With the franchise industry projected to be worth $133.3 billion by 2026, it is also entering a new era marked by accelerating innovation and fast-changing consumer expectations. In the foodservice industry, for example, full-service restaurants and culturally rooted brands are likely to feature as popular categories.
The trends in full:
Popular Categories
- Full-Service restaurants: Restaurant brands continue to attract franchisees with scalable operations, steady revenue, and innovative menu offerings. As more consumers prioritize in-person experiences, dining out in full-service restaurants continues to be popular
- Culturally rooted brands: Concepts rooted in a founder’s personal, regional, or cultural background are gaining momentum, offering authenticity that resonates with customers
In the meantime, sector-specific trends to watch for include fusion menus as well as AI and smart operations.
Combining different cuisines, fusion menus allow brands to stand out while appealing to a wider audience. Fusion menu items are growing in popularity, especially with younger demographics who are drawn to unique menu offerings.
Elsewhere, franchise systems are increasingly using AI to streamline operations, from optimizing ordering and inventory to analyzing consumer feedback. These tools help franchisees run more efficiently, make data-driven decisions, and focus on growth.
In the retail industry Pet Care and Health & Fitness are likely to feature in the months and years ahead. Franchises offering pet products and services, for example, continue to see strong demand, as Canadians increasingly prioritize the health and well-being of their pets. Rising pet ownership, a willingness to spend on premium products and services, and the humanization of pets are driving growth in this sector, making it a resilient and high-potential category for franchisees.
At the forefront is also likely to be Health & Fitness. Wellness focused franchises, for example, remain popular, attracting consumers looking for holistic wellness, and lifestyle experiences. Growing awareness of health and mental well-being, combined with increased disposable income for lifestyle and self-care services, is fueling strong demand in this sector. Wellness brands are harnessing technology to deliver products and services, from infrared saunas to video fitness classes to IV drips.
As for sector-Specific trends to watch – the following are also worth mentioning
- Eco-friendly practices: Sustainability is becoming a major factor in where people spend their money. Consumers, particularly younger generations, are increasingly drawn to sustainable and environmentally conscious brands, creating opportunities for franchisees to align with these values
- Experience-driven retail: Retail concepts are focusing on interactive and memorable experiences to build loyalty and stand out in competitive markets
- Tech-enabled shopping: From e-commerce platforms and mobile apps to digital loyalty programs and AI-driven insights, technology is helping franchisees improve efficiency, optimize operations, and enhance customer experience
Looking ahead, foodservice and retail remain some of the most attractive sectors for franchise investment, offering strong consumer demand, opportunities for innovation, and room to grow.
For more information: https://cfa.ca/
