Best Recession Proof Franchises
What are the best recession proof franchises?
Since we entered the global pandemic in 2020 and time has passed we have learned to navigate the world and our businesses in a different way.
There is an intersection between businesses, the pandemic and recession as small businesses have succumbed to the lockdown that was enforced upon them.
There is also an intersection between the current financial economy and stock market as in early 2020 it indicated we were headed towards a recession. Inflation rates in the last few months have been rising and if history repeats itself as it often does it is only a matter of time before the recession is here.
The lockdown has caused many small businesses to no longer exist and many other businesses to thrive. As a result, we are also seeing signs of a looming recession.
A recession happens when there is an extended period of time where a country’s economy is slowing down.
When this happens, people are generally buying less stuff, there is a decrease in factory production and growing unemployment.
One of the questions that I get asked often is; “What are the best recession proof franchise businesses?
At Bailey Brown The Franchise Agency we have put together a list of the best recession proof franchise industries.
What is the definition of a recession proof business?
A recession proof business is defined as one that you can continue to operate during disruptions in our society. Recession proof businesses can thrive or survive unscathed during a rotten economy.
Another word that is often used to describe recession proof businesses in the franchise industry is “an essential business”. Essential businesses was a term given by the government during the pandemic for industries that would continue to operate during the pandemic because they were essential or a necessity for life.
Some of these were food, transportation, pharmacies, home services and more.
There are some franchises that will always fair better than others.
Here’s a few franchise industries that are great to operate throughout a recession and beyond.
This industry thrived during the pandemic and will continue to during a recession.
Firstly, cleaning franchises still have great value during the recession. Cleaning and home maintenance have always been part of an up and coming industry. The cleaning industry is a $50 billion dollar industry and continues to grow.
Looking after and maintaining one’s biggest investment is even more important during a recession.
The automotive industry is an industry full of many options. Very few people who have the skills to do their own oil changes and car maintenance.
The automotive industry has a wide variety of franchises to choose from. This can include a regular mechanic shop, tire change, oil change, windshield repair, used car dealership among many others.
The average age of vehicles on the road is 11.5 years so that means that older cars require more maintenance and would provide revenue for the oil change franchise.
When you are looking at industries to invest in, the Education industry is one to consider. During a recession, more people go back to school because of unemployment. A recession is a time when people will reflect on their journey and what is next for them.
Parents are always looking at ways to keep their children entertained or to pay for tutoring to help their children improve test scores.
The education industry is a multi billion dollar industry and is consistent during a recession.
The pet industry is also another avenue of revenue during the recession. This is because everybody will still have a pet during the recession, and will still continue to pay the costs associated with taking care of a pet.
This brings demand for mobile grooming services as this was becoming more and more popular prior to the pandemic and it is poised to thrive during the recession.
Candy and Comfort Food
The consumption of candy and comfort foods goes through the roof during a recession.
Cadbury profits went up 30% during the pandemic.
Inexpensive, sweet treats provide a necessary break from all of the bad news.
Sweet and salty comfort foods were also a go-to during the early weeks of the Covid-19 crisis. In mid-March 2020, retailers reported chocolate candy sales were up 21.1 percent over the same period in 2019 and ice cream sales jumped 34.5 percent.
Popbar is a franchise company that combines that opened it’s first location in New York and has since expanded to Canada.
Their all-natural, handcrafted gelato on a stick has attracted ongoing press and media coverage from the New York Times, Vogue, Elle, Time Out, Food Network’s Cooking Channel, and more!
Owning your own candy or comfort food franchise will give you the opportunity to bring a delicious, customer-approved dessert experience to your market.
During a recession, low prices become even more important. Dollar stores and thrift stores thrive during a recession.
Thrift stores and trendier “resale” shops also drew in new customers. According to the America’s Research Group, 20 percent of people in 2012 said they shopped at thrift stores “regularly,” up from 14 percent in 2008.
Franchises in these industries are showing consistent growth because the stigma associated with second hand products are no longer the same.
For years, health care has topped every list of recession-proof businesses.
The logic is that people continue to get sick, even in bad economic times. Also with an aging population, and the COVID-19 pandemic, healthcare will continue to be an important industry.
Jobs in the healthcare industry is predicted to grow by 14% until 2028.
There are many franchises available in this sector which includes; senior care, chiropractic, medical testing, medspa and more.
Let us know which recession proof franchise is your favorite. At Bailey Brown Consulting and The Franchise Agency, we represent over 500+ franchise brands in the United States and Canada. We would be happy to help you with your dream of franchise ownership.