Fast-Food Franchises are Recession-Proof
Thursday, June 25, 2009 at 5:31PM
Not only are fast-food franchises recession-proof, they actually perform better during lean economic times it seems.
Fast food sales have grown during the last 18 months as people, fearful of shrinking incomes, are eschewing even mid-priced eateries in favour of fried chicken, burgers, pizzas, sub sandwiches and other budget takeaway options.
Fast food prices are often lower even than the sum cost of a home-cooked meal's ingredients.
And franchises, benefiting from bulk buying, can offer even more competitive prices than their non-franchised rivals.
It’s well documented – as evidenced by Cadbury’s recent sales boost – that people covet comfort foods even more during times of adversity.
Not that the health concerns of recent years have suddenly disappeared.
But famous names like McDonald's and Subway have proven as responsive to the concerns of customers as you’d expect from such accomplished players.


