by UFG | Apr 25, 2025 | News
The coworking sector is set for a dynamic 2025 due to further adoption of hybrid work models and more businesses embracing in-person work. But this doesn’t mean there won’t be any bumps along the way as the sector cannot operate in a vacuum.
“The worst of commercial office real estate is not past us, so while coworking may offer an opportunity, the underlying headwinds that commercial office real estate faces—expensive capital and stagnant physical occupancy—persist,” said CommercialEdge Associate Director Peter Kolaczynski.
To adapt to these unceasing challenges, office operators have been right-sizing their portfolios to include more flex offerings. This has not only transformed the physical environment of traditional offices, but also altered lease terms, as tenants today expect more flexibility in how and when they use their space.
Key trends in the coworking space
High demand for flexible offerings and mounting return-to-office mandates are two of the most prominent trends in the sector today. A recent WeWork survey found that 59 percent of companies plan to adopt flexible solutions over traditional offices to expand their workspaces over the next two years. Notably, 95 percent of remote companies looking to increase their office space favor flexible options.
“We are continuing to see very strong demand off the back of this shift toward flexibility and that’s why we’re seeing our network grow at its fastest-ever rates,” said Mark Dixon, CEO of International Workplace Group. Over the past year, the company added nearly 900 new locations globally under its Regus, Spaces, HQ and Signature brands. Most expansions were in suburban and community-focused markets such as the Red Bank borough in New Jersey, but also in Milwaukee, and Boca Raton, Fla.
Until now, although 80 percent of organizations have return-to-office policies put in place, only 17 percent of them really enforce them, CBRE’s research found. But that number is anticipated to increase going forward.
“The biggest shift I expect to see is companies following the lead of recent RTO mandates and deciding to increase the amount of time they spend in-office, with more opting to go full-time,” said WeWork Vice President & Head of USC Sales Luke Robinson. “This will require flexible space providers to offer an ample variety of workspaces that can accommodate employees up to five days a week.”
More employees in the office means more conference rooms, communal areas and private phone booths, among others. Operators are already making changes to their office layouts as the focus rapidly shifts from where employees work to how they work.
“In 2025, we anticipate an evolution of business priorities with the conversation moving beyond the physical location of employees with companies requiring everyone to be in a single building to the productivity of workers and retention of talent instead,” said Dixon.
To respond to the increased demand for specific amenities and services that support teamwork and collaboration, operators are increasingly adding spaces that foster connection.
“(Employers) want workspaces that bring people together and they need amenities like technology-powered meeting rooms, flexible spaces designed to support diverse workstyles and event programming to help achieve that goal,” Robinson said.
Private offices, smaller conference rooms and virtual mailboxes are also increasingly popular, catering to businesses that seek professional environments without long-term commitments, according to Jason Anderson, president of Vast Coworking Group. Additionally, assistant services such as customizable call answering services allow business owners to focus less on admin work and more on their growth and customers, all while keeping that human element.
Shifting business models
To cater to the increasing number of clients, coworking operators have also been adapting their business models while keeping their focus on providing flexible, scalable and customer-centric solutions. Over the past few years, they have been more open to collaboration and networking. WeWork launched Coworking Partner Network, a partnership with Vast Coworking Group that allows tenants to access spaces across both brands.
“Our partnership with WeWork has been an industry first,” said Anderson. “I look at it as the beginning of a change in global coworking operations, modeled like the Oneworld Alliance in the airline industry.”
This strategic approach further reinforces the idea that operators need to leverage each other’s strengths to provide members with access to a broader number of locations and services. By combining suburban-focused partners with WeWork’s urban stronghold, these networks create more opportunities for hybrid and distributed teams, reflecting the sector’s pivot toward greater accessibility and choice.
“Franchising is the vehicle driving our expansion and we have always focused our growth on underserved suburban markets instead of hyper-growth CBDs, which complemented WeWork’s portfolio and solidified our partnership,” Anderson added.
Another way coworking operators have been catering to members’ latest needs is by adapting their membership options. For example, WeWork launched two digital products: WeWork All Access and WeWork On Demand. The first one provides access to 450 locations worldwide, whereas the second one has a pay-as-you-go model that allows tenants to book spaces and meeting rooms at 300 locations instantly.
