Quiznos Steps Up International Efforts [2010-08-09]
Quiznos already has master franchisees in nearly 25 countries and territories, but the chain announced that it is revamping international growth efforts and is aiming to be in nearly 40 countries and territories two years from now.
Lee Vala, international chief development officer for Quiznos, says the company is targeting Central and South America, Europe, the Middle East, and Southeast Asia as potential markets to expand into.
"We have the economic and operational resources to successfully launch and expand internationally," Vala says.
"Now it's a matter of being able to find those right partners. Clearly the markets are important, but what's more important is the … master franchisee that you're going to pair yourself with."
Vala says Quiznos is interested in master franchisees that already have a business infrastructure in their market and can easily pay for start-up costs and convert their resources for Quiznos.
Selecting the right master franchisee and preparing them to grow the brand is not something Quiznos is taking lightly, Vala says. He says he is personally visiting prospects in their country before signing a formal agreement.
"We are not interested in people who are looking to collect brands," he says. "We are interested in people who are going to be able to grow and expand the concept in their country."
International master franchisees at Quiznos are also getting something that Vala says other brands do not offer: executive training. All new international master franchisees come to the U.S. for an executive training program that teaches everything from supply chain to real estate, from marketing to design and construction.
By putting franchisees through this process, which includes access to top Quiznos executives, Vala says they will be able to adapt their brands appropriately to their country.
"Adaptation is going to be a big part of our process," Vala says. "Quiznos is going to provide the system knowledge, and our well-qualified partners in different parts of the world are going to provide us with the local knowledge. As you can imagine, that can become a very powerful formula for success."
Vala cites the use of halal meat in the Middle East and vegetarian offerings in India as ways in which Quiznos will adapt to international markets.
Of course, no brand could expand so much overseas without a solidified hold on domestic business. Vala says Quiznos would not have committed to such growth if it wasn't sure it was stable at home in the U.S.
"The first thing [prospective franchisees] will look at is the health of our company and our growth rate and our growth plan, and how well we are doing domestically, in order for them to get assurance that we're going to be able to support them," he says.
Tags:quiznos, quiznos franchise, lee vala, master franchisee, franchise training, international master franchisees, international growth, international expansion,
Source: QSR Magazine, Sam Oches.
This Blog/News/Press Release/Information is posted by Sparkleminds, A End To End Franchise Solutions Company, Based at Bangalore, India.We offer customized services to businesses seeking expansion through the franchise route and over the last decade have helped numerous clients to scale up their businesses.We also work closely on international master franchise expansions.Visit us on www.sparkleminds.com and speak to us, and we are sure you will be more than glad to understand how we could grow your existing business multi-fold times.
Saturday, August 14, 2010
Wednesday, July 28, 2010
Subway Franchise Restaurants Global Expansion Report In 2010
MILFORD, Conn. -- So far in 2010, the Subway restaurant chain has opened more than 1,000 new locations around the world, crossed the milestone of 33,000 locations and premiered its new breakfast menu at approximately 25,000 U.S. and Canadian Subway shops.
With the breakfast roll out, the Subway chain became the largest quick-service purveyor of breakfast sandwiches in North America, in terms of number of locations, it said.
On the development front, with more than 1,000 new locations, the Subway chain was able to reach several milestones. New stores accounted for approximately 1.4 million square feet of filled commercial retail space, while the total international store count shot up to more than 9,700 restaurants.
Domestically, the United States saw the addition of 490 new franchises, boosting total counts to beyond 23,000. Individual milestones were achieved in California, now with 2,300 stores; Texas is now at 1,800 stores; Pennsylvania 800; Maryland both have 400; and Utah crossed 200. States with high development activity include California with 66 new openings; New York and Texas with 42 each; Pennsylvania 26; Illinois 23 and Florida 20.
In Canada, 60 new locations across the country caused the total number of Subway restaurants to cross the 2,500 store mark, which in turn allowed the province of Alberta to cross its own milestone of 300 locations. And 25 new franchises in Australia brought that country's total to more than 1,200 stores. Brazil saw 77 new openings, and crossed the 400 store mark, while 27 additional locations pushed store count to 200 in France. Other milestones were achieved in Taiwan and Russia with 100 locations each.
Activity was also high in Mexico and the UK, each with 37 new stores; China had an increase of 21; India with 19; and Japan and the United Arab Emirates, each with 15 new-store openings this year so far.
In the nontraditional development category, the Subway chain now has more than 7,500 locations in places such as airports, department stores, hospitals and park and recreational facilities. Recent openings include Subway stores at airports China, England, Colorado and Louisiana; corporate centers in Hong Kong and New York; college campuses across the United States and Canada and stretching all the way to India, Kuwait and the UAE; big-box retailers from Ontario to Brazil; and convenience stores in North and South America, Europe, Asia, Australia and the Middle East.
Tags:subway, subway franchise, subway franchise chain, subway chain, sandwich franchise, new franchisees,fast food, fast food franchise, food franchise, franchise development, franchise expansion,
This Blog/News/Press Release/Information is posted by Sparkleminds, A End To End Franchise Solutions Company, Based at Bangalore, India.We offer customized services to businesses seeking expansion through the franchise route and over the last decade have helped numerous clients to scale up their businesses.We also work closely on international master franchise expansions.Visit us on www.sparkleminds.com and speak to us, and we are sure you will be more than glad to understand how we could grow your existing business multi-fold times.
With the breakfast roll out, the Subway chain became the largest quick-service purveyor of breakfast sandwiches in North America, in terms of number of locations, it said.
On the development front, with more than 1,000 new locations, the Subway chain was able to reach several milestones. New stores accounted for approximately 1.4 million square feet of filled commercial retail space, while the total international store count shot up to more than 9,700 restaurants.
Domestically, the United States saw the addition of 490 new franchises, boosting total counts to beyond 23,000. Individual milestones were achieved in California, now with 2,300 stores; Texas is now at 1,800 stores; Pennsylvania 800; Maryland both have 400; and Utah crossed 200. States with high development activity include California with 66 new openings; New York and Texas with 42 each; Pennsylvania 26; Illinois 23 and Florida 20.
In Canada, 60 new locations across the country caused the total number of Subway restaurants to cross the 2,500 store mark, which in turn allowed the province of Alberta to cross its own milestone of 300 locations. And 25 new franchises in Australia brought that country's total to more than 1,200 stores. Brazil saw 77 new openings, and crossed the 400 store mark, while 27 additional locations pushed store count to 200 in France. Other milestones were achieved in Taiwan and Russia with 100 locations each.
