Staying the Top Dog in Economic Uncertainty
Do you want to launch a doggie daycare franchise? You’re certainly not alone. For lovers of dogs and individuals who wish to become business owners, the doggie daycare industry might just be the best possible sector to enter in terms of quality of life and profitability. However, many potential Hounds Town USA Franchise Owners might find themselves a bit scared of the potential for disaster in the face of an economic downturn.
The COVID-19 pandemic left many uncertain about the futures of their businesses. It certainly makes sense why so many potential business owners have avoided launching their franchises. However, the pet industry – and Hounds Town USA by association – could explode in popularity, even in the face of a potential recession.
The demand for pet daycare and lodging services has expanded due to the spreading pet humanization culture, particularly in North America and Europe. Competitors in the industry take these variables into account when building pet daycare and lodging facilities and purchasing pet care items to stand out in the market and satisfy customers’ individual needs.
We predict that daycare, boarding, training, walking, playing, and grooming will increase in demand in the upcoming years. These services are offered for various time frames, including overnight, weekly, and monthly. Numerous businesses provide customized pet services to meet the needs of their clients, such as unique pet rooms based on the size of the animals and pet sitters in cage-free stay-n-play facilities. Pet owners can select from various appealing pet services depending on their demands. This is anticipated to impact expanding the pet daycare and accommodation markets worldwide substantially.
To better understand why purchasing a Hounds Town USA franchise location is brilliant, we put together an in-depth guide and list of statistics supporting the notion that the pet industry, including the pet boarding industry, will remain stable and profitable for years. Let’s start by looking at why the pet boarding industry is recession-proof.
Is the Pet Boarding Industry Recession-Proof?
The economic threat affects every aspect of the tech ecosystem, from established companies to start-ups, resulting in layoffs, reduced valuations, and a financing freeze. You might wonder, though, how the pet sector is doing. Despite worsening operational conditions, investors, entrepreneurs, and analysts claim that the industry is confident in its capacity to weather the worst.
This is partially a result of how much pet owners adore their animals. The so-called humanization movement has driven the pet technology boom, in which pets are treated like family members. Additionally, it indicates that owners are not cutting out on essentials like high-quality nourishment.
The pet sector has expanded by 450% during the past 25 years. By 2027, it is anticipated that the pet market will be worth $358.62 billion. Over $123.6 billion was spent by American pet owners on their animals in 2021, a 115 percent increase from 2011. Since they view their pets differently than their parent’s generation, millennials already make up 32% of pet sector buyers. Pet ownership among millennials is now three times more prevalent than child ownership.
Right now, we may anticipate that the pet sector will expand due to the epidemic. The US pet business increased by 14% to $123 billion in 2021 as it kept its impressive pandemic recovery. Even non-medical services like grooming and boarding, the only area of the pet business to experience a decline in 2020, almost entirely recovered in 2021. According to Packaged Facts’ analysis and their U.S. Pet Market Outlook for 2022–2023, this is the case. The survey claims that a variety of factors, including a greater emphasis on pet health and wellbeing among pet owners due to their tighter relationships with their dogs and greater dependence on all things digital, including online shopping, led to the comeback in expenditure.
Of course, the pet boarding market is booming as well. The American Pet Products Association said that, in 2020, pet owners in the U.S. spent over nine and a half billion dollars on services, including hotels, grooming, pet insurance, dog training, babysitting, and professional dog walkers, an increase of almost 4% from 2019. The frequent lockdowns caused people to spend most of their time at home and take careful care of their pets—this increased consumer demand for pet-related services and goods, which led to tremendous market expansion. In 2021, the category offering pet boarding services had the most significant revenue share. Over the projected period, the pet grooming segment is anticipated to have the most considerable CAGR. The return-to-work trend following COVID, which encourages pet owners to select pet sitting, pet daycare, and overnight boarding services, is the main reason to boost the category.
Additionally, the market would benefit from and increase considerably throughout the projected period due to the demand for pet grooming among pet owners. Pet owners, incredibly rich, prioritize showing off their lifestyles by giving their animals comfortable and opulent items. In response, other industry rivals have introduced a plethora of new grooming and accessory products. Pet services include pet boarding, pet sitting, grooming, travel, training, hotels, and personalized pet subscription boxes.
