Restaurant franchising in Singapore

This research paper attempts to analyse the different aspects of the franchise restaurant industry in Singapore. An overview of the origins and history of franchising, and the various factors that led to its growth and development globally are presented. There are different types of franchise restaurants in Singapore. For this research, the main emphasis will be given to fast-food restaurants, family restaurants and kiosks. An insight is also provided as to how restaurants that originated from the Western culture managed to invade into a market like Singapore which has a potpourri of Asian culture. We have also used the International Franchise Association's classification of restaurant segments based on menu theme to analyse which of the menu items has the greatest potential for prospective franchisees to venture into locally. A list of preferable personal characteristics that a potential franchisee would possess is given. The legal considerations that should be taken into account before taking up a franchise, is compiled. An attempt is also made to reconcile the advantages and disadvantages experienced by international franchisees with those experienced by the local franchisees, so as to give potential franchisees an idea as to what to expect from setting up a franchise restaurant in Singapore. Four local examples of franchise restaurants are used to support our analysis. The key success factors and the problems faced by franchise restaurants in Singapore are studied to enhance our recommendations to prospective franchisees. In addition, Porter's 5 forces model is also applied to develop a better understanding of the competitiveness of the franchise restaurant industry in Singapore. From our analysis of the interviews and questionnaires, and our own observations of . the local franchise restaurant industry, we would like to recommend family restaurants and kiosks as viable avenues to venture in.ACCOUNTANC