OTHER FRANCHISE SECTORS MAKING STRIDES
Franchising is active in around 17 business categories in SA, compared to over 70 in the US. But what is interesting is the ever changing landscape of business categories. Once dominated exclusively by fast food and restaurants, there is now a range of sectors that have successfully established themselves in the market place. According to the FASA survey, fast food and restaurants constitute the highest percentage of the industry, with the retail sector coming in at a close second. But the growth of other business categories is encouraging.
Sectors such as business to business, building, office and home services, and automotive products and services, have proved themselves invaluable in the economic downturn as consumers turn to the idea of repairs rather than buying new. Childcare, education and training is another area that has proved resilient and continues to grow as people focus on improving their skills and preparing their children for the future.
Some of the new franchise trends emerging are frozen yoghurt and ice cream franchises, pop-up In an effort to afford more opportuni
ties to entrepreneurs in franchis- culture food trucks, gourmet burgers and pub concepts. Cronje comments: “Franchising often goes through stages where certain consumer tastes and trends spark the growth of a new trend, which then leads to growth of franchises in that specific category. A current example is the frozen yoghurt/ self-serve phenomenon. Other consumer trends to be aware of include the need for value and convenience. Brands that meet these needs do very well.”
But, while all franchise trends offer exciting business opportunities and start off with a bang, seasonality, viability,