As the final days of 2020 approach, we at Hundred Acre Consulting thought this would be an excellent time to reflect on the franchising industry’s resilience and highlight some of the key ways franchises became stronger in 2020 and how we believe they’ve changed the industry forever.
Let’s check it out.
Adapted to Customer Needs
Perhaps the most significant way that franchises became stronger in 2020 is by franchises adapting to customer needs. Throughout the year, we saw customers shift their focus to what they need versus what they want and watched countless franchises use empathy to rise and meet those needs.
This led to business model changes in favor of amenities like curbside pick-up, DIY kits, virtual opportunities, specials and steeper discounts, and even switching to digital customer service. As the economy recovers, we predict these new business models will be a mainstay in 2021 and possibly beyond.
New Timely Franchise Opportunities
Another way franchises became stronger in 2020 is the influx of franchise opportunities centered around the healthcare industry and courier/local delivery and tutoring services. This year showed us that there will always be a need for healthcare options and that there is no such thing as too many, especially in avenues like telemedicine and at-home care.
Local delivery and tutoring services were suddenly in demand as schools moved to remote learning and many people opted to stay safe. And now that these services have become instrumental to our daily lives, we believe that the franchise industry will continue to see an increased need for them, creating even more franchise opportunities for future entrepreneurs.
Reestablished Connections with Employees
One thing franchise owners inadvertently discovered in 2020 was the restrengthening of their relationships with their employees. Everyone experienced a collective rain cloud above their heads. We worried about making ends meet, mourned the loss of our loved ones and our pre-COVID lives, and so much more.
Many franchises prioritized their team’s physical, mental, emotional, and financial health, which contributed to the many ways franchises became stronger in 2020. These reforged relationships resulted in collaboration, a boost in team morale, empowerment, and innovative ideas that will further spark growth in the industry.
Entrepreneurs Diversified Their Revenue Streams
Despite the number of Americans who lost their jobs during the pandemic, the franchising industry saw a significant increase in new entrepreneurs looking to diversify their revenue streams by investing in “recession-proof” franchise opportunities like auto repair and local delivery services.
Some entrepreneurs also invested in semi-absentee franchises like laundromats and vending machines to recover the revenue lost from having their hours cut at their day jobs. This spike in entrepreneurship indeed represents one of the best ways franchises became stronger in 2020. Also, businesses started to imagine the different ways they could incorporate their products and technology.
Encouraged Franchises to Revise Their Marketing Strategy
This year inspired many franchise headquarters to revisit and revise their marketing strategies. For some, it provided a much-needed challenge and reason for upping their game and re-strategizing their approach to customers and the franchise market.
In looking for more personable ways to connect with customers, many franchises opted for a message that resonated with current economic and social situations (i.e., themes of togetherness and community). Using this approach enabled customers to reconnect with some of their favorite businesses and foster a renewed sense of value in them.
Hundred Acre Consulting
Without a doubt, 2020 has been a rollercoaster for us all. However, there is still light at the end of the tunnel. Industry experts predict that there will be an increase in franchises in 2021. Although this means there are many lucrative franchise investment opportunities for you to choose from, you must find a franchise that matches your interests, goals, and values.
If you need help finding the perfect franchise opportunity, look no further than Hundred Acre Consulting. We can find the perfect franchise for you and consult you throughout your franchising journey!
Ready to work with us or learn more about our services? Contact us today!