The franchise industry has gone through rapid changes in the last few years. The ongoing pandemic has transformed how small businesses operate, with many adopting drastic measures to keep the lights on. And even as the world slowly limps back to normal, many are looking at restructuring their business model as a means to stay afloat. The pandemic has forced thousands of businesses reluctant to embrace digital transformation to migrate their operations and workforce to a virtual environment.
Here are five major trends in franchising:
#Trend 1. Embracing new technology to remain competitive
New digital trends are reshaping businesses. Newly developed digital tools have become vital to enhance and expand sales at the store level. During the pandemic, remote working and video conferencing have become the new norms. Zoom has become a household name, and other tools like Google Hangouts, Microsoft’s Teams, and Cisco’s Webex are now commonly used in the corporate world. According to experts, in 2021, we may see a massive demand for artificial intelligence, be it speech recognition, smartphone personal assistants, or ride-sharing apps.
#Trend 2. Strong recovery after the pandemic
In 2020, the franchise industry shed over a million jobs due to loss of revenue and lack of business growth. However, things look much better in 2021 as the industry may add over 26,000 locations and nearly 800,000 new jobs in the US. A recent report suggests the growth will be largely driven by the fast food, commercial cleaning, and fitness industries. At the same time, shifting social and cultural norms are also expected to create new concepts to expand quickly in the coming months.
#Trend 3. A shift toward digital marketing
Retailers are now betting big on digital marketing platforms to enhance their presence. With more and more retail outlets enabling e-commerce functionality, they need a better online presence to spread their reach. In the present era, businesses have much more channels to distribute products than ever before – a trend that will only continue to increase in the coming period. Optimized local listings, social media accounts, and websites have become a new norm for the franchise system.
#Trend 4. Crowdfunding in franchising
A lot of new companies are taking the crowdfunding route to fuel franchise expansion. Equity crowdfunding allows businesses to connect and engage with new customers and potential franchisees. The JOBS Act, signed in 2012, comes with a provision that makes it legal for small businesses to solicit crowd-based investments up to $1 million. While crowdfunding is an exciting fundraising method, it rarely provides enough financing to get a business off the ground.
#Trend 5. Franchising in fast-casual restaurants
Fast-casual restaurants provide the convenience of fast food without the full service of fine dining. Fast-casual dining also gives you the ability to build your own meal. Chain restaurants like Panera Bread, Red Brick Pizza, and Newk’s are all fast-casual concepts. The concept has grown in popularity over the past decade, given that customers are willing to pay more money for better quality food. Customers are more likely to see menu items labeled as organic and/or fresh in a fast-casual restaurant.
About FranVice
If you are thinking about starting a franchise business but don’t know where to start, you have come to the right place. From finding funds to choosing the right franchise-type and finally making the purchase, FranVice will help you through every step of the process. You can reach out to us at 978-728-9211 or fill our online contact form to know more.