Char-Hut franchising is bridging the gap between providing a great product for a great value. As the gap between high and low-income groups continues to widen, Char-Hut locations are providing an affordable better burger that appeals to the lower-income consumers who are have users of quick services restaurants. “We have been serving char-grilled meats for nearly 40 years and we have always tried to appeal to someone who wants a quality product that is attached to a more affordable price.” Said Steve Kamelhair, Managing Director for Char-Hut Franchising, LLC. “And with the continued success in the franchise sector, we expect Char-Hut to continue expanding in the Southeastern United States.”
Franchising Is On Track For Another Great Year
While projections for the U.S. economy indicate an expected growth of 2.5 percent this year, and unemployment is expected to dip to 5.1 percent according to Kiplinger’s, 84 percent of Americans still don’t feel like the economy has recovered since the recession ended in 2009, according to a national survey.
Meanwhile, the world of franchises is booming. The latest Franchise Business Economic Outlook released in January 2015 by the International Franchise Association (IFA) Educational Foundation and IHS Economics indicated that for the fifth year in a row, franchise businesses are expected to outpace the rest of the U.S. economy in terms of job creation.
There is however a potential bump in the road, namely the possibility of federal intervention by the National Labor Relations Board (NLRB). The NLRB filed a complaint saying that McDonald’s should be considered a ‘joint employer’ with its franchisees, which, if upheld, could alter dramatically the entire franchising business model. Ninety seven percent of those who responded to The IFA Franchise Business Leader Survey said they believe the joint-employer ruling would negatively impact their business if it took effect.
Other important details from the 2015 report included:
- Franchise businesses will add 247,000 new direct jobs this year, a 2.9 percent increase over 2014.
- Franchises will grow by 1.6 percent in 2015, and their economic output is estimated to increase by 5.4 percent over last year.
- The franchise sector’s GDP is projected to rise by 5.1 percent this year, while the U.S. GDP is expected to increase by only 4.9 percent. Overall, the franchise sector in 2015 is forecasted to contribute about 3 percent to the U.S.’s GDP.
- The IFA Franchise Business Index was up 3.1 percent in November 2014 compared to November 2013 — the biggest year-over-year gain since the start of the Great Recession in 2008.
- Quick service restaurants and retail businesses are expected to offer the best growth potential, among the different types of franchises, in terms of increased employment.