Jonathan Maze

Editor-in-Chief

Articles by
Jonathan Maze

Page 119
Marketing

KFC selects MullenLowe as its new creative agency

The advertising and marketing firm, based in Boston, will become its lead agency of record, effective immediately.

Financing

Burgerim’s growth had a notable enabler: The SBA

The government backed loans to more than 100 franchisees of the brand, which the FTC sued in a rare enforcement action last week. Many are struggling to pay them back.

Both limited-service and full-service restaurants raised prices at least 7% over the past year as their own costs rose. But grocery prices are soaring, too.

The Bottom Line: Operators have raised prices more aggressively than they have in decades. But other prices are going up, too. And consumers have more money.

The chain’s growth surged outside the U.S. last year as it works to become a more global brand like its sister companies.

The owner of KFC, Taco Bell, Pizza Hut and Habit Burger said “we’re moving to a better place” as the impact of the pandemic on its restaurants eases.

A Deeper Dive: Barry Wolfe, from Marcus & Millichap, joins the podcast to discuss the impact of growing demand for drive-thru sites on prices and availability.

The owner of KFC, Taco Bell, Pizza Hut and Habit opened nearly 4,200 new restaurants worldwide last year, which the company says is an industry record.

The agency has only rarely enforced franchise regulations. But there is a mounting push to take more aggressive steps, in part because of problems like this one.

The traditional franchise has acquired some restaurants in Ohio, following parent Inspire Brands’ strategy for brands to own some locations. But it will remain “asset-light.”

The federal government filed a civil lawsuit against the company and its founder, saying that it intentionally misrepresented the risks and didn’t provide promised refunds.

The Bottom Line: Anyone can provide a list of best practices. But these are strategies that franchisors should avoid if they want long-term success.

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