Challenges Facing the Coffee Shop Industry in the Franchising Sector (Case Study in Shiraz)
Mousa Rahimi
1
(
Department of Management, Shi.C., Islamic Azad University, Shiraz, Iran
)
Keywords: Coffee shop industry, Franchising, Business challenges, Interpretive Structural Modeling (ISM), MICMAC analysis,
Abstract :
Abstract
This study explores the key challenges confronting the coffee shop industry within the franchising sector, with a particular focus on the market in Shiraz, Iran. Employing a mixed-methods approach, the research combines qualitative insights from expert interviews with quantitative data gathered through structured questionnaires completed by industry professionals. Eleven critical challenges were identified, including customer satisfaction, human resource management, economic constraints, competitive vision, stakeholder participation, innovation, resource availability and capabilities, supply chain management, governmental oversight and ecosystem, uncertainty, and fear of failure.
To investigate the interdependencies and hierarchical relationships among these challenges, the study utilizes Interpretive Structural Modeling (ISM). The ISM model reveals a multi-level structure, highlighting the interactions and relative priorities of the identified factors. Further analysis using MICMAC (Matrice d’Impacts Croisés Multiplication Appliquée à un Classement) categorizes the variables based on their driving power and dependence. The results indicate that governmental oversight and fear of failure are the most influential and independent challenges, whereas customer satisfaction and human resources are highly dependent on other variables.
These findings offer strategic insights for franchisors, franchisees, and policymakers seeking to enhance the sustainability and competitiveness of the coffee shop franchising sector in emerging markets. The study contributes to academic literature on franchising and provides practical implications for addressing operational and strategic challenges in the service industry.
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