What to Expect in Franchising in 2019

As 2018 comes to an end, it’s time to start thinking about how franchise brands can build on the momentum that was created over the course of the past 12 months in order to make 2019 a strong year.

One of the big industry trends in 2018 — and one that is expected to see continued growth next year — is the fast-healthy food category. Brands have quickly observed that offering a healthy, build-it-yourself on-the-go meal has been one of the best ways to reach a millennial audience.

According to a report from the Washington Post, millennials love customization because they are willing to spend the extra dollar to have food made their way. Easy to eat, health-centric and environmentally conscious is a key niche within this audience, and it’s one where fast-casual brands can continue to deliver quality meals in a way that values the customer.

“Creating this customized, healthy, on-the-go meal in a quick way will lead to continued success,” said Sean Fitzgerald, No Limit Agency*’s Chief Development Strategist. “Many food franchises are catering towards this audience and developing concepts that align with their expectations.”

Not only have the food offerings been a win, but so have the wait times as speed has been met with helpful service. Moving forward, the rise of technology within the restaurant space will only continue to grow and improve restaurant hospitality.

“In the QSR space, in-store kiosks have provided a simple, user-friendly process that has increased services and decreased wait times,” said Fitzgerald. “Now if you can do that in-store, why not take that model to drive-thrus and innovate that experience?”

When it comes to take-out and delivery, technology will also play a key role in how brands continue to bring service to their customers. Virtual restaurant concepts are starting to blossom, allowing brands to shrink their storefront sizes and operate out of kitchen-only locations, which then primarily serve as delivery or pick-up only options.

“It will be intriguing to observe the intersection of technology on take-out and delivery options,” said Fitzgerald. GrubHub and UberEats allow for brands to expand their reach into different audiences and reinvent what is possible in the QSR and fast-casual space.”

From a franchise development perspective, guiding potential franchisees through the franchise opportunity process rather than selling them through the process is an approach that can lead to more success. Creating personalized value of why the brand is the right fit for both parties can establish a relationship from the beginning.

“Nurturing campaigns need to be the focus,” said Fitzgerald. “Creating catered content data such as videos or PDFs for candidates that explain the development opportunity allows people to become more engaged.”

At the end of the day, the big question will always be where the economy stands along with the employment rate. Historically, franchising has always done well in a slower economy. As unemployment rises, more people look to franchising as a means of establishing a stable job.

According to Forbes, as growth slows, there will be a shift from quantity to quality where strong brands with talented leadership, robust economics and lasting concepts will survive and emerge stronger as a result.

“When looking into 2019, low investment will always require high involvement,” said Fitzgerald. “There is a strong shift in the younger millennial demographic who are looking to run their own business. Brands that can continue to appeal to young entrepreneurs are going to do well.