A strategic trend in the fast food industry is to buy franchisee-owned restaurants and convert them to be company owned, thus decreasing costs and improving revenue generation.

Question

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This trend is actually the opposite of what is happening in the fast food industry. Many fast food companies are increasing their number of franchisee-owned restaurants rather than converting them to company-owned. This strategy helps in reducing operational costs and capital expenditures, while still generating revenue through franchise fees and royalties.

A Strategic Trend in the Fast Food Industry Is to Buy