Starting a business during a recession? Are you crazy? Not if that business is Toastique Franchise!
While recessions and economic contractions tend to get a bad rap in the business world, they can present many unique opportunities for forward-thinking entrepreneurs.
Positioned to capitalize on many of these opportunities, starting a Toastique franchise during a recession can be a wise investment.
In this article, we’ll explore the topic of recessions, what they mean for businesses and consumers, and some of the unique opportunities they present for Toastique franchise owners.
What Is A Recession?
You’ve probably heard the word countless times, but what does “recession” really mean? In simple terms, a recession entails a general decline in economic activity. This decline can be measured by various indicators, including gross domestic product (GDP), employment, retail sales, and others.
While the exact definition of recession varies among different countries, economists generally agree that recessions occur when GDP declines for two consecutive quarters, or six months.
What Causes Recessions?
Many factors contribute to recessions, including high interest rates, low consumer confidence, tight credit conditions, and other economic factors. Exogenous circumstances such as natural disasters or political events can also trigger economic declines.
What Happens During a Recession?
The most immediate impact of a recession is often felt in the job market, as businesses shed jobs in reaction to falling demand. This can lead to increased unemployment and underemployment, as well as lower wages.
A recession can also lead to declines in asset prices, such as housing and stocks, which can result in lost wealth. Finally, recessions can lead to reduced lending and borrowing as banks become more risk-averse. This can make it more difficult for businesses and individuals to access the capital they need to invest and grow.
How Long Do Recessions Last?
Recessions usually last for a few months or up to a year and are typically followed by a period of economic recovery. However, some recessions can be much longer-lasting and lead to significant economic contractions (such as the Great Recession of 2008-2009).
Recessions are generally considered adverse economic events, leading to output, employment, and investment declines. However, there can be some positive aspects to recessions as well. For example, they can help to reduce inflationary pressures and lead to more efficient resource allocation in the economy.
What We’re Seeing Today
While opposing opinions abound, it seems clear that the United States is currently amid some economic contraction.
This is confirmed by the latest data from the Bureau of Economic Analysis, which showed that GDP declined by 1.6% in Q1 and 0.9% in Q2. Some analysts are reluctant to declare this a full-blown recession, arguing that job numbers remain steady and consumer confidence has not been significantly affected.
However, it seems likely that we are heading towards a recessionary period, especially given the ongoing supply chain disruptions and inflationary challenges North America has experienced over the past months.
What Recessions Mean for the Average American
Recessions are known to cause a number of changes in the economy and, as a result, evoke changes in consumers’ spending and saving habits.
During a recession, people are likely to:
As economic activity slows down, people tend to spend less money on discretionary items like entertainment, vacations, and luxury goods. Instead, they focus on essential items like food and gas.
With job security concerns on the rise, people will likely start saving more during a recession. This can be done through traditional savings accounts and more creative methods like investing in gold or other precious metals.
Pay Down Debt
With income levels stagnant or falling, people often try to reduce their debt during a recession. Whether through increased payments or by not taking on new debt, paying down debt can be a priority for many during tough economic times. This has become particularly important in today’s conditions as the Federal Reserve continues to raise interest rates.
Adopt Healthy Habits?
In addition to the changes in behavior noted above, recessions also tend to lead to an increase in healthy living habits. This is likely due to a combination of factors, including:
More Time For Exercise
With fewer opportunities to socialize and less money to spend on entertainment, people often have more time for exercise during a recession. This extra time can be used to explore new outdoor activities, join a gym, or simply take walks around the neighborhood.
More Home Cooking
Another healthy change that often occurs during a recession is increased home cooking. Dining out has become less affordable, so people are more likely to cook at home using fresh, healthy ingredients. This can lead to improved diets and better nutrition overall.
A Greater Focus on Health
When faced with financial insecurity, many become more focused on their health and well-being. This can prompt them to make lifestyle changes like quitting smoking, eating better, and getting more exercise. Additionally, people may be more likely to see their doctor for regular checkups during a recession.
Less Work-Related Stress
While job losses are certainly a negative aspect of recession, those who keep their jobs often experience less work-related stress. This is because there is typically less demand for employees during economic downturns. With fewer projects and deadlines, workers have more time to relax and care for their health.
How Recessions Provide Opportunities To Grow A Business
The word ‘recession’ is synonymous with fear for startups and established businesses — and for a good reason. Traditional thinking tells us that recessions are bad for business, and that’s often true. However, there are also opportunities to be found in any economic downturn.
