As a new year looms, franchisors across the UK are analysing 2022's trends to try and ascertain the direction in which the franchise industry is heading. While external factors like rising inflation rates and reduced consumer spending are out of their control, there are still plenty of things franchisors can do to give themselves the greatest chance of success over the coming months.
Successful organisations know they must constantly evolve to remain ahead of the pack and these are the three ways in which we expect to see growing franchises shape the franchise industry in 2023.
Becoming as environmentally friendly as possible
With awareness of the importance of sustainability at an all-time high among consumers, environmentally-aware businesses are reaping the well-deserved rewards, as customers increasingly choose to only support those that protect the environment as much as possible or, better yet, give something back to it too.
Franchises that use recycled and/or recyclable products, work to reduce their carbon footprint and demand the same of their partners and suppliers can expect to earn the support of both customers and potential franchisees over those that exist solely to make money in 2023.
Innovating
Every franchise wants to be profitable and increasing your profit margin invariably means taking a percentage of one of your competitors' market share. One of the most effective ways of doing so is by being as innovative as possible in order to get in front of - and appeal to - as wide an audience as possible.
In the mobile coffee industry, this might mean developing an app that customers can use to make their experience more convenient, embracing digital advertising or switching from diesel vehicles to electric models - all moves which are both innovative and environmentally-friendly and ones Cafe2U has made in recent years.
It would be a surprise if the franchises that innovate the most in 2023 aren't celebrating another successful year in 12 months time.
Through sustained growth
According to the British Franchise Association (BFA), approximately 710,000 people are employed in the UK franchise industry, with more than 90% of franchisees running at a profit.
Against the backdrop of the ongoing cost of living crisis, it's not unreasonable to think that many who can afford to do so will be tempted to invest in the franchising industry in 2023. This will allow them to take back control of their finances by becoming their own boss in a demonstrably profitable industry that remains low risk, with fewer than 1% of franchises failing each year in comparison to the approximately 60% of non-franchise SME start-ups that fail within their first five years.
Those franchises that make themselves most appealing to would-be franchisees in 2023 should be in for an excellent year.
Could a Cafe2U franchise be right for you?
At Cafe2U, we have a network of circa 100 franchise partners, with new franchisees joining regularly. If you're interested in becoming the owner of a mobile coffee franchise and a qualified barista operating in your own exclusive area, you can find out more about our franchise opportunities here.
We’ll supply you with everything you need to get your business off the ground, from training and equipment to ongoing support and advice on marketing.
With an excellent reputation, ever-expanding customer base and impressive sustainability record, we're sure that joining the Cafe2U family in 2023 is a decision you won't regret.