Mention Detroit, Michigan, and the first thought that comes to mind is the automobile capital of the world. Detroit has always been home: Chrysler, General motors, and Ford. In its heyday, Detroit boasted the higher-paying factory jobs, job security, coveted corporate positions, a higher standard of living, and a booming economy. The larger-than-life mansions these corporations afforded their executives lined the street, and people relished living the good life. However, the automobile industry witnessed drastic changes, such as robotics that transformed or eliminated production positions. The computer era and internet changed production too, as well as, many corporate positions. Technology also led to the consolidation of many corporate positions. Adjusting to these changes created challenges for the automobile industry and its work force, and Detroit’s economy suffered.
The Spotlight is Changing
It seems today, however, the spotlight is shining bright on Detroit, and the surrounding area, as it becomes a small business and foodie hot spot. Franchisors and prospective franchisees are now looking at the economic environment as a serious opportunity for investment and growth. Detroit emerged from the recession much stronger because it experienced the toughest lessons; living lean and doing more with less. Detroit also had to look away from the standard of the automobile industry to explore other business ventures that would become a viable means of earning a living, promoting life-work balance, aligning with life goals and providing personal satisfaction.
No Small Servings Here
Detroit is not just serving up investment opportunities for the small café or coffee shop on the corner. National food franchises looking to expand are eyeing the economic landscape of Detroit. Dunkin’ Brands and Tropical Smoothie Café both expect to open an additional 20 locations; Dunkin’ Brands over the next five years and Tropical Smoothie Café in the coming year. Following the opening of its first free-standing Michigan location in Lansing, Chick-fil-A will also add 20 more locations over the next five years. Deciding to locate businesses inside busy office buildings, transportation hubs, and other heavily visited locations is a business model not used in years past and is proving to be very successful. For the free-standing stores, offering drive-through service for those consumers in a rush is a boom for the business.
The Taste of Independence
More and more career people are leaving the cubicle for the serving counter. Whether those people are looking for a different means to earn a living or to feather the nest in preparation for retirement, the future holds promise for the expansion of franchises in Detroit and surrounding areas. The economy as a whole is quite strong and has helped pique the interest in franchising. This surge in franchise ownership is expected to be very healthy in the near future given the estimation of 270,000 jobs and 25,000 franchise outlets in Michigan.
