No one expected living through a global pandemic. Since mid-March, the world began taking precautions to reduce the spread of the coronavirus, primarily with social distancing and the shutdowns of many industries. This has resulted in the temporary and permanent closures of hundreds of businesses across the nation, especially those that were started from scratch. Let’s explore how several aspects of the franchise industry have been affected.
Franchise Creator Still Operating
Despite the numerous downturns of the economy from COVID-19, the franchising industry is till booming. At Franchise Creator, we have taken ultimate measures to operate within the social distancing restrictions and help do our part in flattening the curve. We have successfully adapted to allow employees to work from home without hindering our efficiency and ability to empower entrepreneurs through franchising! For employees who wish to work in the office, we have implanted thorough sanitation protocols and have mandated masks during business hours to keep our employees and clients safe. Our refined and tech-based approach to franchising has given us the ability to facilitate the sale and development of franchises over the phone as well as video conferences. Since the nation-wide lockdown began in March, Franchise Creator is still successfully developing various businesses into franchises and have selling multiple franchise units!
Franchisors Are Still Selling
According to QSR Magazine, since March 2020, at least two-thirds of franchisors surveyed claimed to continue their efforts in franchise sales. While the global pandemic is still intimidating and paralyzing entrepreneurs from making substantial business decisions, the majority of franchisors have a bright outlook on the economy recovering from the shutdown. Their optimism is a huge factor in keeping the economy rolling by offering their services/products and keeping franchise locations staffed with employees.
Franchises Are Safer to Invest In
If you were considering to own a business before the pandemic began, there is now a greater reason to invest in a franchise over independently starting a business. In an era where business owners are forced to adapt to restrictions to continue operations, going into business by yourself carries far more risk than inheriting a solid and proven business model. Moreover, the expertise of franchisors and their ability to guide their franchisees through this pandemic means that there are fewer obstacles to overcome when investing in a franchise.
Diversify Your Franchising Portfolio
Your entrepreneurial portfolio should always be as diverse as possible, but in this context, simply owning multiple locations of the same franchise won’t cut it. Now, entrepreneurs in franchising should (if they haven’t already!) consider opening franchises across multiple states! As we’ve observed, several states in the U.S. are reopening at a faster rate than others, meaning business owners in Vermont and Oregon will have considerably less trouble than those located in Florida and New York. Moreover, investing in different kinds of franchises will help reduce the loss occurred by the pandemic. For example, an entrepreneur who owns ten full-service steakhouse franchises will find it harder to recuperate losses than an entrepreneur who owns six different concepts (poke bowl, smoothie bars, chicken wings, Asian fusion, etc.).
Restaurants have been the most among the top businesses that have been severely affected by the COVID-19 pandemic, with statistics showing that the restaurant industry might lose out on $240 billion by the end of 2020. The strongest ways to combat these losses is for restaurants to adapt several business models into their concept: primarily deliveries and to-go orders – commonly known now as curbside pickup. According to SevenRooms, approximately 92% of restaurant traffic is now delivery. By facilitating first-and-third-party delivery services, restaurant franchises can stay in business while reducing the overhead that comes with staffing hosts and servers. This brings us to our next point…
Also known as phantom kitchens, these are not kitchens haunted by ghouls. Ghost kitchens are food preparation and cooking facilities without providing a dine-in area, meaning all of their orders are either to-go or delivery orders. Without the need for costly architectural buildouts or large staffs, entrepreneurs can save loads of money because they only need to build a kitchen and provide a P.O.S. system. It’s also very common to find more than one restaurant concept operating within one location, saving all restaurateurs involved considerable money. Combo Kitchen, designed by franchising guru Hossein Kasmai, is a refreshing and innovative franchise concept that allows franchisees to choose up to four proven restaurant concepts to operate from within a single ghost kitchen. With social restrictions in place because of the global pandemic, investing in a Combo Kitchen is the smartest way to get into business for yourself, while reducing the general and COVID-19-related risks of business ownership.
Final Thoughts on The Situation
We understand the severity of COVID-19 and the pandemic it has caused. At Franchise Creator, we remind everyone to take all necessary precautions to their fullest extent in order to reduce the spread of this novel virus. However, it’s just as important to keep a positive mindset when it comes to the health of you and your families, as well as your careers. If you want to learn more about how you can stay in business during the pandemic, contact Franchise Creator today and learn how we can empower you!