Activity was also high in Mexico and the UK, each with 37 new stores; China had an increase of 21; India with 19; and Japan and the United Arab Emirates, each with 15 new-store openings this year so far.
In the nontraditional development category, the Subway chain now has more than 7,500 locations in places such as airports, department stores, hospitals and park and recreational facilities. Recent openings include Subway stores at airports China, England, Colorado and Louisiana; corporate centers in Hong Kong and New York; college campuses across the United States and Canada and stretching all the way to India, Kuwait and the UAE; big-box retailers from Ontario to Brazil; and convenience stores in North and South America, Europe, Asia, Australia and the Middle East.
Tags:subway, subway franchise, subway franchise chain, subway chain, sandwich franchise, new franchisees,fast food, fast food franchise, food franchise, franchise development, franchise expansion,
This Blog/News/Press Release/Information is posted by Sparkleminds, A End To End Franchise Solutions Company, Based at Bangalore, India.We offer customized services to businesses seeking expansion through the franchise route and over the last decade have helped numerous clients to scale up their businesses.We also work closely on international master franchise expansions.Visit us on www.sparkleminds.com and speak to us, and we are sure you will be more than glad to understand how we could grow your existing business multi-fold times.
Monday, July 26, 2010
Mothercare and Early Learning Centre Scripting Success, Riding on international franchise expansion
The UK high street retailer has become an international force to be reckoned with.
It's been a newsy spell for Mothercare (LSE: MTC). It kicked off a couple of weeks ago with a bit of impromptu celebrity endorsement, when proud mum Danni Minogue took newborn son Ethan on his first outing -- to Mothercare's Melbourne branch.
Since then, the company has held its AGM, issued a trading statement, disclosed that it has bought 'yummy mummy' brand Blooming Marvellous, and announced that it is in discussions to acquire a 25% stake in the company that operates the Mothercare and Early Learning Centre franchises in Australia and New Zealand.
Finally, last Monday, the company issued a big slug of share options to its directors to reward a three-year profit increase of 65% and a shareholder return 120% ahead of the FTSE General Retailers index
Mothercare Story:
Mothercare has come a long way since its 'terrible twos' -- 2002, the year that saw a string of profit warnings, and ultimately the ousting of the chief executive, finance director and chairman.
The company made a £25m loss in its 2002/03 financial year. For shareholders, who had also seen their dividend axed, a £1m pay-off to the departing directors rubbed salt into the wound.
Still, every cloud has a silver lining. Mothercare's came in the shape of new chief executive Ben Gordon, who arrived from the Walt Disney Company, where he had been managing director of the Disney Store chain in the Europe and Asia-Pacific region.
The youthful Mr Gordon implemented a three-year recovery plan. More importantly, he had an ambitious longer-term vision: to transform what was an uncharismatic UK retailer with a few international outpost stores into a genuinely global brand.
The ex-Disney man sprinkled his stardust and scripted a Cinderella story for Mothercare.
Taking It Global:
Today the Mothercare group has two iconic world-class brands: Mothercare itself, and the Early Learning Centre, which it acquired for £85m in 2007.
Subsequent smaller acquisitions, of social networking site Gurgle.com and maternity-wear brand Blooming Marvellous, further widen the group's offering across the parenting and pre-parenting spectrum.
Channels to market have also been expanded and now include: out-of-town 'parenting centres', in-home and in-store internet ordering, a new wholesale business, and a rapidly growing international franchise network.
Since Ben Gordon took over as chief executive, group turnover has steadily increased, from £432m to £766m; international sales, as a proportion of total sales, have more than doubled, from 11% to 23%; and the group now has 1,167 stores worldwide in 53 countries.
That may sound like a sizeable international footprint, but Mothercare has only just begun to tap its potential as a global brand. It plans to open at least 100 new overseas stores every year 'for the foreseeable future.'
Present Value:
At the moment the market is choosing to focus on short-term headwinds facing Mothercare's UK operations.
The company's recent trading statement, covering the first quarter, reported continuing strong growth in international sales (+20%) but UK like-for-like sales down 4.1% and an 'uncertain UK consumer environment.'
Whilst the company said that UK margin pressures would be at least partly offset by cost savings, analysts have downgraded their earnings forecasts, fearing tough competition from Tesco (LSE: TSCO), Asda and Marks and Spencer's (LSE: MKS) rejuvenated childrenswear business.
At the current share price of 521p a revised consensus earnings-per-share (EPS) forecast of around 36p for 2010/11 puts the company on a price/earnings (P/E) ratio of between 14 and 15. Forecast earnings growth of 15% suggests that Mothercare is only around fair value on the basis of its price/earnings to growth (PEG) ratio.
For 2011/12, though, the P/E falls to 12 with earnings growth forecast in the high teens. A share price of 521p looks a reasonable price to pay for that level of growth and you get a dividend at an above-average yield thrown in.
In my view the current share-price weakness, reflecting the market's jitteriness about the company's UK operations in the short term, offers a decent entry point for investors with a longer-term horizon – even though there's a chance of some further downward revision of earnings forecasts and/or share-price weakness in the immediate future.
Cash Flow and Existing Business:
It seems to me that the company has already proved Mothercare/Early Learning Centre as a viable global brand and is now in a position to fully exploit that over the coming decade.
Strong cash flow has seen rising net cash on the balance sheet, and although a sizeable pension deficit lurks in the background, a trend of increasing cash generation will underpin further international expansion and brand development.
Mothercare could also increase its share of the profits from its existing international operations by the relatively low-risk strategy of investing in its franchise companies. That's what the discussion to acquire a 25% stake in the Australia/New Zealand operator is all about. In the giant China and India markets the franchise models are already structured as joint ventures to give Mothercare a bigger slice of the profits cake.
Finally, Mothercare's fledgling wholesale business and the nascent development of online shopping in overseas markets both have huge potential to contribute to growth in the coming years.
The Future:
Perhaps the biggest challenge for Mothercare will be to execute on what is a multi-pronged strategy for global domination of the maternity, baby and early years retail markets.
However, chief executive Ben Gordon has shown great vision and purpose to date, and I think investors can have every confidence in him delivering a happy ending.
