INSIGHTS
POSITIVE VIBES The franchise sector started 2021 encouraged about the immediate future.
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ccording to a survey released in March this year, overall there’s a mood of optimism coursing through franchising.
The report, commissioned by the Franchise Council of Australia and conducted by FRANData, shows the December quarter was a better period for many franchise brands than previous periods in 2020. The Pulse Check survey comprised responses from 68 Australian franchise systems covering 14,596 outlets. It revealed that one third of respondents (33 per cent) reported a December 2020 quarterly revenue rise of more than 10 per cent compared to the corresponding period in 2019. So who have been the lucky industries to see business in a good light? Quick service restaurants, maintenance, health, courier and freight industries proved resilient and showed positive trading. However sit-down restaurants and cafes, fitness clubs and accommodation businesses were harder hit. Unfortunately a total of 62 franchised units were permanently closed across 18 systems, predominantly in the cafe sector. While 53 per cent of respondents indicated some level of loss making within their franchise system, 47 per cent of respondents reported none of their franchisees would record a trading loss in the December quarter. That’s a lift from 24 per cent in the September quarter. Thirty five brands reported the opening of a total of 157 new units, most of these retail, pet services and home maintenance services. There was positive sentiment for the March 2021 quarter, with 51 per cent of respondents anticipating a moderate (37 per cent) or significant (14 per cent) increase in revenue.
OPTIMISM IS ON THE RISE According to the December Pulse Check, 75 per cent (up from 64 per cent last quarter) of respondents felt more optimistic about business conditions in the next six months; of these, 22 per cent (up from 16 per cent last quarter) felt very optimistic.
MAY/JULY 2021 | 14 | WWW.FRANCHISEBUSINESS.COM.AU
