Portal de Periódicos da CAPES

South Asians in Dunkin’ Donuts: Niche Development in the Franchise Industry

2007; Taylor & Francis; Volume: 33; Issue: 4 Linguagem: Inglês

10.1080/13691830701265644

1469-9451

P. Rangaswamy,

Franchising Strategies and Performance

The dominance of South Asians in the Dunkin’ Donuts franchise industry in the American Midwest can be explained with reference to many of the classic theories of niche formation—the desire of immigrants for self-employment, contribution of family members, access to cheap labour and informal funding, and group solidarity. But its unique trajectory of rapid growth and success owes as much to the selective nature of US immigration policy. Its origins lie in the post-1965 immigration of skilled professionals who first bought into the business. It grew as a result of the legitimate use of the family reunification law which permitted the early immigrants to sponsor less-educated relatives and employ them in the business. However, the labour of unauthorised immigrants and continued chain migration of family members have contributed most significantly to the profitability of the businesses, and enabled South Asians to continue to dominate the field. The participation of South Asian women, as family members, wage labour and entrepreneurs, has been important to the success of the niche. However, the escalating cost of investment, high turnover, and new restrictive immigration policy after the terrorist attacks of 11 September 2001 are factors that, paradoxically, both strengthen and threaten the niche. Those who are already owners and operators are the only ones who can afford to buy more stores, but the wages for the workers are so low that South Asian employees are constantly looking for a way out. The future of the niche thus depends on the continued favourable interplay of social, cultural, economic and political factors that spawned the niche in the first place.