind to the restaurant industry as thousands of businesses closed their doors. This sector may be poised for recovery as more franchisors note that operators are opening new outlets across the country. This growth in restaurant unit count  means more ad money will be spent in the local market, too.

Technomic’s 2012 Top 400 Restaurant Franchise Company Report indicates that more restaurants chains are fueling growth by using the franchise model. Financing is easier to obtain because of improved credit markets and prime locations are available in malls and on main streets because of the recent closure of other businesses. According to EVP Darren Tristano at Technomic, the climate is especially favorable for new fast-​casual and quick-​service units to open because of “lower costs of entry and strong unit economic models."  Potential restaurant owners may feel that having the support from a proven operator and the recognition of an established brand will help them succeed.

Top industry performers include Pizza Hut, McDonald’s, Subway and Burger King. But regardless of which franchises set up in the local market, they will likely spend big money on grand opening advertising. In addition, franchisees are often required to continue advertising in the local market as part of their agreement with the parent company and in many cases, they have access to approved ad copy and videos.

[Source: Franchising Driving Restaurant Growth. Technomic​.com. 17 Sept. 2012. Web. 25 Sept. 2012] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.