It's no exaggeration to say that the UK franchising industry is in rude health. Recent figures have revealed that it's both one of the most profitable in the country and one that is growing exponentially - in 2001, it contributed £5bn to the UK economy; today, that figure stands at £15bn, an increase of 200% in fewer than 20 years.
Following another positive year in 2021, in which the industry recovered impressively from the difficulties of the COVID outbreak and subsequent lockdowns of 2020, there's every reason to believe that 2022 will be another positive one for franchisors and franchisees alike.
But what are the secrets of the most profitable franchises' success? We've highlighted some of the trends being adopted by them below.
Franchising Trends 2022
Before we get into the details, the first thing to mention is that all the current trends are geared towards growth. If 2020 was about survival and 2021 was about making a comeback, 2022 looks set to be the year when the most successful franchises consolidate and expand their businesses.
This is how they'll be doing it:
By appealing to the growing number of prospective franchisees
As a result of the franchising industry's ongoing success and the fact that more than 50% of franchisees are now declaring an average turnover in excess of £250,000, interest in franchising is at an all-time high. Add in the fact that would-be investors are eager to make up for lost time when it comes to changing careers post-COVID and it's not hard to see why many people believe 2022 is set to be a year of major franchise growth.
So with an ever-growing pool of franchisees to attract, franchisors will be going all out to ensure they have the materials and systems in place to make their businesses as appealing as possible by creating strong marketing plans, installing expert franchise development teams and refining - or even completely redesigning - their websites.
By investing in public relations
This follows closely on from the previous point and offers significant benefits to those who can afford it.
Simply put, hiring a public relations (PR) company helps franchises communicate with the public or a specific target audience, increasing awareness of its image and improving its reputation and profile by positioning it as an expert in its field.
Although PR works hand-in-hand with marketing and advertising and has the same goal of securing the customers and sales necessary to increase the franchise's profitability, it differs from both by earning consumers' attention, rather than paying for it. To put it another way, adverts tell people how great your franchise is; PR convinces people to talk about how great your franchise is.
With growth at the top of franchisors' to-do lists, expect to see more and more of them adding PR teams to their pay-rolls.
By becoming more sustainable
With awareness of climate change and the threat it poses at an all time high, it has never been more important for organisations to reduce their carbon footprints and become as sustainable as possible. And, with prospective franchisees, employees and consumers all increasingly unlikely to deal with any company that isn't explicitly environmentally friendly, ensuring your franchise is as sustainable as possible has become non-negotiable if you want it to succeed.
While this is a trend which has been gaining traction for many years, 2022 is likely to be the year when record numbers of businesses become greener than ever, with shifts towards going paper-free by digitising records, using recycled/recyclable/reusable products and materials wherever possible and installing long-lasting LED light bulbs among the most common initiatives.
At Cafe2U, we're introducing zero emission electric vans to our fleet of vehicles, with the aim of becoming the UK's first carbon neutral coffee company.
By strengthening key relationships
Important in any year, strengthening relations with internal teams, other franchisees, suppliers and consumers is perhaps the most important trend for 2022.
Having reestablished key relationships in the aftermath of the pandemic, solidifying and strengthening them to ensure stability and repeat customers will almost certainly hold the key to business growth over the coming months.
Franchise Opportunities with Cafe2U
With the industry stronger than ever, now is the perfect time for people interested in investing in a franchise to leverage the strength of the industry and begin their journey towards becoming a franchisee.
At Cafe2U, our franchisees receive all the training and equipment they need to get their business up and running, as well as ongoing support, marketing advice and an exclusive area in which to operate. To find out more about our mobile coffee franchise opportunities, click here.