Top Trends in Franchising for 2011
Jolly Backer, CEO of Fresh Healthy Vending “weighs in” on new franchise trends that he foresees for this year and beyond.
“As part of our research prior to the launch of Fresh Healthy Vending in 2010 we did substantial research into the trends most likely to impact the franchise industry in the years ahead and the following is a ‘snapshot’ of what we found” notes Backer. Key franchising trends that we indentified fell into several categories but we see these three particular ones enjoying 7-10 years of robust growth before we start seeing any market saturation.
Innovative healthy food offerings
“Green” products and services
Health and wellness businesses
Childhood Obesity As A National Security Threat
When First Lady Michelle Obama launched her Let’s Move program she described childhood obesity as a national security threat. “A recent study put the health care cost of obesity-related diseases at $147 billion a year,” Mrs. Obama said. “This epidemic also impacts the nation’s security, as obesity is now one of the most common disqualifiers for military service.”
The statement happened at a ceremony at the White House during the launching of the First Lady’s “Let’s Move” campaign which was attended by many officials of the President’s cabinet. And on December 2010, a few days before ushering the New Year, a new nutrition bill was signed into law by President Barack Obama to promote better eating habits among children.
Vending Machine Business of the Future
Over the years, everything has been going high-tech. From televisions, computers, cars and now even vending machines. One of the new trends in vending machine technology is the touch screen interface and options that are interactive. Replacing the glass with the products on the other side is now a digital version of the vending machine which consists of a video screen. All you need to do is touch the screen to choose the item that you would like to purchase. Once the chosen icon is pushed, you can view certain information about the product like nutritional values for food and drinks or product description for non food and beverage products. Some even have short videos about the product.
The way you pay for your item has become high-tech too. You can now swipe your credit card or debit card and push vend to pay for your items or you still have the option to pay in cash like in the traditional machines.
32 Million Vending Machines Worldwide and Growing
Dating back in 1880s, vending machines are rectangular-shaped box, standing up and selling certain kind of goods/services. Over the years, vending machines evolved to meet the sensitive needs of consumers, from bubble gum, coffee, sodas, chips, chocolate, fruits, vegetables, and even napkin and tampons. They are unattended in exchange of monetary payment. Recent innovations on vending machines even include cashless payments and LCD monitoring for nutrition facts.
While the meltdown in economy temporarily moderated the growth of vending machines, it is expected to pick up by year 2015. Global Industry Analysts, Inc. (GIA), a research firm catering to major industries worldwide announced that vending machines installation will reach 35.2 million in 2015, from 32 million this year. According to GIA, growth during this period will largely increase because of changes in consumer food consumption habits, urban lifestyle. and post recession effect, the preference for low-ticket items.
Children Getting Healthier in Schools?
For parents the best you can offer your child or invest in their future is by choosing the best educational institution for them. It is the most important decision a parent can do. As parents, we know for a fact that the school environment affects a child’s growth-emotionally, mentally, physically- making up a unique individual.
The dilemma now is, are we really sure that our child is getting all the needed nurturing and proper healthy foods in schools? Nurturing here means if your child is being offered a curriculum and food necessary to their well-being. Remember that all schools are not the same so it is better for parents to know what the school is offering your children.
Healthy Vending Machines Now Becoming a Reality
The drive towards eliminating obesity has been the major issues being addressed by the Obama administration. In fact no less then First Lady Michelle Obama is spearheading Nationwide Campaign to curb out obesity by helping kids to be more active and eat healthy. Because of the rise of the obesity rate, local communities, non profit organizations, states and the nation make numerous legislations to change the eating habits of Americans. We have the “Healthy, Hunger-free Kids Act,” which aims to change the usual meals of students to healthy and nutritious foods. We have the posting of nutritional labels on menus, etc. The common on their proposal is vending machines offering nutritious content.
Study shows that obesity rate in the United States at 15.8% at the end of 2006 as compared with 8.3% in 1994 among children ages 8-14. That is why an overhaul in the nutrition system is being practiced. Due to convenience it gives, vending machines seems to be far from being removed that is why vending machine companies are dedicated on making innovations to make their content more nutritious and healthy.
Junk Foods in School Vending Machines Causing Childhood Obesity
As schools are removing unhealthy foods out of the popular vending machines, studies have been conducted in order to find out what vended foods and beverages can do towards the human body. Among these studies is from the University of Michigan. Based on this study, the researchers found out that vended foods and beverages may be linked to obesity, diabetes and coronary artery disease.
UM Medical School’s research study further stated that school children who are consuming foods that they purchased from junk food vending machines will likely develop a poor diet quality. Consequently, these children will become overweight or obese. Plus, they are at greater risks for chronic health problems like diabetes and coronary artery disease.
Vending Industry Seen to Explode over the Next 10 years
Following the healthy changes in the business practices of vending machines recently, the Global Industry Analyst Inc. (GIA) —known as one of the world’s largest market research publishers—publicized a comprehensive report that indicated the expected increase in the vending machine market of up to 35.2 million units by 2015. An emerging improvement that will renew the revenue potentials of the vending machines market after its growth was temporarily hampered by the recession that hit the global economic zone.
Essentially, it was deemed that compared with other business ventures, the vending industry has achieved major success in weathering the effects of economic downturn due to many factors, one of which, is its ability to give consumers a diversity in its product mixes. Additionally, vending machines have been an efficient answer to frugal living among cash strapped consumers, whose daily expenses have been greatly hurt by the rising unemployment.
Transparency is the Key When Buying a Franchise
What else should a business expert do more for his clients or business partners if not to provide business satisfaction? Yes, anyone who’s into business should be made aware of the importance of meeting the satisfaction level for both business partners. Take for instance the franchising industry.
Franchising is similar to distribution business whereby the franchisee was given the opportunity to market the product or services. The franchisor is similar to the employer. He’s the one who owns the business, trademarks and the products. And as an owner, the franchisor is expected to provide the following to the franchisee: training, support and financial opportunities. Once the franchisor provided all of these, the franchisee will definitely stay for their business.
Vending Machines Seen as a Major Cause of Childhood Obesity
Potato Chips, candies, chocolates, energy drinks, sodas and coffee – these are just some of the food choices that we often find in vending machines. Yummy as they are, these barely provide any nutrition to your child’s health. Based on a survey done by the University of Michigan Medical School where they handed out questionnaires to 2,309 children in grades 1 to 12 from different schools to record their food intake data, 22 percent of children at school ate food items from vending machines.
Children’s nutrition is highly at risk because of what these vending machines are offering them. High-calorie and food that are high in sugar content are low on Vitamin B, iron and other vitamins and nutrients, which can lead to obesity, heart ailments, hypertension, diabetes and other major health problems.