Franchise businesses reach revenues of EUR 3.6 billion in 2019

The cumulative revenues of businesses operating in the franchise in Romania reached EUR 3.6 billion euros in 2019 and 450 concepts, of which 36 percent are Romanian business ideas, according to Paul Voicu, managing partner at Franchwise, cited by Agerpres.

According to data presented at the 3rd edition of the “Franchise Connection” forum, a regional business event in the franchise, the market stood at EUR 1.6 billion in 2014, and in 2018 the market had reached EUR 3.3 billion.

Paul Voicu said that there are also businesses that fail, but the rate is very low.

“There is a natural cycle, just like in any business. There are companies that are born and now they want to enter the market, there are companies that have not adapted to the market, they have come out. The market has about 450 concepts, from which annually they leave from the market 15. The rate is quite low. You have a higher chance of surviving on the market and doing a good job, but it’s like business, it also involves a dose of risk,” said Paul Voicu.

He said that the largest franchise in Romania is Two-steps-away (La Doi Pasi), with about 1,000 locations. Another expanded business is 5 To Go, which has reached 120-130 cafes.

Also, Paul Voicu said that the Romanian market has growth potential and that we should look at the market in France, one of the most developed franchise markets in Europe and an example for the one in Romania. There are over 2,000 concepts there.

“The solution is not to move to France because I would not want to have competition from 2,000 concepts. I prefer to be in a country that is still emerging, where there are a lot of niches that are at the beginning and which they are waiting to be conquered,” said Voicu.