Image by: Retailmania
By Theresa Grant
Franchising has changed dramatically over the past five years. There are more multi-unit and area developers, more high-tech ways to optimize sales and leaner and meaner corporations honed by the recession. At the same time, franchising remains subject to the challenges it has always faced: the fads, the bubbles and the whims of public taste.
I can?t tell you for sure how the next year in franchising to an exact T, but I?m going to go over trends that will have the biggest impact in 2013.
Area Bombardment
When the economy went south, franchisors alike all fled where they wouldn?t be affected by the downslide of the US economy. Overseas. While overseas, American franchisors learned that area bombardment is the way to go. Instead of partnering with mom and pop businesses, we are learning partnering with deep-pocketed overseas developers who can navigate the culture and open and operate numerous units at once.
More than 50 percent of franchises are held by multiple-unit owners, and many of them act as area developers, building out entire metro areas, counties or even states. Banks are more likely to lend to franchisees with successful track records, and franchisors reduce risk by letting proven operators open stores, rather than rolling the dice with a newbie
Refranchising
Refranchising is when a company sells its corporate-owned stores to franchises. It?s usually a sign that the business is in trouble. It?s more of a strategic move, not a sign of failure.
Still confused about the meaning of refranchising? Well, think about this. There?s a company that started in the UK and came overseas to America. The company is called ?Fresh and Easy? which is a grocery store with their own products. They have pre-cooked/ready to go meals and other necessities that you would find in a grocery store.
They spent over $5 billion to re-model all stores and expand their food line instead of selling off their property for a new grocery store to move in. In that case, the new grocery store would have to foot the bill of the rent while Fresh and Easy would sell their product in THAT grocery store and still collect royalties.
Healthy Fast Food
This sounds a little confusing but just follow me for a minute. Hardee?s and Carl?s Jr. was struggling for a long time when it came to its competitors. They couldn?t keep up with the others to giving out healthier options. Until they launched the low calorie turkey burger, which was one of their largest launches to date.
Fast food restaurants alike are all turning towards healthier choices and the American public is choosing them over the regular menu. Is that because fast food companies finally caught on to the trends or were Americans just more focused on their waist-lines? Either way, it?s a wonderful success when it comes to profits.
Digital Aids
Another trend that?s prevalent in 2013 is what we call digital aids. When it comes to regular franchises, franchisors have to have the instinct about which business to choose as well as which location it would thrive at. More entrepreneurs are seeing the advantages of digital-age data collecting, and services that aid franchisors in site selection, franchisee selection and customer retention are becoming must-haves.
Site Analytics and other services, which use hard data and detailed traffic patterns to help franchisors decide where to place their stores, were used by just a handful of franchises a few years ago. Today, companies are lined up for these services. Google and Facebook recently launched features designed specifically to help franchisors and franchisees collaborate on social media branding and promotions, both of which will see wider adaption in the coming year.
Even something as simple as digital menu boards, which franchises resisted for the better part of a decade, will see wide deployment as companies realize the opportunities they present, such as the ability to add happy-hour offerings, hold one-day promotions or disseminate personalized messaging.
Did you enjoy this article?
|
Source: http://www.grandascent.com/2575/franchise-business-trends-for-2013/
james farentino somali pirates navy seals navy seal team 6 tim gunn tim gunn
No comments:
Post a Comment