One of the biggest challenges businesses face is the high cost of doing business. From rent and salaries to materials and marketing, there are a lot of expenses to keep track of. But during a recession, many of these costs will go down.
For example, commercial rents tend to drop as businesses close their doors and vacancy rates increase. This provides a unique opportunity for startups and small businesses to get prime real estate at a fraction of the usual cost. Similarly, labor costs tend to go down during a recession as unemployment rises. This can be an excellent opportunity to hire top talent at a lower rate.
More Focused Customers
With people cutting back on spending, they become pickier about where they spend their money. This can be good for businesses that provide high-quality products and services, as customers will be likelier to patronize them over cheaper alternatives.
To survive a recession, businesses need to be lean and efficient. This often leads to improvements in operations, as companies streamline their processes to cut costs. As a result, businesses may find that they can run more smoothly and efficiently, even after the recession ends.
While many businesses do suffer during a recession, there are always new opportunities to be found. For example, some industries thrive during economic downturns. These include sectors like healthcare, education, and essential services.
Additionally, even in struggling industries, those seeking to enter new markets may find that a recession presents the perfect opportunity to do so. This is because there are often more opportunities and less competition during an economic downturn.
More Motivated Employees
In addition to lower costs, businesses also have the opportunity to motivate employees during a recession. With fewer job opportunities available, workers are often more grateful to have a job and are willing to go the extra mile to keep it. This can lead to increased productivity and higher-quality work.
Capitalize upon Economic Conditions with Toastique
Toastique is a unique, healthy, affordable fast-casual restaurant concept positioned for success in any economic condition.
Our customizable menu of gourmet toasts provides customers with a healthy, convenient snack and meal option that can’t be found anywhere else. We’re proud to be a franchise-based business, meaning that we empower local entrepreneurs to open and operate their Toastique locations.
What Toastique Has to Offer
Entrepreneurs who are looking to get into the world of business have a lot of options to choose from. But not all companies are created equal. Toastique’s unique restaurant concept offers many advantages over other companies, making it an excellent choice for anyone looking to invest. Here are just some of the benefits:
Low Overhead Costs
One of the most significant advantages of Toastique is the low overhead. Thanks to our fast-casual model, we don’t have the exact high costs as traditional sit-down restaurants. This makes us much more affordable to open and operate, even in expensive markets.
Another big advantage of Toastique is the franchisor support it offers. We provide a turn-key operation, which means that everything from the initial set-up to ongoing marketing is taken care of. This takes a lot of the stress and guesswork out of starting a business, making it an excellent choice for first-time entrepreneurs.
Recession-Proof Business Model
Toastique’s unique business model is designed to weather economic downturns. Our company’s focus on healthy, grab-and-go meals and snacks makes it a convenient option for those looking to save money during tough times. Additionally, Toastique’s low overhead means it can continue operating profitably even when other businesses are struggling.
Toastique’s menu is like nothing else on the market. Our combination of gourmet toast, all-natural smoothies, cold-pressed juices, and açaí bowls provides customers with a healthy, convenient, and affordable meal option. This unique menu sets Toastique apart from other fast-casual restaurants and makes it an excellent choice for health-conscious diners.
Having started only a few years before the COVID-19 pandemic took the world by storm, Toastique is no stranger to economic turbulence. Much of its development and structure today can be attributed to the company’s ability to adapt and pivot in the face of adversity. The fact that Toastique has been able to not only survive but thrive amid a global pandemic is a testament to the strength of its business model and its team.
Low Starting Investment
Toastique is a relatively low-cost franchise, with a starting investment of just $347,250. This makes it an excellent choice for those looking to enter the restaurant business without breaking the bank.
Forward-Thinking Business Model
Toastique is a forward-thinking company that caters to tomorrow’s consumers. Our company’s focus on healthy, grab-and-go meals and snacks is in line with consumers’ growing trend of health consciousness.
Our delicious and gourmet dishes also fare well with younger generations, who love the Instagram-worthy aesthetic of our toasts.
In today’s economy, it’s more important than ever to have a business that can weather any storm. That’s why Toastique is such an excellent choice for anyone looking to invest. With our low overhead costs, franchisor support, and proven success, we’re confident that Toastique is a perfect choice for first-time entrepreneurs and experienced business owners.
Contact our franchising team today to learn more about how you can get in on the Toastique opportunity!