Will Sandy Impact Franchising in the New York Metro Area?
by Ed Teixeira
The aftermath of hurricane Sandy could have serious short range
implications for franchises in the New York Metro area.
As we enter the post- hurricane Sandy stage the outcome can have a direct
impact on the franchise industry. Considering that Sandy hit the New York Metro
area and it’s approximately 22 million people the negative economic impact has
Just prior to and after the storm certain retail establishments in the home
improvement sector like Home Depot and Lowe’s have done well and should continue
to do so. A number of retail analysts expect shopping malls, entertainment
businesses and other businesses will be hurt by the destructive impact from
From a personal standpoint, having lived through the storm and being without
power for 7 days, we made a point to dine out once every day. However, now that
power has been restored our intent is to eat at home a bit more often than
usual. In a few weeks, we’ll most likely return to our normal schedule. With a
number of people in the NY Metro area having missed work, while some experienced
damaged or destroyed homes we should expect a decrease in spending during the
upcoming holiday season. A reduction in consumer spending will hurt franchised
restaurants, hotels and other retail businesses. On the other hand franchises in
the home service sector should do better than normal as people will need repairs
to the interior and exterior of their homes. An additional factor that should be
resolved within the next few weeks is the gasoline shortage in the NY area that
has resulted in the implementation of odd/even fueling regulations. Franchisors
and franchisees operating in the New York Metro area need to be aware of the
post-Sandy outcome and prepare accordingly. Franchisee marketing and sales
promotions should be welcomed by consumers who have endured the wrath of nature
during the past two weeks.
The sale of new franchises in the NY area could suffer a bit as people
struggle to get back on their feet. In terms of the future, franchisees in the
retail and food sector that are located in high risk areas should consider
installing a generator that will allow them to operate during a power shortage.
There has been a significant increase in the installation of generators by home
owners. Franchisees can take a cue from this trend. Being in business
during a power failure can enable a franchisee to maintain or increase revenues
and but also earn some loyalty from existing and new customers.
© 2012 FranchiseKnowHow, LLC
Ed Teixeira is the President of FranchiseKnowHow, LLC. He
can be reached at email@example.com