FranchisingFeature retail
What You Need to Know About Seasonal Franchises Retail Franchising:
it’s About the Experience
Maintaining Success in Shopping Malls
december 2018
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Fleet Feet Announces Honorees of the Tint World® Names First-Ever Pacesetter Award 2018 Franchisee of the Fleet Feet, the retail leader in inspiring and empowering Yeartoday the 12 employee the runner in everyone, announced honorees of its inaugural Pacesetter Award. Selected from a brand-wide nomination process open to Fleet Feet storeowners and operating partners earlier this year, the 2018 Pacesetters have made significant contributions to the brand, demonstrated leadership and exceptional customer service, and have made an impact in their communities. Fleet Feet CEO and President Joey Pointer, along with Fleet Feet’s Franchise Advisory Council members and Store Support Team, officially celebrated and recognized the 12 employees at the 2018 Fleet Feet Pacesetter Summit in the brand’s Carrboro, North Carolina, headquarters. During the Pacesetter Summit, the honorees worked alongside the brand’s leadership team to develop the vision, goal, and operational plan for the brand’s forthcoming and first-ever national charitable foundation.
originated at the store level with Charles Woodruff, our Albany franchise owner, and I was thrilled to have our team and our advisory council build off of his original idea and recognize such an exemplary group of individuals.”
“There is no greater importance to our brand than our employees and our owners, and the energy, passion, and commitment they show each and every day in communities across the country,” says Pointer. “It’s no surprise that the idea for the Pacesettters summit
For more information, visit www.fleetfeet.com.
The 2018 Pacesetter honorees will attend Fleet Feet’s National Conference in 2019. The nomination window for the 2019 Pacesetter honorees will open in July of 2019.
Tint World® Names 2018 Franchisee of the Year National Automotive Styling Centers™ awards Lubbock, Texas owners Acey and Kerri Light prestigious International Franchise Association award. Tint World® Automotive Styling Centers™, a leading auto accessory and window tinting franchise, has named husband and wife duo Acey and Kerri Light as their 2018 Franchisee of the Year. Awarded at the International Franchise Association (IFA) Franchise Action Network Annual Meeting in Washington, D.C., the IFA-sponsored award acknowledges the Lights’ rapid growth and commitment to Tint World®’s values and customer service philosophy. “I’m continually impressed by Acey and Kerri,” said Charles J. Bonfiglio, president and CEO of Tint World®. “They are the embodiment of success. They truly embrace the philosophy of entrepreneurship, and I’m proud that
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they are a part of the Tint World® family. This award is a great representation of their efforts and I have no doubt they will continue to impress.” In addition to being awarded the IFA Franchisee of the Year award, the Lights also received the Tint World® Best Performing Franchise Award earlier this year at the Tint World® 2018 International Franchise Convention. “Joining the Tint World® family continues to be one of the best decisions we’ve ever made,” said Acey Light. “My wife and I are honored to receive this award and look forward to continuing to grow the Tint World® brand and create a legacy of success for our family.” For more information, visit tintworldfranchise.com.
New Boutique Macaron Kiosk, Woops! Bringing Indulgent Experience to Milwaukee Something is baking at in Milwaukee. Woops!, a bakery dreamed up in New York City, specializing in macarons and other international pastries, is coming to town. Firmly anchored as the largest retailer of French macarons in the United States, Woops! is bringing its cultural flair and European indulgence to the Milwaukee area. Located at Mayfair Mall, the location will be owned and operated by Shahnoza Saadati and is set to open early 2019. “Woops! is unlike anything in the area - it’s not just another chain,” said Saadati. “Aside from the unique aesthetic, Woops! serves delicious and typically unattainable items: from macarons to cremebellos and various other desserts in between, Woops! is the perfect treat for a mid-day treat or a gift for a loved one.” The Woops! journey began in 2012 on a whim when four friends opened a macaron pop-up shop at the Holiday Shops in New York City’s Bryant Park. In nine short weeks they sold 100,000 macarons and developed a cult-like following due to the macarons and aesthetic. The four friends soon opened boutique mall kiosks in major malls throughout the Northeast. The close-knit group of friends who founded Woops! are from all over the world: Israel, France, India, and the U.S. Their cultural diversity is integrated not only in the ambiance but in the menu.
