KM: Will further COVID restrictions in Sweden be a considerable blow to franchisors, or have adaptations allowed brands to endure?
JM: It will definitely deal a strong blow to the market, especially when it comes to city locations. This is true for retail and restaurants.
But what we’ve seen during this time is that the service levels in smaller towns and on the outskirts of cities is really very popular. When we look at 2021, a number of companies had great years compared to previously and have changed their business model, which has been successful.
The top franchise in Sweden this year is a restaurant chain that has managed to offer more delivery services and has navigated restrictions successfully. We can learn to work around this situation.
KM: Compared to other Scandinavian markets, why do you see Sweden as a prime franchise hotspot?
JM: The Swedes have always been travelling and are also very adaptive to change. We try to find new things all of the time. I think that’s because the country is an export market.
We had this tremendous success in the 1990s which has set us up well. Our purchase power is great, even though Norwegians are often considered richer.
Somewhere like Norway can be very difficult to enter, however, because of the fjords. You have to have operations in so many locations to cover all of the possible land. Denmark is quite a small country compared to Sweden and is also condensed.
In Sweden, great percentages of the population are condensed into one area, so you can easily access big cities and their markets.
KM: You’ve mentioned previously that sustainability is one of the leading things that Swedish consumers look for. Is this still the case in 2022?
JM: Absolutely. Greta has been sitting outside of the government in Sweden for a long time now, and the Swedish population is beginning to understand what she’s trying to communicate. There’s a lot of people who are waking up with regards to sustainability and environmental health.
If you want to be successful, you have to have in your concept one way or another that you’re doing something good. Young people in particular are researching companies before they make a purchasing decision.
Society is also more open. You can find more information about organizations; they need to incorporate CSR in order to be an attractive opportunity. This isn’t specific to Sweden, but the Swedes are very conscious around this area.
KM: What other pillars are important for consumers when choosing brands to interact with?
JM: A lot of them look for brands that they can identify with and that shares their values. If somebody within your social group points out a downside to a brand, it can have a big impact.
As soon as a brand slips up, everybody knows about it. People then go out of their way to avoid something like a restaurant, because they don’t want to be associated with it.
