Franchising Important for Sales Growth

By FES Staff -- Foodservice Equipment & Supplies, 7/30/2008 11:21:00 AM

Many top restaurant chains grew their 2007 sales through signing more franchisees, instead of relying on same-store sales increases, according to a report published by Technomic, a Chicago-based research firm. This held true for both limited-service and full-service sectors.

The top 400 restaurant franchisees generated $31 billion in sales in 2007, about 8.5 percent of the total restaurant industry’s $364 billion. NPC International, a major franchisee of Pizza Hut, was the largest franchise company that year, with sales of $679 million, up 12.9 percent since 2006. 

Burger King, Taco Bell and McDonald’s were the restaurant brands that franchised the most, according to the study.