My hope is that through our macarons and delicious treats, people are reminded of a nostalgic time -- a reminder to slow down, appreciate where you are presently and enjoy that moment,” said Saadati.
“I want to bring an enhanced dessert experience to Wisconsin.
For more information, visit www.bywoops.com.
Pinch A Penny Appoints Michael Arrowsmith Chief Development Officer Amid Ongoing Success and Growth
Pinch A Penny Pool Patio and Spa, the world’s largest swimming pool retail, service, and repair franchise, has appointed Michael Arrowsmith to chief development officer where he will spearhead the brand’s aggressive development efforts in key target markets, as well as drive new franchisee recruitment. Over the past several years, Pinch A Penny has achieved eight consecutive years of
same store sales growth and consistently outperformed competitors in the retail and service space. As a result, the company is investing in its corporate leadership to accelerate this momentum and position the brand for further success. Throughout his career, Arrowsmith has held senior level executive positions at several leading franchise brands, most recently serving as chief development officer of Captain D’s. With 25+ years of experience, his extensive understanding of the franchising industry has allowed him to achieve exceptional and sustained development and financial results for each company’s franchise system. During his tenure with Captain
D’s, Michael reestablished the legacy brand’s development organization and implemented growth strategies that resulted in the most successful period in the company’s history, building a pipeline of more than 100 locations with consistent double-digit openings, as well as achieving a 225-percent increase in new store openings and six consecutive years of positive growth. Pinch A Penny currently has franchise opportunities available in key target markets throughout the Southeastern U.S., including Texas, Georgia, South Carolina, Alabama, Louisiana and Mississippi. For more information, call 844-740-5139 or visit pinchapennypoolfranchise.com.
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Retail Franchising feature It’s a common misconception that the retail industry can be narrowed down to a variety of clothing stores. In actuality, retail is so much more than what’s on the rack. Nearly every store in every mall is a cog in the capitalist economy that is retail. Any business focused on the sale of products, is a part of the huge industry of retail. In fact, any business that provides goods and services created solely for consumers wants and desires could be considered retail. Retail could be high end products or a giant department store, a dollar store or toy store. Either way, there are a lot of different retail franchises that are successful and well known throughout the U.S. For investors looking to explore different types of opportunities that focus on customer services and sales, a stroll through the local mall can help determine which type of retail best suits your personality and interests.
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“Retail could be high end products or a giant department store, a dollar store or toy store.”
Technology and electronics Nearly every American family has a variety of electronics and gadgets throughout their house. In fact, 96 percent of households have a television set, and by 2015 over 86 percent of homes have a computer while nine in ten American adults own a cellphone. Those numbers indicate a pretty high majority of Americans using electronics on a daily basis, which also means they need a place to purchase and peruse all of the gadgets and newest technologies. Big box retail stores that specialize in technology and electronics tend to carry a variety of other products to boost profit. A great benefit of such outlets is that they carry hard hitting name brands: Sony, Apple, Panasonic, HG and the list goes on and on. Not only will the brand name of the franchising store gather customers, but also the reputation of the products inside. Tech stores usually offer services to repair or improve their products, helping beef up their profit. It’s best to review the different products and options of available electronic franchises in a territory to see which best suits your desires.
Children’s market
Clothing
Children have pretty big buying power in this country. As 20 percent of the population, children account for a big portion of consumers.
A lot of clothing stores used to be businesses within themselves, but more big names have expanded beyond their own doors to the world of franchising.
Children’s products used to be one department in a large store, but it is now a store in itself. There are entire franchises that focus on children’s clothing. From toys, to fads, to gadgets and board games, kids have taken over the market in a whole new way. Children are constantly exposed to advertising nowadays and the economy has had to create new venues to respond to their ever growing needs, which can change overnight. Stores were born from this desire, and children=only franchises have blossomed as a result. There are children’s clothing stores, toy stores, accessory store, sports stores and much more in the retail field. If you love working in sales and would love to work with kids, this could be a great option. Though most franchise do not call for much hands on contribution from its franchisees, it’s a great opportunity to make children happy while also gaining great success.
