Published on 23/01/2023 by Any Business.Com.Au

Franchise Trends for 2023

Despite some level of uncertainty around the economy in 2023, the franchising industry is expected to experience plenty of sector growth and a number of new consumer trends that will positively impact these types of businesses.

We've put together a number of these trends we believe will have an impact on franchises this year.

Bringing Supply Chains Closer To Home

Outsourcing is a common business practice, as historically, cheaper labor and materials have made it an attractive strategy for those looking to save on operational costs.

Due to overseas unrest, geopolitical risks and the on-going effects of Covid-19 related supply issues, the number of franchisors basing their supply chains overseas is significantly dropping.

As a result supply chains are gradually being based locally, reducing the risk of continued product supply issues.

More White-Collar Employees-Turned-Franchisees

With an economic downturn comes plenty of layoffs. As more white-collar employees find themselves out of work, they'll be seeking new opportunities.

During the 2008 recession and the 2020 Covid-19 pandemic, many employees decided to leave the confines of corporate Australia to become their own bosses.

They combined their corporate backgrounds with the proven systems and support that franchises offer to achieve success. These factors point to history potentially repeating itself in 2023.

Big Growth For Lower Investment, Essential Franchises

One of the biggest reasons people turn to franchising is because of its stability. More aspiring entrepreneurs are looking for resilient business opportunities that offer substantial returns.

For those offering essential products and services, 2023 could bring a plethora of eager franchisees looking to capitalise off a business with consistent demand.

With potentially more economic uncertainty ahead, aspiring entrepreneurs are looking for lower-risk investments with proven models, brand recognition and a focus on innovation.

Prospective franchisees will do their due diligence to ensure they're making a smart investment, so franchises should be highlighting their unique, dependable factors, including areas of support, how they stayed afloat through the pandemic and any steps they're taking to indulge in the latest consumer trends.

This also means franchisors can offer more flexible investment options, both in terms of financing and nontraditional, smaller-footprint models that will allow franchisees a lower investment, saving on the operational costs of a full-scale model.

Reducing Costs And Pricing Accordingly

As inflation continues and the cost of goods increases, franchises are already taking proactive steps to remain profitable in the new year.

Much like when the pandemic began, one of their top priorities will be to cut down on operational costs all the way from labor to inventory.

Part of this strategy may include bulk ordering what they can or locking in pricing with vendors and suppliers. Of course, the other half of the equation includes increasing prices for customers.

Simple Operations And Smart Staffing

Between the ongoing labor shortage and cost management, more prospective franchisees will be looking to invest in businesses with smart staffing strategies.

This includes franchises that take fewer employees to operate and those with advanced technology to reduce the number of employees needed.

Plus, as e-commerce continues to thrive, retail franchises may require fewer in-store employees and more behind-the-scenes options.

An Immersive Customer Experience

Though franchising is a dependable pathway to success, it is still a competitive space. A recent report states that 30% of customers are willing to pay for more excellent service - and these days, with prices on the rise, customer experience matters like never before.

In 2023, franchises will continue to invest in the parts of their business that promote a unique and convenient customer experience. Mobile apps, artificial intelligence and contactless options are just a few of the trends taking the customer experience to a whole new level.

Practicing Sustainability

Today, customers are prioritising sustainability like never before, with the two largest consumer groups, Millennials and Gen Z, leading the way.

In 2023, many franchisors are likely to roll out green initiatives to cater to this growing number of eco-friendly consumers, which may include changes in their packaging, new programs and incentives.

They may also position sustainability as a core value within their marketing and branding and potentially enhance eco-friendly efforts.

New Year, New Opportunities

When one door closes, another one opens. Though 2023 may present new challenges, it clears the path for career and life-altering decisions and investments.

As the competitive landscape heats up and more emerging brands come into play, aspiring entrepreneurs will be on the lookout for the stability of essential and resilient franchise opportunities.

Checkout our listings here
Ab Assets/Broker Avatar

AnyBusiness.com.au

Curtis is a leading expert in the business-for-sale industry, serving as a senior content creator at anybusiness.com.au.

With a career spanning over fifteen years, Curtis has accumulated extensive knowledge in the domain of business sales, acquisitions, and valuations. His deep understanding of market dynamics and his ability to translate complex industry jargon into accessible insights make him a trusted resource for entrepreneurs and business owners looking to buy or sell businesses.

Related articles

09/04/2025 by AnyBusiness.com.au
No doubt small business owners and finance commentators are still unpacking the Federal Budget announcements handed down late last month, with cost-of-living pressures still biting and the survival of small businesses front of mind.Some Government initiatives announced have direct implications for small business owners and potential business purchasers and continue to be closely monitored leading into the May 3 election.So ...