The Overseas Expansion Road Of Chinese Catering Industry Based On International Franchising Model

Franchising has been a pretty important growth point since 1950s, it makes the overall sales and market share maintain a strong momentum of growth. During economic boom or recession, franchising has fully demonstrated the advantage of its flexibility, such as to lower operating costs and improve single-shop sales, profit-making, all of these help the company to be invincible in changing market. Nowadays, benefiting from the advantages of franchising model, many multinational companies, such as McDonald's, KFC, Carrefour, Holiday hotels, use the franchising model and extend their marketing network to every corner in the world. Facing the wave of internationalization, Chinese government, in 2000, formally promulgated the "Going-out" strategy and encouraged powerful enterprises to go out the country and grow to be large multinational corporations. This paper will discuss the overseas expansion and strategic choice of Chinese enterprises especially the catering industry using franchising model to explore international markets under the "Going-out" strategy.