Some big brand names can help gain profit and ensure customers keep returning for consistency. On the other hand, consignment stores have also entered franchising. Some clothing stores are either men’s, women’s, children or possibley all three. It can be high end or easy profit. Some carry shoes and accessories, or are well known for a specific piece of clothing. Either way, profit can vary between types of stores so a decent review and research into each type might be worth the time. Internet shopping options should be considered as well. More and more shoppers are turning to their computers to fill their shopping cart. A Pew Research study found that 79% of Americans shopped online in 2016, up 22% since 2000. Make sure your franchise is an option for online shopping.
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“For investors looking to explore different types of opportunities that focus on customer services and sales, a stroll through the local mall can help determine which type of retail best suits your personality and interests.”
Pet stores Pets have nearly as much buying power as kid these days. 68% of American families own a pet and the majority of them want their best for their animals. Dogs and cats need more than food; they need clothing, bedding, treats, and toys. Their owners pay for products that generate comfort, reward, safety and so much more. For the animal lover who enjoys bringing happiness to pet owners, the retail franchise option may be the best bet.
Beauty Supplies The average American woman spends about $15,000 a year on make up, which is only a small portion of the beauty regime. There are now full retail stores providing beauty supplies and specializing in certain products. There are even entire retail stores that specialize in soap. This franchise option is profitable, and has great marketing through social media alone. YouTube channels have thousands of makeup and beauty tutorials that have helped boost sales. That’s free advertising.
Beauty franchises guarantee a wide variety of brand names that consumers love, which are often featured in such videos. The retail industry has a variety of franchises to offer, which can take some time and research before making an investment. Try to schedule a discussion with some other franchisees about their experience, as well as their profit. Some retailers have tough small business competition, and others might have a big buy in. While a lot of retailers have a big turn over, some have long-term dedicated staff. Look at hiring and HR policies, and discuss the benefits for employees to see if long-term employment is likely. A stable veteran management team can also help guarantee a larger profit.
A stroll through your local mall can display options as well as opportunities. What’s the competition and where are people shopping the most? What places carry brand names or are a brand name within themselves? Which stores have been standing the longest? Of course profit isn’t everything; this is a franchising opportunity that can allow one to also pursue a passion or interest. Are you a big sports fan ? Do you love high quality desserts and ice cream? Are you passionate about environmentally-friendly products? Whatever your interest, there is likely a retail service selling products within your line of passion. Retail opportunities might fade with fashion trends and fads; kids toys come and go, clothing styles are dependent on the season, people replace one beauty product for another. But retail franchises are likely to keep up with the market and help guide the franchise to the next cool thing and stay on track. If you enjoy customer service, working with a team, love shopping and have a passion for sales, start with a retail franchise because like the products, the options are endless. ABOUT THE AUTHOR: After receiving an English Degree, followed by a Journalism Diploma, Gina Gill became a freelance journalist in 2008. She has worked as a reporter and in communications, focusing on social media. She currently works as a community information officer with Epilepsy Society, while pursuing her writing career at the same time.
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Don’t miss an issue COV ER STO RY
Page 11
M ED I -W EI G H T LO S S ®
“The Medi-Weightloss® Program has a strong focus on preventive medicine providing nutritional and behavioral counseling as well as the education needed to create a lifestyle change.”
COV ER STO RY
Get the App I initially passed right over it as I did not want to be just another one of the “typical” weight loss companies. Eventually, I began to re-examine the idea. I participated in a Discovery Day at the Medi-Weightloss® corporate office in Tampa, FL.
THE MEDI-WEIGHTLOSS® FRANCHISE: HOW COMBATING AN EPIDEMIC AND FINANCIAL SUCCESS JOIN TOGETHER
With the American Medical Association classifying obesity as a disease, it is more important than ever to fight against the epidemic. Medi-Weightloss® provides a clinically
researched, science-driven program that
allows patients to lose weight and maintain a healthy lifestyle.
