Tech, Innovation and Market Trends in Franchising

Example of tech and innovation in franchise
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Maria Misyurina

Franchising Guru Co-founder;
Guru of franchise law, contract negotiations, franchise relations & expansion.

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We examine the prevailing tech, innovation and market trends in franchising that will define the course of the industry in the upcoming years.

To unveil the future prospects of this industry, we examine the prevailing tech, innovation and market trends in franchising that will define the course of the industry in the upcoming years. If you’re curious about the future of franchising, you’ve landed in the right spot.

Franchising has emerged as a favoured avenue for entrepreneurs to start their business ventures without the need to develop everything from scratch. Here, we will discuss some exciting trends to watch for in the franchise industry.

Technology Integration in Franchise

Integration of Technology: The franchise landscape is rapidly evolving through technology. To remain competitive, franchise brands must embrace new technological advancements, a great example is The UPS Store, their locations have embraced 3D printing services, offering customers the ability to print prototypes and custom products on-demand. Keep an eye on trends like mobile ordering and payments, automation, and the use of artificial intelligence for predictive analytics. Domino’s has invested heavily in technology for order tracking, mobile ordering, and even autonomous delivery vehicles and drones for pizza delivery.

Fostering Stronger Community Connections: In the post-pandemic era, consumers seek businesses they can connect with on a deeper level. Franchisors that nurture a sense of community among franchisees, employees, and customers will stand out. This can be achieved through increased social media engagement, personalised customer experiences, and charitable initiatives benefiting local communities.

Sustainability Takes Centre Stage: franchise brands that champion sustainability will gain an edge. Subway, for example, has made efforts to promote sustainability by using eco-friendly packaging and sourcing more responsibly. Consumers increasingly prioritize eco-conscious businesses. Many franchises are already adopting eco-friendly practices such as employing biodegradable packaging, harnessing renewable energy sources, and curbing waste. Starbucks has been working on reducing its environmental footprint through various initiatives, such as using renewable energy, promoting sustainable coffee sourcing, and reducing water usage.

Exploration of New Market Opportunities: Innovation and expansion will continue to drive the franchise industry. Expect to see franchise brands branching out into fresh markets, offering novel products or services, and exploring innovative business models. Niche markets such as children’s education, online tutoring, and pet care are predicted to gain popularity.

The Rise of Virtual Reality: Virtual reality has the potential to revolutionise franchising. Brands can utilise VR technology to offer immersive customer experiences, train employees, and allow potential franchisees to virtually explore and engage with the business before investing. CTRL V is a Canadian-based franchise offers VR gaming experiences in which customers can play a variety of VR games and experiences in a dedicated arcade setting.

Innovation and Market Trends

Several exciting market trends and opportunities further shape the future of the industry. Here are key developments that both current franchise owners and prospective franchisees should monitor:

Focus on Sustainability: Sustainability concerns effect all aspects of consumers’ lives, including their choice of businesses to support. For franchises, it is vital to adopt eco-friendly practices and products. Franchises embracing sustainability and promoting eco-friendliness will have a distinct advantage.

Non-Food Franchises: While fast food and coffee franchises have long dominated, there’s a shift toward non-food franchises. Industries like wellness, fitness, and home services are gaining popularity as people seek diverse investment opportunities. Great examples are Fantastic Services, the UK’s largest cleaning franchise and  InXpress that offers shipping and logistics solutions.

Continued Embrace of Technology: Technology has always played a pivotal role in franchising, offering innovative ways to streamline operations and enhance customer service. Franchises that invest in technology, be it AI-powered chatbots or virtual reality training programs, will be poised for success. McDonald’s, for example, has been incorporating AI into its operations, from automated order kiosks to AI-driven drive-thru menu recommendations.

Enhanced Diversity and Inclusion: Modern consumers value diversity and inclusion, and franchises that align with these ideals are better positioned for future success. This involves not only ensuring openness and inclusivity but also actively recruiting diverse franchisees and employees.

Conclusion

The franchise market promises excitement and dynamism, it brings opportunities for growth and triumph. By staying up-to-date with these key trends and proactively working to incorporate them into their businesses, franchise owners and potential franchisees can ensure that they’re poised for success in the years ahead.