Archive for the ‘Finance’ Category

DUNKIN DONUTS: Time to Sue the Franchisees!

In these tough economic times Dunkin Donuts is suing franchisees to make ends meet? Meal Assembly owners should take heed. There’s a couple of brands out there which might take this idea to heart.

Is Dunkin’ Donuts aggressively litigating its own franchisees for profit?

That’s the claim being made by franchisee attorney Robert Zarco, who states “By far and away, Dunkin’ is the most litigious brand out there.”

DUNKIN DONUTS: Time to Sue the Franchisees!
DUNKIN DONUTS Franchisees Band Together

Credit crunch hijacks hopes for would-be franchise owners

The allure of owning a business, combined with the security of working with an established corporation, has for years made franchising a popular choice for budding entrepreneurs.

But for some, the recession is quashing that particular aspect of the American dream.

Despite perceived security, “research has shown the failure rate of franchises is not necessarily lower than regular businesses,” said Ilan Alon, a professor of international business at Rollins College who has written several books on franchises.

Credit crunch hijacks hopes for would-be franchise owners

Economy Continues to Take Toll on Restaurant Industry

Restaurant traffic, still feeling the impact of rising unemployment and cost-saving consumers, declined in the spring quarter ending May 2009, according to the NPD Group, a market research company. NPD’s Consumer Reports on Eating Share Trends (CREST) reported that total restaurant industry traffic declined by 2.6 percent over the same quarter last year. It is the sharpest decline in industry traffic since 1981.

Economy Continues to Take Toll on Restaurant Industry

Show me the money!

So the small survey reveals that most owners aren’t actually making any money from their stores. Most owners aren’t even breaking $10k a year, which if you calculate that out comes to around $30 a day. With minimum wage being $6.55 you could work one day a week for 5 hours and make more money than a meal assembly kitchen brings in. A part-time job would allow you to double or even triple the income the MA store brings in.

Plus how much stress and losing your mind do you think there is in working one day a week for 5-6 hours? If you wanted to pace yourself you could do dog sitting for 3 days out of the week and make more money.

For those in this group what are your plans for summer? Are most owners planning to just bite down and push through the summer and see how things turn out? Or are there strategic retreats in the making?

NRA Predicts October Rebound for Industry

I view this sentiment with quite a bit of skepticism. Considering that stalwart companies like Sony and Panasonic just released multi-billion dollar loses, Chrysler is dropping a few thousand franchises from their ranks, gas prices are starting to climb back up and I’m not sure I’ve seen any real signs that unemployment is slowing either. I think it might be a touch to early to say we’re at the bottom of the cycle. It’d be great if it were, but there seem to be far more indicators that there’s more to come than it’s almost over.

October is still a way off so here’s to hoping.

According to Hudson Riehle, the National Restaurant Association’s senior vice president of research and information, there are signs the industry has reached “the bottom of the cycle.”

NRA Predicts October Rebound for Industry

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