Most U.S. fast food franchises with a presence in the Turkish market have long-range plans for expansion. Both McDonald's and Burger King, for example, have 7-10 year plans for multiple restaurant openings in urban areas. In general, prospects for growth in this sector are very positive based on the growth of the Turkish economy and consumer tastes. Growth statistics are also not available at this time. It is difficult for U.S. franchises to lure this segment of the market into choosing American establishments because of force of habit and noncompetitive pricing.
Pricing is a sensitive issue for U.S. suppliers in Turkey.
Strict food import restrictions do not allow meat importation into the country. McDonald's has stated that beef prices in Turkey are a whopping 400 percent higher than they are in the U.S., which naturally forces U.S. fast food franchises in the country to raise their prices to consumers accordingly. McDonald's has aggressively lobbied the Turkish government to allow beef imports into the country, but the only compliance thus far received has been a temporary lifting of the ban for a short period of experimentation. The government has no future plans to allow beef to be imported, even in exceptional cases. The biggest challenge for U.S. franchises is to offer quality products while keeping prices at the lowest levels which will maintain profits.