1851

The state of any given market was hard to pin down in 2018. By most accounts, the economy grew consistently throughout the year, but a tumultuous political landscape and the looming threat of escalating trade wars sowed anxiety among business owners and investors. Millennials, who have long posed challenges for legacy brands across segments, have all but proven that they are not going to settle into the buying habits of previous generations, and a younger, equally finicky generation of consumers is beginning to flex its buying power. 

The picture does not look any clearer in 2019. Many analysts are predicting an economic downturn, though it&rsquo;s unclear when exactly that&rsquo;s likely to happen, and after two years, the Trump presidency remains as unpredictable as ever, ensuring that business owners will need to remain on their toes. 

Still, there are some clues as to what segments are likely to do well in 2019. Nick Powills, Chief Brand Strategist at No Limit Agency* and<a href="https://1851franchise.com/home/authordetails/2.html" style="text-decoration-line:none" target="_blank"> Publisher of 1851 Franchise</a>, works closely with franchisors from a range of categories, and he&rsquo;s not afraid to make predictions about what 2019 will look like for the industry. 

If you&rsquo;re looking to invest in a new franchise brand in 2019, here are the features Powills recommends looking out for.

Low-labor

If you look at the biggest challenges businesses are facing this year, labor is at the top of the list. Good labor is hard to find. Everyone wants to hire people who are highly qualified and align with their core values, but you have to start making compromises because the workforce isn&rsquo;t at its strongest and you need bodies. 

Businesses that have refined their labor models so that they can easily manage small, effective staffs are doing well compared to high-labor models. There&rsquo;s a franchise called<a href="https://www.bigblueswimschool.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=the-franchise-concepts-most-likely-to-succeed-2019-2708740" target="_blank" rel="nofollow" style="text-decoration-line:none" target="_blank"> Big Blue Swim School</a> that&rsquo;s really well designed in that respect. They don&rsquo;t use part-time staff, only full-time, so they have&nbsp;low turnover for their segment.<a href="https://fattuesday.com/international-franchisee-information/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=the-franchise-concepts-most-likely-to-succeed-2019-2708740" target="_blank" rel="nofollow" style="text-decoration-line:none" target="_blank"> Fat Tuesday</a> is another great example. It&rsquo;s a frozen-drink bar concept where all the drinks are prepared in advance, so you really only need one person tending bar. 

Recession-resistant

It may not come in 2019, but the economy is due for a correction, and when that comes, and when consumers start tightening their belts, a lot of franchise brands are going to be hurting. The concepts that can keep a healthy customer base during a recession are the best bet right now. Haircuts, children&rsquo;s education, tax services; these are services people need, and they are going to keep using them even when they have to cut out other luxuries, like eating out. 

Health and Wellness

Health and Wellness is a category that is top-of-mind for consumers these days. People are much more concerned with health and how they are taking care of their bodies than ever before. It&rsquo;s a segment that has a lot of room for growth. The thing to keep in mind is that it&rsquo;s all about convenience. Consumers have plenty of options when it comes to gyms and spas, and they are going to go to the ones that are close to them and offer an easy, consistent experience. Brands that are strategically located and can offer a quick and easy customer experience are going to do well this year.

Membership model

Niche-fitness models and 24/7 gyms have been doing great in large part because of their membership models, which ensure recurring revenue. And now we&rsquo;re starting to see other segments adopt the model.<a href="https://www.myprose.com/own/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=the-franchise-concepts-most-likely-to-succeed-2019-2708740" target="_blank" rel="nofollow" style="text-decoration-line:none" target="_blank"> PROSE</a> is a really exciting new brand that is applying the membership model to a nail-salon concept, and it is generating a lot of buzz. 

The key is keeping it low-cost. When there&rsquo;s a turn in the economy, people are still going to want gym memberships, but they are going to be seeking out the lowest-cost options. Some of the high-cost concepts are going to lose a lot of customers, and that could be a big opportunity for&nbsp;lower-cost concepts.

Third-party delivery

The food brands that are still resisting third-party delivery services are going to have a rough time in 2019, and the ones that fully buy in are going to do much better. The GrubHubs of the world are spending millions on tech. Why would a franchisor try to compete against that with their own model? It&rsquo;s not feasible. This gets at a larger point, which is that a brand&rsquo;s preferences don&rsquo;t matter; it&rsquo;s the preferences of consumers that matter. The brand&rsquo;s that embrace that and are willing to adapt to stay relevant will do so.

The Franchise Concepts Most Likely to Succeed 2019

1851 Franchise

Nick Powills breaks down the industry’s most well-positioned brands and segments.

the-franchise-concepts-most-likely-to-succeed-2019

Image Studios

image of studios salon suites stylists business owners

Finding Freedom: Why Beauty and Wellness Professionals Build Their Dream Careers With IMAGE Studios

benefits-image-studios-salon-suites

IMAGE Studios Offers a Scalable, Real Estate-Focused Franchise Opportunity in an Industry Projected to More Than Double Within a Decade

image-studios-franchise-opportunity

ServiceMaster Restore

ServiceMaster Restore - Disaster Response - 1851 Franchise

When Disaster Strikes, ServiceMaster Restore Moves

servicemaster-restore-disaster-response-carmen-coleman

Children's Lighthouse

How Children’s Lighthouse Stands Out Among Other Children’s Education, Childcare, and Daycare Franchises

how-childrens-lighthouse-stands-out-among-other-childrens-education-childcare-and-daycare-franchises

The Growth Coach

The Growth Coach Franchise Costs, Fees, Profit and Data for 2025

the-growth-coach-franchise-costs-fees-profit-and-data-for-2025

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Design with American and Federal Reserve flags against light blue background

Federal Reserve Expected To Cut Rates by Quarter Point, a Move That Could Boost Franchise Growth

fed-rate-cut-boosts-franchise-growth

Potbelly to be Acquired by RaceTrac in $566 Million Deal 

racetrac-acquires-potbelly-in-566-million-deal

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities - 1851 Franchise Agg

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities 

health-care-hiring-slowdown-in-home-care-franchise-opportunities

Caribou Coffee Names Scott Kennedy CEO, Eyes Continued Growth

caribou-coffee-names-scott-kennedy-ceo-eyes-continued-growth

McDonald’s Launches New Extra Value Meals as Consumer Demand for Value Continues to Climb

mcdonalds-launches-extra-value-meals

Technomic Releases Annual Ranking of the Top 15 Fast-Food Chains in the U.S.

technomic-releases-annual-ranking-of-the-top-15-fast-food-chains-in-the-us

Power Eats: Smoothie King Rolls Out Food Nationwide To Fuel Franchise Growth

smoothie-king-food-menu-power-eats

Hely and Hiral Patel Bring Their Longtime Dream to Life With The Brass Tap

brass-tap-franchise-pasadena-maryland-hely-hiral-patel

1851 Keyword - The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

part-time-franchises-picking-the-right-model

Franchisee spotlight graphic with photo of Ricki Oberoi and Layne's Chicken Fingers logo

The Franchise Concepts Most Likely to Succeed 2019

MORE STORIES LIKE THIS