Purpose-driven business is business which goes beyond profit, aiming to make a positive impact – socially and environmentally.
This is a trend which has been on the rise for a while now, driven by several factors, most notably:
- Increasing concern over environmental impact associated with population growth and modern lifestyle.
The years of drought, flood and wildfires which have escalated in Australia over the past decade have only increased our awareness of impacts associated with development resulting in loss of natural environment and intensified levels of pollution. Australians are becoming more and more aware that people-driven climate change is a real and very uncomfortable thing, and we can and must do something about it. People are also becoming very aware of the need to reduce waste and the benefits of recycling.
- Social costs associated with rising cost of living felt so strongly since COVID.
People are becoming more and more aware of things such as hugely increased cost of housing in the past five years or so and increases in cost of everything generally which is affecting business and consumers across the board. News over homelessness, families struggling to just meet the day to day living expenses all hitting the media daily. Unsustainable cost of living is a real concern.
The rise of Millennials and Gen Z growing as customers and business owners who are so often motivated by meaning.
This group is also the one that is very aware that they will be left to deal with all the negatives. Housing too expensive for them to purchase, rents rising to levels they can’t afford, climate impacts increasing to levels that will become unliveable.
So, they are increasingly drawn to models that allow them to contribute to a better world now and in the future.
The result is running a sustainable business – one which aims to minimise its negative impact on the environment, community, society, and economy has become seriously important – sustainability is no longer restricted to hippy communities – it’s become very mainstream.
And it is expected our businesses will go beyond just minimising impact to having a central business purpose for good.
So, what does this mean.
Increasingly business is expected to align profit with social and environmental impact
From donating a percentage of sales to funding local projects or offering employment pathways, many businesses today are embedding impact into their operations—not just as an add-on, but as a core strategy.
Business today needs to build brand value through its impact or purpose. This purpose will help to build emotional connections because customers are more likely to advocate for brands that reflect their beliefs, which can lead to strong word-of-mouth and repeat business.
And this trend applies even more so to franchised businesses where you have a second level of customer – your franchisees – those buying your franchised businesses.
Experience tells us that it is becoming more and more difficult to attract and recruit good franchisees and then retain them. At every Franchise Expo, we are contacted by franchisors struggling to grow their group and are told franchisee recruitment is becoming painfully difficult.
The thing is, today’s franchisees are increasingly coming from the Millennial and Gen Z groups, those groups shown to be often motivated by the meaning or purpose or values behind the brand – they are drawn to franchises which allow them to contribute to a better world. And where you have a brand which allows them to make these sorts of contributions, you’ll find your franchisees perform outside the box.
- They’ll do the job better because they are proud of it
- They’ll make the sale more often because they are proud of it
- They’ll be easier to train and keep up your standards better because they are proud of it
So, what are the examples
From the big end of town you have brands like:
Brands like Zambrero with its Plate 4 Plate initiative – Every time you buy a regular/big burrito or bowl, Kids Zam Box or retail item at Zambrero a meal is donated to someone in the need around the world. This is a big NFP enterprise and was something they grew into very successfully.
The Coffee Club actively engages in community work, supporting organizations and initiatives focused on social good, as well as offering opportunities for people to connect and socialize. They also prioritize sustainable practices within their business operations.
For example, they:
- Partner with CafeSmart, a program that unites coffee roasters, cafes, and coffee enthusiasts to fight homelessness and provide support to those at risk.
- Offer volunteer opportunities, such as at hospitals, to provide coffee and a welcoming atmosphere for patients and their families.
- Host events like coffee mornings and cultural food sharing, creating spaces for community members to connect and socialize.
- Strive to improve its sustainable practices, including utilizing coffee grounds for gardens and supporting community groups.
You don’t have to start here though. To begin with think about taking smaller steps such as reducing energy consumption, implementing waste management strategies, sourcing sustainable materials, and engaging your employees in sustainability efforts. Think about working with your staff and franchisees to create a sustainability action plan to guide your efforts and track progress.
A group we often work with, B1G1 believes in the power of small…enabling smaller purpose-driven companies around the world to integrate impactful giving into their everyday business activities so that they can make impacts that create a better future for all. By supporting more than 450 carefully selected and vetted projects they are making a real difference on the lives of people and communities…Nearing 400 million impacts in their 18 years!
This power of collective Business for Good is maximized by the innovative way B1G1 integrates directly into your business and gives you total control over the impact you’re creating. In this way every business has the power to make a real difference. For good.
In 2008 we founded MicroLoan Foundation Australia, providing loans and training to help women in sub-Saharan Africa start their own business. By funding 90,000 loans that’s helped lift 450,000 impoverished people from poverty… one small step at a time.
Final Thoughts: Doing Good and Doing Well
The thing is, the bottom line today is, for franchisors, having a purpose-driven strategy is more than a trend—it’s becoming essential. In 2025, the best-performing franchises won’t just deliver profits; they’ll deliver impact, too.
Brian Keen has been involved in the franchise industry for more than 30 years and Prue has been involved with systems and business for as long. Together they founded Franchise Simply, Systems2Grow and Microloan Foundation Australia. Brian’s on-the-ground business experience as a multi-unit franchisee, franchisor and consultant helping many of the big names create their own franchise systems and growth over the years combined with Prue’s structured approach has been fed into Franchise Simply, helping today’s SMEs and Franchisors grow their business by franchising.