We break down the franchise industry to show you which segments to look out for in 2016.
Coming up to an election year is always an interesting time for the franchise industry. With a number of industry topics on the table, such as joint employer status and minimum wage, there could be a major shift in what segments boom and which are a bust.
We took a look at the industry as a whole and broke it down to show you which segments to look out for in 2016.
The cleaning industry has typically been seen as recession resistant in recent years, particularly on the commercial side of the sector. With cleaning giants like Jan-Pro dominating the space, it will be difficult for new concepts to emerge, but the industry staples will continue to expand.
As the American population continues to age (there are approximately 10,000 people turning 65 each day), the demand for in-home care has never been greater. Brands like Right at Home, which was named one of the top brands to buy in 2015 by Forbes, are continuing to see great growth.
Alternative Craft Foods
Craft seems to be everyone’s buzz word of 2015, and we predict that won’t change in 2016. Craft beer will remain a staple, but be on the lookout for more craft food franchises to pop up. A few brands that have seen success by doing things a little differently are Your Pie and Chronic Tacos.
Brunch is the most important meal of the day—there’s no arguing. On a slightly more serious note, according to Google Trends, brunch has been steadily rising as a sector since 2004, and it shows no signs of slowing down. Look out for brands like Famous Toastery, which saw tremendous growth in 2015.
As the real estate space continues to become more and more competitive in major metropolitan areas, a great alternative solution is food trucks and kiosks. With footprints becoming more and more efficient, more brands are opting to hit the road and try something different.
Americans are lazy. Sorry, but it’s true. The counter to that is this—we know we’re lazy, but we don’t WANT to be despite our lack of real effort to reverse it. In response, even big brands like Taco Bell, KFC and 7-Eleven have exploited our laziness in 2015. Other industries have also seen great success with bringing their product to your doors, such as GYMGUYZ, a franchise that brings fitness training to you.
As the digital world evolves, so too does franchising. With more and more devices out there performing an ever-expanding spectrum of tasks, brands like Wireless Zone are continuing to grow as they pass on their knowledge of said devices. We’re going beyond the phone and moving to new territory such as smart homes and cars.
Health and wellness
There are a very wide variety of health and wellness franchise brands out there. You can find strong, growing brands in almost any direction, from massage brands like Hand & Stone Massage and Facial Spa to 24/7 fitness brands with minimal overhead like WORKOUT ANYTIME.
Alongside the craft craze, it seems more and more people are going nuts over cuisine from around the world. We’ve seen brands modify international foods successfully, like Pita Pit for example, and it looks like they’re more popular than ever. Brands are popping up that offer a wide variety of international cuisine from Mediterranean influence to Japanese Fusion.
One of the most tried and true franchise segments is back for more in 2016—sandwich chains. Sandwiches are an American staple and they’re especially perfect for people on the go and in catering. Which Wich, Firehouse Subs, Jersey Mike’s, Lenny’s Subs and Subway are making very large waves of late and expect them to continue in 2016.