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Izvestia Journal of the Union of Scientists - Varna. Economic Sciences Series

Impact of COVID-19 on the restaurant franchising

Georgina Lukanova


The last two years of human development took place under the influence of the COVID-19 pandemic that affected each and every field of socio-economic life. The restaurant industry is one of the most affected sectors as a result of the measures taken by states for limiting the spread of the Corona virus. The initiatives for keeping social distance, restricting free movement nation- and world-wide, full or partial lockdown resulted into a number of negative consequences for the restaurant activity like job loss and closure of outlets. When recessions happened before the franchising business model turned out to be a sustainable and leading model for growth. COVID-19 created unprecedented challenges to the franchising community, however, the franchisors and franchisees react quickly and carefully in order to minimize losses through implementing a number of activities. It is exactly in this respect that the goal of this study is set: to present and summarize the main impacts of COVID-19 on the world franchising industry and, in particular, on the development of restaurant franchising.


restaurant franchising, restaurant chains, pandemic, Covid-19

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