Analysis of Growth and Operational Performance in Franchised Quick Service Restaurants in Kenya

Abstract

Restaurant businesses have expanded internationally using franchising. Faced with current competitive market conditions, the ability to access the customer base and reservations infrastructure of a multinational brand may have considerable appeal to independent operators. The study sought to analyze the growth and operational performance in franchised quick service restaurants in Kenya. The study employed a descriptive research design. The population of interest for this study was consisted of 31 franchised quick service restaurants in Kenya and that have been in operation during the period 2014 to 2018, thus it was a census survey. The research used primary information collected using questionnaires. The collected data was therefore sorted, coded and analytically prearranged in a way that can facilitate the analysis through the use of the Statistical Package for Social Sciences (SPSS). In addition, a multivariate regression model was applied to determine the relative importance of each of the variables with respect to growth and operational performance of franchised quick service restaurants in Kenya. The findings were presented using frequency tables and graphs. The study found that globalization, dependence upon the nation’s economy and income levels greatly influenced growth and operational performance of franchised quick service restaurants in Kenya. The study concluded that economic determinants had the greatest effect on growth and operational performance of franchised quick service restaurants in Kenya followed by customer determinants then marketing environment, then operating determinants while technological determinants had the least effect on growth and operational performance of franchised quick service restaurants in Kenya. The study recommends that the management of franchised quick service restaurants in Kenya should initiate rapid supply chain integration efforts with the aim of making the organization highly responsive to changes in the business process. The study further recommends that the franchised quick service restaurants in Kenya needs to strategize on offering small packages at relatively lower prices; while maintaining the expensive products. This serves the needs of customers with different purchasing power. The study recommends that the management of franchised quick service restaurants in Kenya should keep up with the fast pace of technology.