As we all know, these are interesting times. Much like the financial meltdown in 2008 … double digit unemployment, closing of businesses large and small, and an anxious population with no clear understanding for it all. It was a rough and scary time to be in business.And yet, the franchise industry powered through, adapted, and largely remained a calming voice of reason regarding business cycles and to some extent, that confidence and the historical perspective helped pull us out of that crisis and those empty strip malls filled up within a few months. If you were in this industry and were paying attention, you would have noticed weaker businesses go away and be replaced largely with franchises. And that was during a time when money was tight due to the banks epic failures and needing to be bailed out.True entrepreneurs seem to fully understand the opportunities embedded in this crisis. Here are some to ponder:
This crisis will end-probably before the average time it takes to research, present and award a franchise.
When this does end, there will be prime retail space available (for a short time), loans to be made, and an extremely hungry US consumer ready to spend again.
There is money to start a new business right now. At one point in the 2008 crisis if you wanted to borrow $100K, you’d need to pledge $100K in assets against that loan. So you could borrow the money, but only if you already had it. Not too helpful and very different today.
The federal and state governments are falling over themselves to pass laws to increase the cash flow for businesses. There are already bills being voted on to inject Trillions (yes, Trillions) into the economy.
We are in an election year. If you are a political student, you’ll know that those in power are gleeful to spend tax-payer dollars to help sure up the economy and their re-election.
The “Impact For Small Business Act” has secured an additional $50 Billion in SBA funding for the remainder of 2020 alone. That is a lot of money and it appears that it will be gobbled up by entrepreneurs. And they aren’t going to wait until the “all clear” bells rings. They are researching their options now.
In 2008 it was an unfriendly business environment and one that got increasingly difficult while things got sorted out. Today, our banks are in a better place and prior to a virus taking us down for a bit, we had too many jobs and not enough people to fill them!
The pet service industry is adding viral resistance to our appeal. We proved resilience with the financial recession and now a national pandemic. Nothing has changed, pet owners are passionate folks and people love their dogs! With the heightened focus on cleanliness lately, Splash and Dash locations not mandated to close by local law have seen great success by the numbers since the outbreak began:
Southern Pines, NC: Same Store Sales increased 30% with 54 new customers in the last 3 weeks alone.
Des Plaines, IL: In the midst of a temporary shut-down, Same Store Sales are up 24.3%. Clean Dog, Healthy Home!
Meridian, ID: Same Store Sales increased 18.5% as they still remain open under essential services, pet care.
In closing, what you do today will set you up for a prosperous future.
https://splashanddashfranchise.com/wp-content/uploads/2020/04/WereInThisTogether.jpg10801080Dylan Hendrixhttps://splashanddashfranchise.com/wp-content/uploads/2020/02/SD_Header_Logo.pngDylan Hendrix2020-04-03 11:07:442020-05-28 13:31:16Who's Shopping for a Franchise Now?
2019 boasted new records for this ever-growing segment where consumer spending reached $95.7 billion.
The announcement came during Global Pet Expo, while the Splash and Dash team were in attendance. Although the number sent a shockwave through the crowds, industry analysts would argue this is no surprise. The pet industry has been predictably growing and at a rate that many industries envy. At Splash and Dash, we have been capitalizing on the industry growth since 2014, and some might even consider us “late to the game” since American pet spending has continued to rise every single year since 1994.
Pet industry spending can be categorized into four overarching segments:
Pet Food and Treats
Supplies, Live Animals and over-the-counter Medicine
Vet care and Related Product Sales
What is fueling this growth?
Dog and cat food are the dominant industry leaders. Food and treats are responsible for $36.9 billion worth of 2019 industry sales. The pet food market has changed dramatically over recent years. Thanks in part to the growing popularity of pet food mixers, specialty brands, as well as an increase in subscription-based delivery programs. Although this segment has become increasingly competitive it remains prosperous. The pet food segment is embracing some of the most conscious consumers the industry has ever seen. A new age of customers demands quality and transparency, and with this request comes an increased ticket price. With little to no push-back on increased pricing, pet food labels are diverse and abundant. The food and treat category is expected to see another four percent increase in 2020 alone.
Veterinarian care and product sales reached $29.3 billion in 2019. This segment experienced a significant jump from previously reported spending figures. In addition to routine veterinary care, surgical procedures and sales of pharmaceuticals, vet clinics are experiencing fully booked schedules. As new medical must-haves are becoming the norm and with technology contributing to this growth, this segment will continue to grow. Today you can find clinics appearing in major retail outlets and the introduction of veterinary telemedicine platforms are on the come up. Pet-insurance has also grown with great popularity and consumers have shifted to an overall proactive approach to maintaining the health of their four-legged family.
The pet-services category contributed an impressive $10.3 billion to industry sales in 2019 and received the second-highest year-over-year growth (6%), right behind the cornerstone of the industry, food & treats. Services include boarding (daycare or extended stay), grooming, training, pet sitting, pet walking, and any additional services that fall outside of veterinary care. Maximizing convenience for pet owners has become a major trend in the pet service segment and this trend is here to stay. Technology has turbocharged this segment making pet services accessible from the smartphone. As the number of pets continues to increase, these segments will follow.
What does the future of the industry look like?
Aside from the impressive figures and endless growth charts, these soundbites remind us of just how much Americans adore their pets. As the consumer continues to grow and change the industry will follow. Happily, each business in our massive industry network is proud to operate here. We are an industry fortunate to be improving the lives of animals and the humans who care for them every day.
https://splashanddashfranchise.com/wp-content/uploads/2020/03/AdobeStock_316717345-scaled.jpeg21502560Dylan Hendrixhttps://splashanddashfranchise.com/wp-content/uploads/2020/02/SD_Header_Logo.pngDylan Hendrix2020-03-10 12:55:392020-05-28 11:49:18American Pet Spending is Nearing the 100 Billion Dollar Mark