This Blog is posted by Sparkleminds, A End To End Franchise Solutions Company, Based at Bangalore, India.We offer customized services to businesses seeking expansion through the franchise route and over the last decade have helped numerous clients to scale up their businesses.You could also look at taking up international master franchises.Visit us on www.sparkleminds.com and speak to us, and we are sure you will be more than glad to understand how we could grow your existing business multi-fold times.
It's been a newsy spell for Mothercare (LSE: MTC). It kicked off a couple of weeks ago with a bit of impromptu celebrity endorsement, when proud mum Danni Minogue took newborn son Ethan on his first outing -- to Mothercare's Melbourne branch.
Since then, the company has held its AGM, issued a trading statement, disclosed that it has bought 'yummy mummy' brand Blooming Marvellous, and announced that it is in discussions to acquire a 25% stake in the company that operates the Mothercare and Early Learning Centre franchises in Australia and New Zealand.
Finally, last Monday, the company issued a big slug of share options to its directors to reward a three-year profit increase of 65% and a shareholder return 120% ahead of the FTSE General Retailers index
Mothercare Story:
Mothercare has come a long way since its 'terrible twos' -- 2002, the year that saw a string of profit warnings, and ultimately the ousting of the chief executive, finance director and chairman.
The company made a £25m loss in its 2002/03 financial year. For shareholders, who had also seen their dividend axed, a £1m pay-off to the departing directors rubbed salt into the wound.
Still, every cloud has a silver lining. Mothercare's came in the shape of new chief executive Ben Gordon, who arrived from the Walt Disney Company, where he had been managing director of the Disney Store chain in the Europe and Asia-Pacific region.
The youthful Mr Gordon implemented a three-year recovery plan. More importantly, he had an ambitious longer-term vision: to transform what was an uncharismatic UK retailer with a few international outpost stores into a genuinely global brand.
The ex-Disney man sprinkled his stardust and scripted a Cinderella story for Mothercare.
Taking It Global:
Today the Mothercare group has two iconic world-class brands: Mothercare itself, and the Early Learning Centre, which it acquired for £85m in 2007.
Subsequent smaller acquisitions, of social networking site Gurgle.com and maternity-wear brand Blooming Marvellous, further widen the group's offering across the parenting and pre-parenting spectrum.
Channels to market have also been expanded and now include: out-of-town 'parenting centres', in-home and in-store internet ordering, a new wholesale business, and a rapidly growing international franchise network.
Since Ben Gordon took over as chief executive, group turnover has steadily increased, from £432m to £766m; international sales, as a proportion of total sales, have more than doubled, from 11% to 23%; and the group now has 1,167 stores worldwide in 53 countries.
That may sound like a sizeable international footprint, but Mothercare has only just begun to tap its potential as a global brand. It plans to open at least 100 new overseas stores every year 'for the foreseeable future.'
Present Value:
At the moment the market is choosing to focus on short-term headwinds facing Mothercare's UK operations.
The company's recent trading statement, covering the first quarter, reported continuing strong growth in international sales (+20%) but UK like-for-like sales down 4.1% and an 'uncertain UK consumer environment.'
Whilst the company said that UK margin pressures would be at least partly offset by cost savings, analysts have downgraded their earnings forecasts, fearing tough competition from Tesco (LSE: TSCO), Asda and Marks and Spencer's (LSE: MKS) rejuvenated childrenswear business.
At the current share price of 521p a revised consensus earnings-per-share (EPS) forecast of around 36p for 2010/11 puts the company on a price/earnings (P/E) ratio of between 14 and 15. Forecast earnings growth of 15% suggests that Mothercare is only around fair value on the basis of its price/earnings to growth (PEG) ratio.
For 2011/12, though, the P/E falls to 12 with earnings growth forecast in the high teens. A share price of 521p looks a reasonable price to pay for that level of growth and you get a dividend at an above-average yield thrown in.
In my view the current share-price weakness, reflecting the market's jitteriness about the company's UK operations in the short term, offers a decent entry point for investors with a longer-term horizon – even though there's a chance of some further downward revision of earnings forecasts and/or share-price weakness in the immediate future.
Cash Flow and Existing Business:
It seems to me that the company has already proved Mothercare/Early Learning Centre as a viable global brand and is now in a position to fully exploit that over the coming decade.
Strong cash flow has seen rising net cash on the balance sheet, and although a sizeable pension deficit lurks in the background, a trend of increasing cash generation will underpin further international expansion and brand development.
Mothercare could also increase its share of the profits from its existing international operations by the relatively low-risk strategy of investing in its franchise companies. That's what the discussion to acquire a 25% stake in the Australia/New Zealand operator is all about. In the giant China and India markets the franchise models are already structured as joint ventures to give Mothercare a bigger slice of the profits cake.
Finally, Mothercare's fledgling wholesale business and the nascent development of online shopping in overseas markets both have huge potential to contribute to growth in the coming years.
The Future:
Perhaps the biggest challenge for Mothercare will be to execute on what is a multi-pronged strategy for global domination of the maternity, baby and early years retail markets.
However, chief executive Ben Gordon has shown great vision and purpose to date, and I think investors can have every confidence in him delivering a happy ending.
This Blog is posted by Sparkleminds, A End To End Franchise Solutions Company, Based at Bangalore, India.We offer customized services to businesses seeking expansion through the franchise route and over the last decade have helped numerous clients to scale up their businesses.You could also look at taking up international master franchises.Visit us on www.sparkleminds.com and speak to us, and we are sure you will be more than glad to understand how we could grow your existing business multi-fold times.
Saturday, July 10, 2010
Trader Vic's Signs Master Franchise Agreement For India and Subcontinent with JSM Corp.
Restaurant chain enters franchise agreement with JSM and Gourmet Gulf.
Trader Vic’s will take its three restaurant concepts to India and Sri Lanka, thanks to a new franchise agreement with JSM Corp. Pvt. Ltd. (JSM) and Gourmet Gulf Co. JSM has obtained exclusive development rights to Trader Vic’s trio of concepts – the flagship Trader Vic’s, along with Mai Tai Lounge and Island Bar & Grill – for the subcontinent and neighboring island country.
“JSM is a highly successful and enthusiastic company with whom we are thrilled to be in partnership with,” said Trader Vic’s president and ceo Peter Seely. “India is one of the fastest growing and most exciting locations in the world today and we feel confident that our brand is in very capable hands.”
