The UPS Store Activation, Las Vegas Sphere
UP Store Co., Ltd.
Four years after a global pandemic caused “the great resignation” and set off a knock-on effect of expanding opportunities in the gig and creator economies, interest in starting a business continues to grow, with the U.S. Census Bureau reporting a record 5.5 million new business applications submitted in 2023. This trend is set to continue at an upward trend.
As an entrepreneurship, innovation and technology developer, I am very interested to see what happens over the next decade for this critical growth sector for our nation’s economy as demographics, business models and capabilities change dramatically.
While Gen X and Baby Boomers tend to own the majority of small and medium-sized businesses (SMBs) today, data shows that younger and more diverse generations are flocking to start their own companies, with the average age of starting a business being 35, and black women making up the fastest-growing group of entrepreneurs.
Unlike FedEx’s (FDX) company-owned location strategy, UPS (UPS) emphasizes the store franchise route, targeting both customers and franchise partners, making it very much in tune with the small business entrepreneurial movement.
I met with Sara Casalan Bittle, president of The UPS Store, Inc., to get some insight into how the company sees these entrepreneurial trends: “Today’s small business owner is very different than they were 10 years ago, and we see this change in our customers and franchise network. We continually strive to be present in new, unexpected and relevant ways for our franchisees and the fellow entrepreneurs they serve.”
A recent survey found that 65% of Gen Zers currently working would like to start their own business one day. Franchising could be one path to get there: According to the International Franchise Association, 31% of franchised businesses are minority-owned, compared to 19% of non-franchised businesses, a trend reflected in models like The UPS Store. The entrepreneurial franchise movement is expanding in a variety of sectors, from delivery, repairs and pest control to lifestyle, health and wellness and food.
I spoke with John Peyton, CEO of Dine Brands Global (DIN), an $8 billion restaurant franchise group with 3,500 locations that owns Applebee’s, IHOP and Fuzzy’s. He’s bullish on the sector’s growth prospects. “At Dine Brands, we’ve made the unique decision to have nearly 100% of our restaurants owned and operated by our franchise partners to provide aspiring entrepreneurs with a platform to achieve the American Dream,” he added. “Franchising is not only an entrepreneurial engine of growth and jobs, it also provides a compelling opportunity to combine innovation with proven business practices, giving guests new ways to connect with the brands they know and love.”
Enabling the next generation of customers and partners
UPS is reaching out to GenZ, both as customers and potential future partners, in bold and original ways. One big way is by turning on the world’s largest LED screen (yes, the famous Las Vegas Sphere). This is the latest way the 40-year-old brand has turned to a big, unexpected place to reach small businesses.
Inspired by its “Be Unstoppable” campaign, The UPS Store created an epic storytelling experience for consumers. Eye-catching animations showed audiences how its network of more than 5,300 stores helps small businesses realize their dreams and reach customers around the world, including the ability to carefully package and ship any item around the world.
For Mother’s Day, UPS and The UPS Store deployed LED-equipped UPS package delivery vans in Austin as mobile billboards for “mom-owned” businesses, and last fall, the brands installed award-winning interactive 3D billboards in Times Square to connect small business owners with the largest virtual package delivery in Times Square history.
They have been leveraging social influencers to amplify these epic campaigns across social media, which seems to be working, and as digital OOH marketing platforms become more prevalent, transformative activations like this one may signal how to reach Gen Z in today’s competitive, short attention span economy.
Local e-commerce into the future
Like Walgreens (WBA) and CVS (CVS) locations, UPS has stores within 10 miles of over 85% of the U.S. population. Small business and consumer locations have proven to be powerful platforms as instant delivery (and returns) continue to fuel America’s Amazon-era shopping addiction. Nearly 350 billion packages were shipped last year, and that’s projected to reach 500 billion worldwide by 2028. And in this shopping revolution enabled by this amazing new technology, small businesses and consumers have moved from asking “what day will my package arrive” to expecting real-time tracking with precise arrival times and proof of delivery.
“E-commerce, technology and the gig economy have expanded opportunities for entrepreneurial innovation,” said Bittle. “That’s why The UPS Store strives to remain present in novel and supportive ways, whether through groundbreaking branded content like Sphere, expanding into non-traditional locations at universities and military bases, or through initiatives like our Diversity Ownership program and the Start Small, Grow Big program benefiting Junior Achievement USA.”
Leverage technology competitiveness
Technology empowers entrepreneurs to achieve more with less time and money, and with the advent of pay-per-click advertising on social media, reaching a desired target market with a personalized message has become more accessible and budget-friendly for emerging small businesses.
Rapid advances in AI, shifting platforms, and changing audience preferences mean more innovation and opportunity will emerge as companies evolve their offerings to meet audience needs, like AI-enabled shopping and a long list of AI small business tools that are still a bit overwhelming. This is where small businesses need help.
Gourav Pani, president of US Independents at GoDaddy, spoke about his focus: “We are committed to helping entrepreneurs and small business owners leverage generative AI for their businesses,” adding, “Educating them on these capabilities and enabling them to level up and compete is critical to the success of small businesses.”
With that forward-thinking strategic thinking, UPS’s Bittle often reflects on Wayne Gretzky’s famous line that some leaders mistakenly hesitate to use: Skate where the puck is going. The $91 billion company with 500,000 employees in 200 countries is likely just getting started. And it has a lot of technology and tools its franchisees can leverage to be competitive on behalf of their customers.
“Technology has been and will continue to drive change, but for our franchisees and the small businesses they support, the customer will always be at the heart of it,” she said. “Listening and adapting is how we stay relevant and improve our customer experience.”
