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.
Tuesday, October 29, 2013
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