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Franchise trends continue to pick up in a wide swath of areas. From emerging technology to changing consumer behaviors, franchise owners must know what’s on the horizon before investing in a new opportunity. A recent article by Entrepreneur magazine highlighted some of the 2023 franchise trends that continue to pick up steam. These trends aren’t just impacting business models and infrastructures. They impact how franchisees choose which new businesses to start and lean into. Consider these trends as ones to consider as you pursue your first or next franchise investment.
Better Customer Experiences
Gone are the days when a consumer would simply look up a franchise in the Yellow Pages, call to book an appointment and have the requested services completed. Today’s consumers expect more personalized experiences and franchisors are looking for creative ways to answer that call.
For franchisees, there are emerging opportunities to meet and exceed consumer expectations. When talking to potential franchisors, it’s crucial to understand what those new opportunities look like and what’s being done to tailor the services offered to provide a better experience.
New Technology to Simplify Processes
Part of offering a better customer experience requires that franchisors simplify how those experiences are delivered. Many consumers today appreciate the convenience of self-service experiences or appointment bookings. As a franchisee, leveraging new platforms to book on-demand services and deliver self-service experiences opens up new growth opportunities. When selecting a franchise to invest in, talk to the franchisors about this new technology and what’s being done to incorporate it into the business model.
New Industries and Business Sizes
Numerous new trending industries are rising in 2023. Perhaps the most notable is the home service franchise area, where many private equity investors focus. That’s because these franchises provide predictable and recurring revenue for franchisees, making them more attractive.
In addition to the home service area, home restoration franchises are increasing. With a rise in natural disasters across the United States, there’s a distinct and increasing need for these franchises. And in keeping with the home-focused franchises, pet franchises are also on the rise. More homeowners are bringing animals into their abode, opening the door for more money and resources being invested to keep those pets happy and healthy.
The Entry of Artificial Intelligence
Opening the news without seeing headlines about Artificial Intelligence (AI) or tools like ChatGPT is hard. The franchise industry is not immune to this technology emerging, and many franchisors are leaning toward new ways to embrace its swift entry.
While AI won’t replace the human touch any time soon, tech-savvy franchise owners will have the opportunity to provide superior services using AI. Franchise owners in health-related industries can use AI to focus on earlier interventions and reduce the risk to clientele this year. The blend of providing services by a living, breathing person and using AI to elevate those experiences will continue to evolve, ultimately benefiting both the franchisee and the consumer.
A More Human Experience
The pandemic shuttered more people inside of their homes and cars. Now that the pandemic has ended, consumers have shown that they’re eager to get back to the basics of enjoying time together, face-to-face. For restaurant franchises, this has translated to putting a bigger focus on fast-casual services where friends can connect for a quick cup of coffee or lunch over drive-thru services. The increase in in-person experiences has opened the door for franchisees to deliver a fresh experience to neighborhoods rich with drive-thrus or evolve their quick-service restaurant offerings to provide a new dine-in experience.
As these new trends evolve, franchise owners will benefit through bigger competitive advantages and simpler processes being made available to simplify the franchise ownership journey.
Kimberly Crossland is the founder of Roadpreneur and Cruisin' + Campfires, two companies designed to keep families together and living in freedom through travel and entrepreneurship. The goal of both businesses is to inspire meaningful change through the power of a strategic, thoughtful approach to life and business. In her free time, you can find her looking for a new adventure together with her two boys.