The time is NOW to Regroup… Reset … and change the Future of franchising.
There are many who say that the world pre-Covid was out of control – what with political radicalism, over-consumption and the destruction of our environment – and that would be our undoing. We had come to a stage where we needed to reset the button and start anew.
The pandemic and its consequences have certainly been a wake-up call and have brought many changes in our personal and working lives. Jobs have been lost, projects put on hold, and business owners have had to rethink how they will continue to operate their businesses.
Embracing the New Normal
The reality is that the effects of the coronavirus are here to stay for some time and rather than expecting the world to go back to exactly where it was before, we should all now embrace and plan for the ‘New Normal.’ The franchise sector has proved that it can adapt with franchisors taking pro-active steps to optimize their operating systems, adjusting their margins through careful cost controls and keep labour and waste in check in order to survive. A strong management team at the helm should be hard at work evaluating and improving policies and practices for safe trading, revise contracts and business systems to incorporate any changes brought about by the pandemic.
Getting your house in order
During the 2020 Covid-19 year franchise businesses fared better than independents and this bodes well for a franchise revival as the economy starts to recover. But it will be those franchise brands that look at revising and adapting all areas of their businesses to prepare for the future and pre-empt any further disruption that will come out on top. From making sure their franchise agreements have covered any loopholes brought on by the pandemic to revising their operations manuals; from incorporating new health and safety standards to complying with statutory changes. More importantly, it will be those who embrace the new 4IR technologies and invest in new on-line mediums that will grow them into the future.
Opportunities out of Adversity
It might not appear so but out of adversity come opportunities and we can expect to see new business models emerge that have adapted to the new normal and will thrive. This is both a good thing for entrepreneurs looking to start new franchise concepts and for the many who find themselves out of work and looking for an investment opportunity. Now is the time for franchisors to strengthen their business format and systems and make their concepts relevant and – not just for consumers but also for prospective franchise buyers.