At BirthdayPak, we may be a little biased, but we believe there’s never been a better time to own a franchise! The economy is strong, and the franchise sector even more so. With a number of trends to consider, we took stock of five that are particularly advantageous to BirthdayPak franchise owners.
Trend #1: Thriving Franchise Sector
Opportunities are expected to increase in the franchise arena in 2018. According to a survey by the International Franchise Association (IFA), the franchise sector is projected to grow by 1.9% to 759,000 franchise establishments. The franchise sector is also expected to outpace the U.S. gross domestic product growth with an increase of 6.1% ($451 billion). The sector has been growing at a steady rate, which may reassure those thinking about owning their own business.
Trend #2: Employment Growth
Franchise jobs are expected to outpace the economy and grow 3.7% (8.1 million jobs) after increasing 3.1% in 2017. The study in 2016 showed job growth every year since 2010, and continued job growth in 2017 and 2018 means more opportunities for qualified candidates. When good employees are in place, the ability to add franchises or expand the market is possible.
Trend #3: Multi-unit Franchises or Market Expansion
Many franchise owners are opting to provide strategic oversight and hire people to run the day-to-day franchise operations. This means owning more than one franchise location or expanding the geographical market, as can be done with BirthdayPak. In some cases, franchise owners are running franchises under multiple brands. This provides opportunity to diversify and increase income potential.
Trend #4: Experiences Over Products
Millennials are the most influential generation – they are the largest at 70 million and media-savvy. As consumers, millennials are less interested in spending their money on products and would rather indulge in experiences. In fact, they outspend more than any other generation when dining out and often view it as a value-driven experience. BirthdayPak appeals to millennials and older generations with gift cards to experience restaurants, day spas and other retailers.
Trend #5: Restaurants Among Top Franchises Projected to Grow in 2018
Experiences are a theme in the IFA survey with the top franchises expected to grow in 2018 in terms of business output. As restaurants are the majority of BirthdayPak business partners, it’s encouraging to see them at the top of this list. These categories are also in the top five for number of establishments and employment forecasted for 2018.
- Quick Service Restaurants (7.3%)
- Table/Full Service Restaurants (7.2%)
- Personal Services (7.0%)
- Lodging (6.2%)
- Business Services (5.6%)
If you’ve thought about franchise ownership, given these compelling trends, why not now? For more information on how you can succeed as a BirthdayPak franchise owner, register for an upcoming webinar or call 1-888-206-0083.