When you become a franchisee, not only will you be changing the lives of others, you improve your own. Michael Krassner, a multi-unit franchisee from Connecticut, explains his journey with Medi-Weightloss®.
Q
: Tell us about your background.
A: I was born in Boston, MA and spent most of my life in Dover, NH. I attended the University of New Hampshire and graduated with a BA in Communications. In 2000, I became an entrepreneur, moving to CT to open a health club and eventually
become a multi-unit Planet Fitness franchisee. I sold my business in 2013 and by 2015 I became a Medi-Weightloss® franchisee.
Q
: Why was Medi-Weightloss® right for you?
A: After selling my health clubs I spent a year and a half researching new business opportunities. I looked into start-ups as well as several franchise offerings in various industries, i.e., pet care, food, cell phone repair, mobile self-storage, etc. When I heard about Medi-Weightloss®,
Upon visiting Medi-Weightloss®, I learned there was much more to their program. The Medi-Weightloss® Program has a strong focus on preventive medicine providing nutritional and behavioral counseling as well as the education needed to create a lifestyle change. The program is based on eating real foods, and that was a big selling point for me. Another key component in the decision process was the Medi-Weightloss® clinical research and development team which provides ongoing resources for franchisees and patients through their studies and findings. This team differentiates Medi-Weightloss® from their competitors. They are constantly changing and improving pieces of the program to not only help patients lose weight but keep the weight off long term. The program is always evolving and improving, keeping Medi-Weightloss® ahead of their competitors.
Q
: How long has your location been open?
A: I opened my first location in May, 2015. My second location opened in October, 2017.
Q
: What type of research did you do prior to opening?
A: Prior to opening I researched the healthcare laws in my state. I attended the Medi-Weightloss® System Standards Training (SST) in Tampa, FL. The SST is very extensive, and includes teaching the program, products, EMR, clinical
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“It is extremely gratifying and rewarding knowing that our team helped in making such a change in someone’s life.” aspects, marketing, recognizing the key performance indicators (KPI) and reporting. In addition, I spoke with some existing franchise owners about the operations and financial performance of their locations.
Q
: What type of support do you receive?
A: I have been a Medi-Weightloss® franchise owner for 3 ½ years and feel that I have developed a good working relationship with the corporate office. The help that I need or questions I have
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VOL 07, ISSUE 2, DEC 2018
MEDI-
WEIGHTLOSS®
are often provided by my franchise consultant and include, offering operation, EMR system support as well as financial performance reviews. In addition, Medi-Weightloss® has a marketing team that provides local marketing and national branding support. At times my practitioners will contact the Medi-Weightloss® clinical affairs department when they have questions about the program or products.
FRANCHISE
COMBATING AN EPIDEMIC
Q
SPECIAL
RETAIL FRANCHISING
: Describe an instance where offering the Medi-Weightloss® Program changed a patient’s life?
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Expert Advice: Rick Bisio, Franchise Coach, FranChoice
Retail Sales:
What You Need to Know About Seasonal Franchises Nearly any store we visit during December (and often earlier than that) features some form of holiday signage and special sales as they try to capitalize on the increased spending during the holiday season.
