According to the International Franchise Association’s (IFA) 2022 Franchising Economic Outlook, experts forecast Personal Consumer Expenditures (PCE) will continue to expand through 2022, and recent consumer data suggests that consumers are rethinking priorities, with one-third saying they are spending more on experiences than possessions compared to a year ago. The IFA reports this shift will even further benefit franchises in the personal services sector in 2022.
Personal service franchises include travel, restaurants, entertainment, recreation, and a segment near and dear to my heart – health and wellness. Many of us are familiar with the big players, such as Planet Fitness, Pearle Vision, Orange Theory, Massage Envy, and even our concept, The Joint Chiropractic. But hundreds more are entering the space through the door of franchising. So, what is driving this demand?
The Wall Street Journal recently reported on the post-pandemic, “do-it-yourself” healthcare movement:
“Two years into a pandemic that has strained health systems and made booking doctors’ appointments next-to-impossible for some, patients are providing more of their own care at home.”
This includes a move to wellness and beauty in your neighborhood shopping centers, which is a significant shift in retail real estate strategy. Today’s strip centers are increasingly occupied by concierge-style providers focused on health and wellness, such as chiropractic clinics, exercise clubs and gyms, nail care, waxing salons, medical spas, dental practices, and massage parlors.
As for our concept, The Joint Chiropractic’s 700+ clinics can be found in high-traffic shopping centers, where parking is readily available, and you are surrounded by other daily-use retailers like your local supermarket or favorite coffee shop. Upon arrival you can park, walk in without an appointment (no insurance required), get an adjustment in five to 10 minutes, and be on your way. In fact, in 2021, 36% of The Joint’s new patients had never been to a chiropractor before they opened the door to The Joint – further validating the boom in health and wellness.
The demand for “fast casual” health and wellness is on the rise and the marketplace is listening.
Therefore, the IFA predicts that the Personal Services sector is going to be the head of franchising expansion in 2022, experiencing the highest growth both in number of establishments and in output. The IFA’s findings also show that the number of establishments in the sector is predicted to increase by 3.1% in 2022 to approximately 117,600, while employment in the sector is expected to contribute 552,700 jobs. The output is anticipated to increase by 10.5% to $39.6 billion, slightly outpacing pre-pandemic levels.
People are no longer patients — they are consumers! And there are no signs of it slowing for those looking to tap into the personal services growth space.