Growth Club
1851 Growth Club
The Next Great Thing in Franchising
While franchising continues to evolve to meet the needs of our ever-changing culture, these industries stood out to us right now
Predicting the future is a dangerous thing to do, particularly when you are looking for an opportunity in which to invest your money and your life. Different people have different skills and what suits one person, won’t necessarily suit another.
Nonetheless, we here at 1851 Franchise have taken on the challenge. We have looked at franchising trends from around the world and compared them to what is happening in the U.S. It is important to remember that what works in the United Kingdom, Asia or Australia won’t necessarily translate here. Since trends may be reflected in different ways, we asked four industry experts for their opinions on particular issues.
You will notice a few themes that are common to many: changing demographics, the impact of an aging population, and a focus on products or services that consumers consider necessary rather than just desirable.
Hair & Beauty
In a segment traditionally thought of as female-focused, things are now trending towards more male-focused products and services. According to Sport Clips* Vice President of Franchising Pete Lindsey, this trend is manifesting itself in more men seeking something beyond just a haircut.
“Specifically in the hair and beauty segment I would say that we are moving from just a simple haircut to more of a ‘let us help you look great and feel confident’ approach,” Lindsey said. “The products coming out for men today are much more substantial than ever before. Men typically don’t know how product can complement a cut and our industry is really educating men on their options and helping them look great at the same time. Our goal at Sport Clips is to have men and boys leave our salon feeling like they can take on the world.”
Health & Wellness
Consumer healthcare is certainly a growing industry, but it may shock some to hear just how much more is projected to be spent on health and wellness services in the near future. Hand & Stone Massage and Facial Spa Vice President of Advertising and Marketing Jack Bachinsky said he sees an even brighter future for the massage segment specifically, as more and more people look for preventative health treatments.
“According to various sources, consumer healthcare will grow by almost 50 percent to nearly $750 billion over the next five years as health conscious consumers of all ages look to engage in preventative and recuperative health and wellness categories,” Bachinsky said. “Massage provides not only recuperative health benefits, but preventative benefits as well from stress relief to improved blood circulation and more. This makes our category the hottest segment of the broader consumer healthcare market and by perfecting the model, which allows us to bring the spa experience to the middle market – with affordability and convenience – Hand & Stone is in position for outstanding growth.”
Senior Services
Ever-increasing life expectancy and a declining war chest for Medicare and social security means that care for seniors will only become a bigger question – and a bigger potential business opportunity – moving forward. Right at Home* Chief Development Officer of Franchise Development Eric Little has been monitoring these trends and believes what some call the “longevity economy” will continue to be a hot market.
“AARP refers to our industry (those ages 50 and up) as the longevity economy,” Little said. “If this longevity economy were a country, it would represent the third largest economy in the world – behind only the US and China.”
Providing solutions to care for this population is what, he believes, will continue to drive the senior services sector.
“The issue of how we are going to care for our aging population in light of lower birth rates, longer life expectancies, and fewer tax dollars to social security and Medicare not only presents a huge challenge for our country; it also presents tremendous opportunity for small businesses to provide solutions to a very real problem that faces families every day. Businesses like Right at Home provide client-focused services that improve quality of life not only for the client, but also their families,” Little said.
Fast Casual Healthy
As Americans persist in finding new, healthier options for quick dining, made–to-order gourmet salads have proven to be a steady segment and one that insiders believe is only getting bigger.
“The made to order salad sector is one of the hottest sectors of the food service industry,” said Saladworks President and CEO Paul Steck.
But it is not just the promotion of a healthier lifestyle that is fueling growth. While consumers are looking to eat healthier, they are also searching for a diverse range of options.
“The growth of the healthy fast casual segment is largely driven by the fact that we represent the intersection of a healthy lifestyle and choice. Wall Street has taken notice and huge amounts of capital are flowing into this sector of the industry, which in turn is fueling growth both in terms of brand competition and general consumer awareness,” said Steck.
If there is one thing to take away from these four examples of the future of franchising, it is perhaps that the industries themselves are not necessarily what is promoting rapid growth and success. Rather, changing populations with new priorities are causing the franchise industry to change and adapt the services and products they offer.
Whether it is in offering more hairstyling options to men or finding a solution to caring for our aging citizens, opportunities exist to forge new paths and continue disrupting the franchise world.
*This brand is a paid partner of 1851 Franchise. For more information on paid partnerships please click here.
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