JSM is partnership between restaurateurs Jay Singh and Sanjay Mahtani; their company’s portfolio includes a variety of independent restaurants in India, as well as those bearing the Hard Rock Café and California Pizza Kitchen banners. Gourmet Gulf Company, part of the Daud Group of Oman, is a franchisee of California Pizza Kitchen, Yo!Sushi, Gourmet Burger Kitchen and Morellis Gelato.
Trader Vic’s currently has 30 locations worldwide. The chain’s main claim to fame is as the home of the original Mai Tai Cocktail, created by The “Trader” Vic Bergeron.
Tags:Traders Vic's, JSM Corp, Mai Tai Lounge, Island Bar and Grill, Peter Seely,Hard Rock Cafe Franchise, California Pizza Kitchen, Yo Sushi, Morellis Gelato, Restaurant Chain,Franchise Agreement,
Source:Thu Jul 01, 2010 EDT Hospitality Style
This Blog is posted by Sparkleminds, A End To End Franchise Solutions Company, Based at Bangalore, India.We offer customized services to businesses seeking expansion through the franchise route and over the last decade have helped numerous clients to scale up their businesses.You could also look at taking up international master franchises.Visit us on www.sparkleminds.com and speak to us, and we are sure you will be more than glad to understand how we could grow your existing business multi-fold times.
Trader Vic’s will take its three restaurant concepts to India and Sri Lanka, thanks to a new franchise agreement with JSM Corp. Pvt. Ltd. (JSM) and Gourmet Gulf Co. JSM has obtained exclusive development rights to Trader Vic’s trio of concepts – the flagship Trader Vic’s, along with Mai Tai Lounge and Island Bar & Grill – for the subcontinent and neighboring island country.
“JSM is a highly successful and enthusiastic company with whom we are thrilled to be in partnership with,” said Trader Vic’s president and ceo Peter Seely. “India is one of the fastest growing and most exciting locations in the world today and we feel confident that our brand is in very capable hands.”
JSM is partnership between restaurateurs Jay Singh and Sanjay Mahtani; their company’s portfolio includes a variety of independent restaurants in India, as well as those bearing the Hard Rock Café and California Pizza Kitchen banners. Gourmet Gulf Company, part of the Daud Group of Oman, is a franchisee of California Pizza Kitchen, Yo!Sushi, Gourmet Burger Kitchen and Morellis Gelato.
Trader Vic’s currently has 30 locations worldwide. The chain’s main claim to fame is as the home of the original Mai Tai Cocktail, created by The “Trader” Vic Bergeron.
Tags:Traders Vic's, JSM Corp, Mai Tai Lounge, Island Bar and Grill, Peter Seely,Hard Rock Cafe Franchise, California Pizza Kitchen, Yo Sushi, Morellis Gelato, Restaurant Chain,Franchise Agreement,
Source:Thu Jul 01, 2010 EDT Hospitality Style
This Blog is posted by Sparkleminds, A End To End Franchise Solutions Company, Based at Bangalore, India.We offer customized services to businesses seeking expansion through the franchise route and over the last decade have helped numerous clients to scale up their businesses.You could also look at taking up international master franchises.Visit us on www.sparkleminds.com and speak to us, and we are sure you will be more than glad to understand how we could grow your existing business multi-fold times.
Thursday, June 24, 2010
Coffee Franchise Business In Australia : A Few Franchisers Perspective On The Booming Coffee Industry
The coffee industry in Australia is booming. According to Datamonitor's Hot Drinks in Australia to 2013 report, the biggest growth in coffee sales is expected to come from out-of-home consumption. Sales in hot drink products are expected to reach $1.47 billion in 2013, up from 2008's $1.35 billion, with coffee accounting for the largest share of this figure.
In terms of business, the downside to this opportunity for growth comes with more and more competitors entering the market. Every new coffee store opening up in the neighbourhood makes it harder for the existing establishments, regardless of whether they are franchises or company-owned, to stand out from the crowd.
In such a competitive market it is important for franchises to keep costs down for their franchisees, allowing them to offer a competitive price to their consumers. According to Gareth Pike, general manager of Gloria Jean's, the secret to maintaining low costs for franchisees is to maintain strong and close relationships with suppliers. "We're constantly working with them to deliver the best possible quality of product at the most competitive price. It's less about bulk buying and more about having that ongoing working relationship, and then having that under constant review," he says.
"But then obviously through size you get the benefit of purchasing more products so you're able to work with suppliers. It's a real balance between the highest possible quality and the right pricing so that our guests are receiving the very best quality products and the franchise partners are able to still deliver a profit."
One of the key benefits of being part of the franchising business model in the coffee and chocolate industry is that franchisees should be able to rely on the franchisor to source the best quality products at a competitive rate. Jim Richardson, franchisor of Chocolate Room, a chocolate-based cafe with 10 franchises in Australia and another 15 in India, agrees that a lot of pressure is taken off franchisees by having the franchisor source their supplies.
"The only thing we can do to keep costs down for them is use our buying power," he says. "So when we go and purchase some of the Italian products or chocolates or even things like milk and coffee, we're acting as their buying office if you like. We buy on their behalf. Eighty or 90 per cent of the products they buy come through us, and one of our jobs is to make sure that we can supply it at a red-hot price to give them an advantage."
The quality of Australian coffee is among the best in the world, so it is important that franchises focus on delivering a consistently great product at every store. Using specified suppliers is one way to provide Australia's increasingly discerning coffee drinkers with the same experience day-in-day-out, because if they don't like what they get, they can easily walk down the street to find an alternative.
At Gloria Jean's, says Pike, consistency and quality are high priorities to ensure all the coffee franchises have the best opportunity to provide the best quality. It's all about maintaining standards, across quality and consistency, he adds.
Marketing the brand and the product in an effective way is invaluable in this industry. Not only is it important to establish a point of difference but to ensure that consumers think of the franchised brand when they're in search of their daily caffeine hit, and this can only be achieved by knowing your target audience and communicating with them.
Xpresso Delight, which was named the fifth fastest growing franchise by revenue in BRW's Fast Franchises list in 2008, has made a name for itself by transplanting the cafe experience from the outside world into the corporate sphere. The company targets businesses keen to reward their workers with a cup of coffee, and to discourage them leaving their desk for what has become the modern day 'smoko'.
