A 2015 Franchise Grade report has found that while Americans cut back on a lot of things during tight economic periods, child-related expenses definitely aren’t one of them.
The youth services industry, which includes programs like daycare, sports, and enrichment activities, is one of the fastest growing franchise sectors in the U.S. Since 2013, three-quarters of all children’s service franchises have achieved a positive net growth, and youth services franchises have raked in over $450 million in revenue per year between 2010 and 2014.
What’s the reason for this growth? One reason might be the fact that American parents – mom and dad – are working longer, and harder, than ever before. And due to both parents having long, sometimes erratic work schedules, the demand for childcare, sports, and after-school activities have increased.
Another reason? In 2013, president Obama announced his initiative to make preschool and Head Start services more available for children, and called on Congress to Congress to expand opportunities for early childhood education. Some have suggested that giving preschool national attention has caused early childhood enrollments to soar.
Finally, it’s become a new American pastime to lavish our kiddos with activities and outings: Where families in the 70s and 80s were once content to have a cake-and-ice-cream gathering for their child’s sixth birthday, American parents are now treating their tots to deluxe indulgence spas, arcade outings, and ski trips – at hundreds of dollars per kid. Clearly, the time to franchise a child-related business is today.
But will this trend continue? Experts think so. The latest census information shows that there are approximately 25 million preschool-aged children in the United States. What’s more? While most millennials aren’t having kids right now, they’re poised to undergo a huge baby boom in the coming years. In an interview with the Wall Street Journal, Sam Sturgeon, president of Demographic Intelligence, said, ““Now that [millennials are] in the middle of their 20s, from here on out you’re going to see a lot of millennial marriages and a lot of millennial married births.” Soon, many predict the U.S. may be populated with more children than ever before – and when it is, youth services franchise companies will be ready for them.