South-Western - Management  
Food Franchisers Embrace Diversity
Topic Managing Individuals and Teams
Key Words Diversity, minority entrepreneurs, franchise ownership
InfoTrac Reference CJ149568887
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News Story

Fast-food franchisers are seeing diversity as more than just good public relations. It is good for business. Chains are inspired by the success of big-box retailers like Wal-Mart and Home Depot in urban communities and see that there is a tremendous opportunity for growth in urban areas.

Although the number of minority-owned fast-food franchises is unknown, evidence suggests that minorities make up a very small share of the franchising community. Yet, minority purchasing power is expected to grow to about $3 trillion by 2045. Franchisers would like to attract owners and operators who know the communities, and can capitalize on the business. Now, to make this happen, the people who make the real decisions about granting franchise businesses are traveling to business fairs to meet with potential candidates. Other franchisers have joined the International Franchise Association’s MinorityFran, a program designed to increase minority participation in franchising. In the past, companies often sent their HR representatives to speak about the company’s commitment to minority entrepreneurship, but few of these people could really make the deal happen.

Church’s Chicken is an example of a franchise that is putting the philosophy into action. Most Church’s stores are in urban neighborhoods; two-thirds of its diners are black or Hispanic. Church’s ownership is reflective of its customer-base. Only 29% of the franchise’s owners are white males. The company feels that when its owners have ties to the community, the business will be a success.


Why does diversity make good business sense?


Review diversity in your textbook. What is the difference between surface-level diversity and deep-level diversity?


What is the difference between an affirmative action program and a diversity program?


What principles can companies use when managing diversity?

Source “Food Franchisers Embrace Diversity,” Atlanta Journal-Constitution, August 15, 2006, pNA.
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