Why Are These 4 Franchise Markets Booming In 2024?

Boba tea, recreational sports, prepped meals and science-focused tutoring all have one thing in common. These franchise markets will be the ones to watch out for this year. Read on to find out how they got their boost in popularity and why franchisees may want to invest in them.

Why Boba Tea Franchises Are Trending

Coffee shops and smoothie bars are doing well. Why? Beverage franchisers know how to market to a specific niche. One drink poised to take the beverage market by storm this year is boba tea (also known as bubble tea). This cold, frothy drink from Taiwan is made by blending tea with milk, juice and/or fruit juice, then shaking it with tapioca pearls. The resulting beverage is not just delicious, but visually striking, making it perfect for sharing on social media.

One of the brands at the forefront of the boba tea trend is Gong cha, which started in Taiwan in 2006 and has since expanded to more than 2,000 stores globally. The company currently has close to 200 stores in the U.S. and expects to grow to 500 stores by 2025.

Another trending boba tea brand is Kung Fu Tea, which opened nearly 400 stores since it was founded in 2010. Kung Fu Tea carved out its own niche within the boba tea market by selling canned drinks. 

“We have an energy can that sold out in the first six months, and the only two places we had it were on Amazon and in-store,” said the company’s marketing manager Matthew Poveromo in an interview with Entrepreneur. “I think in the next year, we’d like to move further into the ready-to-drink category, building out more flavors and more distribution, maybe through grocery channels. What would be more accessible than seeing Kung Fu Tea on your Walmart shelf?”

Why Recreational Sports Franchises Are Trending

Following the pandemic and lockdown, consumers began placing more emphasis on healthier pastimes. This, coupled with the rise of new and innovative activities, led to a boom in the recreational sports market.

One sport that saw a meteoric rise in popularity is pickleball, a paddle sport that combines elements of tennis, badminton and ping-pong. Pickleball requires little practice, making it an ideal activity for players of all ages and skill levels. Since the sport first came to national prominence in 2021, the number of people playing grew from 5 million to over 40 million. In turn, the number of pickleball franchises has exploded to keep up with the demand. Ace Rodrigues, founder and CEO of Pickleball Kingdom, said his company offers twice-daily introductory classes to the public for free. 

“We get people who say they were an athlete 20 years and 20 pounds ago,” said Rodrigues to Entrepreneur. “And they’re asking about leagues and tournaments because it’s so much fun.”

Another trend in the recreational sports market is taking a traditional athletic activity and adding a unique innovation to expand the experience. For example, D-BAT enhances the traditional baseball/softball training setup of batting cages and pitching machines by moving everything indoors and offering coaches, camps, clinics and a fully stocked Pro shop. 

There’s also X-Golf, an indoor facility where golfers can practice their swing in simulators. However, this business went the extra mile by adding famous courses and national tournaments, as well as food-and-bar service to the mix. This elevates X-Golf from sports training to a full-blown social experience to be enjoyed with friends and family.

Why Meal Preparation/Delivery Franchises Are Trending

During the first wave of the pandemic, customer spending on delivered food increased by 70%. In the wake of COVID-19, this trend has not just persisted but grown into a foundation for several new models of food service.

Lean Kitchen Company built a business on healthy grab-and-go meals that have been pre-prepared. All the customer has to do is heat them and eat them. (Plating is optional.) The company, which started franchising in 2018, now has 33 locations open across the U.S. and more than 60 in development. The addition of online ordering generated a real boom in sales: 30%-50% of Lean Kitchen’s orders are coming from the internet.

New York Butcher Shoppe is another franchise that’s driving growth in the prepared-meals market. The brand, which originally focused on selling traditional meat cuts, specialty groceries and wine, saw an uptick in sales since it started offering prepared meals at its stores. According to Joseph Giordano, vice president of corporate and franchise development, prepared meals currently make up 20% of New York Butcher Shoppe’s product mix.

Why STEM Enrichment Franchises Are Trending

Children’s programs focused on science, technology, engineering and math (STEM) have been around for a while, but the recent focus on artificial intelligence gave this market a new urgency. Parents want their children to have an educational edge beyond their standard schooling, and STEM enrichment franchises are rising to fill that need.

Code Ninjas, which was founded and started franchising in 2016, now has 385 locations in the U.S., Canada and the U.K. Vice president of global development Colin Fitzpatrick explained that the company’s goal wasn’t to teach coding as a vocation, but to give kids an understanding of the world around them. 

“The same way a kid takes science classes, it’s important that every kid has a foundation in computer science and computational thinking,” said Fitzpatrick.

STEM enrichment franchises are an excellent opportunity for teachers looking for opportunities outside of the traditional school system, as evidenced by the dynamic at Skill Samurai and Challenge Island. 

According to Skill Samurai’s president, Jeff Hughes, 75% of his new franchise owners in 2022 were teachers. 
“They’re people who want to keep teaching, but they may not like the politics or the current setup of the schools,” said Hughes.

Challenge Island has more than 150 franchises in 31 states, many of which are run by former educators. The average salary for a public school teacher is about $58K in the U.S., but some franchisees for Challenge Island earn as much as $300K to $400K, according to founder and CEO Sharon Estroff.

Franchises Primed for Success

If you’re in the market for a franchise opportunity and have a passion for any of these industries mentioned above, then now may be the best time to get the ball rolling. For a list of franchises in these and other popular categories, visit 1851's directory of franchise opportunities.