Franchise news

Is there a crisis after all?
Though we have heard optimistic statements from the representatives of franchise chains, recent news does not sound very good. The Gloria Jean’s chain closed all of its units in the second half of March in spite of having opened the last one only a few months ago. According to experts, the owners have probably made an unrealistic assessment of local purchasing power and failed to adjust their prices accordingly. Gloria Jeans also plans to close other units in neighbouring countries as a result of the economic crisis. While Rosinter has opened a combo unit in Fashion street, it was forced to close IL Patio/Planet Sushi Venezia in March. The owners reached this decision in order to protect the successful units of the chain. Under the present circumstances, the owners are not prepared to wait for long periods before their investments turn profitable. However, Rosinter does not plan to stop expansion. They plan to open a new restaurant in the location of the former Hadik café this year. Local subsidiaries of international chains produce diverse results. Coffeheaven for example, produced dynamic growth in Poland and a substantial drop in sales in Latvia last year.

Nordsee satisfied
The owners of the Nordsee unit opened in Westend City Center are satisfied with their first year. Mafish Kft., the master franchisee recorded growing sales in the first half year and is optimistic about prospects for their second unit to be opened in Allé Mall.

Peculiar Hungarian franchise?
The first “social store” was opened in Miskolc by MAGOSZ in March. Products supplied directly by farmers are exclusively of Hungarian origin and up to 50 percent cheaper than in hyper markets. Supply prices and maximum consumer prices are determined by MAGOSZ. 600 store owners have already contacted MAGOSZ indicating their intention to join the chain.