People rush to the stores buy decorations for homes, food for a party with friends and family or the perfect gift to put under the Christmas tree. Whether it is the big box outlet in a major mall or a mom and pop corner store, the holidays are a big boost in customer sales and traffic for most retail businesses. By the time you are reading this article, all the preparations businesses make for the holiday season have long been in place. Many of the decisions about advertising, marketing and promotions were made during the summer or early fall. The same goes for scheduling deliveries and making sure there are enough products available in the stores. This busy holiday season is an ideal time for many businesses wanting to bring additional customers into their stores and increase their profits at the end of the year. The holidays give businesses a great opportunity to not only attract customers but also make sure they come back throughout the year. What are some things retail stores are doing now that can help business in the future? One way to start is by focusing on employee engagement. Make sure employees are taking care of the customers and being polite and courteous. It is important that the employees are available to answer the customers’ questions and to make them feel wanted. During this time, the goal is not to just sell them something over the holiday. The goal is to create a customer. If a store can use the holiday to create a customer, hopefully that will lead to repeat business in the future. Take for example, if somebody goes to a pet store to buy a gift for a friend that
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“The goal is not to just sell them something over the holiday. The goal is to create a customer. If a store can use the holiday to create a customer, hopefully that will lead to repeat business in the future.” owns a dog. A sale that day is great, but more importantly, you want to give them a reason to come back. The customer has now come into the store and has interacted with the employees or management. They have seen firsthand that the store has good customer service and a nice selection of products. That positive experience can plant the seed for them to come back again and buy more things for the same friend’s dog or refer others there. That goes back to the idea to create a customer, not just make an individual sale. We understandably focus on the holiday season as a time when retail stores see their highest increase in business. It is the most visible for customers and profitable for stores. The forecast for this year is particularly strong, as the National Retail Federation expects 2018 retail sales to increase at a minimum of 4.5 percent over 2017. However, there are many businesses, including franchises, that are seasonal by nature. They are just not always holiday seasonal. An ice cream or frozen ice concept has its busy season over the spring and summer months but loses customers or may even close for a few months over the winter. Tax preparation franchises are extremely busy from January through April. However, their hours and workload for the remainder of the year pale in comparison to the first quarter. When it comes to franchises and the holiday season, depending on the line of work, some tend to see their slowest times at the end of the year. One example would be a painting franchise. Customers do not want a crew setting up in their house and painting over the holidays. People will likely also hold off on projects such as household remodeling, handyman services or blind installation until the year. For franchise owners in these fields, business can be very slow during the holiday season.
Although there are fewer examples, some franchises do see an increase in business during the holidays. Those who specialize in gifts, seasonal baskets and arrangements, candies and chocolates see their revenues peak over the final few months of the year. Honey Baked Ham is an example of a franchise that offers a popular product during the times of high demand around Thanksgiving and Christmas but sees sales decrease most other times of the year. In my role as a franchise coach, I speak to many people who are weighing different options of franchise ownership. This includes those who are exploring various types of franchises that are seasonal by nature. People who don’t mind working during the holidays but would prefer slower schedules in the spring and summer to take advantage of warmer weather and plan outdoor activities could look into options like Honey Baked Ham. Those who like to enjoy some downtime over the holidays to spend time with their family should consider franchises with busier times coming in the summer months. Seasonal businesses can be successful businesses. Owners must know how to balance their busy and slow seasons so their operation can be sustainable throughout the year. They must also be prepared to handle the unique challenges of the job, such as working long hours during the peak season and strategically
Rick Bisio
planning ahead for busier times while business is slow. If a franchise owner is able to do these things effectively, they can create a profitable and comfortable life year-round. Rick Bisio is a leading franchise coach with FranChoice, the creator of the FDD Exchange and the Franchise Glossary and the co-host of Rick Bisio’s Franchise Focus. Since becoming a franchise coach in 2002, Bisio has assisted thousands of aspiring entrepreneurs nationwide explore the dream of business ownership. www.afranchisecoach.com/the-coach
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Expert Advice: Heather Neary, President, Auntie Anne’s
Maintaining Success in Shopping Malls
We’ve all read the headlines. “America’s Malls are Rotting Away,” or the “Death of the American Mall is Upon Us.” As the president of a brand synonymous with shopping malls, you’d think I’d be terrified. But I’m not. I feel strongly that reports of the shopping mall’s demise are greatly exaggerated. Humans are social animals. Going shopping with family and friends, trying on clothes, watching your pretzels get twisted and baked in front of your eyes – this is all entertainment, an experience you can’t get from online shopping. Don’t get me wrong, the retail space is rapidly
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evolving, and e-commerce is the catalyst for the evolution. Malls need to adapt to deliver the experience that today’s consumer craves. Not all malls are going to do that successfully, but those that do will not only survive, they’ll thrive.
