Franchising is still a globally popular and in-demand form of business. Because of its ease in starting-up, aspiring entrepreneurs have the opportunity to open a store, even when they don’t have any formal education or background in the business industry. The franchising industry has been continuously showing a high success rate, with more and more satisfied entrepreneurs enjoying high returns on their investment. Here are some of the latest trends in the franchise industry:
- The market for convenience will continue to rise
Franchise businesses that offer convenience will continue to rise. Franchiseknowhow tells us that the market for grab and go type restaurants and fast food are still very much in demand. Franchise businesses that offer speedy delivery services are also on the rise. The world today is moving at a fast pace, and more people, especially young professionals, are always looking for speedier meal options.
- The continuing demand for franchise businesses will help decrease unemployment
In 2019, it is expected that franchise businesses will continue to be in demand. The franchise business is still a major provider of jobs in the market today, and a significant reason why unemployment will continue to decrease this year. Apart from an increase in employment, there is also a trend toward an increase in the minimum wage of franchise employees, a phenomenon that is a direct result of increased employment, creating a more competitive market.
- The competition will be tougher and higher
Because more small and first-time entrepreneurs will be drawn to franchising, competition in this industry will be tougher this year. Business owners will have to keep in mind their market strategies in order to meet projected revenues. This type of financial pressure will be felt throughout the entire industry, which in turn will increase competition and the demand for up-to-date and relevant business strategies.
- Marketing strategies will be more focused on social media marketing
Digital marketing for businesses has been around for many years now. However, this year it is projected that social media marketing will gain even more popularity. The rise in the use and availability of smartphones has made it possible for even the least tech-savvy consumers to have social media accounts, increasing the population on social media.
This year, the bulk of marketing strategies even for franchise businesses, is focused on social media. Remember that a primary advantage of a franchise business is that you already have an established name, so you don’t have to go to great lengths to market your business. Social media marketing is the perfect marketing strategy for a franchise business.
- Suppliers will now be considered business partners
In any business, the supplier plays a crucial role in keeping prices down. If your supplier's raw materials or ingredients are excessively expensive, you can’t expect to attract more customers through more competitive pricing. In franchising, the prices in one store have to conform to those of all other branches. Therefore, it pays to think of your suppliers as your profitability partners.
Rather than conforming to the past trend of choosing the supplier who offers the best price or the lowest bid, this year it is recommended that franchise owners select the supplier who will be the best overall asset for the business. You will know that your supplier is the best one for your business when they see your vision as their own, and they work with you to achieve your goals.
- There is a rising demand for customized service
Franchise businesses offer the same products with the same prices throughout all their branches. However, you can stand out from other branches by providing customized services, which will make your customers feel special. In the past, customized services were viewed as an added cost, but this year, franchise experts see this as a profitable part of your customer service.
For example, add your customers' names on their delivery boxes or orders, or give your customers the freedom to choose free add-ons and other services according to their preferences.
Global franchise conventions and seminars demonstrate that the franchise industry is still one of the most sought-after means of opening a business. The above mentioned franchise trends are all tailored to meet today's current market trends, opportunities and needs. These trends show you what you have to look forward to in franchising, and what lies ahead in this popular business industry.