Lower oil prices have fueled a bumpy last several months on Wall Street, but the slipping oil prices has been welcome news for small business owners in the franchise industry who are seeing savings from reduced gas and energy costs.
Recently, CNBC took a look at the positive impact lower oil prices are having on small businesses. Brandon Shamy owns three Smoothie King locations in New Jersey and has been a beneficiary of the lower gas prices. "The consumer is more willing to spend — they will add something extra to their smoothie or a protein bar to their order, where I haven't seen that in years past," he told CNBC.
The National Federation of Independent Business points to energy as one of the top three issues that smaller companies are concerned with, and the lower gas prices are seen as a positive across the industry.
“Low gas prices reduce operating expenses,” Jack Mozloom, an NFIB spokesman, told CNBC. “Think of contractors and farmers who rely heavily on vehicles. It also reduces shipping costs.”
Shamy also noted that his customers slant to a younger demographic, so the lower gas prices is freeing up more spending money to spend in his Smoothie King franchise locations. "If gas prices increase, it could have a negative effect because our fuel charges will go way up, and our clientele is primarily younger, so if their costs to visit our store increase, I can see that having a negative impact on us," said Shamy.
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