FRANData has again gathered the opinions of the Australian Franchise sector for the June 2022 quarter, with staff shortages, rising interest rates & inflationary pressures a major concern for the Australian Franchise Sector.

All of Australia has felt the pinch with the cost of living in recent months and franchises echo the strain across a few concerns of significance. 

The latest “Pulse Check” survey represented the opinions of 119 Australian franchise brands (capturing 20,928 businesses (19,291 franchised units and 1,637 company operated units) and employing 231,123 Australians).

The survey is commissioned by the Franchise Council of Australia, and conducted by franchise market research company, FRANdata, headed by Darryn McAuliffe.

The key concern for franchises Australia wide 

As with the March 2022 quarter, the key concern reported by Australian franchise systems remained staffing issues.

• 80% listed availability of suitable employees for franchisees as the core issue (significantly higher than the 64% in the March quarter)

• 61% listed the availability of suitable staff for support office as another core issue (also significantly higher than the 40% in the March quarter)

Financial pressures identified as an emerging key issue

Since the Australian Franchise sector surveys began in March 2020, now is the first time rising interest rates and inflationary pressures were identified as a significant challenge.

• 54% of Australian franchised businesses indicated that interest rates and inflationary pressures were causing material impacts (31% high and 23% very high)
• Supply Chain Issues at 54% and Franchisee Recruitment at 40% were also in the top key concerns and challenges.

Sentiment for the coming 6 months

Revenue expectations are said to remain positive for the coming quarter, with 60% (marginally down from 62% in the previous quarter) expecting a stronger 90 days.

When probed about the coming 6 months, respondents still felt optimistic about business conditions despite the percentage falling from 72% last quarter, to 57% this quarter.

Franchise Council of Australia CEO Mary Aldred summarises her opinion on the findings;

”This latest survey shows that although pandemic trading restrictions are gone, significant new challenges are hindering Australian business recovery. 

Urgent action is needed at the national level to ensure opening up of new streams of potential workers, both local and from overseas, with the skills and capacity needed to fill the diverse workforce gaps appearing across the Australian economy”.