U.S. QSR chains ramp up growth abroad

With domestic development slowed greatly among many U.S.-based chains during the past 18 months, international expansion deals have taken on a new importance.

American franchisors are looking harder at expansion opportunities on foreign shores as they face depressed sales and cash flow at home, along with fewer financing sources for domestic franchisees.

While some heavily franchised chains, such as Quiznos, have made general announcements about their intention to beef up international recruitment efforts, others, such as Wendy’s/Arby’s Group, Freshii and The Great Steak &Potato Co. have recently inked development agreements with established operators.

Wendy’s/Arby’s International, a subsidiary of Atlanta-based Wendy’s/Arby’s Group, said Tuesday it had signed an agreement under which Wenrus Restaurant Group Ltd. of Moscow is to open 180 dual-brand Wendy’s and Arby’s restaurants in the Russian Federation during the next 10 years.

Rival McDonald’s this year celebrated 20 years in Russia, where it now has more than 240 restaurants, while competitor Burger King opened its first branch there in January.