5 famous franchises shutting down all over the world
From fast food to fast fashion, franchises have always been a cash cow. Whether it’s Bulgari or Burger King, brands have helped defined the way we live our lives. However, it’s not an easy time some of the biggest brands around the world.
Before you dream up your business idea to make you the next king (or queen) of the franchise game, consider why some of these popular brands are shutting down stores.
Famous Brands in South Africa
Wimpy lovers might be shaking in their boots following the news of Famous Brands closing some of its outlets around the world. Earlier this year, BusinessLIVE reported that the conglomerate – parent to SA brands such as Debonairs, Steers and Tashas – was closing dozens of outlets in Britain and elsewhere in Africa and in the Middle East.
KFC in Zimbabwe
Zimbabwean news website Pindula recently reported that some KFC stores would shut in that country due to economic pressures. A notice issued by one of the outlets explained that because it could no longer buy chickens from the US, it was unable to run its business.
Capcom in Canada
Gaming giant Capcom expects to report a loss of more than $40m after it closed one of its offices in Vancouver. According to US gaming news website Polygon, the move comes after the Vancouver team created only one mobile game, Puzzle Fighter, but the app did not perform well and was shut down only months after its release. One of Capcom’s biggest franchises is Dead Rising, for which a sequel is in the works.
McDonald’s in Vietnam
It has a mass following worldwide with more than 36,000 stores in 100-plus nations, but the one place McDonald’s just can’t seem to penetrate is Vietnam. In a CNBC news report, consumers said they remained loyal to street vendors’ affordable sandwiches. According to CNBC, McDonald’s had planned to launch 100 stores in that country within a decade after 2014. However, it has opened only 17 so far.
Toys R Us in the UK and the US
The closure of toy shop Reggies broke hearts in SA, but more tears may flow as Toys R Us may be no more too. The franchise filed for bankruptcy last year, facing debt of $6.6m, and is expected to sell or shut down all of its stores in the US. In the UK, the closure of 100 stories will leave 3,000 workers without jobs. Stores in France, Australia, Spain and Poland are set to go into liquidation.