The COVID 19 pandemic has taken the year 2020 by storm, travelling worldwide and affecting over 200 countries and millions of people. The effect this has had on the global economy, unemployment rates and job loss has been astronomical. Buying a franchise in Egypt is an opportunity for those looking to start over or finally be their own boss and run a business post crisis.
The impact COVID 19 has had on the Egyptian economy has been no different or less severe to the rest of the world, the tourism industry and other vital sectors have been hit hard resulting in the yearly growth forecasts dropping to 4.2% from 5.6% prior to the crisis.
As lockdown has eased and the number of cases have lifted, Egypt begins to try and revive its economy and get back on its feet, with many looking for new employment opportunities or business ventures. As we look back on the impact global recessions have had in the past, we can't help but see that “in the midst of every crisis, lies great opportunity” as a new wave of entrepreneurs are born.
There are entrepreneurs or people who have found themselves unemployed post crisis that find this opportunity either by necessity or chance, as the crisis has left a new consumer behaviour or need that has to be filled by someone.
As this new wave of entrepreneurs begin to consider new business ventures, there are many options that come to mind. Firstly you may think about starting your own business from scratch, especially if you already have a great idea ready to launch that fits with the post crisis consumer. Buying an existing business is also an option, especially if you have had your eye on a business of interest to you, now may be the time to jump if the opportunity arises. If those two options are not the right fit for you, buying a franchise is another very good business opportunity to consider.
Buying a franchise in Egypt is a very good business decision if you are looking for a new opportunity and also if you prefer to be your own boss. Franchising offers investors and entrepreneurs the opportunity to own their business while being backed and supported by an already proven and successful enterprise.
In case you are wondering what exactly a franchise is and if you are cut out to be a franchisee, here we make it simple. Essentially, a franchisee pays an initial fee and ongoing royalties to a franchisor; in return, the franchisee secures the use of a trademark, ongoing support from the franchisor, and the right to use the franchisor's system of doing business and sell its products or services.
Buying into a franchise model is often described as working for yourself, but not by yourself. The concept is quite simple, whereby a successful business or successful brand has chosen the franchising route as a way to expand rapidly, but has chosen a business model that works with local owners of local businesses. Franchise owners have invested a franchise fee in return for Ownership of a business that is already proven.
Business knowledge and training from the experts
Achieving funding is not as difficult as getting funding to start your own business from scratch
You don't need to worry about whether consumers will like your product, it's already proven
More often you don't need to have experience running your own business as the franchisor is there to support
You are buying into a proven business model, where the right suppliers have been sourced, the correct pricing structure worked out and the right business systems adapted
You will have a network of people and expert advice from the franchisor to make your business a success
The Egyptian fast-food market is mainly dominated by American chains and has experienced quite a lot of expansion since its beginning in 1970, and market experts expect this growth to continue at an annual rate of 15 percent over the next number of years.
The food franchise market size is huge and estimated at more than $800 million. Some of the popular chains you can choose from include: Auntie Anne's, Burger King, Carvel Ice Cream, Burger King, Domino’s Pizza, Hardees, KFC, McDonalds, Pizza Hut, Dunkin Doughnuts, Papa John’s, Starbucks, and Subway.
The non-food franchise sectors began to emerge later during the 1990s in Egypt. These franchises have considerable market potential for high growth also, especially with many opportunities post COVID 19. For example, several companies in hotel management, car rental, foreign language teaching, health and fitness, and electronics are currently franchised in Egypt. Some of the non-food franchises that currently exist include: Coldwell Banker, Harley-Davidson, Hertz Rent a Car, and Marriott/Starwood Hotels. These are also good options to look into for buying a franchise in Egypt.
There are also many newcomers to the franchise world in Egypt that are worth taking a look at, especially if you are looking for fast growth and a profitable business with quick breakeven. It's important to think about how the post covid consumer will want to live their daily life and how their behaviors have changed. For example we have seen a massive increase in the use of technology and consumers looking to order everything they need online. A franchise that caters for this requirement would definitely be a business model suitable for the Post Covid 19 world we live in.