Thursday, March 12, 2009

Are Donut Franchises Recession Resistant?

According to this recent article I found by Entrepreneur.com about Dunkin' Donuts, the answer is yes.

The article talks about the belief that whether we are in a recession or not, businesses like Dunkin' Donuts that offer basic and value orientated products (like traditional coffee) tend to have a built in resistance to economic downturns because consumers are reluctant to eliminate ritual expenditures like their morning coffee.

The article also mentions that Dunkin' Donuts is the largest coffee and baked goods chain in the world with nearly 8,000 locations around the world. And despite the recession they are still looking to expand in the US by offering large area development deals in certain areas and states. According to the article, the ideal Dunkin' Donuts franchisee has a net worth of $1.5 million and liquid assets of at least $750,000, and should ideally have some restaurant or food service experience.

Visit AZfranchises.com If you are looking to research other recession proof or resistant franchises available for sale.

1 comments:

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