Franchises’ Turnover Down in 2012 but More Jobs Created

The Spanish franchise system saw its turnover fall by 1.5% in 2012, although it was still able to create jobs and increase the number of operating establishments. According to the Spanish Franchise Association (AEF), the sector experienced a slowdown in growth last year, but “continues to be a source of employment” in an “adverse” time.

The Association’s annual report, entitled ‘The Franchise in Spain 2012’, reveals that franchise turnover amounted to 25,937.1 million euros in 2012, compared to the figure of 26,351 million euros reported for the previous year. However, these establishments provided jobs for 246,354 people, representing an increase of 2.3%. The number of operating establishments also increased by 2.5%, from 58,279 to 59,758.

The number of chain franchises managed to overcome the thousand barrier to reach 1,040.93 more than at the end of 2011. The AEF report also highlights the “significant” growth in the presence of foreign franchises in Spain, from 180 in 2011 to 204 last year. “Despite the crisis, these brands are confident of the maturity and the good time franchises are going through in Spain,” said Eduardo Abadía, manager of the Association. Almost a quarter (50) of these foreign chains established in Spain are French.

According to Diario Sur, the sectors which obtained higher revenues while at the same time generating more jobs, were ‘Food’, with 8,607 million euros and 57,508 jobs, ‘Hospitality-Fast Food’ (2,472 million euros and 27,259 jobs) and ‘Hospitality-Restaurants and Bars’ (2,275.8 million euros and 17,009 jobs).

“In a very difficult year, the fact that the overall turnover has dropped by only 1.5% clearly shows that the franchise chains are facing the crisis in a solvent and serious manner,” said Abadía, who expects a 2013 with “a positive outlook, though not exceptional growth, especially in the first half of the year”.