More digital franchises, the sector’s commitment to increase sales and provide better service

Digitization was key to business during the pandemic, franchises also experienced this transformation and it is a trend that will continue for continue operating and offer better service to customers.

During the pandemic, “franchises that took advantage of digitization, both to generate online sales as to offer home delivery service were the ones that were able to get ahead the fastest”, Juan Manuel Gallástegui, CEO of Gallástegui Armella Franquicias, highlighted in an interview.

This 2023, technology will become more relevant in franchises, since they are committed to systems that help manage the business, access more customers and provide better service.

For example: a beauty salon that has more than nine points of sale is committed to implementing marketing digital and platforms to generate appointments or a children’s book rental franchise uses technology as the main tool to offer its services.

“Uber-type mobility platforms are beginning to emerge, but local ones, that only work in one city, digitization trends are also being seen in restaurants and cafeterias, today a cafeteria that does not have free Internet is not visible,” said the specialist.

According to Gallastegí, this year the food and beverage sector will continue to lead the opening of franchises, but there is also growth in personal care, health and beautyeducation and the children’s market, from education to clothing.

In addition, there is growth in retail, especially in subsectors such as clothing, food, convenience stores, cafeterias, and regional franchises, as is being seen in Jalisco, Nuevo León, Yucatán, Edomex, Sonora, Sinaloa, and Querétaro.

growing sector

According to Gallástegui, this 2023 is expected to grow 8% in the franchisee sector and reach pre-pandemic numbers.

“I would love to see the numbers from 2018 again, where we reached double-digit growth. I don’t think so, but we can reach 8% growth, which implies that there will be many new franchises and many new points of sale”, he highlighted.

The monetary source of the investments continues to be inheritances, liquidations and savings, the latter have grown because “during the pandemic we learned to save. Today there are a little more resources and people are looking for investment alternatives that exist”.

Gallástegui specified that the average profitability of a franchise is 18 to 22%, but there are franchises with higher profitability.

International Franchise Fair

This year the Gallastegui stand returns to the International Franchise Fair to be held from March 2 to 4 at the World Trade Center Mexico City, where visitors can learn about various brands in which they can invest.

“The fair is a franchise exhibition forum, many contacts are raised and it is the job of the franchising companies to follow up on those who were interested. The possibility that the visitor has is to come into contact, sometimes even with the owner of the franchise or with general managers or senior managers”.