The millennial generation and the baby boomers, as they are often called, are redefining how people feel about dogs. More millennials than prior generations are obtaining pets. Customers aged 30-49 make up 40% of those who appear to be most interested in and active with pets and pet care. In comparison, three-fourths of Americans in their 30s own dogs, but more than half of Americans in their 30s are proud cat owners, according to Mintel. Additionally, millennials use technology to purchase services and goods for their pets, providing new development prospects for businesses.
There is no denying that an increasing number of individuals are starting to have pets. Particularly in the U.S., spending enormous sums of money on pets is becoming more prevalent. Pet expenditure increased significantly throughout the three recessions, indicating that the pet care sector is not among the most resilient to economic downturns.
Is a Recession Coming in 2022?
Recent economic predictions indicate that when inflation rises, the likelihood of a recession increases as well. This might soon lead to more layoffs, fewer workers, and higher interest rates. According to a Bloomberg study of economists conducted in July, the median likelihood of a recession over the next year has climbed from 30% to over 47%.
The technical definition of a recession is when the value of the USD declines for two consecutive quarters, typically used to measure economic growth. Many analysts agree that this is not enough to proclaim one. The National Bureau of Economic Research, a nonprofit organization that tracks peak and trough months of economic growth, defines a recession as one in which each of the three criteria — depth, diffusion, and duration — is partially met rather than as a widespread contraction in the economy that lasts longer than a few months.
One of the leading causes of the idea of an imminent recession is that there are few signs that inflation would slow down. July’s consumer price index data showed inflation above 9% yearly, the highest level since 1981.
Market-related shocks have brought on previous recessions to the economy. Examples include the financial crisis of 2008, sparked by lax lending standards and a housing crisis, or the internet crash of the early 2000s, which followed overly enthusiastic investment in technology stocks. Recessions are avoided by the Federal Reserve’s policy choices, which is the central bank in charge of monetary policy in the United States. To fight inflation, interest rates have risen recently.
Because your income doesn’t rise as quickly as inflation, inflation decreases your compensation or payment. It reduces the value of your residence, savings, and ability to make purchases. Although the epidemic is far from over, consumers’ increased spending in the months after COVID-19’s worst effects meant that providers initially found it challenging to keep up with demand.
So what does this mean for individuals who want to launch their own business? Believe it; this could be the best time to launch a Hounds Town USA franchise location.
Is Starting a Franchise a Wise Decision During a Recession?
Recessions and turbulent markets, such as the one we’re in right now because of COVID-19, are trying times. A tremendous deal of uncertainty, job losses, and a direct impact on cash flows can put firms in a precarious situation. However, it need not be entirely negative.
To reduce their burn rate and increase their available cash runway, today’s organizations are exploring methods to change their business models, examine their budgets, and create new predictions. They are thriving and surviving, but for those considering opening a franchise, now might be one of the ideal times to do so.
Starting a business during a recession may enable you to take advantage of a weakened economy and avoid many problems existing enterprises face. This is due to a few factors.
To begin with, economic ambiguity may provide new chances to address new issues. Financial hardship creates new topics. These issues result from people’s ongoing needs or discomfort, which frequently don’t have an immediate fix. To explain why customers will move to you, be aware of how consumers already manage this issue and who offers the best current answer.
One might concentrate on presenting their company or service as a new and improved answer. Show how your solution is more quick, dependable, economical, etc., even if there are alternatives. In COVID-19, starting with remote, delivery, or as-a-service versions of goods or services that haven’t successfully flipped may be the ideal method to approach a new business concept.
One may establish a business with a franchise like Hounds Town USA and have relatively few staff and overhead costs. This combination puts you in a fantastic position to provide a cheap solution and gain clients. As a result of the need to cut expenses during a recession, firms and consumers may be open to your answer.
There’s a significant possibility you’ll win them over as long-term clients if you can save them money while providing better service or a quicker turnaround. They could support your company if you build a relationship with them now and point to you as one of the factors that allowed them to endure the crisis. You may always try to raise pricing or provide new services that these clients will be more prepared to embrace if the economy improves because of how you assisted them in the past.
