FranchisingFeature RET A I L
D ECEM B ER 2 0 1 7
Retail Franchising:
Evolution of the Industry How Local Search Can
Make the Register Ring This Holiday Shopping Season
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what’s new!
Malawi’s ‘Pizza with a Purpose’ Delivers 1 Million Meals to Africa
Malawi’s Pizza, the nation’s only gourmet pizza franchise that pairs good food with doing good, today announced it has delivered 1 million meals to children in the impoverished nation of Malawi.
A milestone it is celebrating with plans for a national expansion and launch of a journey to deliver millions more under its founding commitment to donate one meal for every meal sold. Malawi’s Pizza – Pizza with a Purpose ™ was created by Roney in partnership with Chef Kent Andersen after the Utah business man returned from a humanitarian trip to Malawi where 6.5 million people grapple with hunger. Under the Meal-for-Meal Exchange Program, the company delivers nutrientdense meals to children and their families. It buys local maize that is then blended
with vitamins and nutrients and delivered to schools and villages throughout the country in partnership with Feed the Children. “The meals provided through Malawi Pizza have directly benefited our school meals and early childhood development programs in Malawi,” said Scott Killough, PhD., SVP of international operations, Feed the Children. Malawi’s Pizza has three stores in Utah, Texas and Virginia, with a fourth about to open in the Houston-area and more than 20 in the development pipeline, including four more in Virginia. www.malawispizza.com
Touchdown! NFL Stars and Texas Longhorn Legends Set to Open Gigi’s Cupcakes in Austin as Tennessee Titans, where they were first introduced to Gigi’s Cupcakes in Nashville. “When I moved to Nashville in 2015, one of the first things I was introduced to was a dozen of Gigi’s Cupcakes. Once my teammates gave me some, I fell in love,” said Orakpo. “Football players and cupcakes don’t exactly go hand and hand, but that’s what makes this so much fun. We’re family men and we know that everybody loves a good cupcake!”
Gigi’s Cupcakes is expanding in Texas with its first location in Austin set to open in early 2018. The store, located in Bee Cave, will be owned and operated by University of Texas alumni and NFL star football players Brian Orakpo, Michael Griffin and Bryan Hynson.
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Orakpo, Griffin and Hynson forged a lasting friendship when Griffin and Orakpo played football for The University of Texas between 2003 and 2008, helping to bring home a National Championship against University of Southern California in 2005. Orakpo and Griffin went on to play for the NFL and both ended up
“We are excited to bring a piece of Nashville to Austin,” said Griffin. “The city is growing rapidly with students, young professionals and families, which makes it an ideal spot for a dynamic cupcake chain.” “We plan to leverage our relationship with UT Austin and give back to the community that has meant so much to all three of us,” added Hynson. Gigi’s franchise information is available at www.gigiscupcakesfranchise.com.
Baskin-Robbins Announces Plans for New Location in Michigan with Franchise Group, TA Treats, LLC - Military Veteran Helps to Expand the World’s Largest Chain of Ice Cream Specialty Shops in the Midwest Baskin-Robbins, the world’s largest chain of ice cream specialty shops, has signed of a single store development agreement with new franchise group, TA Treats, LLC, to develop a standalone ice cream shop in the Okemos area of Lansing, Michigan. The group’s restaurant is planned to open in the beginning of 2018. TA Treats, LLC, is led by husband-and-wife team Tom and April English. The couple has a rich history of small business ownership and experience managing QSR (quick service restaurant) concepts and convenience store locations throughout Michigan. Tom English worked for years in the public sector, serving in law enforcement, as a cabinet secretary, and as a judge, in addition to completing a tour of duty in Afghanistan. Due to Tom’s veteran status, he and his wife were able to take advantage of Baskin-Robbins extraordinary incentive program which offers a free initial franchise fee, a $25,000 value, for a veteran’s first shop, and heavily discounted royalty rates for the first five years that the store is open.* Baskin-Robbins continues
to add more military veterans to its U.S. franchisee base by offering one of the best financial incentives in the industry. For additional information, visit the Baskin-Robbins franchising website. *Details available in the Baskin-Robbins Franchise Disclosure Document
First Beeline Bikes on East Coast Opens in Northern Virginia Mobile Bike Service Franchise Continues Expansion with The Bike Lane Owned by husband-and-wife team Todd and Anne Mader, Beeline Bikes Northern Virginia offers expert bike service and advice with a fully stocked mobile bike repair shop that travels to the customer at the location, day and time of their choosing.
