SERVICE, MOBILE AND MORE FRANCHISES ON THE RISE
As Australians settle into our ‘new normal’ at least for the foreseeable future as a result of the global COVID-19 pandemic, there are some clear trends emerging – in life, as well as franchising.
Lockdowns, extended periods away from loved ones, as well as forced changes to the way we work or transition out of work has led to people reassessing their lives and what is really important to them.
Further, the rapid adoption of technology and more flexible work arrangements has created a greater focus on lifestyle balance. With people working from home, online shopping has increased significantly, as has the use of delivery services. Pet ownership has also sky rocketed.
As with any economic downturn there has been an increase in redundancies. However, rather than jumping back into the daily corporate grind people are looking for opportunities that align with their personal values before deciding on their next move.
This trend translates through to the type of franchises we are seeing people looking to invest in through the Australian Franchise Marketplace, and those franchises that have performed strongly over the last 12 months.
Service and mobile franchises
While some industries are outperforming others across the franchise sector, a clear trend which crosses across a range of industries is the rise in service, and in particular mobile franchises.
One of the appeals of these types of franchises is the lower start-up costs. When investing in a retail franchise, there are usually fit out and on-going leasing costs which can significantly add to the cost of a business, whereas with a mobile franchise you have the initial vehicle fit out costs, which are generally lower, and no on-going rent.
Home handyman and home renovation
With people spending more time in their homes, home improvement-related franchises have performed extremely strongly over the past 12 months. One franchise I was speaking with last year mentioned they had seen sales increase by 1000% year on year across their stores. With a number of businesses adopting more permanent flexible working arrangements this trend is likely to continue.
Aged care, mobile nurses and alternative health therapies
Our ageing population, in conjunction with a greater focus on health and increased preference to avoid places where we may be exposed to illness are all contributing to an increase in demand for a range of franchises offering in-home care and support services. The focus on health is also leading to an increase in preventative and maintenance treatments across a range of alternative therapies.
It’s no surprise there has been a rise in demand for cleaning franchises, particularly industrial cleaning, as deep cleans become part of the new norm for businesses.
Pet care franchises
From dog training, grooming, walking services, vet services, pet products and more – with an explosion of pet ownership comes an explosion in spending associated with pet ownership. Coupled with this trend is the continued rise in pets being substitute babies. Expenditure in this industry was already rising steadily before the pandemic. However, now we see not only the demand for designer puppies increase, but also animal shelters receiving a ten-fold increase in demand.
Food franchises are still popular, despite the impact of COVID-19 on some outlets. People are still becoming increasingly reliant on purchasing meals prepared outside the home, and with home delivery widely available, the industry has generally adapted well to the new normal. In particular, healthy food franchises, including mobile franchises, are on the rise as people are focused on a combination of health and convenience.
Regardless of the franchise you choose to invest in you need to ensure it aligns to your business goals, as well as your personal circumstances and financial capacity. I created the Australian Franchise Marketplace to help people looking to invest in a franchise to access and understand that dashboard, to make informed business decisions. Not only can you access this great, free resource to equip you with the questions to ask franchisors, you can also apply your new skills and knowledge straight away with a range of franchise businesses exhibiting online.
You can deep dive into a range of franchise offers, ask questions and download information online, 24 hours a day, every day of the year. Find out more or register for your free ticket at: AustralianFranchiseMarketplace.com.au
Kerry Miles is Director of FranchiseED, Founder of Australian Franchise Marketplace, a Franchise Mentor & Coach, and Adjunct Research Fellow at University of the Sunshine Coast. She has nearly two decades of experience in the franchise sector with clients including small and large franchises and government organisations with an interest in the franchise sector.