Fear of AI driving people to teach Pilates and cooking:Leaving laptop jobs to become ‘own boss’; Indians dominate American model

Amidst the growing threat of AI and expensive education, the craze for franchise businesses is increasing compared to corporate jobs. Now, instead of white-collar jobs involving laptops, people are considering practical businesses like teaching Pilates (a specific type of exercise) and cooking as safer. 2.5 lakh owners are managing 8.5 lakh franchise outlets in America. These provide 90 lakh jobs and contribute 3% to the US GDP. Matt Haller of IFA says that until a decade ago, the path to becoming rich was considered a college degree and a white-collar job involving a laptop.
But now, with expensive education and the advent of AI, the youth’s attention has shifted towards traditional and ground-level businesses. Businesses like teaching Pilates classes or cooking now seem safer because they cannot be run without humans. Demand for businesses that cannot run without humans In America, from Dunkin’ Donuts to UPS stores and most Marriott hotels operate on this model. Now this model is also expanding into new areas like fitness studios, home services, and childcare. This model has long attracted immigrants. Two-thirds of all motels in America are owned by people of Indian origin. Most are descendants of Gujaratis who bought Super 8 and Travelodge franchises in the 1980s. More millionaires made from McDonald’s Approximately 95% of McDonald’s nearly 14,000 outlets in America are run by independent franchise owners. This chain has made more ordinary people millionaires than any other company in history. Up to 3 to 9.5 crore rupees spent in the US Starting a fitness studio costs between 3-8 crore rupees. Whereas, a restaurant franchise might require an investment of 9.5 crore rupees. The success rate is better in the first 1-2 years compared to independent businesses, but later the risk remains the same. Also read: Your normal PC could soon work like an AI teammate: Nvidia launches ‘RTX Spark’ AI chip for computers

Franchise market growing at an annual rate of 30% in India In the Indian retail and consumer market, the franchise model has now become the safest and fastest-growing business. After America and China, India is the world’s third-largest franchise market. According to a joint report by Francorp India and Fancast, India’s franchise market is growing at an annual rate of 30%.
Currently, it is worth approximately 95,000 crore rupees. It is estimated to reach 14.25 lakh crore rupees in the next 5 years. This would require a 72% compounded growth every year. Over 5 thousand active brands in the country There are over 5,000 active franchisor brands in India. Outlets exceed 2 lakh. Upon achieving the target in 5 years, this sector will contribute a significant 4.2% to the GDP. Currently, this contribution is 2-2.2%. Franchise outlets growing in smaller cities Compared to metropolitan cities, franchise outlets are rapidly increasing in Tier-2 and Tier-3 cities. New entrepreneurs are investing in the franchise model using bank loans and savings. Food, preschool coaching, diagnostic labs, and beauty-wellness are in demand.

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Minimum investment of 5 lakh required in India In the country, 5-15 lakh is required for small-scale kiosks or centers. Up to 1 crore is needed for international brands. The survival rate of franchise businesses in India is 85% higher compared to independent startups. The risk is significantly reduced due to a ready system and established brand value.