Beeline Bikes, the largest full-service mobile bike shop in the country has opened its newest location – and first on the East Coast – in Northern Virginia.
The Maders also own The Bike Lane, a local bike shop with two locations in Springfield and Reston, and have aptly named their new mobile repair shop Beeline Bikes Northern Virginia Powered by The Bike Lane. Through an exclusive partnership with Raleigh and Diamondback Bikes, Beeline also offers bike sales and delivery, as well as parts, service and accessories. Beeline
Bikes Northern Virginia Powered by The Bike Lane provides an unparalleled and convenient bike repair service to the Reston, Ashburn, Tysons Corner and Herndon areas. “We are thrilled to be joining the Beeline Bikes team and introducing the brand to our local community,” said Todd Mader. “We have been serving cyclists in this area for almost two decades and know that they lead busy, active lives and are very techsavvy. With Beeline’s unique `We Come to You’ service, we are now able to meet their needs in their homes or at work, in addition to our brick-and-mortar business.” beelinebikes.com
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what’s new!
sweetFrog Frozen Yogurt Hosts Franchisee Convention to Celebrate Momentous Year
sweetFrog Frozen Yogurt, the nation’s leading frozen yogurt chain, recently hosted the most successful sweetFrog conference to date at the beautiful Virginia Crossings Hotel & Conference Center in Glen Allen, Va. from October 3 – October 5, 2017. The conference was the culmination of a productive and prosperous year. sweetFrog’s commitment to premium service, family friendly corporate culture and engagement with the community has produced one of the best years yet in 2017 and put the brand in perfect position for long-term success. Nearly 150 attendees from locations across the country participated in the 3-day conference full of educational sessions, leadership workshops and lively social hours. The large attendance is reflective of sweetFrog’s impressive year-to-date system growth. The company is on a hot streak, securing 43 new signed agreements
and generating increased same-store sales
He says sweetFrog’s success can be
sweetFrog’s CEO, Patrick Galleher, credits
and their commitment to the company’s
employees, and corporate staff members
For more information about sweetFrog,
across the board in 2017.
all sweetFrog franchisees, managers,
for their commitment, drive and tenacity.
attributed to the company’s great people core values.
please visit sweetfrog.com.
New Tint World® E-Commerce Site Connects Online Shoppers with Brick & Mortar Stores Tint World® Automotive Styling Centers™, a leading auto accessory and window tinting franchise, has developed a revolutionary new way for customers to shop for automotive accessories and have them installed at their local franchise location.
“Our new online store is the first in the industry to offer a streamlined system for purchasing automotive parts and accessories online and have the option to ship those purchases directly to a Tint World® location for fast, hassle-free installation.”
The new Tint World® online store, which officially went live just in time for the holidays, bridges the gap between online shoppers and Tint World® brick and mortar stores.
“Shoppers are more informed now than ever,” Bonfiglio said. “By offering a convenient online shopping experience and competitive pricing, we’re able to provide more products to customers and the added-value of proper installation by knowledgeable experts. The customer will be able to identify nearby Tint World® locations based on geographic location and set installation appointments from
“We’re always looking to stay ahead of the curve at Tint World®, both for our customers and for our franchisees,” said Charles J. Bonfiglio, Tint World® CEO.
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the online store interface. This will allow for seamless communication between the online store and physical store locations, creating value on both sides of the transaction.” tintworldfranchise.com
Amazing Lash Studio Announces Exploration of Strategic Alternatives The Company was started in 2010 by visionary entrepreneurs, Jessica and Edward Le, with a mission to help all women feel confident and look beautiful, at an affordable price. In just seven years, the founders built and scaled an industry-leading, firstto-market franchise concept with strong financials, passionate employees, a talented management team and incredible upside potential. Now, the Company is looking to align with a strategic partner that possesses the financial and operational expertise to take Amazing Lash Studio to the next level.
