• Home:
• News:
• Andrea Lazzari:

The Spanish Franchise Grows 2.5% in Turnover and 4.8% in Jobs Generated

By: Andrea Lazzari |  0 Shares     254 Reads

July 08, 2024 // Franchising.com // The Statistical Studies Service of the Spanish Franchise Association - AEF, has prepared −as it has been doing since 2002−, with the sponsorship of the Cajamar cooperative bank the report “Franchising in Spain 2024”, with data closed as of December 31, 2023, in which the main conclusion is that the franchise system has grown in all its variables, highlighting an increase of 2 .5% in the turnover figure, going from the 26,929 million euros invoiced at the end of 2022, to the 27,623 million that were reached at the end of 2023.

At the same time, another relevant fact is that the franchise continues to be a business model that generates employment, since, if in 2022 it employed 303,595 people, at the end of 2023 that figure rose to 318,313 people, which is equivalent to a increase of 4.8%.

In relation to the number of networks that make up the franchise system, if at the end of 2022 it was made up of 1,375, at the end of 2023 the figure was 1,384 chains, therefore, 9 more networks, which represents an increase of 0.6 %.

Likewise, and in relation to the number of open establishments, if at the end of 2022 the figure was 77,246, at the end of 2023 it had risen to 78,255 operational establishments, therefore, 1,009 more establishments, which represents a growth of 1.3 %.

It was a pleasure for me to be present during the annual presentation of this important study. The AEF report “Franchising in Spain 2024”, with official data that reflects the reality of the franchise system in our country, which at the close of 2023 has grown in all its variables: billing, employment generated, number of networks and open establishments.

Number of Networks

The study concludes that the Spanish franchise system is currently made up of 1,384 networks − 0.6% more than in 2022, the year in which 1,375 networks were counted −, of which 1,144 are of national origin (82.7% ) and the remaining 240 (17.3%) come from a total of 25 countries, especially France (53 brands), the United States (48), Italy (42), the United Kingdom (17) and Portugal (15).

Of these 1,384 franchises, the sector with the greatest number of brands is “Hospitality/Restauration”, with a total of 269 networks, integrated into seven subsectors of activity, followed by “Fashion”, with 214 chains, broken down into eight subsectors, and "Beauty/Aesthetics", with 106 networks.

Billing

Regarding the turnover achieved by the entire franchise system at the end of 2023, the figure recorded was 27,623 million euros, for the 26,929 million invoiced in 2022, which means a growth of 2.5%, with 694 million of euros more.

This turnover figure means that the entire Spanish franchise is equivalent to 1.88% of the national GDP.

Of this global figure, own establishments invoiced a total of 10,331.1 million euros, compared to the 10,342.2 million euros invoiced in 2022, therefore 11.1 million euros less (0.1% less). ; For their part, the franchised stores invoiced 17,292 million euros, compared to the 16,586.7 million euros invoiced in 2022, which represents 705.3 million euros more (4.2% more).

By sector, and as has become usual in recent years, the one that obtained the highest turnover was “Food”, with a total of 8,996.3 million euros. Next, they are followed by “Hospitality/Fast Food”, which had a turnover of 3,349.7 million euros; “Hospitality/Restaurants/Hotels”, an activity that had a turnover of 2,494.7 million, and “Services/Transport”, whose turnover was 1,712.9 million euros in 2023.

Open Establishments

Regarding the number of operating establishments, at the end of 2023 there were a total of 78,255 establishments operating in Spain, of which 21,075 were owned and the remaining 57,180 were franchised. In total, there were 1,009 more establishments than at the end of 2022 (when 77,246 open points of sale were operating), which represents a growth of 1.3%.

By sectors, the one with the greatest number of open establishments is, once again, “Food”, with a total of 13,646. Next, are “Hospitality/Fast Food”, with 5,112 stores; “Travel Agencies”, with 4,211 stores, and “Beauty/Aesthetics”, with 4,105 points of sale.

Employment Generated

One of the most significant aspects of the national franchise system is that it continues to generate employment in Spain. In this way, at the end of last year 2023 this business model employed 318,313 people, compared to 303,595 people in 2022, which represents 14,718 more workers (4.8%). Of this figure, 106,591 work in company-owned establishments (1,962 more than in 2022) and the remaining 211,722 work in franchised establishments (12,756 more than at the end of 2022).

By sectors, those that generate the greatest number of jobs are “Food”, in which 75,134 people work; “Hospitality/Fast Food”, 47,374 workers; “Hospitality/Restaurants/Hotels”, which employs 24,008 people; “Services/Transport”, which employs 14,225 people, and “Beauty/Aesthetics”, a sector in which 13,321 people work.

Autonomous Communities

Finally, of the 1,384 networks that currently make up the franchise system in Spain, the autonomous community that has the largest number of franchising centers continues to be Madrid, with 423 (22 more than in 2022), followed by Catalonia, with 320 ( two more); the Valencian Community, with 171 (five plants less than in 2022); Andalusia, with 156 (one less than in 2022), and Galicia, with 48 (the same as in 2022). Between these five communities they account for 80.7% of the total franchising centers that make up this business model in our country.

It should be noted that the Madrid community is also the one in which the plants established there have the most turnover, with a total of 13,411.5 million euros, with Catalonia next, with 7,052.5 million. Likewise, the plants in the Community of Madrid itself are the ones that generate the most jobs, 148,218, and have the most stores open throughout the national territory, 30,678, ahead of Catalonia, whose plants employ 81,514 people and have a total of 22,269 operational establishments distributed for Spain.

In the words of Luisa Masuet, President of the AEF, when evaluating this report she assures that “the franchise system has definitively left the crisis behind, as demonstrated by the fact that it has grown in all its variables, highlighting that the figure Billing is very close to that obtained in 2018, pre-pandemic. Therefore, it is a completely mature, solid business model that already represents 1.88% of the national GDP.”

For his part, Eduardo Abadía, Executive Director of the AEF, highlights that “the data recorded at the end of 2023 are really positive and make us optimistic for the immediate future. It should be noted, once again, that the franchise continues to be a true driving force in terms of job creation, since today it employs 318,313 people, a significant 4.8% more than in 2022.”

Finally, José Antonio Guerrero, director of Business Banking at Grupo Cooperativo Cajamar, emphasizes that “this report, which has become the main source of knowledge in the sector, shows that the year 2023 registered records in the number of brands, open establishments and created employment. And all of this suggests that the franchise will maintain a stable situation in the short term, although it must remain vigilant, since the geopolitical situation may continue to affect the price and supply of raw materials, as well as the tendency towards greater trade barriers and fragmentation. of the markets.”

Video: https://youtu.be/3c_vK4xxYVs

SOURCE Andrea Lazzari

###

Media Contact:

Andrea Lazzari
CEO
06 Group
M: +34.658.77.12.26
[email protected]