Choose the Right Mall At Auntie Anne’s, we’re not treading water in shopping malls trying to stay afloat. Our same-store-sales in malls are positive, and we’re continuing to invest in our current locations while opening new ones. But not just any mall. We are very strategic about selecting the malls that best position us – and our franchisees – for success. The malls that aren’t dependent on a single anchor tenant to generate foot traffic. The malls that are investing in the consumer experience – entertainment via food halls or movie theaters or even aquariums, and mixed-use with hotels and condos. These investments to drive traffic are a must, and those that are doing it well are delivering
results for their retailers. Malls that aren’t, well, you read about them in those doom and gloom articles. I like to think of the mall industry as a tree, with each individual mall represented by a branch. To encourage healthy growth, you need to prune the tree, removing dead, overgrown or excess branches. By closing under-performing malls, the industry is becoming healthier and setting itself up for a bright future.
Capitalize on Foot Traffic Capitalizing on the foot traffic in malls remains the primary challenge for every retailer. In the ‘90s, there were only a handful of snack options in shopping malls. A franchisee could open a store, sit back, and let the guests flock in. Today, shoppers have dozens of food brands fighting over their stomachs. The competition is fierce, as it’s a zero-sum game – if someone chooses a pretzel,
“If you make sure you’re in the right malls, capitalize on the foot traffic, and expand your reach beyond the venue, you’ll be well positioned for success.”
they’re not buying a crêpe. If they get a smoothie, they’re not getting a frozen yogurt. The competition also means brands have to do more. ”Auntie” Anne Beiler built our company on what she called the Threefold Philosophy: a fresh, hot, golden brown soft pretzel served in a sparkling clean store with friendly, courteous customer service. Exceptional products, a clean store, and great service remains a good start, but is no longer enough to maintain success. Retailers need to cater to the needs and desires of their target audience. We recognize we’re an impulse purchase, not a destination. People walk by and are hopefully enticed to try a product. It’s part of what makes owning a mall location so profitable. However, we have a very small window of opportunity; if we don’t grab the shopper’s attention in the second or two that they’re in front of our store, we’ve lost them. The same can be said for most mall-based retailers. With so many options, how do you convince shoppers to visit you? You need to enhance their experience. Now more than ever, products need to perfectly align with the needs of the consumer. Mall shoppers are looking for a spontaneous treat or pick-me-up to enjoy while shopping, so convenience and portability are key. Consumers – particularly the younger generations – also want things that are fun, innovative, and Instagrammable. Brands must tap into this trend and continue to introduce products that capture the attention of passersby, differentiate them from the competition, and generate brand buzz.
“For retailers in shopping malls, today’s environment is challenging, but also rife with opportunity.”
Expand Your Reach We live in a convenience-based society where consumers expect brands to come to them. This presents a unique opportunity, as retailers are no longer limited by their physical locations. In the past, non-mall shoppers were nearly impossible for mallbased retailers to reach. Today, retailers can connect with consumers anywhere, anytime. For example, last year Auntie Anne’s launched a national catering program, allowing guests to enjoy our pretzels at any occasion they want, from office meetings to weddings. We also have a lot of stores that offer delivery via thirdparty partners like Grubhub. Off-premise is growing at a rapid pace and it’s essential that brands look into capitalizing on it to help build on their success. By expanding their reach beyond the four walls of the mall, brands can add revenue streams and grow sales for mall locations, even if the traffic within their venues stagnates. For retailers in shopping malls, today’s environment is challenging, but also rife with opportunity. If you make sure you’re in the right malls, capitalize on the foot traffic, and expand your reach beyond the venue, you’ll be well positioned for success.