Company, in order to better position the business for long-
“After years of pouring our hearts into this business, it has matured to the point that we can devote the time with our children that they deserve. As such, we believe it’s in the best interest of our franchisees, employees and the overall business to pass control of the Company to a partner who can maximize its value and ensure that Amazing Lash Studio’s exceptional model, product and consumer experience are upheld for decades to come,” Mr. Le, CEO and Co-Founder.
term success.
franchising.amazinglashstudio.com
Amazing Lash Studio, the nation’s largest and fastest growing eyelash extension brand, recently announced that it will explore strategic alternatives, including a sale of the
PIRTEK Locations Expand Across USA After Company Introduces Mobile-Only Option PIRTEK’s expansion continues apace across the United States with the recent opening of several mobile-only franchise locations. That expansion went into high gear after the company rolled out its Tier 2 mobile-only option last year, enabling entrepreneurs to start franchises at a lower point of entry and faster time to market. Mobile-only locations that have opened since September include Columbia, SC; Madison, WI; Corona, CA; and Seattle. Since the company introduced the option, 14 such locations have launched. PIRTEK provides hydraulic and industrial hose replacement sales and services. There are 73 franchises and a fleet of Mobile Service Vehicles throughout the United States. Under Tier 2, a franchisee can keep the inventory in a warehouse or storage facility and lease two Mobile Service Vehicles. By contrast, the standard Tier 1 model requires a franchisee to have a full Service & Supply Center staffed with six team members and at least two Mobile Service Vehicles. The company anticipates that its Tier 2 franchises will grow into Tier 1 status quickly. “The Tier 2 locations hit profitably in a shorter period of time, because they have less overhead compared to a Tier 1,” said Glenn Duncan, chief executive officer of PIRTEK USA. “They’re more sales-focused, too. They don’t have a home base, so they’re out
in the field a lot. In fact, some current Tier 2 locations are talking about expanding into a Tier 1 earlier than three years because of customer demand.” The Tier 2 model has received positive reviews from owners. “It makes franchise ownership more accessible to a larger group,” said Dan Ferretti, owner of PIRTEK Space Coast in Rockledge, FL, who recently opened a Tier 2 in Daytona. “It also enables existing owners to own multiple franchises – we wanted to take advantage of that benefit.” www.pirtekusa.com
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retail
FRANCHISING FEATURE
“A lot of the clothing lines have become franchise focused and are relying on investors to open new stores.” Franchising USA
Retail is an industry that has developed with the ever-growing needs and demands of its consumer. A lot of businesses are created due to necessity, while retail relies on the desires of the public. Throughout time, retail has developed from malls to box stores to online shopping. It’s the driving force behind Black Friday, Cyber Monday and some
“Big box stores have created a one-stop shop of convenience that reaches all necessities of day-to-day life.� remained stable after the recession have a tried and true set up. They provide clothing that is constantly changing to keep up with the trends, while the marketing and tech support is established. The customers recognize the brand and there is an online presence. Before committing to a specific clothing franchise, researching the profits and locations of certain stores. There is such a variety that the choices are unlimited, so there is the option to be particular. would even say Valentine’s Day. It has commercialized most holidays, dominated marketing platforms and plays a role in most other businesses. Most service industries now offer retail options to boost profit, while other shops have broaden their range of products to give their consumers more options.
