We also feel that franchising could be beneficial to Cookout. Franchising would allow Cookout to expand its operations internationally while still having some level of control. Some major U.S. companies such as McDonald's, 7-Eleven, and KFC utilize international franchising and have seen great success. This is yet another form of an entry mode strategy that does not require much investment and can test the market before committing to an international strategy or expansion. The website to the left goes into greater detail about how some American fast-food companies have had a great deal of success franchising in other areas of the world. The two largest players in the franchising market are Subway and McDonalds, who both have over 39,000 stores in over 100 countries.
A joint venture with a local company would allow Cookout to utilize the partner's existing distribution channels, operational expertise, and knowledge of the local business environment. By leveraging the strengths of the local partner, Cookout can adapt its menu to local tastes and preferences. Moreover, joint ventures allow Cookout to share the risks and costs of international expansion with its local partners. The joint venture strategy has been successful for several major fast-food chains in the United States, such as McDonald's and Starbucks. Almost 60% of Burger King's system sales now originate in international markets, so expanding internationally is crucial for growth. The website on the left goes into more detail about how popular these fast-food chains are in other countries. Whether it be through a joint venture or franchising, fast-food companies from America continue to grow in popularity despite major world events and dangers.
The graph below shows how the fast-food market size is trending or projected to trend over the next few years. This graph shows that the fast-food industry is only going to continue to grow. Not to mention that American fast-food chains are the most popular globally, meaning that a chain like Cookout could have a better chance of success if these trends continue to go upward.
Sources:
How to choose the right entry mode for new international markets? (primetarget.tech)
8.3: International-Expansion Entry Modes - Business LibreTexts
Top 10 International Food Franchises | Food Digital
International customers flock to U.S. fast-food brands (restaurantbusinessonline.com)
Fast Food Market Size, Share, Trends & Growth [2021-2028] (fortunebusinessinsights.com)