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Article Information:
Title:
A note on applying retail location models in franchise systems: a view from the trenches
Author(s):
Kenneth C. Schneider, James C. Johnson, Bradley J. Sleeper, William C. Rodgers
Journal:
Year:
1998
Volume:
Issue:
Page:
290 - 296
ISSN:
0736-3761
DOI:
10.1108/07363769810219152
Publisher:
MCB UP Ltd
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Abstract:
Asserts that the domestic fast food industry is undergoing a transition from growth to maturity. As a result, companies are fending off a flattening sales curve by looking abroad, searching out new target markets, crowding the market with more units. One form of assistance involves the development of mathematical models capable of determining “best” new locations. Using results from a recent survey of franchise owners in the fast food industry, reactions to methods by which franchisees are compensated for encroachment by the franchisor in the context of mathematical location modelling are discussed. In general, franchisees expressed displeasure with the manner by which location models are applied to franchise systems to date.
Keywords:
Fast-food industry, Franchising, Location, Marketing strategy, Retailing
Article Type:
Research paper