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The Changing Face Of The 2021 Office Space Franchise

The Changing Face Of The 2021 Office Space Franchise

How the pandemic has only strengthened this emerging sector.

2020 was a challenging year for anyone trying to operate a successful business, but especially for franchisees. With gyms, hotels, and fast-food chains closing during lockdowns, many traditional franchise industries felt the pinch of the pandemic and the importance of having a diversified franchise portfolio was clearer than ever.

But, while COVID-19 has impacted all types of businesses, flexible office space has an opportunity to adapt and even grow as a result of lockdown in 2021.

The pandemic has accelerated the shift to remote working and allowed businesses and workers alike the chance to experience the benefits of hybrid working. For employees, it has meant saving time and money on commuting into the office, and for businesses, it has opened up the potential savings of shifting away from central offices while keeping the workforce productive and happy.

This year already we’ve seen big businesses such as Standard Chartered adopt a more flexible model, signing a deal that allows its 95,000 employees to work from any of our 3,500 offices around the world.

But what does this shift mean for office space franchises, an emerging franchise sector which has traditionally been based in large cities? How is the industry likely to evolve in the coming year as a result of 2020’s turbulent events? Here’s my take on what we can expect in the year ahead.

Staying closer to home

With many businesses and employees reaping the rewards of flexible working during the pandemic, it’s already becoming clear that the traditional idea of commuting into a central HQ every day is dead.

According to our own IWG research released in September, six in 10 U.K. workers still want to work in an office for at least part of the week – but one closer to home, with 77 per cent saying that this is a must-have for their next job move.

Driven by this demand, we will see successful flexible offices grow in suburban commuter hotspots, closer to where employees live. In time, a flexible workspace in every town, city, and some villages will very much become the norm. At IWG this is a trend that we’ve already seen gather pace during the pandemic, having recently reported 20 to 30 per cent growth in our outer London and Cambridgeshire locations.

We’ve also seen a surge in demand for our centers in M25 commuter hotspots including Luton and Uxbridge, where the number of inquiries for flexible office space increased by 74 per cent compared to pre-pandemic levels. It’s a different story in central London though, where we’ve seen a 40 per cent drop in new sales.

While COVID-19 has impacted all types of businesses, flexible office space has an opportunity to adapt and even grow as a result of lockdown”

The desire to work closer to home will have an impact on other franchise industries once they are able to reopen, such as gyms and restaurants, who will no longer be able to bank on the business of office workers in city centers. As a result, we can expect an increase in these types of businesses opening locations in the suburbs over the coming year, as they look to bounce back from the pandemic and grab a slice of this new customer base working from multiple locations throughout the week.

More demand for smaller spaces

With more people looking for a desk space close to home and lingering concerns about social distancing, the demand for smaller individual workspaces rather than larger open-plan work areas will continue to rise.

This trend played out in our sales last year when we observed a 19 per cent increase in interest for our one to two-person workspaces compared to pre-pandemic levels, and it is one that will be a key consideration for office space franchisees in the next year.


Julian Chambers is the head of franchise for Regus/International Workplace Group (IWG) and has experience spanning more than 25 years across multiple F&B brands.

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