Taiwan - FranchisingTaiwan - Franchising
Taiwan is well-known for its high concentration of franchises throughout multiple industries, including dining, shopping, beauty and health, real estate, technology, and even education. According to the Taiwan Chain Store and Franchise Association’s Taiwan Chain Store Almanac, the United States is the leading supplier of goods and services for foreign franchises, which are well-received in Taiwan. As of October 2018, the top ten U.S. franchises in Taiwan by number of stores were Starbucks (432), McDonalds (396), Pizza Hut (221), Domino’s (146), Kentucky Fried Chicken (141), Subway (138), Haagen-Dasz (37), Cold Stone Ice Creamery (30), and Burger King (22).
The food and beverage franchise market in Taiwan is highly saturated and extremely competitive. Fierce local competition and the dominance of well-known brands make it difficult for new foreign firms to enter the market unless the brand is very well-positioned. Taiwan’s consumers enjoy a moderately high standard of living and pay close attention to famous or high-end brand names, as well as exciting new products coming into the market. Consumers often line up for hours to attend the grand openings of internationally-recognized franchises that are new to Taiwan. Another challenge is high real estate prices, particularly in Taipei, which can cause difficulties when negotiating reasonable rent and lease terms with local landlords.
In recent years, due to high initial capital investment costs and increasing competition from local franchises, Taiwan's investors have adopted a more conservative attitude toward new foreign franchises. To succeed in the Taiwan market, U.S. franchises should provide considerable support to their local partners by implementing best-practices, systems integration, personnel and customer service training, and quality assurance protocols.
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
The food and beverage franchise market in Taiwan is highly saturated and extremely competitive. Fierce local competition and the dominance of well-known brands make it difficult for new foreign firms to enter the market unless the brand is very well-positioned. Taiwan’s consumers enjoy a moderately high standard of living and pay close attention to famous or high-end brand names, as well as exciting new products coming into the market. Consumers often line up for hours to attend the grand openings of internationally-recognized franchises that are new to Taiwan. Another challenge is high real estate prices, particularly in Taipei, which can cause difficulties when negotiating reasonable rent and lease terms with local landlords.
In recent years, due to high initial capital investment costs and increasing competition from local franchises, Taiwan's investors have adopted a more conservative attitude toward new foreign franchises. To succeed in the Taiwan market, U.S. franchises should provide considerable support to their local partners by implementing best-practices, systems integration, personnel and customer service training, and quality assurance protocols.
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.