US Brands Could Fail: Franchising Expert

Franchising.net.au:

Stan Gordon, managing director of Franchised Food Company (FFCo), has warned that plans to launch American food brands in Australia could be doomed to fail.

Multinational retailers wanting to roll out concepts that work in the US or Europe could find that the same format is unsuccessful in Australia, Gordon says.

“Having been in multi-site retail franchising for over 15 years in three countries, I have seen brands come and go all with illusions of grandeur that each brand will have 30 or 40 stores, usually within 12 months,” he said.

“Once they encounter the Australian constraints of real estate and population numbers their plans are curtailed.”

Gordon’s warning comes after the news that US global brand manager, NexCen Brands, will attempt to launch a number of US brands in Australia, including MaggieMoos, Pretzel Time, Marble Slab Creamery and Great American Cookies.

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