Managing Profits for New Franchises under Econom2c Recession: A Case of Chikachino

Abstract

This decade is not easy for business due to the economic recession that is going on m Pakistan but few industries including restaurant or food somehow manages to earn profit but it is not easy due to increased taxes, lack of regulatory body and ban on imported goods. In this work author described how franchise system works under such economic condition at ChikaChino (CC) Islamabad. Furthermore, author discussed the reasons behind decline of sales and explained improvement where management lacked. A customer survey was conducted for both ChikaChino F-7 and Bahria Town restaurants to compare customer perspective about restaurants, customer issues and the ratio of management failure with customer dis-satisfaction. It was found that ChikaChino F-7 customers were satisfied as the given below ratings also showed the same whereas the ChikaChino Bahria town customer's rating doesn't show any positive response. Furthennore, it was founded three elements that were able to identify the exact problem that a franchise faces i.e. sales records, customer footfall and customer satisfaction level. By increasing these three elements Chikachino will be able to make enough profit from multiple branches/outlets. Similarly, with the help of proper government support as restaurant could be flourished even under the economically unfavorable condition because this is a necessity business. Taxes, quality assurance surveys, and other policies directly related with the restaurant industry needs to be made in favor of the industry because eventually it will help to reduce cost with no compromise on quality. Ultimately all franchises will be able to work under one roof and also profitably.