Consumer behavior towards fast-food franchises in Albania: Insights into franchising business models

Abstract

This thesis explores consumer behavior toward fast-food franchises in Albania, emphasizing the comparison between international franchises such as KFC, Burger King, and Popeyes and local fast-food providers in influencing consumer preferences. It develops in the context of globalization and urbanization in Albania, where an increasing number of international brands are shaping day-by-day consumption patterns, especially among the younger population. The Albanian economy is experiencing a growing integration with the international markets, and foreign franchise operations are becoming very popular and highly-rated for their standard service, brand power, and digital marketing. Local businesses, on the other hand, often face obstacles in generating new business, because of small marketing budgets, and unreliable quality and service delivery. This study shows the effect of service quality, brand perception, and consumer attitudes in purchasing behavior. Data were gathered by a structured survey that included 112 Albanian customers chosen from a sampling that guarantees heterogeneity in age and sex, and occupation. The study analyzed brand recognition, service quality, price, consumer choice, and digital engagement. The data were analyzed by SPSS, such as descriptive statistics, correlation analysis and regression analysis. The findings indicate a preference for international franchises, especially among customers aged 18-34. Marketing strategies, perceived service quality, and brand recognition are the key drivers of this preference. Although pricing remains a consideration, it is not a dominant factor in consumer decision-making. This reflects a shift among urban, middle- iv income groups in Albania that value experience, trust, and convenience over cost. The study highlights some key challenges local businesses face, including a lack of brand consistency, weak marketing strategies, and low service quality. Based on the findings, the thesis provides practical recommendations for both local and international franchisors, and it also outlines policy suggestions for supporting a healthy competition and improving service quality in the food industry. It contributes to the limited academic literature on franchising and consumer behavior in Albania and offers a framework for future studies into similar market transitions in developing economies.