Heather Neary
Heather Neary was named President of Auntie Anne’s in November 2015. Heather joined Auntie Anne’s in 2005 and has held various roles in the company in which she was responsible for the oversight of marketing, communications, the franchise business consultant team, research and development, product innovation, and the franchisee leadership team. Prior to being named president, Heather served as Auntie Anne’s Vice President, Global Marketing. auntieannesfranchising.com/own-afranchise
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Expert Advice: Christopher Conner, President of Franchise Marketing Systems
Retail Franchising: It’s About the Experience
As anyone who has studied or been in business for any length of time knows, it is impossible not to look at concepts like Kodak or Blockbuster. Brands that not only dominated their market as a percentage of market share, but also defined the entire category they did business within. Blockbuster in 2004 had almost 9,100 stores worldwide and was bankrupt by 2010. Kodak in 1976 owned 90% of the entire film
sales market globally and by 2012 was bankrupt. The concept is
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hard to fathom and certainly anyone in retail today stands with the hard reality of e-commerce staring them in the face and forcing people in the retail category to find ways to evolve and change the way they do business. Blockbuster missed buying Netflix for $50 million in 2000, supposedly laughing the offer out of the room and Kodak just couldn’t get the idea of digital photography. Retail businesses today are in a similar position, evolve and see how the future should drive change in your business or become irrelevant. So how is it that commercial real estate rates are still at all time highs in many markets and there still seems to be bustling, ever healthy retail businesses both in and outside of franchising? The key today is about experience. What makes a person want to get out of their home and change an increasingly busy schedule to visit a retail location is the experience that happens in that retail business. If people can get the same experience anywhere, you’ve
“The successful and relevant retail franchises are ones that have embraced the web; they’ve embraced today’s experiencecentric customer base and they enjoy finding ways to evolve and innovate.”
lost your draw to bring people in. If your only value add is price and availability… .I’m sorry, but the internet beats you in every way shape and form. So what does experience mean? I hate when people do this, but here is the definition, I thought it was fitting for this discussion. Experience; “practical contact with and observation of facts or events.” So essentially, instead of just selling a product or service to someone and collecting payment, it’s creating an event that allows the customer to have practical contact and observation. The obvious winners in this new age of retail are service providers. Restaurants, fitness and other fixed location retail businesses still have a strong and evident value proposition to get the customer into the location for the transaction to take place. But you can look at models like Apple, who boasts one of the worlds most successful retail businesses. How can this be…the definition of technology product purchasing can still have so much success in traditional retail??
It all can be tied back to that experience at the store level, where Apple as of 2017, was again the global leader in revenue per square foot ($5,546) which is just hard to comprehend. That means an average sized store (8,400 square feet), generates annual sales of $46,586,400 in annual revenues from a SINGLE retail location. Yes, Apple seems to have unfair advantages in every way shape and form, but the point is that even a technology giant where traditional retail seems to be out of synch leverages a retail model so effectively. Apple has incredible interaction between their associates and the customer, they are informative, helpful and extremely upbeat. The location design is appealing, fun and draws you in to interact with the technology and touch things throughout the store. You can’t help but feel cooler when you walk into and out of a store holding a bag of something you paid too much for. So if it works for Apple, why can’t it work for retail franchises? It can, and it does. The successful and relevant retail franchises are ones that have embraced the web; they’ve embraced today’s experience-centric customer base and they enjoy finding ways to evolve and innovate. Today, our firm, Franchise Marketing Systems, works with several brands such as BARAMI and BonWorth, both of whom are clothing manufacturers/retailers with decades of experience in the retail business and between them have almost 150 stores in operation throughout the United States. Many, if not most of the brands in this clothing manufacturing and retail market
have gone extinct and disappeared into the business history books as casualties of globalization and e-commerce. What has allowed BARAMI and BonWorth to succeed and even excel in this difficult and competitive market segment is finding ways to create incredibly customer-centric business models and innovative product lines that continue to drive customer traffic to the locations. Both brands prove that even in today’s markets, there are great retail franchises on the market, but it comes down to the experience at the store level. Christopher Conner is the President of Franchise Marketing Systems and has spent the last decade in the franchise industry working with several hundred different franchise systems in management, franchise sales and franchise development work. His experience ranges across all fields of franchise expertise with a focus in franchise marketing and franchise sales but includes work in franchise strategic planning, franchise research and franchise operations consulting. For more information on how to choose the right food service franchise, contact Chris Conner at Chris.Conner@ FMSFranchise.com www.fmsfranchise.com
“Instead of just selling a product or service to someone and collecting payment, it’s creating an event that allows the customer to have practical contact and observation.” Chris Conner
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Expert Advice: Cordell Riley, Owner and President, Tortal Training
Your Front Line Is Your Bottom Line:
Why It Pays to Prioritize Your Retail Training Years ago, someone asked the legendary hotel owner J.W. “Bill” Marriott, “How do you train your hotel team members to be so friendly?” In his famous reply, Marriott answered, “We hire friendly people.” Franchising USA
There is wisdom in that but of course,
In other words, your retail employees
line team than simply hiring outgoing
The place where they interact with your
there is more to building a great frontpeople. Training is critically important too, which explains why Marriott has
created Marriott University, a program that recruits college students and teaches them the skills that Marriott employees should have.
