Multi-Unit Franchisee Magazine Issue II, 2011 | Page 50

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By Kerry PiPes

PLAYING

Experts shed light on current franchise trends

he Great Recession has shifted the sess franchise trends, sectors, and brands, as well as consumer
thinking and behavior of consumers, behavior. Key growth areas these experts have identified—inforcing franchise brands to respond cluding the country’s aging population, which is creating the
with changes of their own as they try to demand for health care-related services—include sectors related
keep up with the new normal. Indeed, no discussion of fran- to technology, childcare, food franchising, and more.
chise trends in 2011 and multi-unit operators’ favorite brands
can begin without a nod to the recent ecothe value proposition
nomic turmoil and its residual short- and
In today’s market, the dollar reigns for consumers. Consider food franchising. “Value
long-term effects.
has become the name of the game for food
“There’s no question that coming out
consumers during the past year or so,” says
of the recent recession, lower price-point
Johnson. “Consumers are still going out to
brands are more popular right now with
consumers,” says Darrell Johnson, FRANeat, but they’re trading down, say to fast
data president and CEO. “The other big
food, and looking for lower price points.”
—Peter Rose
trend we’re seeing is growth in brands that
Peter Rose, senior vice president and
cater to personal needs, like healthcare.”
director, western region at The Futures
With the economy now breathing deeply
Company, agrees. “Consumers are very
and exhibiting signs of a sustained recovsensitive to risk right now. There’s a desire
to minimize their exposure to it wherever
ery, this is a good time to take inventory
they can.” Rose, whose company conducts
of the current franchising marketplace as
it begins to turn back upward. Which secconsumer attitude and behavior research
tors, concepts, and brands are maintaining
and publishes the results in its Yankelovich
Monitor, says that when it comes to eating
position—or better yet, gaining? Where do
out, consumers “don’t mind trying someyou want to be in the next 12 to 24 months,
and beyond? Which brands in which sectors
thing new, but they want to know someare more likely to help you achieve your
thing about the brand and order from a
strategic and growth goals? What consumer
menu that provides choice, but not at the
expense of value.”
and market trends are affecting consumer
behavior, and how can you respond?
“There’s no question that consumers have
We turned to a bevy of industry researchby and large traded down from, say, steak
Peter rose to burgers,” says Darren Tristano, execuers and analysts who track, measure, and as-

“Consumers are
very sensitive to
risk right now.”

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Multi-unit Franchisee Is s ue II, 2011