Top 4 Franchise Trends for the Rest of 2020
The franchise industry saw many changes in 2019, however none like what we’ve seen so far in 2020. The oncoming of COVID-19 has shifted the industry as well as any trends predicted for the new year. Before the pandemic, the franchise industry was slated to increase by 1.5 percent to 785,316 franchise establishments. However, because of countless jobs lost and an unstable economy, the industry has taken a hit. But franchising remains one of the most resilient industries in the world! With a post-COVID franchisee in mind, here are my picks for franchise trends for the rest of 2020.
Trend #1: Multi-Unit Franchising Continues to Dominate
Since 2015, multi-unit franchisees have accounted for more than half of franchise locations over single-unit owners. This increasing trend is likely the result of some new franchise owners looking to establish a small business empire.
Other speculation includes a small but growing number of franchisors seeking out potential franchisees interested in multi-unit franchising opportunities. Whatever the reason, as more prospective franchisees express interest, franchisors will make more effort for multi-unit franchise opportunities available to all.
Trend #2: Gen Z Changes the Franchise Market
Although Gen Z isn’t ready to become franchise owners just yet, they affect other franchising aspects in a significant way. In 2020 they’re expected to make up 20 percent of the workforce. They’re tech-savvy, culture-focused consumers and employees. So, when franchisors come knocking with franchise opportunities in mind, franchisors have to be willing to adjust their model to match the values of Gen Z-ers, such as a career with stability.
Gen Z may be the next generation to shake things up; they’re not the only one shifting trends. Each generation has its own impact on the industry: Millennials now dominate consumer demand, and Baby Boomers are buying franchises in record numbers.
Trend #3: Home Healthcare Sector is Still in Demand
On the other side of franchising, Baby Boomers are influencing franchising differently: senior care franchising. The growing franchise trend is the result of Boomers who have retired from the workforce, and instead of seeking traditional senior care options, opted for top-notch senior care in the comfort of their homes. According to experts, the senior care sector grew from $180 billion in 2014 to $300 billion in 2020. And I predict that there’ll be no change soon.
Trend #4: Franchises That Deliver
Franchises that deliver have always been a convenience but not a necessity. The trend of easy order and home deliveries has increased in recent years, thanks to Amazon. That is until the COVID-19 pandemic changed the franchise model. Now, the tables have turned, and delivery is a must. Franchises that deliver have found themselves at an advantage over other franchises that have newly implemented the idea.
As the uncertainty of how long COVID will stay continues to loom, I predict that there will be a continued influx of franchise purchases in categories that offer delivery and more franchises incorporating delivery into their business model. This means restaurant and fast food chains like Domino’s, delivery franchises like the UPS Store or FedEx Office, and most retail chains that ship to your home.
Hundred Acre Consulting
Keeping up with ever-changing franchising trends may be challenging, but you’ve got a friend in the industry. At Hundred Acre Consulting, I can help you find the perfect franchise for you in any sector and provide guidance and consulting to ensure your success.
If you’re interested in getting started, give me a call today!