Co-founder Stephen Spitz says: "Obviously we're not in a retail environment, so we market business-to-business rather than to the end-user or the retail customer. So we have a very specific marketing strategy to do that. We're not like a well known brand in the retail market ... however, among the corporate marketplace, where we've got franchisees operating, they know exactly who Xpresso Delight is."
The same story can be told for Latte Cartelle, a Melbourne-based coffee chain in its infancy providing cafe-style roasted coffee in a drive-through setting. Director Linda Tsiokas encourages franchisees to do letterbox drops, car windscreen drops, to talk to the media, and use simple word of mouth - whatever it takes to emphasise that this franchise is different to the plethora of other coffee houses around the country offering the same product.
One of the hardest things about her line of work, however, is highlighting the difference between Latte Cartelle and other drive-through venues where coffee is available, like McDonald's. "They [McDonald's] still give you your sugar in a sachet. So you try to drive out in your work clothes, take the lid off, spill it in your car, put the sugar in - I don't believe that they have the same commitment to quality. They do a fantastic burger and fries deal, but let us do the sensational coffee," she suggests.
The personal touch is a point of difference. "We can make your coffee with one and a half sugars, to a warm temperature or to 80 degrees. We make your order absolutely specific to how you want it."
With about half of its outlets located in hospitals, Hudsons Coffee also has to pay special attention to how the brand is marketed. With limited exposure to the outside world the company needs to ensure that it impresses hospital workers and visitors with a consistently great product, yet still has to build a profile beyond this market.
Providing coffee for visitors and staff gives hospital-based Hudsons franchisees a pretty consistent and regular customer-base, but it has a down-side to it as well. Alison Were, national franchise manager at Hudsons, says that not being in public view can make it difficult for franchisees to stand out in the coffee crowd. "The negative effect is that you only have that group. So how do you reach outside that? And can you gain additional revenue outside of the hospital? And that's very difficult."
In order to achieve this, Hudsons focuses on marketing at every level. It has a national campaign, state-based promotions, segment-based campaigns and local area marketing initiatives which focus on specific customer groups. "That's one of the requirements of our franchisees," she says. "They have to be continually looking with their franchise consultant into the various local area marketing opportunities for their store in particular."
Getting back to basics and marketing on a local level is essential even for massive franchises like Gloria Jean's Coffees, which now has 500 stores in Australia alone, and promotes its brand through their various community initiatives. Gloria Jean's has introduced a community program where the marketing managers and franchisee work closely to identify local activities with which the franchise can become involved. Some recent examples of this are sponsoring a Castle Hill Australia Day citizenship ceremony and sponsoring fundraising for Adelaide Zoo by promoting its new panda exhibit.
The Coffee Club franchise has a similar approach. In addition to its involvement with charity and community initiatives, the company has also sponsored a number of television programs such as Australia's Funniest Home Videos and My Kitchen Rules, as well as various sporting events, in order to maximise the brand's exposure.
John Lazarou, public relations director at Coffee Club explains: "As a result of an increasingly competitive industry, it is certainly a challenge to achieve breakthrough. However, by aligning ourselves with quality organisations through sponsorships such as the WOW Brisbane Broncos, Brisbane Roar and the Melbourne Marathon, just to name a few, we are able to increase brand awareness and customer engagement substantially."
But while such far reaching marketing programs build national presence, serving a great product consistently and combining it with great service are at the heart of a coffee business. And even if coffee isn't the specialty, it is still something that needs to be mastered, says The Chocolate Room's Jim Richardson. "In our own cafe, coffee would be second to chocolate," he admits. "It might be 30 per cent of our business but coffee seems to be the barometer that a lot of cafes are judged by. So what I say to a lot of our franchisees is that you've got to serve beautiful coffee. You serve one lousy coffee and the rest of your chocolate products get tarnished. You could serve the best hot chocolate and the best fondues and all the chocolate paraphernalia, but your reputation seems to be judged by coffee."
While maintaining a competitive price is important, the average Australian's high expectation of a coffee serve means they don't necessarily want to buy the cheapest they can find, and so top quality coffee retailers want to communicate their superior product to customers.
"Our franchisees always watch their competition and are always mindful of where they sit in the market, but they're not necessarily trying to be the cheapest because there's no point in having a race to the bottom of the price line," Richardson believes. "I'd rather our stores remain competitive and slightly above average because we serve seriously above average products and our customers recognise that."
Instead of relying on people searching for its coffee, mobile coffee franchise, Cafe2u, comes directly to the customer. This business model offers obvious cost savings for franchisees: they don't have to pay rent or other associated expenses like a fixed bond or electricity, nor wages.
Apart from their initial set-up fee and a weekly flat-fee, Cafe2u franchisees only have to pay for the maintenance of their vehicle, the products they use and a contribution to a marketing fund. This then allows them to keep their prices steady when others raise the costs. "The coffee culture in Australia is maturing from the point that the consumer wants a better tasting coffee every year," says managing director, Derek Black.
"When you walk into a small business, the traditional small business attitude is to cut costs, and one way for our competitors to cut costs is to do one of two things: either put less coffee into the basket or get as much water over the coffee so they can make more coffees. What we've done in the last 12 months is recognise what's happened in the industry, and we've increased the amount of coffee we put in the basket by 20 per cent. So we've maintained credibility with our customers because we've kept pace with their taste profile and we haven't charged them anymore for that," he reveals.
One of the quickest and easiest ways to add to the turnover in this industry used to be to up-sell, and while coffee and chocolate, or other such sweets, go hand-in-hand, there is a valid argument that up-selling can transform a business's reputation from being well respected to being just another take-away joint.
Having previously worked in the service station industry, Black knows how impersonal and frustrating up-selling can be for consumers, and how quickly it can cheapen a brand's reputation. This is why he encourages Cafe2u's franchisees to give away samples of their new products, whether it is a new frappé flavour or a muffin, rather than pushing to add them onto a sale. According to Black, the vast majority of Cafe2u customers are regulars, so trying to add on products would put a strain on the relationship.
"Our guys probably could do more [up-selling] if they chose to, but they have a rapport with their customers and it's very difficult to up-sell to somebody that you know. That's why we talk about sampling. It's a way where you don't have to offend anybody. And that sort of selling to people you see every day is less offensive than every time you go into a service station and they ask if you want two chocolates to go with that," he said. "You can't treat your regular customers as if you don't know them."
