Source: Massey University
Franchise Association Chief Executive Robyn Pickerill says when asked about the impacts of COVID-19 on business, the top three responses returned were the significant disruptions to trading, greater levels of stress and mental health concerns, and adjusted hours of operation. The key challenges going ahead are labour shortages with a lack of suitable skilled staff in many areas, supply chain issues and the uncertainty of periodic business interruptions.
However, Mrs Pickerill says that despite these impacts, franchise operators continue to show resilience and adaptability to succeed, recognising a number of opportunities that the pandemic had brought to light. “Diversification, having an increased online presence and targeting local disposable income were all identified as areas of opportunity that the pandemic have highlighted to business owners.”
Professor Elms says franchise employment has also risen, at a rate of around 8000 a year since 2017. “Franchise businesses are employing more staff than in 2017, which again speaks to the resiliency of the business model. At present, it’s estimated there are 156,820 people employed in a franchise operation in New Zealand.”
The support franchise owners receive as part of the business model is another feature that Professor Elms believes is integral to its success.“The support offered by franchisors and fellow franchises is unique to the sector. This is evidenced through sharing best practices, investment in training and development, and community engagement. All are necessary to help franchises weather the COVID-19 storm.”
