17 Apr Fast Growth Happening in the Franchise Industry
While the International Franchise industry is always growing, there’s a clear standout sector that is growing faster than others. In a recent study done by Entrepreneur magazine, the leader sector made up more than twenty percent of the overall growth. Curious what sector that was? Not surprising to anyone who’s in the industry, it’s the quick serve restaurant sector. More specifically, within that sector, it’s the fast casual restaurants that are franchising at rapid speeds, and for good reason.
With so many established fast food companies already owning the market on fast service and cheap food, the rising stars have been those looking to capitalize on the increasing desire for ambiance and food quality. With an ever growing population that cares about choosing their own meal ingredients, franchises are able to stand out by offering do it yourself versions of popular menu items. This model, popularized in the United States by trend setters like Chipotle, has been expanded to everything from Italian food to local farm to table fare.
Beyond the fast casual sector, the next biggest trend we’re seeing is in the personal care sector. This is due to a spike in the fitness and the senior care industries, as both have seen rapid growth and success in the last few years. We can assume growth here is due to both an aging population, along with a younger generation with a desire for more personalized care. Where the one size fits all approach worked for health centered businesses in the past, today’s consumer is choosing to spend their dollars at more specialized fitness studios, and with personal trainers. The added appeal for franchisors is the smaller footprint that these boutique style businesses require, and a lower cost of entry to the market. While the big names are still leading in this sector, new businesses are popping up and introducing new products and services each year. This is a driver for innovation and growth in this sector, that we will continue to see in the future.
Lastly, thanks to the current generation of parents who are willing to invest in their children’s education unlike any previous generation, the children’s business sector is also growing at rapid rates. With a trend appearing in STEAM (otherwise known as Science, Technology, Engineering, Art, and Mathematics), parents are happy to spend their dollars if it means their children will excel in these fields that offer promise of profitable and sustainable career paths. Tutoring franchises that offer to reverse the trend of the United States falling behind our international competitors in STEAM, are doing extremely well in all areas of the country.
Whether you choose to franchise a fast casual food service business, a health and wellness business, or even a children’s education business, the overall trend is to be offering something to the market to enrich the overall wellness of a community.