When looking at different brands, it’s easy to get caught up in the unique products or services that each franchise offers. However, many companies have interesting stories behind their inception, often drawing inspiration from unexpected sources and overcoming serious challenges along the way.
Franchises are everywhere, and they’re successful because they make your life easier by providing products and services that have already been perfected over time by other companies, so you don’t have to start from scratch yourself. Here’s a look at the fascinating histories of five of the most successful franchises in the world, including the types of business plans each one had to follow to get off the ground, their struggles along the way, and their eventual triumphs into becoming some of the biggest names in history.
McDonald’s
Nobody can deny that McDonald’s has shaped our modern culture. The fast-food giant was started by Ray Kroc in 1954, who began franchising it to others in 1955. The original name for the business was McDonald’s Bar-B-Q, but it had a very small menu. It wasn’t until 1959 when they added their signature item—the Big Mac—that they really took off. Today, there are more than 36,000 locations worldwide and annual sales of over $28 billion dollars.
Starbucks
Founded in 1971, Starbucks was originally a small coffee roastery and retailer in Seattle’s Pike Place Market. The first official Starbucks Coffee store opened in Seattle in 1984 and sold only whole-bean coffee. In 1987, Starbucks became profitable for the first time. By 1991, there were more than 100 stores in operation. Today, there are over 20,000 locations worldwide and annual revenues exceeding $14 billion.
Dunkin Donuts
The first Dunkin Donuts shop opened its doors in 1950, and today there are over 10,000 locations. This is a huge success story. Although it has faced stiff competition from Starbucks, Dunkin Donuts continues to dominate American coffee chains. The company changed its name in 2009 to reflect its focus on donuts and coffee: it’s now just Dunkin’. No Donuts required!
Pizza Hut
The company, which was founded in 1958, started out as a small pizza parlor. Due to a misprint on its business cards, however, it ended up changing its name to Pizza Hut. The parlor’s sales increased, so they changed their name permanently. Today there are over 11,000 locations around the world.
Chipotle
Founded in 1993, Chipotle has expanded from a single taqueria to an international empire with more than 2,000 locations. And it’s still growing. A key ingredient to its success has been its willingness to buck convention and operate differently from other fast-food chains. In addition to popularizing burritos over burgers and fries for many Americans, Chipotle also built its reputation on creating a sustainable business model that promotes employees from within and uses local produce whenever possible.
Subway
The sandwich shop’s success is owed to a single entrepreneur: Fred DeLuca. At age 17, he borrowed $1,000 from a family friend and founded Dr. Peter’s Health Center in Bridgeport, Connecticut. The purpose was to serve sub sandwiches. But after two years, DeLuca had only made about $700 in profit. So, he sold his car for another $1,000 and used that money to open up another location across town. After a few more years of slow growth (the first Subway store didn’t open until 1965), Subway restaurants started popping up all over America—and around the world.
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