One in 10 Franchise Outlets Is Doomed
13 April, 2021
Even well-known franchises aren't immune to the pressures of the marketplace and dwindling demand for identikit goods.
Based on the Korea Fair Trade Commission, the closure level of franchise retailers stood by 10.9 percent in 2019, up from 10.4 percent two years earlier.
A business insider said, "The growing minimum wage and slow market have caused the closure charge of franchises to border up."
Fast-food restaurants suffered the best rate of closure in 11.3 percent, up from 7.9 percent in 2017, and the jump among bakery franchises was a lot more dramatic from 6.8 percent to ten percent over the same period.
Espresso franchises bucked the craze, with their closure charge declining from 10.6 percent to 8.8 percent, while fried-chicken franchises' closure rate stayed flat at around 11 percent.
Small independent stores fared little better. In line with the National Tax Provider, their closure amount was around 10.8 percent by 2019.
People Power Party lawmaker Yu Eui-dong said, "Competition is intensifying, as the minimum wage continued to go up amid an financial downturn, making it increasingly problematic for franchise retailer owners to stay open. Because the FTC only addresses the time prior to the coronavirus epidemic, the present situation is most likely much worse."
Source:
TAG(s):