What's keeping you up at night?

It is a challenging time to run your own business, and success is never guaranteed. Here is a look at the primary issues affecting franchisees at the moment, along with some possible solutions.

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May 2025's big issues:

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Rising operating costs

Problem: We are teetering on the brink of a global recession, and the tariff war is introducing unexpected supply chain costs. Wage increases are eating into the bottom line, and cash-strapped consumers cannot afford to pay more for the goods and services we provide.

Possible solution: Try to identify any areas in which efficiencies can be achieved. Maybe you need to adjust your operating hours, modify your offering, or change staff ratios to better suit customer needs. Perhaps you can obtain more affordable insurance premiums, negotiate your rent, or switch to a cheaper shipping service.

There is bound to be some area of your operations that will afford you some wiggle room to reduce your operating costs; you may just need to be creative to find and implement it.

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Labor challenges

Problem: Many businesses are struggling to attract and retain sufficiently skilled personnel. Industries such as leisure and hospitality have a particularly high staff turnover rate, which is due in part to the competitive nature of the industry, comparatively low pay, and the need to work each day in person.

The time and costs spent hiring and training workers only for them to leave shortly thereafter place a significant burden on businesses and leaves the remaining workforce overstretched and liable to experience burnout. It can also have a negative impact on customer experience.

Possible solution: Businesses should try to appeal to the widest target employee demographic possible, offering attractive incentives to not only join the company but to remain on board. These incentives could include funding for further education or skills advancement, access to childcare, and opportunities to progress within the company.

A high-value employment offering does not always need to cost more; sometimes just offering a better work environment than your competitors can keep your workforce motivated and loyal.

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Changing customer preferences

Problem: The modern consumer's needs and wants are different from those of their predecessors. Consumers wanted high quality at a low cost in the past, but now ethics and sustainability are precursors to many purchasing decisions.

This means that businesses need to adapt their operations to limit the environmental impact of their products and services, sourcing ingredients from ethical sources, ensuring that manufacturing is performed by highly skilled and well-paid employees in a clean, safe environment and that packaging and logistics are as green as possible. Shifting to a position of environmental sustainability comes at a cost, and continually demonstrating a responsible environmental attitude can pose a PR challenge.

Possible solution: It is clear that consumers are willing to pay more to purchase goods and services from brands whose values align with their own, so make sure to promote the actions you are taking to go green so you can grow your target audience and strengthen your reputation. By embracing this trend, you will become more resilient and better able to weather the other challenges you may face.