Tuesday, October 29, 2013

How to make profits soaring when revenues tumble?

How to make profits soaring when revenues tumble?

Burger King refranchised 519 restaurants during the past year.
Refranchising is the process of selling company-owned stores back to franchisees.
Wendy's began refranchising 425 stores this past summer amid something of a recovery by turning around its operations and generating profits from losses in the year-ago period.
Although revenues take a hit initially, the concept reduces the parent company's overhead while providing it a generally stable stream of income. But it's a delicate balance, as strong operators need to be installed so that you don't end up with a drag on overall performance.

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