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For Profit Organizations Showing Signs of Turnaround

by Roger Neugebauer and Debra Hartzell
January/February 2011
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Article Link: https://www.childcareexchange.com/article/for-profit-organizations-showing-signs-of-turnaround/5019729/

The year 2010 will not be remembered as a banner year for large for profit child care organizations. But it appears that heading into 2011, optimism has returned.

No growth at top continues

In 2010, the total capacity of the three largest for profit chains in North America (see the Exchange Top 50 on page 30), KinderCare Learning Centers, Learning Care Group, and Bright Horizons Family Solutions declined slightly. This is a continuation of a trend that has held for the past four years with their combined capacity declining slightly each year (see Growth of the Big Three Chains, on page 32).

This does not, in any way, mean that these three organizations are fading away. In fact, the total capacity of these three organizations is nearly double the total licensed capacity of the next 47 organizations on the Top 50 list. You would probably need to include the next 400 largest organizations in North America before you could match the capacity of the big three.

Franchise organizations playing larger role

Back in the early 1970s when child care centers were exploding onto the scene, many of the original for profit chains, including KinderCare, started out as franchise ventures. The leaders of ...

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