Clothing The powerhouse of retail is lined with racks of cashmere and wool blazers. Malls are filled with clothing stores from door to door. The options run from low end to extremely high end. Some shops focus on specific apparel like shoes or handbags, while others cover all clothing and
accessories, of all ages and styles. With a surge in online shopping, clothing stores have had to recreate their approaches. Most shops have expanded their options to the internet, offering different sales and designs online only to create a demand. A lot of the clothing lines have become franchise focused and are relying on investors to open new stores. While retail outlets used to be dominated by a sole CEO and a head office, they have expanded their reach to the franchising world. Those interested in fashion should consider a clothing store as an easy investment. The brand names that have
Big Box Stores People are strapped for time and the easier shopping can be for them, the better. Nowadays, people can order their groceries online and have homemade meals brought to their door all week. The more convenient something becomes, the more people will buy into it. Big box stores have created a one-stop shop of convenience that reaches all necessities of day-to-day life. Walmart aisles are filled with groceries, clothing, cleaning supplies, toys and even tires. Big box stores now offer services including eye exams, restaurants and hairdressing. One person could spend the whole day walking from one end to another checking off all the needs on their to do it list.
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“Some franchises either specialize in furniture, home appliances and décor, while others specialize in technology but offer a selection of products appealing to the interior decorator side of the consumer.”
These stores have dominated the retail industry by taken over every product there is to sell and adhering to the needs of convenience. It’s a large financial investment but the profit is a guarantee. There is a lot of competition with other surrounding stores; the employee turnover is high, its still successful and easy to run. Most franchises have come up with a secured plan that involves a consistent layout, deals and sales placed at the right time and a method for profit. It would be wise to consider possible locations and territories. A lot of the big box stores have already made enough space in a lot of areas and there isn’t much need for more in the community. While
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there may be new industrial parks at the developing stage looking for investors.
There is not a lot of heavy lifting with this type of franchise, the business typically runs itself. However, if one is looking
for a creative investment, big box stores
do not usually leave a lot of room for the imagination.
Home Décor and Furniture Decorating the home has always been an
interest of the homeowner, but recently the industry has had a higher demand. With social media sharing new and creative
ideas, it seems like everyone wants to be involved in home renovating.
“There are retail industries dedicated to pet ownership, with the sales of pets, pet food and pet clothing. In 2016, the pet industry reached over $66 billion in sales.” There has been an increase in house and home television series and beautiful homes have become more accessible to the everyday person. Do-it-yourself projects are tried and tested out by everyone; you no longer have to be handy to give your home a brand new face-lift. Lumber stores have expanded to décor and furniture, while furniture stores have expanded to televisions and home appliances. Franchises have understood the consumer’s needs and fulfilled them. There is a lot of choice for investors to
consider and again research into location is definitely worth the time. Home décor and accessories has also lined the shelves of other retail stores, creating a bit of competition. Some franchises either specialize in furniture, home appliances and décor, while others specialize in technology but offer a selection of products appealing to the interior decorator side of the consumer. Retail goes above and beyond clothing and furniture. A lot of stores specialize in beauty products and skin care, while others focus on groceries and liquor. One thing is for certain, a retail store focused on one product is rare and the industry has had to broaden its product range to cover the many needs of customers. People are willing to spend more for convenience than quality. If they can service their needs in less time, they are likely to open their wallets. With people being more particular in
their choices, the products have not only increased in quantity, so have the consumers. The buying public doesn’t only target the working class, it also adheres to children and even animals. There are retail industries dedicated to pet ownership, with the sales of pets, pet food and pet clothing. In 2016, the pet industry reached over $66 billion in sales. Even though people are having less and less children, the baby care product market reached just over $44 billion in 2016. There are more safety products, organic health care products and toys for babies nowadays than ever before. So before considering a certain retail industry, it’s smart to look at not only the variety and quantity of products being sold, but also how it appeals to the many consumers that retail covers. For example a clothing store that has high pricing, great numbers, high profit and sells to all the ages, genders and considers their pets, with easy access to online shopping, would be a strong contender in the competition. There are so many options to consider when it comes to retail, where and what
“There are so many options to consider when it comes to retail, where and what is sold could make or break a franchise.” is sold could make or break a franchise. The franchise system had a recipe for success, a head office that is constantly providing new products that are changing with the trends. It generates a profit, while also running itself, allowing franchisees to be surrounded in the world of business without all the hard work. As far as franchises go, it’s definitely worth a try on. 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.
