These Franchise Sectors and Businesses are Seeing Extreme Growth During the Pandemic

The COVID-19 pandemic has put a halt in many people’s daily lives. Some have been laid off, while some have no access to income during this time.

However, not all looks bleak for every business.

Essential services are open during the lockdown or shelter-in-place. Some franchises remain open because they provide food, medicine, and home-related items to help citizens cope during this pandemic. Therefore, some of them experience pandemic franchise growth.

The Current Franchise Landscape

The ADP finds that there was a 4,300 decrease in franchise employment for March 2020. Meanwhile, those in the restaurant business had an extreme growth of 5,100 employees. However, food retailers experienced a loss of 700 employees. 

Several service-related and travel franchises may take a hit as they might not be considered not essential at this time. However, to help local communities receive income, Ace Hardware looks to hire more than 30,000 people in its locally-owned stores.

Despite employee growth, not all food chains or restaurants experience increased sales during this pandemic. McDonald’s is one instance where they had a 22% dip in their global same-store sales. 

Some franchise systems may face losses since they’re not considered “essential,” as Catherine Monson writes in the Harvard Business Review. She adds that small business franchises face a challenge this time. If they want to move forward once this crisis is over, it’s best to have access to cash and capital and communicate with policy-makers.

The Extreme Growth Sectors

Home Healthcare

The healthcare sector will benefit more in this crisis. As more people seek for more face masks and vitamins to combat the spread of COVID-19, healthcare franchises may need to stock up on those products. Some examples of franchises in the home and healthcare services like Ace Hardware, Health Mart Pharmacy, and Medicine Shoppe are open to the public during this time.

According to reports, pharmacies are taking extra precautions in dealing with patients like adding plexiglass and limiting the number of people inside the stores. The Lewis Health Mart Pharmacy in Florida adheres to contactless services with their patients.

US pharmacy sales have gone up due to people stocking-up health or personal wellness items during the pandemic. In some cases, the home and healthcare sector may see more shelves emptying and demand rising by the day.

Convenience Retailers

As an alternative to the grocery or wholesale stores, convenience retailers stay open as they’re also considered an essential business. Many customers avoid going to the grocery stores or supermarkets. That’s why many flock to their neighborhood convenience store. Like restaurants or fast-food chains, many retailers have closed seating and reduced self-service.

Based on news reports, some convenience retailers experience pandemic franchise growth and are even stocking up on essential items. In a press release published by NACS, they found that sales from convenience retailers rose to 52%.

Big Chain Quick Service Restaurant Franchises

Despite fears of possibly getting the virus from food or employees, it’s safe to order from restaurant franchises during the pandemic. Another question that pops into people’s minds if their favorite big chain quick-service restaurant is open at this time.

Eater lists big chain quick-service restaurants, and among those open are KFC, Dunkin’, and Domino’s. These food chains offer only drive-through, takeout, or delivery services. Nothing’s going to stop these quick-service restaurant franchises from growing despite the pandemic.

Domino’s is experiencing a pandemic franchise growth. The pizza chain has franchises globally, but growth didn’t cease despite most of its global stores being closed. Domestic same-store sales are at 1.6%. Another case of growth is from WingStop, wherein same-store sales rose to 8.9% in the last two weeks of March.

Final Thoughts

Even if this pandemic paralyzed everyday living, several franchises still operate not only because they’re essential. It’s also because they want to serve their community despite facing difficulty. It’s through this pandemic you’ll get an opportunity to evaluate which franchises will stand the test of time.

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