On the leasing side, coworking operators have been embracing non-traditional agreements to provide companies with more control over their office footprint. From shorter lease terms to flexible capacity models, these changes are helping businesses remain agile in uncertain times.
“We had a tech company who designed their workplace strategy with 100 All Access passes and WeWork Workplace instead of a traditional private office, supporting their commitment to flexible work while giving employees the ability to access in-person space as they need it,” Robinson said.
As of November, Manhattan, Chicago and Los Angeles were the top metros for coworking space, with the latter emerging as the largest market for locations, with 277 spaces, CommercialEdge data shows. International Workplace Group’s Regus and HQ brands were the top operators, followed by WeWork, Industrious and Spaces.
Vast Coworking Group was one of the companies that expanded significantly in 2024. After acquiring Intelligent Office and adding 54 locations across the U.S. and Canada, Vast later opened 19 new locations across its franchise brands. International Workplace Group also added to its network, signing 200 new locations across the country. Industrious—which was recently acquired by CBRE—expanded its portfolio in major markets, adding two locations in Los Angeles: a 19,000-square-foot space in Century City, Calif., and a 20,752-square-foot space in Westwood, Calif. The company also doubled its lease at 860 Broadway in Manhattan.
What’s next?
Collaborations, portfolio expansions and the wider adoption of hybrid work models reflect the coworking sector’s resilience. Last year, most operators saw improvements across several metrics. After emerging from bankruptcy, WeWork registered a 9 percent annual increase for on-demand bookings as of October, while International Workplace Group recorded the highest revenue in the company’s 35-year history.
As operators continue to prioritize bringing offices closer to employees, particularly in high-demand suburban markets, Kolaczynski expects continued coworking growth in these areas. Meanwhile, traditional office owners in business districts will look to adopt more flexible options, either by creating their in-house coworking brands or by entering into partnerships with experienced operators.
“I predict that flexibility will remain key in 2025,” Robinson said. “This year’s return-to-office mandates have shown that companies see the office as critical to their success, but they have not made final decisions on how many days they will be in person.”
Besides partnering with each other more often, coworking providers must keep innovating to support evolving workstyles, and offer solutions that cater to both individual employees and large teams.
“Occupancy should increase given the recent consolidation by operators,” said JLL Head of Property Sectors Research for the Americas Scott Homa. “Management agreements will remain popular given capital constraints and the high cost of interior construction. We could see continued M&A activity and more franchising.”
This article was originally published by Commercial Property Executive
by UFG | Apr 25, 2025 | News
A pair of Counselor Top 40 executives detail what leadership means to them and how to keep growing as a motivator.
How do you motivate a team and inspire them to reach a collective goal? Leadership. But though often discussed, what’s the key to successful leadership? Two C-suiters of Counselor Top 40 companies – Ray Titus, a decorated entrepreneur who has launched several thriving franchising companies, and Jeanelle Harris, a seasoned executive with two decades of top roles in the consumer packaged goods and promo products industries – share their views.
Ray Titus
Counselor Power 50 member and CEO of United Franchise Group, parent company of Counselor Top 40 distributor Fully Promoted (asi/384000)
Jeanelle Harris
President & CEO, Counselor Top 40 supplier Outdoor Cap (asi/75420)
Q: How do you define leadership?
RT: Leadership is the cornerstone of being an effective boss – whether you’re leading other people or managing a team of one (yourself). Whatever you ask of those you lead, you have to be willing to do the same. You can’t just stand on the sidelines giving orders; you must get into the arena with the rest of the team. If that sounds more like being a coach than a boss, it is.
JH: Leadership is more than a title; it’s about influence, guidance and the ability to inspire others toward a common goal. Appointed leadership may provide structure and guidance, while leadership by influence taps into trust, respect and vision, creating a powerful dynamic where everyone is empowered to contribute.
Q: What’s the top quality you look for in a leader?
RT: Confidence. Nobody follows an unsure leader. Confidence is necessary in taking risks and accomplishing goals, and it trickles down to your team. If you’re a confident leader, your team will feel comfortable, empowered and have a more positive mindset, which in turn will make them more adaptable and resilient when they need to be.
