The changes taking place over the past two years affected the global economy. What’s in store for franchising in 2022? While 2021 was a strong year for franchising overall, 2022 looks even better. Overall, franchising is expected to grow by 2.2 percent this year, with an estimated 17,000 additional franchises over 2021. It appears 2022 is the Franchising Year of Opportunity.
The Outlook for Franchising
On the one hand, the economy is growing and unemployment is at a historical low. The former bodes well for franchising. The latter affects virtually every business, and franchising is no exception.
A labor shortage continues to play a major role in franchising this year. The Great Resignation means that workers are no longer willing to put up with company cultures that do not value them. Decent wages play a part, but so does flexibility and career advancement.
The good news is that a franchise culture valuing its employees and providing growth opportunities has the ability to stay competitive and retain its workers. Franchisees must have the leadership skills to attract, train, and maintain their workforce. Well-trained, motivated employees can make the difference between the success or failure of any business.
Unlike other small businesses, franchises usually offer more training and support to employees. Compared to small businesses nationally, franchises are more likely to include health insurance, vacation, and sick leave. These are crucial elements to have in place to recruit and retain top talent. Employees have better options to rise in the ranks of a franchised company than comparable small businesses. It’s a win-win for both parties.
Greater Interest in Franchising
Many of those taking part in the Great Resignation or who lost their jobs due to the pandemic seek new career paths in which they can be their own boss. That’s ideal for franchising, which is based on entrepreneurship. As more people desire to become entrepreneurs and seek small business opportunities, franchising will benefit.
The pandemic was especially tough on certain types of franchises. That includes the food business, but the outlook for 2022 is brighter. Many of the workarounds necessitated by the pandemic, such as takeout and delivery, have been incorporated into the franchise.
While franchising will grow nationally, it’s in the South and West that franchise business growth is expected to increase the most. The Southeast already has the largest number of franchises in the country, and that expansion will continue.
The 10 states with the highest expected franchise growth for 2022 include:
- South Carolina
- North Carolina
If you would like more information about how to buy a pizza franchise, contact us at Smokin Oak Wood-Fired Pizza today. We’ve taken pizza and reinvented it for today’s consumers. We also offer Pizza + Taproom. Beer and pizza are perfect together, and this concept suits the adventurous palates seeking craft beer and artisanal pizza. Became a Smokin Oak Pizza franchisee and take advantage of our proven system of operations.