Ethnic Social Structures and Mainstream Capital: The Ethnic Anchoring of "American" Franchise Growth

Abstract

This article argues the significance of ethnic resource mobilization to certain corporate restructuring and growth trends in the U.S. mainstream economy with the expansion of franchising and the importance of branding in giant corporate America. While the field of ethnic economies continues to debate how ethnic social structures function in the mainstream economy, it has overlooked this important part of the economy. “Bounded solidarity” helps explain how particular Asian Indian business communities have been integral to the changing franchisor-franchisee relationship, franchise operation procedures, and consumer marketing strategies, and has worked to counterbalance the industry’s heightening demands. In this way, ethnic social structures are integral to corporate growth strategies and norms of efficiency.

How Do Employers Belonging to Marginalized Communities Respond to Minimum Wage Increases? The Case of Immigrant-Owned Businesses in Seattle

“…If immigrant owners concentrate in the kinds of franchises that are characterized by franchisor control over hiring and staffing decisions, then the findings in this study may be caused by franchisor policy rather than foreign-born status. 13 The literature on immigrant franchisees is growing (Dhingra & Parker, 2015; Parker, 2013; Rangaswamy, 2007), but more scholarship is needed on immigrant employers who choose franchising over independent business ownership.…”

“…Beyond a general analysis of immigrant-owned businesses’ adaptation to minimum wage ordinances, it is valuable to specifically analyze immigrant-owned franchises. Immigrants often operate franchises in industries notably affected by minimum wage laws, such as fast food, gas stations, and motels (Dhingra, 2012; Min, 2004; Parker, 2013; Rangaswamy, 2007). There is little scholarly consensus on how to apply minimum wage laws to franchises (Conway & Fichter, 2015; Fraser, 2015; Ji & Weil, 2015), yet municipalities across the United States have enacted minimum wage ordinances that force franchises to raise wages more quickly than independently owned businesses (Conway & Fichter, 2015; Jardim et al, 2018; Nelson, 2017).…”

Ethnic economies in the age of retail chains: comparing the presence of chain-affiliated and independently owned ethnic restaurants in ethnic neighbourhoods

“…Immigration scholarship is only beginning to grapple with the fact that ethnic economies can be heavily comprised of chain-affiliated retailers. There is a growing literature that shows how ethnic economies can form among franchises that target mainstream markets (Dhingra 2012;Parker 2013). An evocative example is Indians who dominate Dunkin' Donuts franchises in the Midwest (Rangaswamy 2007).…”

“…3 economy literature acknowledges that minority entrepreneurs may affiliate with chains through franchising arrangements, particularly in the food retailing industry (Dhingra and Parker 2015;Parker 2013;Rangaswamy 2007). This literature, however, has yet to determine the extent to which chain retailers are co-existing or overtaking independently owned businesses in ethnic neighborhoods.…”