JH: Leaders must embody essential qualities like integrity, competence, adaptability, and ability to build relationships and influence others. Yet, in my years of leadership, I have found that humility is a quality that sets exceptional leaders apart. A confident, competent leader who recognizes they don’t have all the answers, values the contributions of others and is open to growth is a leader I would follow regardless of title – and one I aspire to be myself.
Q: What’s one tactic you’ve taken to improve your leadership?
RT: Lifelong learning and embracing change. I’m a student of life, and I’m always looking to improve myself not just as a leader but as a person. The world keeps changing faster and faster, so I read 30-40 books a year to keep up and write at least one of my own. I believe it is equally as important to share knowledge and wisdom as it is acquiring it and staying relevant.
JH: One tactic I have embraced is a commitment to continuous learning and self-improvement. Throughout the years, I’ve made my share of mistakes – some I would like to undo or approach differently. To grow from those experiences, I have sought counsel, read and listened to experts, conducted 360-degree reviews and relied heavily on my established peer group for outside perspectives.
Q: In a company, what undermines leaders?
RT: Negativity is the gateway to a host of other challenges that can undermine leaders because it can spread like a weed to your team and compromise everything. It can significantly tarnish morale, disrupt creativity, tank productivity, break trust – the list goes on. Having a negative mindset can also cloud your judgement and leaves a margin for poor decision-making and missed opportunities for growth.
JH: Alignment to mission, vision and values is essential to an organization and acts as an accelerator for progress. Misalignment, on the other hand, can undermine individual leaders and destabilize the company’s momentum.
Q: Where do training and mentorship fit in?
RT: If you really care about something, you want it to last long after you’re gone. The mentor learns as much as the mentee. I love it when the next generation does it better. A solid mentoring program can be the backbone of any company if it is done right. It should be a give-and-take relationship centered around knowledge, not status, with honest feedback that goes both ways. And as I’ve found, it has rewards for both sides.
JH: Too often, individual high performers are promoted into leadership roles without the right training on how to lead, manage and supervise effectively. In fact, that’s exactly how I began my leadership career. Because of that experience, I believe in providing training to equip leaders preemptively, creating space for peer-to-peer learning, and encouraging leaders to explore the value of seeking guidance and perspective from others both inside and outside of work.
This article was originally published by ASI Central
by UFG | Apr 25, 2025 | News
Ray Titus is CEO of United Franchise Group (UFG), a global leader for entrepreneurs with brands in over 1,800 locations in 80 countries.
Every business has to wrestle with their budget now and then. Profits will dip even when you think you’re doing all you can to keep them rising. It’s rarely easy, but it can be simple.
There are only two ways to raise profits, after all: Increase sales revenue or cut costs. It’s always easier to increase sales, but if you can’t, it may be time to trim down your spending.
If you’re not sure where to start, I recommend you look into a financial advisor to help you evaluate spending and suggest areas to cut. A certified public accountant (CPA) is a great place to start. Make it a short-term contract, but have them advise you on long-term strategies you can use in the future.
To Cut Or Not To Cut
Slicing the budget requires a scalpel, not a chainsaw. Look carefully at all expenses and be strategic when deciding what to let go.
Start with the low-hanging fruit, like travel and large executive perks. If you can’t eliminate travel, consider more budget-friendly arrangements than first-class airfare or top-tier hotels.
If you decide you must lay people off, avoid cutting valuable employees. You can’t afford to lose workers with special skills or knowledge, for instance, or whose client connections consistently feed your bottom line. You should also try to hold off on letting go of any sales-producing employees.
Instead, are there any workers who aren’t pulling their weight or whose efforts don’t bring results? Even if they aren’t in sales—maybe they’re in a creative department or they make the products you sell—their work should eventually lead to sales. If it’s poorly executed or they consistently miss deadlines, it may be time for them to go.
But don’t be too quick to go for short-term solutions. Advertising and training are essential investments in your company’s success and should be last resorts.
Cost-cutting is trickier for a franchise business. You can’t decrease costs that negatively impact the brand and the individual businesses. Instead, I recommend you focus on adding technology that can increase communications but decrease costs, like Zoom.
That’s how my company was able to thrive during the pandemic when sales slowed down and travel was greatly restricted. We invested in a local studio so our webinars and Zoom calls would look professional. Our franchise owners liked this even better than personal meetings, and it saved us a lot of money.
