The pet industry has become one of the most attractive and rapidly growing sectors in today's market, projected to reach $277 billion and expected to experience 8% compound annual growth by 2030. Unique in its resilience to economic recessions and downturns, in comparison to other consumer goods and services, the industry has held up remarkably well during recent market declines. Despite the financial crisis of 2008, the pet industry experienced a 5.1% growth in sales and during the more recent 2020 COVID-19 recession, sales of pet products and services continued to grow at a faster rate than the overall U.S. economy, with a 16.2% growth compared to 4.3%.
The increasing number of Millennials and Gen-Z now entering their prime pet-owning years is propelling the industry forward, especially as this demographic outspends other generations on their pets, creating a larger pool of potential revenue for investors. Expected to continue its growth, the category is one of the most lucrative industries in which to invest and multi-unit franchising can be a profitable opportunity for entrepreneurs seeking long-term business growth.
Zoom Room understands the immense opportunity multi-unit franchising in the pet industry presents. At the close of last year, Zoom Room had nearly 8x as many multi-unit developers as there were in 2020. Most recently, the company more than tripled its presence across the U.S., from eight states in 2020 to 29 states, and quadrupled unit size in a two-year timeframe.
The "2023 Franchising Economic Outlook Report" forecasts that the number of franchise establishments will grow by almost 15,000 units this year and will add approximately 254,000 jobs. They forecast total franchise employment to reach 8.7 million jobs. Specifically, the pet franchise market is predicted to reach $42 billion by 2025, up from $30 billion in 2020.
A variety of surveys over the past fifteen years have demonstrated that when times are tough the overwhelming majority of Americans cut back on dining out, personal grooming, fitness and other discretionary spending while maintaining or even increasing their expenditures on their pets. With pet ownership now at record levels, there is no shortage of demand for pet services. Thus the upward trajectory markets the industry as especially compelling for investment and owning a pet franchise is becoming one of the best to capitalize on in this booming sector.
One of the biggest advantages of investing in a pet franchise is the ability to scale a business quickly and efficiently. Franchises have systems in place that allow entrepreneurs to keep costs low and to significantly accelerate the process of expansion. Additionally, franchising offers brand recognition and loyalty that can help attract more customers than starting a business from scratch. Franchisees also benefit from ongoing support in areas such as marketing, customer service, and operations management – something that would be difficult to replicate without the backing of a larger organization.
By purchasing a pet franchise or developing an entire region with multiple locations of a thriving brand like Zoom Room, you can enjoy the growth opportunities associated with this booming sector while mitigating risks associated with publicly traded companies. For those interested in franchising in pet, multi-unit franchising specifically can be an even more profitable undertaking.
One of the significant benefits multi-unit franchising offers is stability. Because the franchisee is not relying on one franchise as a mainstream of revenue, multi-unit franchising can be seen as a smarter investment choice. Some additional benefits of multi-unit franchising include:
Those interested in diving into the multi-unit franchise space should try to get comfortable with taking larger risks with investments. Franchise ownership can provide a lot of power and opportunity for individuals looking for a long-term investment opportunity and growth as a business owner.
About the Author
Mark Van Wye is the CEO of Zoom Room Dog Training, an avid dog lover, and author of 2020’s #1 bestselling dog training book: Puppy Training in 7 Easy Steps.
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