Latte Cartelle, which already pays attention to distinguishing itself from the mass market drive-through industry, also tries to steer clear of selling add-on products. While the business does offer snacks and small meals like wraps and paninis, director Linda Tsiokas is adamant that the focus be on coffee. "We're not prepared to compromise on that. If there's a food product that comes in that might sell but it compromises the service time or it compromises the quality of the coffee, then we won't do it," she advises.
"And we're reluctant to be saying to every customer 'would you like fries with that?' ... we really want our focus to be on coffee and we understand that that's perhaps the only reason that some of our customers are there - purely for coffee."
Source:24 June 2010 | by Danielle Bowling
Tags:gloria jeans, franchising business model, jim richardson, chocolate room, xpresso delight, stephen spitz, latte cartelle, linda tsiokas, hudsons coffee, coffee club, cafe2u.
This Blog is posted by Sparkleminds, A End To End Franchise Solutions Company, Based at Bangalore, India.We offer customized services to businesses seeking expansion through the franchise route and over the last decade have helped numerous clients to scale up their businesses.You could also look at taking up international master franchises.Visit us on www.sparkleminds.com and speak to us, and we are sure you will be more than glad to understand how we could grow your existing business multi-fold times.
In terms of business, the downside to this opportunity for growth comes with more and more competitors entering the market. Every new coffee store opening up in the neighbourhood makes it harder for the existing establishments, regardless of whether they are franchises or company-owned, to stand out from the crowd.
In such a competitive market it is important for franchises to keep costs down for their franchisees, allowing them to offer a competitive price to their consumers. According to Gareth Pike, general manager of Gloria Jean's, the secret to maintaining low costs for franchisees is to maintain strong and close relationships with suppliers. "We're constantly working with them to deliver the best possible quality of product at the most competitive price. It's less about bulk buying and more about having that ongoing working relationship, and then having that under constant review," he says.
"But then obviously through size you get the benefit of purchasing more products so you're able to work with suppliers. It's a real balance between the highest possible quality and the right pricing so that our guests are receiving the very best quality products and the franchise partners are able to still deliver a profit."
One of the key benefits of being part of the franchising business model in the coffee and chocolate industry is that franchisees should be able to rely on the franchisor to source the best quality products at a competitive rate. Jim Richardson, franchisor of Chocolate Room, a chocolate-based cafe with 10 franchises in Australia and another 15 in India, agrees that a lot of pressure is taken off franchisees by having the franchisor source their supplies.
"The only thing we can do to keep costs down for them is use our buying power," he says. "So when we go and purchase some of the Italian products or chocolates or even things like milk and coffee, we're acting as their buying office if you like. We buy on their behalf. Eighty or 90 per cent of the products they buy come through us, and one of our jobs is to make sure that we can supply it at a red-hot price to give them an advantage."
The quality of Australian coffee is among the best in the world, so it is important that franchises focus on delivering a consistently great product at every store. Using specified suppliers is one way to provide Australia's increasingly discerning coffee drinkers with the same experience day-in-day-out, because if they don't like what they get, they can easily walk down the street to find an alternative.
At Gloria Jean's, says Pike, consistency and quality are high priorities to ensure all the coffee franchises have the best opportunity to provide the best quality. It's all about maintaining standards, across quality and consistency, he adds.
Marketing the brand and the product in an effective way is invaluable in this industry. Not only is it important to establish a point of difference but to ensure that consumers think of the franchised brand when they're in search of their daily caffeine hit, and this can only be achieved by knowing your target audience and communicating with them.
Xpresso Delight, which was named the fifth fastest growing franchise by revenue in BRW's Fast Franchises list in 2008, has made a name for itself by transplanting the cafe experience from the outside world into the corporate sphere. The company targets businesses keen to reward their workers with a cup of coffee, and to discourage them leaving their desk for what has become the modern day 'smoko'.
Co-founder Stephen Spitz says: "Obviously we're not in a retail environment, so we market business-to-business rather than to the end-user or the retail customer. So we have a very specific marketing strategy to do that. We're not like a well known brand in the retail market ... however, among the corporate marketplace, where we've got franchisees operating, they know exactly who Xpresso Delight is."
The same story can be told for Latte Cartelle, a Melbourne-based coffee chain in its infancy providing cafe-style roasted coffee in a drive-through setting. Director Linda Tsiokas encourages franchisees to do letterbox drops, car windscreen drops, to talk to the media, and use simple word of mouth - whatever it takes to emphasise that this franchise is different to the plethora of other coffee houses around the country offering the same product.
One of the hardest things about her line of work, however, is highlighting the difference between Latte Cartelle and other drive-through venues where coffee is available, like McDonald's. "They [McDonald's] still give you your sugar in a sachet. So you try to drive out in your work clothes, take the lid off, spill it in your car, put the sugar in - I don't believe that they have the same commitment to quality. They do a fantastic burger and fries deal, but let us do the sensational coffee," she suggests.
The personal touch is a point of difference. "We can make your coffee with one and a half sugars, to a warm temperature or to 80 degrees. We make your order absolutely specific to how you want it."
With about half of its outlets located in hospitals, Hudsons Coffee also has to pay special attention to how the brand is marketed. With limited exposure to the outside world the company needs to ensure that it impresses hospital workers and visitors with a consistently great product, yet still has to build a profile beyond this market.
Providing coffee for visitors and staff gives hospital-based Hudsons franchisees a pretty consistent and regular customer-base, but it has a down-side to it as well. Alison Were, national franchise manager at Hudsons, says that not being in public view can make it difficult for franchisees to stand out in the coffee crowd. "The negative effect is that you only have that group. So how do you reach outside that? And can you gain additional revenue outside of the hospital? And that's very difficult."
In order to achieve this, Hudsons focuses on marketing at every level. It has a national campaign, state-based promotions, segment-based campaigns and local area marketing initiatives which focus on specific customer groups. "That's one of the requirements of our franchisees," she says. "They have to be continually looking with their franchise consultant into the various local area marketing opportunities for their store in particular."
Getting back to basics and marketing on a local level is essential even for massive franchises like Gloria Jean's Coffees, which now has 500 stores in Australia alone, and promotes its brand through their various community initiatives. Gloria Jean's has introduced a community program where the marketing managers and franchisee work closely to identify local activities with which the franchise can become involved. Some recent examples of this are sponsoring a Castle Hill Australia Day citizenship ceremony and sponsoring fundraising for Adelaide Zoo by promoting its new panda exhibit.
