Inflation and the ambient uncertainty are pushing many French people to change their consumption habits, and above all to spend less. However, in certain sectors, demand remains strong and in no way hinders the possibilities of entrepreneurship. “It’s a bit of a return to basic needs and to everything that is essential”, analyzes Laurent Delafontaine, founder of the firm Ax Réseaux. For this expert in franchise trends, there is no doubt: the food trade, provided it is carried by solid and agile brands, continues and will continue its momentum.
“These activities remain sure values and quietly go through the ages without suffering too much”. From Monoprix to Franprix (the most active with more than 1,000 stores) via Petit Casino, Vival or Carrefour City, all are developing, with one watchword: proximity, even ultra-proximity. “This is the right segment to meet the expectations of French people in search of meaning and contact with traders. All the players, moreover, are seeking to lighten the concepts with reduced formats”, underlines Sylvain Bartolomeu, partner at Franchise Management.
It is therefore better to avoid giant sales areas without soul or friendliness, which, moreover, require heavy initial investments. Also watch out for organic. After having had the wind in its sails for a long time, the sector has suffered the blow for several months, putting to the test several brands such as Biocoop (thirteen stores in the Rennes conurbation were recently placed in receivership) or Naturalia which, in reaction , chose to diversify with non-organic products.
The equipment of the person in decline
In the specialized trade, the niches of chocolate, wine, flowers but also CBD and electronic cigarettes remain stable. As for ready-to-wear and personal equipment, it continues its slow decline, but could be renewed with young networks such as Cabaïa (first opening in Strasbourg) or the oilskin brand Hublot. To be closely monitored in 2023.
Still just as buoyant, fast food continues to occupy a prominent place in franchising and remains a sector that has demonstrated its success with this model. Provided however that the sign knows how to bring a wind of novelty. Del Arte, for example, launched a take-out formula and a monthly subscription offer at the end of 2022. Basilic & Co now offers a grocery corner with olive oil and condiments in its points of sale… “The trend is still towards the niche segment in the sector”, analyzes Laurent Delafontaine. After burgers and tacos, it is now Asian cuisine (Lanta Wok, Street Bangkok, Pokawa…) and meat that are on the rise with young entrants such as La Brigade, Maison carne, Chicken Street or Berliner das Original .
The bakeries, halfway between take-out and traditional breads, are also doing very well. The cozy atmosphere of Feuillette, the market spirit of Marie Blachère or the artisanal menu of Ange bakeries appeal to customers and are a hit in terms of results. “The Feuillette shops show turnover of up to 2.5 million euros and offer a profitability of 10%”, assures Laurent Delafontaine.
Home renovation and energy sobriety – wood stoves, heat pumps, thermal renovation, heating savings – are two other healthy sectors. The openings are multiplying at Préservation du Patrimoine, Maclem, My autonomous energy or Turbo Fonte. Also noteworthy, in this same home niche, is the development of mobile franchises – Cuisines Venidom, Repar’stores or the Compagnie des débouteurs – which require less than 50,000 euros of investment and pay for themselves very quickly. “Our concept of converted trucks limits the fixed costs for the franchisee. The turnover reaches 100,000 euros from year 1; 145,000 euros in year 2,000 and 160,000 euros in year 3”, specifies Guillaume Varobieff, co -founder and managing director of Repar’Stores.
Care and home care and crèches are popular
The crisis has had various repercussions on the services sector. The rise in teleworking has logically taken a hit to childcare, homework help and household services. “On the other hand, the dependency market remains structurally buoyant,” notes Sylvain Bartolomeu. Signs supporting the elderly (Age d’or services, Senior compagnie, Petits-fils, etc.) and home care (Studio Santé, Bastide, Distri Club medical, etc.) continue to offer development prospects. The same goes for the micro-nurseries whose openings are constantly increasing at La Cabane d’Achille et Camille, Little Frogs or the Tribu des Fripouilles.
The opportunity is also experiencing a new lease of life due to the decline in purchasing power and the rise of ecological concerns among the French. Result: the networks favoring the second hand – Kilo Shop, Easy cash, Cash Express, Hubside Store, Save… – seek to develop while the traditional players are embarking on the vein. The jeweler Maty has thus reinvented itself after dark years with the creation of a jewelry take-back/sale offer. For the past few months, the brands Cyclable (bicycles) and Petit Bateau have been trying it out.
Finally, collateral effect of the crisis or not, the entertainment sector invites itself in franchising with a flood of innovations. “The French need to go out and escape. Several networks specializing in the world of nightlife and entertainment are starting to find a place on the market”, notes Sylvain Bartolomeu. Thus the “after work” bars, with beers, wines, concerts and entertainment such as Ninkazi, Au fut et à mesure or V and B are meeting with some success and are setting up everywhere. Even more surprisingly, concepts based on 100% fun are emerging with, for example, Vertical Art (climbing room), KaraFun bar (karaoke rooms), L’Hachez vous (throwing…axes!), Retro Tour (tourism in side-car) or Pop Corn Labyrinthe (labyrinth in a corn field). Something to get off the beaten track!
An article from the special issue of L’Express. On sale from March 16.