Franchise Spotlight: Confectionery
A generation of choc-aholics means the confectionery franchise sector looks set to grow.
The confectionery industry in Canada, which is forecast to reach over CA$3.5billion by 2022 (Statista), has a host of profitable and exciting business opportunities for franchisees. Confectionery, or candy franchises, covers a wealth of products including lollipops, fudge, gummy candy, chocolate and cookies amongst others. Some companies have chosen a niche area in which to specialize whilst others have a range of product lines that come under their brand umbrella.
With rising obesity rates, there is no doubt that Canadians enjoy a sweet treat or two. However, confectionery businesses are wise to cater to those looking for healthier sweet options and many have diversified to also stock nuts, popcorn and dried fruit. Franchises need to consider the products they will be selling and where their niche in the market will lie.
Confectionary stores have met competition in recent years from supermarkets who are able to sell sweets at low-cost prices. The 2020 global health pandemic also saw non-essential businesses close their doors and so many companies had to consider their e-commerce and delivery options. For some companies, diversifying their ranges or creating online retail provision for consumers was what enabled them to survive.
Sticky’s Candy is a franchised confectionery business that is designed not only for children but also to ‘invoke nostalgia’ for adults.
Confectionery Industry Analysis
The confectionery sector is a competitive one to enter and franchisees will benefit from the support and guidance, as well as the recognized brand name, of an established company. It takes a certain type of joy to run a confectionary store - after all, you’ll be surrounded by sugar and children for most of the day! Stamina, positivity and a love of candy will all be beneficial in this market.
Although many companies do not require franchisees to have experience in confectionery, a background in sales and entrepreneurial spirit are both important attributes for those entering this sector. Franchisees will need to be aware of current market trends and be ready to adapt and diversify product lines accordingly.
This is an industry that benefits from repeat business and seasonal events such as birthdays and holidays so, for franchisees passionate about sweets, this is a lucrative sector in which to invest.