The Coffee Club franchise has a similar approach. In addition to its involvement with charity and community initiatives, the company has also sponsored a number of television programs such as Australia's Funniest Home Videos and My Kitchen Rules, as well as various sporting events, in order to maximise the brand's exposure.
John Lazarou, public relations director at Coffee Club explains: "As a result of an increasingly competitive industry, it is certainly a challenge to achieve breakthrough. However, by aligning ourselves with quality organisations through sponsorships such as the WOW Brisbane Broncos, Brisbane Roar and the Melbourne Marathon, just to name a few, we are able to increase brand awareness and customer engagement substantially."
But while such far reaching marketing programs build national presence, serving a great product consistently and combining it with great service are at the heart of a coffee business. And even if coffee isn't the specialty, it is still something that needs to be mastered, says The Chocolate Room's Jim Richardson. "In our own cafe, coffee would be second to chocolate," he admits. "It might be 30 per cent of our business but coffee seems to be the barometer that a lot of cafes are judged by. So what I say to a lot of our franchisees is that you've got to serve beautiful coffee. You serve one lousy coffee and the rest of your chocolate products get tarnished. You could serve the best hot chocolate and the best fondues and all the chocolate paraphernalia, but your reputation seems to be judged by coffee."
While maintaining a competitive price is important, the average Australian's high expectation of a coffee serve means they don't necessarily want to buy the cheapest they can find, and so top quality coffee retailers want to communicate their superior product to customers.
"Our franchisees always watch their competition and are always mindful of where they sit in the market, but they're not necessarily trying to be the cheapest because there's no point in having a race to the bottom of the price line," Richardson believes. "I'd rather our stores remain competitive and slightly above average because we serve seriously above average products and our customers recognise that."
Instead of relying on people searching for its coffee, mobile coffee franchise, Cafe2u, comes directly to the customer. This business model offers obvious cost savings for franchisees: they don't have to pay rent or other associated expenses like a fixed bond or electricity, nor wages.
Apart from their initial set-up fee and a weekly flat-fee, Cafe2u franchisees only have to pay for the maintenance of their vehicle, the products they use and a contribution to a marketing fund. This then allows them to keep their prices steady when others raise the costs. "The coffee culture in Australia is maturing from the point that the consumer wants a better tasting coffee every year," says managing director, Derek Black.
"When you walk into a small business, the traditional small business attitude is to cut costs, and one way for our competitors to cut costs is to do one of two things: either put less coffee into the basket or get as much water over the coffee so they can make more coffees. What we've done in the last 12 months is recognise what's happened in the industry, and we've increased the amount of coffee we put in the basket by 20 per cent. So we've maintained credibility with our customers because we've kept pace with their taste profile and we haven't charged them anymore for that," he reveals.
One of the quickest and easiest ways to add to the turnover in this industry used to be to up-sell, and while coffee and chocolate, or other such sweets, go hand-in-hand, there is a valid argument that up-selling can transform a business's reputation from being well respected to being just another take-away joint.
Having previously worked in the service station industry, Black knows how impersonal and frustrating up-selling can be for consumers, and how quickly it can cheapen a brand's reputation. This is why he encourages Cafe2u's franchisees to give away samples of their new products, whether it is a new frappé flavour or a muffin, rather than pushing to add them onto a sale. According to Black, the vast majority of Cafe2u customers are regulars, so trying to add on products would put a strain on the relationship.
"Our guys probably could do more [up-selling] if they chose to, but they have a rapport with their customers and it's very difficult to up-sell to somebody that you know. That's why we talk about sampling. It's a way where you don't have to offend anybody. And that sort of selling to people you see every day is less offensive than every time you go into a service station and they ask if you want two chocolates to go with that," he said. "You can't treat your regular customers as if you don't know them."
Latte Cartelle, which already pays attention to distinguishing itself from the mass market drive-through industry, also tries to steer clear of selling add-on products. While the business does offer snacks and small meals like wraps and paninis, director Linda Tsiokas is adamant that the focus be on coffee. "We're not prepared to compromise on that. If there's a food product that comes in that might sell but it compromises the service time or it compromises the quality of the coffee, then we won't do it," she advises.
"And we're reluctant to be saying to every customer 'would you like fries with that?' ... we really want our focus to be on coffee and we understand that that's perhaps the only reason that some of our customers are there - purely for coffee."
Source:24 June 2010 | by Danielle Bowling
Tags:gloria jeans, franchising business model, jim richardson, chocolate room, xpresso delight, stephen spitz, latte cartelle, linda tsiokas, hudsons coffee, coffee club, cafe2u.
This Blog is posted by Sparkleminds, A End To End Franchise Solutions Company, Based at Bangalore, India.We offer customized services to businesses seeking expansion through the franchise route and over the last decade have helped numerous clients to scale up their businesses.You could also look at taking up international master franchises.Visit us on www.sparkleminds.com and speak to us, and we are sure you will be more than glad to understand how we could grow your existing business multi-fold times.
Saturday, June 19, 2010
New Horizons Renews Its India Master Franchise Agreement For 7 Years.
CONSHOHOCKEN, Pa., Jun 18, 2010 (BUSINESS WIRE) --
New Horizons, the world's largest independent I.T. training company, today announced it had renewed agreements with its India partner New Horizons India Limited, to continue its exclusive arrangement for an additional 7-year period through 2016.
The U.S.-based franchisor began its arrangement, which is a joint venture governed by an exclusive franchise agreement for India, in 2002. Since then, Delhi-based New Horizons India has grown into one of the leading I.T. training companies in India, operating more than 20 locations nationwide.
"We are delighted to take this step with our partners and friends in India," commented Mark Miller, CEO of New Horizons Worldwide. "Although we are pleased with what has been accomplished in our foundational years, India is a dynamic market and our journey in India is just beginning."
"It has been a challenging but rewarding period of seven years with New Horizons," added Ajay K. Sharma, President and CEO of New Horizons India. "We are delighted to extend our association for the next seven years. As the Indian Economy grows faster than most, the growing skills shortages are presenting us with huge social responsibility as well as business opportunity and we hope to achieve a high rate of growth in the years ahead."
