The Rimouski Thai Express is no more. After ten years of activity, the owner had to close the doors, reluctantly.
In addition to the price of certain works, which have exploded, the opening of Thaïzone, which offers the same meals only a few minutes’ drive away, has eroded its market share. It would also be the same franchisor.
“Having to measure up and fight with a banner that offers essentially the same thing as us with the same franchisor is something that does not pass yet,” said owner Lynda Larrivee.
It’s not the only City franchise that’s gone. Within months, Chocolato, KFC and the Copper Branch restaurant all went out of business. The saturation of the current market would prevent entrepreneurs from developing their service offer.
“The customer does not go to KFC or Thai Express every day. There may be too much supply, ”said the CEO of the Quebec Franchise Council (CQF), Xavier Chambon.
However, according to the CQF, in catering, the franchise is one of the most viable models.
“The franchise model is much more resilient, and we see it in the bankruptcy rates, there are half as many,” added Mr. Chambon.
“There is no law that governs franchising in Quebec, while there are everywhere in Canada,” said Lynda Larrivee, who campaigns for franchisees to obtain more information, when they go into business.