Paper Title :The Success Factors, Barriers and Challenges Faced by Franchisee (Sme’s) Operating a Fast Food Outlet in South Africa

Author :Mtsweni L, Serumaga-Zake P, Kruger Jw

Article Citation :Mtsweni L ,Serumaga-Zake P ,Kruger Jw , (2018 ) " The Success Factors, Barriers and Challenges Faced by Franchisee (Sme’s) Operating a Fast Food Outlet in South Africa " , International Journal of Management and Applied Science (IJMAS) , pp. 71-75, Volume-4,Issue-12

Abstract : In South Africa, approximately 440,000 small businesses (SME’s) have closed in the last five years. The number of new business start-ups is at an all-time low and has stagnated over the past decade. Small businesses offer the only real prospect of large-scale job creation in South Africa. This study aimed to success factors, barriers and challenges faced by franchisee (SME’s) operating a fast food outlet in South Africa. This was a desktop study. The success factors of a franchisee were found to be management capacity, system controls and inventory control, skills requirements, site location and accessibility. Barriers and challenges are shrinking disposable income, increasing competition (market share), Rising costs, falling staff morale, bad debts, Adapting to consumer needs, access to funding and start-up capital; as well as socio- economic factors. An integrated framework to provide SME’s in the fast food franchise industry with the necessary support to be sustainable, access start-up funding and capital to expand their business is recommended. Keywords - Fast Food, Franchise, Funding, Sustainability, Small Businesses, South Africa

Type : Research paper

Published : Volume-4,Issue-12

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