Some expenses can be adjusted rather than eliminated. Can you get a better deal for your cash-flow contracts, for instance? Renegotiating a 30-day payment to 60 days can free up some short-term cash—so can getting rid of deposits against future purchases.
Keeping The Frugality Going
The secret to effective cost-cutting is to adopt a long-term approach, even if you’re enacting short-term cuts. When things turn around, can your smaller staff continue giving you the desired results? Do you need to resume your old travel schedule, or has virtual conferencing been effective for most off-site meetings?
You should review all costs at least quarterly, especially if you are concerned about profit. Have a monthly profit and loss review and a yearly review of vendors and their competitive pricing.
But don’t take it all on yourself. The best approach is to get your whole team looking for ways to cut costs and save money. Don’t “nickel and dime” them on every pencil and pen, but get them in the habit of questioning whether an expense is necessary.
Make everyone responsible for the costs, and they’ll share in the profits.
This article was originally published by Forbes
by UFG | Apr 25, 2025 | News
Franchising is an excellent choice for the business owner who wants to join an established brand that enjoys widespread name recognition, has built customer loyalty and offers reliable, time-tested systems and processes.
have been in franchising since 1986, and I see 2025 as a year of great potential for everyone in the industry. It’ll be a year where we’ll see a more business-friendly country with more growth and acquisitions and less focus on taxes and regulation. If gas prices can be dropped and inflation can be tamed, I’m positive about 2025. The growth in the stock market was a pleasant surprise last year, and we’re seeing additional opportunities going forward in 2025.
The momentum has been building for several years. In 2024, according to the International Franchise Association (IFA), the U.S. franchising sector surpassed 800,000 outlets, recording $850 billion in sales – 5% better than in 2023, a respectable increase given the uncertain state of the economy. The IFA says more than three-quarters of the revenue came from quick-serve restaurants, which rang up $250 billion even as food costs rose 29% in the last four years.
If you’re a current business owner looking to franchise your company, connect with an expert such as Accurate Franchising, a franchise consulting service that will help you every step of the way. Franchising as a whole has an encouraging outlook, but specific sectors are worth an extra look, based on industry research and our own experience.
Best Bets for first time investment
If you’re looking to get into franchising, these sectors are some of the most promising:
- Business and Financial Services
The drive toward entrepreneurship is creating high demand for business brokerages, investment analysts and, of course, franchising consultants.
Fast-casual brands offering health-conscious menus and delivery options are attractive to consumers for convenience and quality.
- Sustainability-Focused Brands
Eco-conscious consumers are driving a strong push toward sustainability in franchising, and companies that prioritize sustainability are likely to win customer loyalty and stay ahead of regulatory changes. Green initiatives like using eco-friendly packaging and materials as well as energy-efficient operations are becoming standard practices.
Challenges and Considerations
While the outlook is generally positive, franchise investment requires thorough research to find your best-match brand and determine if franchising is right for you. There are a few potential setbacks to be ready for:
All companies must navigate potential economic fluctuations. Restaurants can bring in healthy revenue, for instance, especially with the popularity of meal delivery services. But margins are razor-thin, even without the inflation we’ve all been suffering through. Franchises, especially in the food service sector, must be prepared for potential cost pressures and adapt their pricing strategies accordingly.
- Changing Consumer Preferences
Consumer tastes are evolving rapidly. Franchises must stay agile and responsive to shifting preferences, particularly regarding sustainability, health-consciousness, and convenience. Any successful business must be open to change when necessary and willing to adapt or risk losing market share to more innovative competitors.
- Talent Acquisition and Development
As the industry grows, finding and retaining skilled talent becomes crucial. Franchises must invest in leadership development and training programs to ensure franchisors and franchisees have the expertise to drive expansion.
Tips for Successful Franchising
I’ve always been a big believer in technology, and in 2025, we’ll see franchises embracing it more than ever before. Artificial intelligence will become more integral to franchise operations. Customer service, automated inventory systems and mobile apps are becoming essential tools for streamlining operations and enhancing user experiences. This tech integration is not just about efficiency; it’s about creating personalized experiences that meet evolving customer expectations.
