Discovery Point Blog
How are Daycare Franchises Being Affected by Today’s Economy?
While the business world continues to adapt to the ups and downs of the pandemic economy, a number of trends have taken hold that are sure to have a significant impact on daycare franchises. In many cases, these trends are windows of opportunity for franchises in the child care industry.
As we emerge from one of the most challenging economic periods in recent memory, it’s refreshing to hear that many businesses, including many child care businesses, have reason to be optimistic.
If you’re thinking about using this period of change to make a positive adjustment in your personal and professional life, consider purchasing a daycare franchise from Discovery Point.
Reasons Daycare Franchises are Thriving
We know that many entrepreneurs may be questioning whether right now is the right time to explore franchise ownership. But we know there are many ways in which the child care industry has been positively affected by the economic and societal shifts of the COVID-19 era.
1. Child care is now seen as an essential service.
The pandemic has caused our society to have a long overdue discussion about what kinds of businesses and services we deem essential. Child care emerged as one of a handful of industries to offer crucial services that simply can’t be taken for granted, no matter what state the world is in. This was made clear as 50% of parents surveyed in the summer of 2020 stated that the need for child care was the reason they had not yet returned to work.
In addition, as we approach a new, post-pandemic normal, parents are reflecting upon what the past year has shown them about their child care needs. In August 2020, it was reported that 63% of parents anticipated needing to change their childcare arrangement in the next year.
It can only be assumed that after having to juggle remote work with child care and remote learning, many families are looking forward to the possibility of enrolling their children in a reliable daycare franchise with a reputation for high-quality, educational care.
2. Demographic shifts are bringing about changes in consumer demand.
Over the past few years, a new generation has slowly started dominating consumer demand: Millennials. The pandemic coincided with the completion of that shift, as this age group is settling into steady jobs, home ownership, and raising young children. These factors indicate certain sectors are poised to experience a boom in the near future, and educational child care may be one of them.
As a group, Millennials boast a higher level of education than their predecessors, with 61% having attended college versus 46% of the Baby Boomer generation. Many of these new parents are anxious to invest in their children’s education. They are also focused on their own ability to get ahead in their career. Investing in high-quality, education-focused child care services makes both possible.
3. Franchisors have a greater awareness of the long-term value of their franchisees.
The pandemic didn’t just change how consumers choose to invest their time and money or what industries they value. It also changed the way franchisors view their own business models.
Franchisors now have even more reason to consider the long-term value their franchisees will bring to their brand. As a result, franchisors are pivoting their focus to cultivating the professional development of franchisees and ensuring they are equipped to succeed.
After all, franchisors can only do well if their franchisees are also thriving. The pandemic has shed light on this feedback loop. The best daycare franchises are using this opportunity to provide more cohesive training and support for franchisees at every stage of business ownership.
At Discovery Point, we’ve always understood how important it is to give our franchisees the tools and resources they require to offer high-quality services for their communities. Over the past 30 years, we’ve built our brand by nurturing our daycare franchise family.
As we look forward to the rest of 2021 and beyond, we’re excited to continue creating partnerships that make a positive impact on the lives of our center owners as well as the families they serve.