Look out for our next special feature:
SENIOR CARE FRANCHISING Franchising USA
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Christopher Conner, President, Franchise Marketing Systems
Retail Franchising:
Evolution of the Industry Retail has been going through one of the most tumultuous time periods and industry has seen maybe since the industrial revolution made horse drawn carriages irrelevant. E-commerce has created doubt and uncertainty to such an extent in the retail market that many even question the sustainability of such established brands like Walmart. E-commerce has completely revolutionized the retail market segment and thrown established retailers into a tailspin with brands being overtaken by the “Amazon Phenomenon�. Everything from toilet paper to coffins are now being purchased online and the traditional retailer is trying to piece it all together. The retail franchise segment has experienced the same evolution and massive overhaul with the advent of e-commerce buying trends increasing and breakneck speeds. At the same time, commercial real estate prices in many markets are still high and increasing so one would believe that there is a good portion of retail that is still doing well and actually expanding.
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“Gone are the days of massive warehouse retail concepts which offer discount pricing and wide selection as their primary value propositions; now is the time for specialization and knowledge-based retail experience.” The fun part of the franchise market is that it is an excellent temperature gauge for what market segments are doing well and where the market growth is occurring. The retail franchise market has had expansion in concepts that are able to create an experience at the unit level and give the buyer a reason to be in the location. Food service and Fitness are the obvious market segments that have benefited from this e-commerce revolution where the consumer still needs to come into the location to purchase the service or product. For other categories of retail franchising, the ones that will make it moving forward have found ways to still add value to the buying experience at the store level. For example, BARAMI is a new franchise offering that was put together with a focus on value and customer experience which will allow customers access to high end designer outfits at discount pricing, the clerks have experience and training to help customers put outfits together and provide specific fashion guidance based on the client’s preferences and look. Klein, Epstein and Parker is another clothing brand that offers custom men’s suits and clothing that is custom fit to the customer and they use a proprietary process to design completely unique looks and fits for suits and other men’s clothing. The key to both BARAMI and Klein Epstein and Parker are that they drive the customer into the location in order to both provide an experience to the client and sell the optimal product to that person. Both brands sell clothing, something that e-commerce has taken huge percentages of buyers from other retail businesses, but these concepts offer differentiation and custom experiences which keeps value and purpose at the store level.
“The retail franchise market has had expansion in concepts that are able to create an experience at the unit level and give the buyer a reason to be in the location.” The retail franchise market has shrunk overall in the past ten years, but after the initial conversion to e-commerce, the market is seeing a new resurgence and new life for opportunity. For one, retail has gotten smaller at the store level. Gone are the days of massive warehouse retail concepts which offer discount pricing and wide selection as their primary value propositions; now is the time for specialization and knowledge-based retail experience. Customers want experience, consultation and interaction with a staff member who knows enough about the product and service to provide value and guidance to make a better buying decision. CoffeeIcon is another example of retail which has transitioned into the new world of retail with a smaller retail location that focuses entirely on K-Cup coffee products. The location is high-end and comfortable, the store clerks are extremely knowledgeable and know enough to really guide the customer through purchasing decisions and make important recommendations. The retail franchise market has a variety of strong franchise opportunities and potential retail investments; the key when making a buying decision to is understand how the model fits into today’s retail
marketplace and whether the model is operating “with the tide” or “against the tide” of what’s happening in the retail franchise market. 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. www.franchisemarketingsystems.com
Chris Conner
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Alex Porter, CEO, Location3
How Local Search Can
Make the Register Ring
This Holiday Shopping Season NRF reported holiday retail sales increased 4% from 2015, to $658.3 billion in 2016, showing consumers are eager to spend. But with an increasing amount of online shoppers, restaurants and stores are struggling to stay competitive.
During the holidays, stores can run low
on inventory or are overcrowded. Using
local search, franchisees can utilize offline data patterns, including where, when and
which stores consumers frequently shop, to increase revenue from holiday spending.
