with the maturation of the American foodservice market, these factors make international expansion an attractive opportunity for American companies (Lawrence, 1994, p. 46).
The international market also offers a way for smaller American foodservice companies to expand their markets. Where American lenders are interested in the size of an operation before they will fund additional capital, international expansion offers small companies favorable terms and tax considerations as governments seek to expand their economic base and are willing to use American fast food operations as a way to do so (Hamstra, 1995, p. 60).
When evaluating international opportunities, American companies need to take into account the amount of capital they can devote to the expansion, the amount of resources that will be required to support the expansion, and the logistical considerations associated with any particular market. Of particular importance is considering whether a particular food offering will be acceptable in the proposed location. The introduction of a well-supported operation with efficient production and local suppliers may mean nothing if the product is one that does not appeal to the diet of the local consumers. To overcome this possibility, careful research must be conducted into the viability of the product in question (Ruggless, 1995, p. 3).
When taking on the issue of international expansion, it is important that companies consider the regulations associated with individual markets. While many governments are willing to work with companies in order to bring in additional economic growth to the area, there can be pressure placed on foreign operators to use local suppliers whenever possible, and there can also be problems associated with maintaining a quality standard that is commensurate from one country to the next.
Another regional consideration that needs to be taken into account is changes that may have to be made in the ...