The year 2020 has been a turbulent one that has taught us many lessons on how to adapt and innovate in the face of uncertainty. Every industry has faced unique challenges and found ways to overcome them. The franchise system is no exception. Their experience and resolve to push ahead have resulted in many new and trending business ideas that did not exist before the pandemic. So what are the top 5 burning hot trends in franchising?
Multi-Unit operators focus on the growth and strategy of the business units. They employ professionals of field and unit managers. Moreover, they do not have to work in their stores. More than half of the franchise units in the United States are run by multi-unit operators.
When a franchisor has reached the maximum number of units allowed in their territory they opt for new brands to be included in their portfolio. In other words, franchisees who own more than two brands are called multi-brand franchisees. They do so to provide cash flow, or to diversify their risk, by creating a hedge against market cycles, changing consumer tastes, and shifts in the economy.
There has been a significant shift in the use of technology for operational efficiency. Franchises are exploring user-friendly delivery platforms to increase sales and expand the business. Mobile pay and apps are trending and very popular with the current tech-savvy population. For instance Apple or Android pay. Online customers are creating a wave of new demand.
What are ghost kitchens? It is a co-working, professional food preparation and cooking facility, set up for the preparation of delivery-only meals. This option has been very effective when the doors are shut for dine-in options. In this concept, you focus on pushing out orders from the kitchen. This includes only the kitchen equipment and facilities needed for the preparation of restaurant meals. But does not include dine-in options. However, remember this concept is not for struggling brands. In other words, it is for brands that have high demand products that need more availability. Ghost kitchen could be the future for many well-known brands.
The pandemic has drastically slowed down most economies. Thus resulting in an urgent need for automation in most business operations. Though automation requires a sizeable investment in most cases, the long term savings can be very profitable for the business. Automation not only avoids the high costs of human capital, but it also eliminates human error.
Source: Franchising USA Magazine
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