Current Trends in Franchising
Franchising has evolved since the 1950s. In its earlier years, franchising was a place for single-unit owners. It was the place to buy a job, be your own boss and provide a modest income for food franchise owners and their families. Today, over half of all franchise units are run by multi-unit operators and generate a generous income. Instead of a franchise owners working in their stores to provide a fast food brand, many manage their franchises and focus on strategy and growth while utilizing unit managers to run the daily operations. All around, the job of a franchise owner has changed.
In order to choose a booming franchise business, it's essential to keep up-to-date with the changing demographics. Many shifts in the U.S. population not only affect buying consumers but the available labor market. The generation of millennials are greater in numbers than the baby boomers. With 70 million strong, there is a huge opportunity for franchisees to provide goods and services related to this generations wants and needs. If you have a food franchise, think healthy food offerings, salads, gluten free and types of food that enhance well-being.
The baby boomer generation and longer-living senior population offers a booming franchise business in child care, anti-aging services, fitness programs, home renovation and health-care related services. Minorities of African Americans, Hispanics and Asians are on the rise and changing the landscape of the country. If you're considering a food franchise, be sure to choose a brand that includes menu offers ethic choices to serve them. The bottom line is to adapt to changing consumers tastes by identifying market segments that cater to baby boomers, millennials, minorities and seniors. Plus, it's these populations that will affect your franchise's growth.
The economy can definitely affect the success of any franchise. The 2008 recession drove some fast food restaurants to add lower-cost quick-serve foods. When you're buying a franchise, focus on recession-proof brands. These types of brands are popular in any economic environment and include hair cutting, child care, auto repair and maintenance, computer-related services and fast food.
With state and federal governments pushing for increased funding in the energy sector, green businesses are already on the uptick. If the franchise's product or services uses less energy, leaves less of a carbon footprint and helps save the planet, it's “green.” As the market matures, more opportunities will be available for handyman franchises that have products that use less energy and recycled materials.
If you considering investing in a fast food brand franchise, it's important to recognize the characteristics of a healthy food franchise. These characteristics include low carb, low fat, fresh veggies, gluten-free foods and all-natural foods. Consumers are demanding healthier foods, and you're more likely to be successful by meeting consumer demand.
While there's no guarantee of success for franchise owners, there are several factors that help franchise owners increase their chances of success. Choosing franchisors that are expanding rapidly is a savvy move. System growth is important to the establishment of the new franchisor's brand name. This way, you'll be able to promote your brand cost-competitively. It's also wise to choose a recession-proof franchise in the event of an economic downturn. Having a grasp on current trends is critical for success. Know what consumers want and need. Then, you've got the goods. To recap everything, see above.