Franchising in Australia: The 2023 Pulse Check
10th Oct 2023
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By Emily Ainsworth
Navigating the ever-changing landscape of the Australian franchise sector? Yup, we feel you!
The latest Australian Franchise Sector Pulse Check survey, conducted in June 2023, has shed some light on the pressing concerns and the overall mood in the industry.
The survey, executed by FRANdata for the Franchise Council of Australia, highlights inflation, fluctuating interest rates and hiring challenges as the biggest cause of grey hairs across the industry.
But despite these challenges, the sector remains as hopeful as a kid at Christmas, with the resilience of a rubber band!
Short on time? Here are the key takeaways:
The big concerns: Interest rates and inflation continue to be a significant worry, with 66% of participants marking them as "high" or "very high" concerns. This sentiment is on the rise, up from 39% in June 2022 and 60% in March 2023.
Optimism in the air: Half of the survey participants are feeling positive about the next six months, while a quarter are staying neutral. Only 25% are bracing for tougher times. When it comes to revenue, 36% are gearing up for a boost, and just 12% are prepping for a dip.
The interest rate and inflation tango: Concerns about rising interest rates and inflation have been on an upward trend. A whopping 66% of respondents are keeping a close eye on these factors, nominating interest rates and inflations as being of “high” or “very high” concern. This is a significant jump from last year's 39% (June 2022) and from 60% in March 2023.
The talent hunt continues: Finding the right people for the job remains a challenge, with 62% of respondents feeling the heat when it comes to hiring employees of franchisees. In fact, recruitment-related matters accounted for three of the top five areas of concern among Pulse Check respondents, with 44% citing franchisee recruitment as a top concern, and 36% nominating the availability of suitable people to employ in support offices.
Industry spotlights: Fitness franchises are flexing their muscles, showing strong performance and confidence. On the flip side, the building and construction sectors are treading with caution. Retail? They're gearing up for the festive season and hoping for a jolly end to what is traditionally their busiest time of year.
Financial health check: The franchise sector is holding its ground. A reassuring 78% of respondents have only had to provide financial assistance to a minimal number of their units.
The bigger picture: The Franchise Council of Australia's Pulse Check survey paints a comprehensive picture of the franchise landscape, capturing insights from 123 franchise brands and over 19,000 businesses. For those who love diving deep into the numbers, the full findings are detailed in the 2023 State of Franchise Report.
Our take? In a world of constant change, the franchise sector in Australia remains resilient, adaptive, and ever-evolving.
Stay tuned for more insights and updates from the heart of the industry.
