The 5 Biggest Trends in the Franchising Industry for 2024

The times they are a-changin’. In today's fast-paced world, staying up to date with the latest trends is crucial for anyone in the franchising industry. The landscape is constantly evolving, with new technologies, shifting consumer behaviors and emerging business practices reshaping the market almost daily. Whether you are a franchisee, a franchisor, a potential investor, a vendor, a broker — understanding these trends isn't just about keeping up; it's about staying ahead of the competition and ensuring long-term success. 

1851 Franchise spoke with three experts in the franchising world to get their take on some of the biggest trends coming down the pike. 

1. Embracing Technology and AI Integration

For better or for worse, it’s safe to say that AI isn’t just a buzzword at this point. 

David Brand, CEO of Brand Franchise Group, emphasizes the pivotal role of technology in enhancing customer experience and operational efficiency. “Advancements in technology have helped with the speed of service,” he said. “We live in an on-demand world, so using technology helps to increase the customer experience. Technology makes it easy for the consumer to do business with us and makes it easier for the team members to deliver on the customer demand. The franchisor must also use that technology to advance business insights.”

Jack Mashini, co-founder of Wing Snob, echoes this sentiment, highlighting the use of AI-powered chatbots and virtual assistants to handle routine inquiries and order processing. “As technology rises to the forefront, franchises are taking advantage of every opportunity to streamline operations, from automated ordering systems to advancement in inventory management,” he said. 

Sumit Madan, owner of Vishnu Franchise Brokers, underscores the role of technology in training and support. “With the technology coming down the pike, we are going to see a major increase in training and support,” Madan said. This digital transformation will drive operational efficiencies and create personalized customer experiences, ultimately boosting franchisee success.

2. Sustainability and Eco-Friendly Practices

“Today's consumers are increasingly eco-conscious, driving franchises to adopt sustainable practices. A business must deliver on its promises,” said Brand. “Regardless of if you want a great cup of coffee or for your grass to look great, the cafe or weed and feed franchisee has

to deliver. Today’s consumer is focused on the impact on the environment. I am so proud of this generation who don’t only want the fastest service, but also want to understand how it impacts the earth. I am impressed by the self-awareness to make the world a better place.”

Madan also highlights the importance of eco-friendly businesses. “Consumers are very conscious these days of sustainability — they will be much more likely to show loyalty to brands that are eco-friendly,” he said. Franchises that prioritize sustainability will attract and retain a growing segment of environmentally conscious consumers.

3. Health and Wellness Focus

The COVID-19 pandemic has heightened awareness of health and wellness, driving demand for health-focused franchise models. “People want to be healthier right now and they want to keep themselves fit,” said Madan. This trend is evident in the rise of fitness and wellness franchises, as well as food franchises offering healthier options.

Mashini observes a similar trend in the restaurant industry. “There is a growing consumer preference for health-conscious foods,” he said. “In most markets, we are certified halal; in all markets, our chicken is natural with no additives or hormones added.” Franchises that offer healthier options will meet this increasing demand and attract health-conscious customers.

4. Operational Efficiency and Cost Management

With ongoing inflationary pressures, rising costs are a significant concern for franchises, making operational efficiency crucial. “A franchisor must use the power of many to help keep costs down,” said Brand. “There is an elasticity to pricing. You can only charge so much.” Efficient operations and cost management are essential to maintaining profitability while offering fair prices to consumers.

Mashini highlights the role of technology in achieving these efficiencies. “I think AI will continue to influence operational efficiencies and automations in the restaurant space,” he said. “Things like AI-powered chatbots and virtual assistants can handle routine inquiries, appointment scheduling and order processing, freeing up human staff for more complex tasks.”

5. Personalized Customer Experiences

Personalization is also becoming increasingly important in meeting consumer expectations. 

“Consumers expect personalized experiences and products tailored to their individual preferences and needs,” said Mashini. “For franchises, this means leveraging AI and data analytics to gather insights on customer preferences and deliver personalized recommendations and offers. In this case, targeted marketing practices are key. Developing targeted marketing strategies that cater to specific consumer segments based on their behaviors and preferences is extremely important to franchises.”

Brand also notes the importance of a strong brand and effective marketing strategies. “You need to have a team behind the scenes that is hyper-focused on getting people in the door,” he said. “Influencers are a huge key in attracting customers, for example.”

Personalized marketing techniques, such as mobile apps with bespoke loyalty programs, can also help franchises connect with their audience and foster loyalty.

Embracing Franchising Trends for Success

Whether it's through leveraging AI for operational efficiency, adopting eco-friendly practices, offering health-focused options or creating personalized customer experiences, franchises must stay ahead of these trends to thrive in the competitive market.

“Good business will always be around,” said Brand. “Invest in a great company. I did and it changed my world. Look for a company who understands the trends and knows what it takes to be successful.”

Every great franchisee had help buying a franchise. Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit www.1851growthclub.com and start your journey.