FNB to host fourth consecutive Franchise Leadership Summit
Morné Cronjé, Head of FNB Franchising says, “In South Africa, the franchise industry has remained solid despite challenging economic conditions and the country remains attractive to local and international franchise brands however the shift in the franchising landscape is changing and businesses need to start looking and planning for the future. South Africa will need to continuously improve the operating environment for franchisees because competitors are increasingly positioning themselves.”
The global franchise environment is growing at a fast pace. Looking at the South African franchising landscape, South African franchises are still confident about their own growth prospects and better yet looking at ways of improving the current business conditions.
Cronjé says that in order to plan for the future, a rejuvenated business environment is key to ensuring the survival and growth of many franchises. “Currently franchise businesses, big and small face many challenges. We are seeing slower economic growth, increased unemployment, new regulations, further load shedding and labour unrests - all these factors increase the cost of doing business and makes it difficult to justify new investment opportunities.”
Franchises need to continue to innovate and adapt to changing market conditions to ensure that they stay abreast of changing times. At the same time, businesses have become more risk averse but are willing to take calculated risks to grow and develop their businesses.
An aggressive strategy that focuses on the franchises value adds, the customer’s needs and wants, innovative products and solutions needs to be looked at. In order to capitalise on new investment opportunities, franchisees and franchisors must continually invest in developing and assisting new talent in the market.
“Franchising is seen as a dynamic machine of economic expansion. With the influence of global trade and business opportunities, South Africa is fast becoming a growing and diverse business hub. The calibre of franchise brands touching our shores is simple yet innovative enough to make competitors revaluate their current business models and strategies. Innovation creates growth, disrupts and adds value to the innovation process. Together, ongoing collaboration and new technologies can help build an infrastructure that will assist business on many levels,” concludes Cronjé.