As 2019 comes to a close, lets take a look at some trends that shaped the franchise industry and will set the scene for 2020. The Australian franchise sector has been experiencing a great deal of change over the past 12 months, as franchisors adapt to meet the needs of their franchisees and service ever-changing consumer demands. These trends kicked off in 2019 and will continue to influence the industry throughout 2020…

 

International Brands

2019 has been a big year of new entrants into the Australian franchise marketplace, with several international brands landing on our shores. Most recently, Bansal Group powerhouse Cinnabon opened its first location in Toombul. Greeted by over 1400 people throughout the opening weekend, Cinnabon already has an established fan base in Australia thanks to their international presence. Toombul is the first of 50 planned outlets across Australia that will open over the next 5 years.

This isn’t the only Bansal Group brand to tap into the Australian market, with Carl’s Jr. opening its seventh location at the start of 2019. The chain is planning to continue their growth throughout 2020, with an initial focus on South-East Queensland.

It is not just QSR’s that are making their presence known in Australia, with gym franchise Planet Fitness announcing their plans for expansion throughout 2020. The first locations in Tuggerah and Gosford are paving the way for their low-cost, ‘judgement free’ model to open a minimum of 35 studios along Australia’s East Coast.

 

Convenience Through Innovation

Another international brand making moves within Australia in Taco Bell, who made waves with the opening of their Melbourne Tram-Thru experience. To mark their opening day, Taco Bell created a Tram-Thru experience where passengers placed their order at the start of their journey, and it was ready by the time they arrived at the tram stop outside of their new Melbourne location.

Though the stunt was a one-off nod to the city’s iconic trams, it does suggest a trend towards finding new and innovative ways to offer convenience to customers. With other ventures such as food delivery, click and collect and even drone delivery experiencing sky-high adoption rates, it is no surprise that franchise brands are striving to find more ways to build a convenient customer experience.

A key example of this is the new KFC Drive-Thru only store in Newcastle. The $1.5 million investment will allow customers to order through an app or on-location using digital kiosks, before simply driving through to pick up their food. This is a world-first concept and comes after KFC reported an 100% increase in orders made through their online platform.

 

Low-Cost Options

High entry costs can be a significant recruitment barrier, but some of Australia’s most loved franchise brands are overcoming this by introducing low-cost versions of their bricks and mortar model. Superfood giant Acai Brothers are at the forefront of this trend, with their mobile model reducing opening costs in the hopes of appealing to the young entrepreneur. Additionally, they are adding a ‘hole-in-the-wall’ style model, with a smaller footprint than their current layout.

Lord of the Fries has also announced the return of their food truck, an homage to their beginnings 15 years ago. Costing under $200,000, the low-cost model allows the brand to expand their presence and reach a new audience.

Acai and Protein Bar brand Delicia has also launched their express model, a mobile coffee outlet costing just $50,000, along with their caravan model which has an entry cost of $60,000. These are designed to not only make the franchise more accessible but to also allow existing franchisees to expand their business.