Morne Cronje
WHAT’S TRENDING? With the pandemic ebbing and flowing like the tide, and uncertainty still the order of the day, ANTHONY SHARPE looks at the current key trends in the franchise sector
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loundering businesses, lay-offs and a ACQUISITIONS BY LARGER FRANCHISEES loss of faith in traditional work styles South Africa’s economy wasn’t exactly have had a positive upshot: a growing roaring pre-COVID-19, and several number of people are embracing franchisees were in distress, says Cronje. entrepreneurship with enthusiasm. “The second lockdown hurt many franchisees “A lot of companies are downsizing or who used up their capital to weather the first employees are choosing to leave on their storm. It’s difficult for them to stay afloat, and own terms, so there’s been an uptick in we are seeing a trend where larger, more people looking at new avenues, speaking to successful franchisees are looking to acquire franchisors and wanting to enter the market,” other stores. I think that moving forward we’ll says FNB head of franchising see this at a franchisor Morne Cronje. We’ve always level too.” seen that franchising is a safe Le Roux says they’ve way to enter entrepreneurship definitely noticed such because you’re in business for, a trend. “Many of our but not by, yourself.” franchisees are aware Hot Dog Café general manager of the opportunities Nicollette le Roux says that since within the brand and December 2020 the company are always looking for has noticed an increase in ways to increase their franchisee queries, but with portfolios. This depends little to no follow-through. “We on the franchisee, believe that people know and their financial position appreciate that franchising offers and their vision for Pertunia Sibanyoni the support and know-how one the business.” hopes for when venturing into a new business, but the uncertainty of the times is making them indecisive. Many people want to buy businesses, but the fear of investing hard-earned money prohibits them from taking the next step.” FRANCHISING, FNB
EMBRACING E-COMMERCE COVID-19 or not, our online habits are here to stay, and businesses need to be ready. This has forced many franchises to fast-track ideas that might have been on the backburner, says Franchising Association of South Africa chair Pertunia Sibanyoni. “For example, a number of education and training franchises were forced to operate online over the past year and, while doing so, established alternate online courses that will continue into the future. Real estate franchises have moved to online showings and this opens up different franchise options. Those in the food sector, including some of the big names, are developing ‘dark kitchens’, drive-throughs and delivery services to supplement their main offerings.” Cronje says the restaurant industry is a prime example of this trend. “Before the pandemic, very few restaurants had a comprehensive takeaway offering. Now if a restaurant or fast food establishment is not fully operational on an e-commerce platform, it’s missed the boat.”
“THERE’S BEEN AN UPTICK IN PEOPLE LOOKING AT NEW AVENUES, SPEAKING TO FRANCHISORS AND WANTING TO ENTER THE MARKET.” – MORNE CRONJE, HEAD OF
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2021/07/29 10:40 AM
