Artificial Intelligence Makes Opening a Franchise Look Like Better Job Security Than You’d Think
Australian Financial Review
ENRICHED
Details
- Date Published
- 25 May 2026
- Priority Score
- 1
- Australian
- Yes
- Created
- 25 May 2026, 04:00 am
Description
Managing a fast food outlet, cooking food or teaching pilates are increasingly seen as a safer, recession-proof bet as you can’t run a franchise without people.
Summary
This article highlights a shift in career preferences toward physical-service franchises as a hedge against labor displacement caused by advancing AI capabilities. It suggests that roles requiring physical presence and human interaction, such as hospitality and fitness, offer greater economic security than white-collar roles vulnerable to automation. While it touches on the socio-economic impacts of frontier AI on the job market, it does not directly address catastrophic or existential risks, focusing instead on individual career longevity and local business resilience. The piece is relevant to Australian readers navigating the economic shifts and labor market volatility associated with global AI integration.
Body
The EconomistMay 25, 2026 – 12.00pmWhen Greg Flynn graduated from Stanford Business School in 1994, with the dotcom boom in full swing, his friends chose the obvious career path. But while they “were all making PowerPoint presentations …becoming paper millionaires,” he went off to help a friend open a second restaurant. A few years later, spotting generous financing on offer for would-be franchisees, Flynn bought eight Applebee’s restaurants of his own.He now runs more than 3000 franchise outlets across seven brands in three countries, and is reportedly worth more than $US1 billion ($1.4 billion) – probably the first franchisee in the world to reach that milestone. On February 22, the International Franchise Association, a lobbying group, inducted him into its Hall of Fame – an accolade previously reserved for franchisors, the innovators on the other side of the business who established big chains, such as Ray Kroc of McDonald’s or Colonel Harland Sanders of KFC.Loading...SaveLog in or Subscribe to save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? LoginLicense articleFollow the topics, people and companies that matter to you.Find out moreRead MoreEntrepreneurAIFranchisingRetailFetching latest articles