Economy

Franchise business growth slows as costs rise

(Xinhua)
Updated: 2011-05-07 16:22

BEIJING -- China's franchise stores registered slower sales growth on rising labor and rental costs last year, industry association data showed on Friday.

Sales revenue growth of retail business slowed to 8.6 percent last year from 24 percent in 2009. That of the catering business grew 10.6 percent, lower than the 21.3 percent a year earlier, according to a report released by the China Chain Store & Franchise Association.

The slower sales growth came amid a fast rise in operation costs, which rose 21.4 percent last year, compared with 16.6 percent in 2009.