The Development of Franchise Operations in Emerging Markets The Case of a Poland-Based Restaurant Operator

• Published in: Cornell hospitality quarterly Vol. 49; no. 4; pp. 436 - 449
• Main Authors: Klonowski, Darek, Power, Jacqueline L., Linton, Daniel
• Format: Journal Article
• Language: English
• Published: Los Angeles, CA SAGE Publications 01.11.2008; Sage Publications, Inc; SAGE PUBLICATIONS, INC
• Subjects: Emerging markets; Franchises; Franchising; Hospitality industry; Human resource management; International marketing; Management; Restaurant industry; Restaurants; Services; Startups; Studies; Poland; Poland; restaurant management; international franchising
• DOI: 10.1177/1938965508324294
• ISSN: 1938-9655

For entrepreneurs in the emerging markets of Central and Eastern Europe, franchising presents an opportunity to develop a start-up business with the assistance of an international firm. However, emerging markets are demanding environments for establishing and operating a business. These environments challenge the ability of franchisors to transfer their franchise concept from their home market to the emerging market. This case focuses on the evolution of “American Restaurant Format” (ARF), one of the few franchise restaurant operators in Central and Eastern Europe. Notwithstanding the challenges of the Polish market, the case shows that most of ARF's problems were self-inflicted, the result of poor judgment and an inflexible franchise organization.