Service Spotlight: Strategic Sourcing & Procurement
With the new year fast approaching and the rising all-items U.S. Consumer Price Index (CPI), creating a smart purchasing plan is the lifeblood of running your franchise.
The CPI (a measure of economy-wide inflation) for August 2022 was up 8.3 percent from August 2021. The CPI for all food increased 0.8 percent from July 2022 to August 2022, and food prices were 11.4 percent higher than in August 2021.
Interestingly, the global quick-service restaurant (QSR) market appears to have ample room for growth.
U.S. franchise chains make up almost 60% of food service sales, meaning for every dollar consumer in the restaurant category, 60 cents go to a franchised organization. Comparatively, in emerging markets such as the Middle East and North Africa (MENA), Latin America, or the Asia Pacific, QSR franchises represent less than 20% of the restaurant category. As these territories grow, the share of chains will increase, and restaurant franchise opportunities could rise, or maybe even exceed, the U.S. comparison.
TradeTrans considers it our role to assess these types of global trends, CPI, our brand partner’s strategic plans, and our international franchisee customers’ business growth plans to best present purchasing solutions and payment terms. Learn more about how we buy.
Our team provides purchasing solutions, whether you are looking for new possibilities to expand your business, reduce spending or efficiently manage container load quantities and expedite overseas shipping.
*Source: International Franchise Association; Aaron Allen & Associates; U.S. Bureau of Labor Statistics