Customers in 2025 expect tailored experiences. Franchises should leverage data to offer personalized services, from customized meal plans to curated product recommendations.
- Develop a Strong Online Presence
New franchises must establish a robust online presence to reach and engage customers effectively.
- Invest in Training and Development
Industries evolve, customer needs change, and competition gets more challenging. Training must be ongoing and involve franchisees and their staff to maintain consistency and quality across locations.
Transformation ahead
Our industry is poised for significant growth and transformation in 2025, with several key trends and developments shaping its landscape. As we look ahead, exciting opportunities and potential challenges emerge for franchisors and franchisees alike.
This article was originally published by Entrepreneur Media
by UFG | Apr 25, 2025 | News
Restaurant operators will learn how to improve profits through the guest experience at the Restaurant Franchising and Innovation Summit in Myrtle Beach, South Carolina March 11-13.
Restaurant owners and operators looking to boost the bottom line can learn proven strategies for creating exceptional guest experiences at the Restaurant Franchising and Innovation Summit being held in Myrtle Beach March 11-13.
In a session titled “3 Secrets to Improving Profits Through the Guest Experience,” experts will delve into the three critical “c’s” of customer success — convenience, consistency and connection — offering insights on streamlining the guest journey, delivering reliable service and building meaningful customer relationships.
Session speakers include Bob Andersen, president of The Great Greek Mediterranean Grill, Kenny Hom, SVP of strategic operations and development for Bushfire Kitchen and Yasaman Stewart, director of marketing for Friendly’s Restaurants. Zack Oates, founder and CEO of Ovation, will serve as moderator, with Ovation sponsoring the session.
Stewart said restaurants personalize the guest experience well today.
“Putting it into the guests’ hands to be driving the experience based off their preferences. Many top restaurants go beyond just great food and service — they use guest preferences, past orders, and special occasions to tailor experiences. Whether it’s remembering a returning guest’s favorite dish, offering customized recommendations, or acknowledging a birthday or anniversary, this level of attention makes the guest feel valued, important and creates lasting loyalty,” she said in an email interview.
Hom said a big focus for his team this year is training and coaching staff on how to recognize opportunities to accommodate guest needs and special requests.
We live in an era of customization and dietary restrictions so our teams must be knowledgeable with our products,” Hom said. “Many training programs are very specific when it comes to steps of service and that can sometimes translate into scenarios where a cashier or server just says ‘no’ or ‘we can’t do that.” I try and promote and teach ‘the answer is yes, what’s the question?’ and to do everything possible to go out of our way to show the guest we truly care about them and that they’re not just another transaction. We do our best to create an environment that empowers and allows our team to make decisions that will assist in creating a unique and memorable guest experience.”
Stewart added anticipations of guests’ needs are often overlooked.
“If not careful, it will make the experience very transactional,” she said. “It is important to respond to a guest request, but it is even better to anticipate what the guest might need before they even ask.”
Stewart recommends restaurant employees believe in what they are delivering and be consistent.
“Enthusiasm and positive consistency are contagious and attracts loyalty,” she said.
Hom suggests hiring friendly and outgoing team members who have the ability to communicate and care about the guest experience.
My advice would be two things towards your team: One, connect your people to a purpose. At all levels, help them understand what their role is in accomplishing your goals and how they impact those goals on a daily basis. If everyone on your team is aligned on what the mission is and what winning looks like, the greater the chance you have to be successful. Make the time to recognize and celebrate the wins; and two, teach and coach your FoH teams to make connections and engage with each of their guests. Don’t be order takers! If they have a first time guest to your restaurant, ensure they go out of their way to assist them with a menu tour and offer suggestions. Compliment something they like about their appearance or clothing. If they recognize them as a previous guest, thank them and welcome them back, and if they remember, call them by their name. Although we’re a fast casual concept, we focus on “continued service” so we ensure we check back for satisfaction and pre-bus tables as other opportunities to engage with guests as well as elevate the dining experience. These small touches can help increase the value perception of their visit. ”
The Restaurant Franchising and Innovation Summit will be held at the Marriott Myrtle Beach Resort and Spa at Grand Dunes. Register here for the event. It is a Networld Media Group event, which also owns the Fast Casual Executive Summit and the Pizza Leadership Virtual Summit.
This article was originally published by Fast Casual
