GastroPreneur Week – McDonalds and More… Companies Thriving In Today’s Recession

Here we have the final post in out GastroPreneur Week!

It seems like almost everyday we hear about another business closing its door, a victim of the current economic times. But what seems to get overlooked amidst all the gloom and doom stories are companies that are actually thriving despite the recession. Entrepreneurs should take comfort in knowing that they can survive a tough economic climate.

Let’s face it, any company would be happy breaking even during a recession. Making a profit might actually be viewed upon as a bonus or beyond expectations, but it shouldn’t be. It should actually be the norm. When you think about it, if you have a strong brand and solid business practices, your business should not only be able to weather any storm, but thrive in it.

Although we’re currently in a bad economic climate, there are a large number of businesses that are doing well. Some are expected, such as discount stores and fast food restaurants, others are surprises, like healthcare and vacation companies. According to their latest reporting figures, here’s a list of just some of the many companies thriving during the recession. Some are large corporations, while others are small entrepreneurial firms.

1. WalMart.

As expected, this discount retail giant is doing well despite the adverse economy because of its global reach, worldwide brand image, strong cash flow and a streamlined business structure.

2. Philip Morris International.

This is a bit of a surprise because you would naturally think that tobacco products would be last on the priority list of consumers on a tight budget. But as shown in past recessions, when people are facing tough times, they want their guilty pleasures, and tobacco is one of them.

3. McDonald’s.

No surprise here. With its solid organizational structure and low priced offerings, this fast food giant has proven to be recession resistant throughout the decades. In fact, McDonald’s has actually outperformed Wall Street earning estimates and the Dow Jones industrial average.

4. Johnson & Johnson.

This is another eyebrow raiser because generally during a recession, healthcare gets hit hard. But with its diverse portfolio, it appears that this healthcare firm is holding its own. So are other healthcare suppliers, like Abbott Laboratories, which sells pharmaceuticals, baby formula, nutritional products and heart-disease devices.

5. Costco Wholesale.

During slow economic times, people still need food, personal items and everyday living essentials. But they are being more frugal in how they are purchasing them. Wholesale clubs thrive in this type of economic environment because consumers can save by buying in bulk.

6. Home Away.

This online travel website is seeing good times even though many people are postponing vacations. Their concept works by offering vacation home rentals. Those who are traveling find more value in renting a home or timeshare over a hotel room. It’s a company that has a global reach, so it can maximize its market.

7. Silicon Valley Bank.

No one would expect to see a bank on a top performing list, considering the current health of the banking and financial industry. But midsize and community banks are faring better than larger ones because they focus more on Main Street loans backed by a company’s assets.

That’s a short list of businesses thriving during this recession. Add to it companies in the toy, life sciences and Internet search engine industries. They all have in common strong organizational and financial operations that are designed to succeed in a touch economy.

It’s reassuring to know that businesses can thrive in a recession. How is your business doing? What are your keys to success? Submit a comment with your thoughts and ideas.

Adam Toren