Marriott, like so many other successful
determine how profitable you can become. customers means everything. Stop for a
moment and think about it. Most of your customers will never meet your CEO, but they will meet your hourly retail
workers who staff your cash registers, the salespeople who staff your selling floor, and other employees who interact with
businesses, recognizes this simple truth:
them directly. And the impressions those
Your front line is your bottom line
customers will think of your brand.
employees create become what those
“Most of your customers will never meet your CEO, but they will meet your hourly retail workers . . . And the impressions those employees create become what those customers will think of your brand.” What gets noticed by customers, pleases them, and makes them loyal customers? Your people do. And to have great people, you need to follow three steps. Three Keys to Great Training for Your Front-Line Retail Personnel: Hire People that Fit Your Company, Culture, Products and Brand Some retailers hire salespeople who look a lot like their customers, and who share their interests. Some specialty retailers like stores that sell auto parts or golf equipment or skis, for example, hire knowledgeable enthusiasts to staff their selling floors. But there is more to hiring than that. Culture is the key, meaning that your employees should share the values, outlooks and attitudes that are the heart of the way you do business. One key to finding the right employees is to be creative and resourceful in your recruiting. If you already have the right kind of people working for you, for example, you can ask them to refer people they know to you. If you are looking for college students, you can recruit from college career placement offices. The more targeted you can get in looking for employees in the right places, the more successful you will be. Another key is to screen and interview applicants strategically, by asking questions to evaluate whether their attitudes reinforce the customer experience you are striving to create. Also follow up with simulations to evaluate how they greet customers, resolve complaints, and more. The harder you work to hire the right people, the greater your success can be.
Have a Great Onboarding Program Key focuses during onboarding include teaching new hires about your company and its history, your brand promise, your
products and your values. Team-building is also an activity that motivates new employees to excel. However, simply creating team spirit is not enough to assure that new employees will be successful. I recommend going on to the next step as well.
Provide Role-Specific Training for Your Retail Associates When new hires start their jobs without a deeper understanding of what is expected of them, they make mistakes that quickly become costly habits that must be corrected later on. I recommend using DACUM to make sure you identify the right skills that you will teach. DACUM, which stands for Developing a Curriculum, starts with carefully defining job content. As you plan your curriculum, work with current employees and other stakeholders to identify the key skills that are needed to perform the job exceptionally well. You then map those skills and abilities, prioritize them, and decide which should be taught first, which second, and so on. You also decide the most effective delivery method for your learning – whether in-person live training, training in your company learning center or training on mobile devices. The final part of the DACUM process is defining metrics that you will use to evaluate your training. Will you measure the effectiveness of your training by measuring the change in the rate of repeat business that your salespeople generate, in improved Net Promoter Scores, or something else? There is an old saying in business, “If you can’t measure it, it isn’t happening.” That holds especially true for training results. But remember – you can’t measure how much training is improving performance until you delve deep to define the customer
Cordell Riley
“You can’t measure how much training is improving performance until you delve deep to define the customer experience you would like to create, and understand the role that every job function plays in creating it.” experience you would like to create, and understand the role that every job function plays in creating it. Cordell Riley is Owner and President of Tortal Training, a leading training development company in Charlotte, North Carolina. After his time in college and the military, Cordell launched his career at Driven Brands, the owner of Meineke and Maaco. For 20 years there, he rose through the ranks with increasing levels of responsibility for Operations and Training. He then founded Tortal Training, in 2000. A recognized training expert with extensive experience in the franchising sectors, Cordell has spent more than 20 years helping thousands of companies achieve outstanding success through training. He is a sought-after keynote speaker who addresses conferences and company seminars nationwide. Follow @TortalTraining.
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