The Hottest Franchise Categories of 2021 Our predictions for the types of franchise opportunities set up to succeed in the year ahead.
This story appears in the June 2021 issue of Start Up.
Every year we try to predict which franchise types will be the most successful in the year ahead. In normal times, this involves looking back at the year that's coming to an end and learning from the trends we find. But of course, this wasn't a normal year. The events of 2020 have largely shifted the question of "What's popular?" to the question of "What's essential?"
That question has led to some big changes on this annual list. We've included several categories that haven't appeared here for years, including automotive services, cleaning and restoration, home improvement, tech services, and tutoring — all of which were largely deemed essential during shutdowns in 2020, or were able to quickly pivot their models to keep doing business. But you'll also find categories from last year's list whose strength has only been cemented this year, such as health and pets. And although this was a challenging year for restaurants, we still predict a positive 2021 for three food categories: chicken, pizza, and fruit drinks and snacks.
All in all, there are 369 franchises listed in these trending categories on the following pages. Please keep in mind that this list is not a recommendation of any particular franchise. A strong category does not guarantee a strong franchise, and there are many other factors to consider when you do your own research to find the opportunity that's right for you. Always read the company's legal documents, consult with an attorney and an accountant, and talk to current and former franchisees before you make a decision.
Automotive ServicesChickenCleaning/RestorationFruitHealthHome ImprovementPetsPizzaTech ServicesTutoring
Automotive Services
During COVID-19 shutdowns, most auto repair businesses were able to stay open as essential businesses. The demand for repairs, maintenance, and other automotive services — including mobile services that come to the customer — should stay strong well beyond the pandemic as more and more car owners seek to keep their vehicles on the road longer.
Chicken
Many media outlets dubbed 2019 the Year of the Chicken Sandwich, but chicken's ascension to fast-food stardom was really only just getting started. In July, Grubhub's "State of the Plate" report named spicy chicken sandwiches the top food trend, based on a 299 percent rise in popularity in the first half of 2020 compared with the first half of 2019.
Cleaning/Restoration
Cleaning, remediation, and restoration services have always been essential, but this year's various natural disasters have made their necessity even more apparent. Many franchises have responded by adding products and services to their offerings specifically aimed at combatting COVID-19 and other viruses.
Fruit
As consumers focus on making healthy choices, franchises that offer fruit-based drinks, snacks, and meals (such as juices, smoothies, and bowls) are wellpositioned for growth. Many of these companies are placing particular emphasis on offerings filled with antioxidantrich "superfood" fruits like acai and pitaya.
Health
We chose health as one of our top 10 categories last year—but of course, we couldn't have known then just how true our prediction would be. Now we can say with even more confidence that health will continue to be of paramount importance in 2021, and franchises offering health products and services—both traditional and alternative— will no doubt benefit.
Home Improvement
Many people spent more time at home than ever before in 2020, so home improvement projects became popular. Franchises offering in-person home improvement services have had to adjust to the "new normal" in order to make customers comfortable— with some even pivoting to virtual consultations. Those that have done so successfully should see a bright year ahead.
Pets
The pandemic triggered a boom in pet adoptions and sales, as people stuck at home were looking for comfort and animal companionship. The American Pet Products Association projects spending on pets in 2020 will total $99 billion—and with so many new pets being added to families, that figure should climb even higher in 2021.
Pizza
When lockdowns began this year, carryout and delivery became the only option for restaurants— and those were already the cornerstones of many pizza shops' business model. In fact, while so many other restaurants were struggling to survive, Americans' demand for comfort food actually increased sales for many pizza brands and led them to hire thousands more workers to keep up.
Tech Services
Technology was already an intrinsic part of most people's lives, but the pandemic made tech more important than ever. Computers, tablets, and smartphones have kept us connected to coworkers, family, and friends—and that means businesses offering sales, repairs, and other services to keep us connected became more essential than ever as well.
Tutoring
Parents' concerns about their kids' academics have only been amplified by school shutdowns, remote learning, and all the other complications COVID-19 has brought to education. Tutoring services—many of which were able to quickly adjust their models to accommodate remote options—should see a year of growth as they offer to help parents meet these concerns head-on.