Can a Frenzied Customer Find Your Location Easily? Holiday shoppers can be stressed and
easily annoyed, meaning retailers have
to work harder to please them. Is your location discoverable online? Can someone easily find it using Google, Facebook, Amazon or Edge? Bad data can wreak havoc on your brand by showing conflicting local search listings for your business and has the potential to keep your listing from appearing at all. Your location(s) will be undiscoverable, resulting in a lost of sale and overall revenue. Brainstorm non-branded, industry keywords based on user query data within online directories and search engines. Consumers are increasingly searching for agnostic terms, “roasted turkey,� instead of for a specific brand (Boston Market). Ignoring these general searches will potentially let the competition capture those customers and incremental revenue. Use that same data to develop product- and category-focused ads for these brandagnostic search queries, and develop ad copy and ad extensions that speak directly to the user and their immediate interest.
Understand Supply and Demand During the Holidays The trick to driving foot traffic to your locations? Leverage national campaigns that are also complemented by hyper-local campaigns. On a national scale, distribute relevant holiday content to all business listings on Google and Bing to encourage store visits, including promotions and reward
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different or unique. Don’t simply spend money recklessly to achieve Position One ranking and ignore the important steps required to connect user queries with qualified ad copy. Connect thoughtful ads with robust landing pages and content that continue to move them toward a purchase decision.
programs. Launch a national paid media campaign focusing on driving awareness of specials and promotions. National PPC focuses on brand terms and messaging and a national display campaign drives awareness for both store locations and e-commerce options. On a hyper-local level, analyze historical data by region and trends from previous peak seasons, and use that data to create local paid search campaign segments based on the varying performance of specific regions. It’s important to properly address budget management and impression share during these high-volume periods. Have a plan of action for daily/hourly management of campaign budgets and bids on top performing keywords to capture the maximum amount of relevant search volume possible. Some competitors (and non-competitors) overspend media dollars during peak holiday seasons, increasing costs for everyone. If you’re not managing budgets accordingly, you could be paying top dollar and still fail to achieve top ranking. Monitor potential competitors that cast a wide net, with limited targeting, and spend dollars recklessly to achieve top ranking. Rather than outbid them, key tactical changes to your campaign - when managed efficiently - can help your business ranking in the top three spots for your core keywords and allow
you to retain your market share without sacrificing ROI.
For Those Online-to-Offline Shoppers - Is Your Site Mobile Friendly? Is your business information up-to-date and accurate across the major directories and search engines? If you have a different social page for each location, ensure messaging and branding is universal across the board. Mobile makes up more than 60% of all search activity. Your site should be mobile-optimized and offer incentives for downloading your app. Hitwise’s “Mobile Search: Topics and Themes” report found “Food & Beverage” resulted in 72% of mobile search volume. Consumers need to eat, and you need to connect with them. 82% of shoppers consult their phones in-store before purchasing. What is your online copy saying about your brand? Are your prices competitive? Is mobile call tracking enabled for customers who dial one of your locations? It’s no longer just a store or online experience, it’s a mobilefirst experience.
Personalize an individual’s shopping experience by understanding their interests and past purchases. Would they prefer tofurkey? If so, provide a coupon for that product. By utilizing customer data to create a profile, you can cater to their needs the minute they step in-store. Once there, focus on “near-me” search. Creating product-focused search ads for brandagnostic queries like “happy hour near me” or “cheap eats” are a quick way to draw in foot traffic. It ensures your stores are showing up in organic search results and can draw a wide range of prospective customers who might not have stumbled across your name before. While retail might be moving towards digital, consumers will be shopping in stores for a while. They value the experience and feedback from an associate. The key is improving and creating a personalized in-store experience and leveraging data to deliver more customized products and offers. Voice search, mobile apps and email marketing will continue to help build detailed customer profiles used to steer shoppers to their interests, complete with real-time, individualized sales offers. A retailer’s job is to be flexible, offer personalized experiences and let the shoppers own it on their own terms. If you don’t, your competitor will. Alex Porter is CEO of Location3, where he forges seamless relations between Location3 Media and prospective clients, and oversees the day-to-day operations of the entire company.
Know Your Customer Better Than Your Competitor Does If you and a competitor are selling turkeys, consider why your brand or product is
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