Tuesday Jul 29, 2014 Search
Weather | Athens
31o C
23o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Entrepreneurs catch on to attraction of franchising

By Theodora Liakopoulou

Having lost their jobs or seen their incomes plummet, an increasing number of Greeks are looking for a way out of the professional deadlock by exploring options that don’t require too much start-up capital but can still ensure adequate earnings.

Franchising has gained a lot of ground in the past year, with new entries surpassing the million mark, whereas before the crisis there were just 500,000-600,000 people involved in such businesses.

Some experts are surprised at the level of interest given the current dire business climate in this country, but the head of the Greek Franchising Association, Petros Petridis, told Kathimerini that “franchising is proving resistant to the downturn in the market, while interested parties are also turning to these businesses in search of work or because they want to start up an enterprise with as little money as possible.”

Last year, 70 percent of the people who sought a new start in franchising began with capital of 40,000 euros or less, which could be used to develop new low-cost concepts. One example is Sicily Cafe, a snack stand with no seating area which serves takeaway coffees and snacks, with prices ranging from 1-1.50 euros. Another is Sticky, a chain that sells decorative items and specializes in large stickers for walls at an average price of 30 euros.

Ice-cream producer Dodoni, which has a chain of ice-cream parlors, has also picked up on the benefits of franchising and launched frozen yogurt stands called Chill Box, which can be opened with start-up capital of just 30,000-60,000 euros.

“In the past, franchisees would expect their monthly income to come to or even exceed 5,000 or 6,000 euros a month. Things have changed today and they are satisfied with making 1,500-2,500 euros instead,” said Platon Malikourtis, owner of consulting firm Franchising Business Services.

Despite the economic crisis, the penetration of franchising in the Greek market is on the rise and currently stands at around 10 percent. Last year saw the opening of some 120 new franchise stores and 42 new chains, though on the downside, around 400 stores and 15 chains closed down. To be more specific, out of every 160 enterprises that closed in 2011, only one was a franchise, and while in that year 65,000 establishments went out of business (or 25 percent of the total), the respective figure for the franchising sector was 2 percent for the sector and 0.15 percent for the market total.

In the retail market as a whole, revenues have dropped significantly by levels ranging from 15-35 percent, with the shortfall in the first three months of 2012 boding ill for the future as it has already reached 10 percent. Furthermore, one in four chains, or 25 percent, reported a significant decline in turnover as a result of the crisis.

The biggest hit has been taken by the clothing and footwear sector, which has seen a decline in revenue of over 60 percent, while the smallest impact has been on food and catering, where losses range from 10-20 percent. The overwhelming majority has responded to this spiraling of business with constant offers and special deals.

On the demand side, food and catering remain at the top of the earners’ list, with services coming close, while cosmetics find themselves at the very bottom.

Greece’s current franchise list consists of 2,500 grocery stores, 1,500 cafes and restaurants, 2,500 education and training centers, 3,500 clothing stores, 1,000 companies providing various services, 1,000 homestores and 500 cosmetics stores.

ekathimerini.com , Monday May 7, 2012 (23:16)  
Great margin for growth in exports
Parliament’s Budget Office says third bailout may be needed
Ryanair ‘not particularly interested’ in Cyprus Air
August 2 expected to be Greek tourism’s D-day
Ministry appeals to keep limit on prescriptions
Faced with the prospect that its attempts to rein in spending on medicines will be scuppered, the Health Ministry appealed on Monday against a Council of State ruling to temporarily suspend ...
Universities aghast at new schools opening
University officials have decried the government’s decision to open two new departments at the same time that funding for the tertiary institutions continues to be slashed. It emerged that t...
Inside News
VOLLEYBALL
Volleyball national team second in European League
Much as the national volleyball team tried to repeat in the finals of the European League the feat it had achieved in the semifinals, it failed to overturn the advantage Montenegro had got f...
SOCCER
Ranieri says he has little to change in Greek national team
The Hellenic Football Federation (EPO) presented Claudio Ranieri as the new Greece coach for the next couple of years, after the Italian manager signed his contract in Athens on Friday. “I l...
Inside Sports
COMMENTARY
Weighing all the factors
Certain people in the know continue to believe that snap elections will take place in the fall. Prime Minister Antonis Samaras is obviously aware of this trend, which is why he told Parliame...
EDITORIAL
Clear rules, for everyone
If we want to deal with the economic crisis, we need clear rules. A large number of individuals and businesses have amassed huge debts they cannot service. And some worrying symptoms have al...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Ministry appeals to keep limit on prescriptions
2. Great margin for growth in exports
3. Universities aghast at new schools opening
4. Greece to hold next talks with troika in Paris, not Athens
5. Anastasiades sees lack of progress on Cyprus talks
6. Supreme Court deputy prosecutor says ex-finance chief should be tried over ‘Lagarde list’
more news
Today
This Week
1. Defense Minister Avramopoulos to represent Greece at European Commission
2. Tree collapses in village square, killing nine-year-old boy
3. Euro inflation seen testing ECB patience as stimulus takes time
4. Minister mulls fixing food and drink prices at non-private beaches
5. Maziotis moved to Diavata Prison in Thessaloniki
6. Multi-bill containing prior actions ready for Parliament
Today
This Week
1. Climber dies in Mount Olympus fall
2. Greek sovereign debt at 174.1 percent of GDP in first quarter
3. Unequal after death
4. Hedge fund Dromeus turns Greek tragedy to triumph with 160 pct gain
5. Quadriplegic woman on life support 'dies due to unpaid power bills'
6. Front-line threats
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.