About New Horizons Computer Learning Centers
With over 300 centers in 70 countries, U.S.-based New Horizons Worldwide Inc. is the world's largest I.T. training company. Through an integrated learning approach that ensures that new knowledge can be applied to real-life situations, New Horizons delivers a full range of technology and business skills training from basic application and desktop productivity tools to complex and integrated business systems. New Horizons continues to expand its offerings, locations, and solutions to meet the growing demands placed on organizations and their employees.
SOURCE: New Horizons Worldwide Inc.
Tags:New Horizons Franchise, I.T. Training Franchise, Joint Venture Franchise Agreement,Computer Learning Centers, Computer Education Franchise, Technology Education Franchise,Computer Franchise,International Franchise.
This Blog is posted by Sparkleminds, A End To End Franchise Solutions Company, Based at Bangalore, India.We offer customized services to businesses seeking expansion through the franchise route and over the last decade have helped numerous clients to scale up their businesses.You could also look at taking up international master franchises.Visit us on www.sparkleminds.com and speak to us, and we are sure you will be more than glad to understand how we could grow your existing business multi-fold times.
New Horizons, the world's largest independent I.T. training company, today announced it had renewed agreements with its India partner New Horizons India Limited, to continue its exclusive arrangement for an additional 7-year period through 2016.
The U.S.-based franchisor began its arrangement, which is a joint venture governed by an exclusive franchise agreement for India, in 2002. Since then, Delhi-based New Horizons India has grown into one of the leading I.T. training companies in India, operating more than 20 locations nationwide.
"We are delighted to take this step with our partners and friends in India," commented Mark Miller, CEO of New Horizons Worldwide. "Although we are pleased with what has been accomplished in our foundational years, India is a dynamic market and our journey in India is just beginning."
"It has been a challenging but rewarding period of seven years with New Horizons," added Ajay K. Sharma, President and CEO of New Horizons India. "We are delighted to extend our association for the next seven years. As the Indian Economy grows faster than most, the growing skills shortages are presenting us with huge social responsibility as well as business opportunity and we hope to achieve a high rate of growth in the years ahead."
About New Horizons Computer Learning Centers
With over 300 centers in 70 countries, U.S.-based New Horizons Worldwide Inc. is the world's largest I.T. training company. Through an integrated learning approach that ensures that new knowledge can be applied to real-life situations, New Horizons delivers a full range of technology and business skills training from basic application and desktop productivity tools to complex and integrated business systems. New Horizons continues to expand its offerings, locations, and solutions to meet the growing demands placed on organizations and their employees.
SOURCE: New Horizons Worldwide Inc.
Tags:New Horizons Franchise, I.T. Training Franchise, Joint Venture Franchise Agreement,Computer Learning Centers, Computer Education Franchise, Technology Education Franchise,Computer Franchise,International Franchise.
This Blog is posted by Sparkleminds, A End To End Franchise Solutions Company, Based at Bangalore, India.We offer customized services to businesses seeking expansion through the franchise route and over the last decade have helped numerous clients to scale up their businesses.You could also look at taking up international master franchises.Visit us on www.sparkleminds.com and speak to us, and we are sure you will be more than glad to understand how we could grow your existing business multi-fold times.
Wednesday, June 9, 2010
Luxury French Jewellery Manufacturer Akillis Looks at Expansion In India
Luxury French jewellery manufacturer Akillis announced plans to expand its distribution network throughout India through opening of boutiques, appointment of franchise partners, shop in shops and retail corners across India as part of its first phase of expansion.
“The Indian region has been identified as an increasingly important market for Akillis as it is an extremely receptive market for luxury products,” said CEO Caroline Gaspard. “In France, we sell a lot of jewellery to customers from India and a brand cannot be classified as truly global if it is not represented in the Indian Subcontinent. The region is obviously a high-growth and high-income region and is developing into a major player in the world of luxury.”
Akillis jewellery stands out from the ordinary and does not follow characteristic jewellery designs followed by leading jewellers around the world and none of the old school models of using hearts, small animals and floral patterns that are so common in jewellery designs form part of the Akillis repertoire.
Against the backdrop of the global economic recession, Akillis boasted a turnover of US$14 million last year. “While the global economic downturn that began in late 2008 brought recession to the United States and Europe and the rest of the world, the global downturn has not dented the demand for luxury goods and the crisis had little impact on spending habits among the rich and super rich,” said Ms Gaspard.
She noted that despite a tougher economic climate, self-reward and pampering remained strong factors for buying luxury items. “Akillis has not really been affected by the worldwide recession. The people who buy our fine line of jewellery pieces are not affected by the recession and as a matter of fact, we actually grew our business 300 per cent during the worldwide credit crunch,” Ms Gaspard concluded.
Tags:luxury jewellery franchise, jewellery manufacturer, shop in shops, franchise partners, retail corners, caroline gaspard, jewellery retailer, french franchisor in india, french business in india,
“The Indian region has been identified as an increasingly important market for Akillis as it is an extremely receptive market for luxury products,” said CEO Caroline Gaspard. “In France, we sell a lot of jewellery to customers from India and a brand cannot be classified as truly global if it is not represented in the Indian Subcontinent. The region is obviously a high-growth and high-income region and is developing into a major player in the world of luxury.”
Akillis jewellery stands out from the ordinary and does not follow characteristic jewellery designs followed by leading jewellers around the world and none of the old school models of using hearts, small animals and floral patterns that are so common in jewellery designs form part of the Akillis repertoire.
Against the backdrop of the global economic recession, Akillis boasted a turnover of US$14 million last year. “While the global economic downturn that began in late 2008 brought recession to the United States and Europe and the rest of the world, the global downturn has not dented the demand for luxury goods and the crisis had little impact on spending habits among the rich and super rich,” said Ms Gaspard.
She noted that despite a tougher economic climate, self-reward and pampering remained strong factors for buying luxury items. “Akillis has not really been affected by the worldwide recession. The people who buy our fine line of jewellery pieces are not affected by the recession and as a matter of fact, we actually grew our business 300 per cent during the worldwide credit crunch,” Ms Gaspard concluded.
Tags:luxury jewellery franchise, jewellery manufacturer, shop in shops, franchise partners, retail corners, caroline gaspard, jewellery retailer, french franchisor in india, french business in india,
Subscribe to:
Posts (Atom)