It’s finally here…the last 2017 FranNet blog before the New Year rings in next Monday. What else would we be talking about except the year in review and a few 2018 predictions? Here is a list of some of the things you may have missed hearing about in 2017…and hopefully a few things you will in 2018:
2017 IN REVIEW
The One That Got Away
As 2017 dawned, incoming President-Elect Donald Trump was putting together his cabinet nominations. In doing so, he picked a franchise legend in Andy Puzder to lead the U.S. Dept. of Labor. Though Puzder would later remove himself from consideration, he remains a darling in the franchise community. International Franchise Association President and CEO Robert Cresanti had this to say, ”[Puzder’s] fair and measured approach to managing the Labor Department would’ve reversed the course of the job-killing regulations implemented over the last eight years, which have paralyzed small businesses. Regardless of where he is, Andy will continue his dedicated pursuit towards advancing growth for all workers as the leader of one of America’s great franchises and everything this business model represents.”
Save Local Businesses Act
The U.S. House of Representatives passed the Save Local Businesses Act (H.R. 3441), otherwise known as a repeal of the joint employer standard, which would have exposed a company’s liability for labor violations by their franchisees or subcontractors. While the bill must still be taken up and voted on by the Senate, its passage would be a boon to the franchise industry.
Corporate Tax Rate Slashed
With the passage of the Trump Administration’s tax bill, the corporate tax rate will be reduced from 35 percent to 20 percent, hopefully spurring even further economic growth and expansion. While many of the provisions don’t kick in until after the 2018 tax season, the first changes to the tax code in three decades should be a welcome change for businesses across America.
For franchises operating in the QSR or food industry, experts are warning owners to get on board with delivery options in 2018. Delivery of meals picked up some major steam over the past year, with several large players entering the market (Uber, anyone?). Just listen to how bluntly Jim Mizes, CEO of Blaze Pizza, tackles the delivery topic: “Delivery is the sea change happening in our industry. Get with it or get left behind.”
Do You Even Instagram?
Don’t look now, but the rumors are true. People really do like looking at pictures more than reading. Whether or not this is a sign of declining intellect, Instagram as a social media tool is a rocket ship headed to new heights in 2018. According to Entrepreneur.com, “In 2017, Instagram announced that approximately 800 million people use the platform each month. Their latest tool, Instagram Stories, became more popular than Snapchat just one year after going live.” Pro-Tip: start taking a photography class to showcase your franchise product or service.
A Shift in Customer Demographics
Seems like we were just getting to really know and understand the Millennial Generation and now it appears they’re being supplanted. By Generation Z! This new wave of consumers are just beginning to enter the workforce, armed with disposable income and appetites for anything and everything. According to Sara Spivey, CMO of Bazaarvoice, “Gen Z consumers are coming of age and they command $44 billion in buying power. In 2018, marketers will need to pivot their “marketing to millennials” mindsets to reach this younger audience. Generation Z is value-oriented, inclusive and socially conscious. Rather than marketing to “all about me” consumers, companies need to adapt to Gen Z’s “all about us” mentality and reflect that in their business practices and brand messaging to earn their attention and loyalty.
So that’s it for 2017 and what a year it was. We’d like to take this moment to thank each and every one of our loyal readers. We hope that you’ve been able to learn a thing or two and that you’ll continue to be with us twice weekly in 2018. And never forget, if you as a budding entrepreneur have been inspired by what you’ve read, we’re always open to sitting down and discussing a future in franchising.
Let’s chat! There’s a local FranNet consultant right in your market who knows that market inside and out – knows the personality of the market – knows the competitive landscape. FranNet has a great track record of assisting individuals on their path to entrepreneurship, and one of our franchise experts would love to provide you with guidance free of charge. Sound like something you might be interested in? Get started here and find your local consultant right now!