Below is a summary of our guide “Franchising Growth Sectors”. Download the full guide.
Here are some of the growth sectors that will open up opportunities for business ownership; some you may have considered, others might surprise you.
CAFES AND COFFEE
IBISWorld’s Cafes and Coffee Shops in Australia (March 2014) industry report describes the coffee culture as robust, and responsible for driving the caf_ business through the tougher economic times of recent years.
And according to Euromonitor International’s report, Cafes/Bars in Australia (November 2013), Australia’s love affair has contributed to “the four percent foodservice value growth experienced by cafes and two percent value growth of specialist coffee shops”.
The report states growth within chained cafes is forecast to outpace that of independent cafes during the 2012-17 period. That’s good news for the multitude of franchises operating in this sector.
HEALTHY EATING AND ASIAN CUISINE
As the IbisWorld report Fast Food Services in Australia, June 2014 reveals healthy eating has driven change in this sector: a decline in the share of revenue among traditional fast food operators has been matched by increased revenue in the healthier fast food categories.
It’s been an underdeveloped sector, but now the vast range of dishes available across the Chinese, Indian, Japanese, Thai and Vietnamese cultures are contributing 10 percent of revenue to the fast food sector, reports IbisWorld. This sub-division of the sector is also benefiting from the focus on healthier eating.
KIOSKS, TEAS AND JUICE
The value of foodservice sales in street stalls and kiosks operating in chains is expected to grow from 396.2 million in 2012 to 482.7 million in 2017.
A Euromonitor report indicates that over this period these operators are likely to record a stronger performance than will independent businesses.
These kiosks offer a limited menu, and leverage the customer’s impulsive snack purchasing behaviour.
AGED CARE AND RETIREMENT
The global population is ageing, and Australian demographics are following suit. A number of franchised businesses are providing different levels of aged and nursing care for home-based clients, providing them with a lifestyle that allows them independence while providing support for their particular needs.
It’s worth noting too, our senior citizens have money to spend. Australian retirees are the wealthiest in the world, with the average wealth almost doubling in one generation, due particularly to increased home ownership.
And this makes retirement living and leisure another attractive proposition.
WELLBEING AND FITNESS
The preventative health and wellness sector is set to see the greatest growth over the next 20 years, according to Deloitte. This could be a business geared to helping people lead more active lives through to diagnostic centres and allied health professionals.
And more than four million Australians are participating in some form of fitness activity, typically between the ages of 25 and 34, and with women overtaking men in the participation stakes.
The gym sector is well represented by big brands: Fitness Australia’s membership data from 2011, shows 45 percent of businesses were either company owned or franchised.
MOBILE BUSINESSES
Busy Australians are looking for time-saving services. So community and personal care – the domestic services, dog walkers, personal shopping services – are set to grow by 4.79 percent overall, predicts Deloitte. The convenience factor is increasingly important and this broad sector covers services as diverse as lawn mowing and dog washing, handyman repairs, couriers, coffee vans and food trucks and safety services.
FINANCE
Deloitte predicts a growth rate across finance business models of 5.11 percent. There will be plenty of opportunities for new products, wealth structuring and estate planning, the company suggests, based on estimates by the Australian Bureau of Statistics that Australia’s 9.3 million homes are now worth $5 trillion.
This fits neatly into the trend of the ageing population too, with mature citizens looking to manage their money wisely.
Could one of these sectors be right for your investment? Each has pros and cons, suits differing skills and personalities, and offers franchisees a variety of ways of working. Which suits you? How will you choose to spend your day?