Navigating a foreign market might seem daunting even to seasoned American restaurant operators, but tax dollars actually provide an array of useful resources in the form of the U.S. Commercial Service.
Part of the Department of Commerce, the USCS is focused on promoting American exports, including export of U.S. know-how, such as how to run a multiunit restaurant company.
The service, which spent two years organizing a trade mission of franchisors to India in April, has 105 offices in the United States and 162 in other countries. It charged each company between $4,185 and $4,885 to participate in the India mission, plus $700 for each additional participant. Most of that money was spent to pay for advertising to attract potential franchisees.
In return, the Indian arm of the USCS placed advertisements in local media seeking companies that had between $1 million and $10 million to invest in a franchise company. It then screened and vetted those who responded to the ads and scheduled the franchisors with between five and 10 meetings apiece in each of the three cities they visited. U.S. Assistant Secretary of Commerce Nicole Lamb-Hale also participated in the mission to give it added authority.
Networking receptions were held at the residence of the U.S. consul general in Mumbai, at a hotel in Hyderabad and at the residence of the U.S. commercial attaché in New Delhi.
USCS officials said trade missions can be set up for as little as $700 per participant, plus expenses. This one cost more because they needed to pay for advertising.
Other services provided by the USCS include making sure that foreign companies expressing interest in American concepts are legitimate. That service costs $600.
For $700, USCS will research a market, reporting on the status of a select industry there, what infrastructure is in place and its estimated value, as well as market demand, key players and potential challenges. It produced a 3,000-word report on the Indian franchise market in advance of the recent trade mission.
Once a company is ready to open its doors overseas, the USCS will throw it a launch party — possibly at the residence of the consul general or a similarly august location — inviting key industry leaders, media, and potential new investors and buyers. The company must pay for the direct cost of the venue, food and invitations — generally on gold-seal card stock — plus a facilitation fee of $700.
Contact Bret Thorn at bret.thorn@penton.com.
