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Drawing from analysis released by franchise advisory firm FRANdata, <a href="https://www.blackenterprise.com/coronavirus-could-sock-the-franchising-industry-hard-potentially-closing-up-to-30000-units/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=black-enterprise-in-short-term-up-to-30000-franchises-could-be-closed-2712591" target="_blank" rel="nofollow">Black Enterprise issued an unsettling outlook for the franchise industry</a> on Friday, predicting that “Up to 30,000 franchises could be closed” before the COVID-19 outbreak is contained and the economy begins to recover.Unsurprisingly, given the state-ordered dining-room closures across the U.S., <a href="https://1851franchise.com/national-restaurant-association-projects-industry-loss-of-5-7-million-jobs-and-225-billion-in-sales-2712562">the restaurant industry is poised to be hit the hardest</a>, “with an estimated unit loss of 7,800 and 173,000 job losses possibly tied to shutdowns.”Less talked about in recent weeks, though, is the personal-services segment, which Black Enterprise said will see an “estimated unit and job loss [of] respectively ... 7,300 and 81,000.”According to the article, these losses could prove particularly damaging for the growing community of Black business owners.<blockquote>When it comes to opening a business, franchising is where many African Americans make money. The number of black-owned franchises rose briskly to 8% in 2012 from 4.4% in 2007, research by the International Franchise Association (IFA) revealed, Black Enterprise reported in 2018.Blacks had the biggest gain in the percentage of businesses run as a franchise within the minority, ethnic, and gender groups. Those black-owned firms grew to 4.8% in 2012, up roughly 66% from 2.9% from 2007.</blockquote>Though that outlook is decidedly grim, there is no modern precedent for a crisis of this scope and nature, so every prediction should be taken with a grain of salt. We are still waiting to learn about <a href="https://1851franchise.com/senator-dick-durbin-previews-3rd-covid-19-relief-bill-but-offers-few-details-2712568">potentially massive relief packages</a> that could buoy the industry, and business owners are already <a href="https://1851franchise.com/the-new-normal-for-restaurants-2712540">introducing creative pivots to avoid the worst effects of the crisis.</a>

Black Enterprise: In Short Term, “Up to 30,000 Franchises Could Be Closed.”

1851 Franchise

The restaurant industry will be the hardest hit during the Coronavirus crisis.


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