It’s also advantageous that a downturn in the economy might increase competitiveness. A strong economy draws more incredible rivalry. While more and more entrepreneurs are taking chances to launch or grow their businesses, established firms are doing very well. In a crisis, everything seems to vanish, yet there is a place for those ready to take a chance.
The moment is now to enter the market if you’ve always wanted to open a business but felt the market was too crowded. Your competitors and the market are now open to a new entry since big and smaller enterprises try to adapt and survive in diverse ways during a crisis. Similar to attracting clients, your chances of surviving the economic downturn increase if you can use your lean position and run your business with a small team (which Hounds Town USA makes feasible).
Hounds Town USA – The Statistics for Success
Are you on the fence about choosing Hounds Town USA as your franchise of choice during a recession? These statistics might sway you.
Driven By Results
We have observed a rise of 133% in the average number of new dog assessments in the first ten days after launching a Hounds Town USA franchise, thanks to our efforts to build a sizable client base, mainly through Facebook groups and social media. That’s significant, particularly for brand-new franchise sites!
Part of a Powerful Industry
We operate within the $95.7 billion pet boarding industry. Because individuals are still prepared to pay the same amount for their dogs’ costs even in hard times, the pet sector has shown recession-resistant.
The pet care industry is predicted to reach $283 billion by 2023 and expand rapidly, with a sizable chunk of the amount going toward doggy daycare, boarding, and grooming. This business is further supported by the rising percentage of pet ownership, particularly among millennials. A pet is present in more than 70% of all American households, and 94% of pet owners view their animals as family members.
With the start of the COVID-19 pandemic, we have witnessed this firsthand as the pet sector was positively influenced uniquely. Not only did pet adoptions rise by 110%, but as more pet owners started working from home, a whole new wave of doggy daycare clients also arrived as they discovered for the first time how crucial socializing was for their dogs. As parents returned to work, their puppies needed somewhere to go, and the doggy daycare sector multiplied.
A Shining Light Among Competition
Hounds Town USA offers a significantly low Financial Investment compared to similarly established franchises in the pet industry. We offer a $358,900 initial financial investment, which is 40% less than our competitors on average.
For example, Camp Bow Wow offered an initial financial investment for Franchise Owners of about $928,000 to $1,658,000 in 2021. K9 Luxury Resorts’s opening costs range from $1,094,907 to $2,042,840.
At Hounds Town USA, there is no discrimination against dog breeds, which many pet boarding franchises tend to do. This brings in more demand for Franchise Owners since more dog breeds are welcome.
Hounds Town USA was founded by a former NYPD K-9 Unit Handler with over four decades of experience, and thus, our no-bells-and-whistles facilities are built based upon the dogs’ needs– not to impress their humans. This allows us to keep our buildout costs significantly lower than the competition because we offer the basics that dogs need to thrive.
There’s also a low staffing requirement to run a Hounds Town USA franchise facility. Our minimum staffing requirement is 15 dogs to 1 employee. Also, our facilities are closed to the public from noon to 2:00 pm, so no extra staff is required to talk to customers during this time. This attractively low staffing requirement keeps overhead costs low for Franchise Owners and offers more room for greater returns on investments and benefits.
As mentioned earlier, Hounds Town USA takes a unique approach to doggie daycare services. In addition to this, we do not upcharge for special treatments or requests. Unlike other facilities, we do not charge extra for providing medication, feeding pets treats, or providing personalized attention to dogs with unique needs. This is one of the many reasons we are rated so high on review aggregate sites.
Start Your Business-Owning Journey With Hounds Town USA
Hounds Town USA is your most fantastic option if you love dogs and want to operate a rewarding company! It’s pretty OK if you have never run a business before. Most franchise owners have no prior expertise in the industry or the pet sector. However, you must be able to lead a small group of people, work hard, and have an aptitude for sales or management.
Are you ready to get started? In the following four to six weeks after you get in touch with our team and initiate the process, we will guide you through an education process that gives you the chance to thoroughly understand the Hounds Town USA pet franchise business model and that enables us to learn more about your viability as a new Franchise Owner. We’re eager to start working with you!