Ms. Mona Do: +82-2-6000-8004
23 June, 2021
With the advent and maturation of the internet, such things as brick-and-mortar retail operations seem to be fading in popularity as people order products and even groceries online. Books are delivered via the mail or downloaded to a tablet, and with the pandemic, eateries are shutting down in droves. Such things as digital consumption of delivery of goods and services and the growing need to maintain social distance can wreak havoc on established business models that involve such things as franchising. However, franchising itself is not a business. It is a type of business model. As such, franchising is alive and well, as they say, even if it is undergoing various transformations.
Perhaps because of the sudden emphasis on remaining healthy, franchises that focus on a combination of health and wellness are expected to thrive throughout 2021 and beyond. Franchises that focus on exercise and spa experiences are expected to do well, as are those that focus on such high-tech markets as bio-hacking. Finally, franchises that offer sports therapy are expected to maintain high popularity for people who can position themselves within this niche.
The pandemic has pounded schools, and a healthy segment of parents is not interested in returning their children to an environment where they can ultimately carry a virus back to the home. As such, home-education and parent-teaching franchises are expected to gain and maintain popularity.
Specifically, franchises that provide exceptional learning aids and online learning solutions are beginning to thrive and are expected to be among the top performers of 2021. Tutoring franchises are also expected to experience increased popularity as some teachers are not expected to return to the classroom. Although this shift from a traditional educational environment to a home-school environment will not entirely disrupt educational institutions, the shift will be significant enough to provide double-digit growth and profits for various learning-based franchises that also include the following.
Although franchises that rely on an eat-in or sit-down experience are increasingly becoming common casualties of the pandemic, wheel-based restaurants or eateries see double-digit growth. Serving such fare as submarine sandwiches or pizza, hot-food vans are becoming valuable investments to anyone wanting to launch a franchise.
Additionally, these small operations are more successful than a typical brick-and-mortar restaurant as the overhead is substantially lower. Consequently, in terms of market, food-delivery franchises can easily become a mainstay business for small towns that could not otherwise support a location-based business.
Although few franchises center around a technological product, franchises relying on existing technology to increase sales helps establish a back-to-basics formula for doing business. For instance, video conferencing is being used successfully by gyms and paint companies needing to provide customers instant quotes. Franchises that center their deliveries around an app are also experiencing a more consistent uptick in their sales. Finally, virtual conventions are becoming so popular that even when in-person attendance is once again commonplace, virtual seats will likely still be an option.
One of the most important needs for an existing franchise is to receive assistance from the parent company until the pandemic is better under control. This assistance might involve deferred franchise fees as the ability to pay these fees is a real concern for franchises experiencing fluctuating levels of revenue that do not adequately meet a fixed-fee system.
Additionally, leadership by the franchisor should include measurable problem solving to meet the new needs of product or service fulfillment. Some solutions involve converting counter service to drive-thru windows. In fact, many food-service franchises and even junk-retrieval franchises are attempting to re-think their delivery system and implement so-called no-contact fulfillment methods to ensure customer safety.
Especially for consumers in the age range of 20 to 30, corporate ethics and morality determine factors that help people decide what to buy and from whom.
In fact, to franchises that donate to charities or help protect the environment, such buyers are increasingly loyal. Additionally, franchises that actively recruit a diverse workforce and implement non-harassment policies will increasingly attract better employees. Finally, in terms of reaching such consumers, franchisees and franchisors are increasingly attaining better market penetration by sharing their stories of community accountability via social media.
The most successful franchises will continue a long-proven strategy to heal the environment while making current franchise operations more environmentally viable. Doing this involves using green energy and products, but the most important factor in this strategy is doing so in a manner that makes supply lines more efficient. This combination is compelling because social responsibility attracts more customers while the more sustainable supply line serves them. Consequently, even non-green franchises can see huge profits by making small changes in their production or delivery processes.
Pandemic-safe franchises encourage social distancing, but many travel franchises have social distancing built into their business models. For instance, various RV and campsite franchises are experiencing amazing growth as people are attempting to overcome the stir craziness that sets in during quarantine. To remain safe, many family and friends are exploring nature via travel trailers and recreational vehicles. The destinations are away from the city and toward the vast outdoors of rural America.
Multicultural franchises will likely have a better chance at launching and thriving than non-diverse opportunities. This trend is because a broader cultural consciousness is evolving and the fact that people finally recognize that multicultural markets are largely untapped.
In particular, franchises that can tap into the desire for ethnic cuisine while helping the environment and maintaining strategies to keep people safe from the pandemic will likely thrive throughout 2021.
In practice, serving an essential need involves the end product, which must be critical to the buyer’s situation. Food, for instance, is essential. However, it also involves delivery, which means how the product is fulfilled.
The franchises predicted to thrive will follow pandemic-safe delivery methods. The best businesses that focus on the home renovation while accomplishing pandemic-safe delivery methods will trounce the competition.
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