The franchise world has changed dramatically in the 50 years since the popularization of the business model, created by the surge in fast-food restaurants. Today, franchising remains a preferred way for companies to expand their brands and for entrepreneurs to build their own businesses.
For years, the franchise world was viewed as the Wild West, with few rules and a lack of regard for full information to be shared with potential franchisees. But, in recent years, disclosure laws, more sophisticated brands and a few well-publicized legal suits from franchisees, as well as increasing demands for better controls and more freedom for franchisees in certain areas, have stabilized the segment to some degree.
Today, the name of the game in the franchise world is diversification. Burgers and fries, chicken and pizza restaurants have slowly given way to a slew of unique concepts. The increasing appearance of new U.S.- and international-based brands has also reinforced the continued appeal of Canada as a destination for new concepts.
But, with the growing popularity of ghost restaurants and third-party delivery taking hold, one wonders how franchising will change in the future. Will the business model be forced to further evolve to meet the changing demands of the day?
Through it all, technology will enable different approaches to business expansion and the impact of these changes will create new challenges and opportunities. How franchisors and franchisees deal with them will make the difference between success and failure.
With change the only constant in life, we’re happy to announce a few changes of our own. We’re proud to introduce several new columns in 2020. Starting this month, we’re debuting a new column on one of the industry’s most pressing challenges — food waste. Additionally, we’ll feature “10 Questions,” a Q&A column highlighting leading independent restaurant managers. We’ll also be profiling “Hospitality Heroes” throughout 2020, highlighting the industry’s leading community builders, showcasing how they’re making the industry a more caring and compassionate place. Finally, on the digital side, last month we launched a redesign and new name for our weekly digital newsletter. Formerly called Newsblast, the e-newsletter is now known as Hospitality Headlines. With its new name and format, we aim to continue to provide important news and information in a timely, relevant and more readable format.
