In my last email I described some of the exciting new models that are transforming service businesses in franchising. This week I wanted to cover 3 retail service business models that are currently showing great growth trends.
Retail concepts are different from the companies that I outlined last email in that they require that a physical location be obtained. With this in mind these generally represent a more substantial investment in initial capital but offer things that a home business are not able to give you…mainly traffic. With a retail business you have traffic coming and going and a physical place to plant your business flag. This creates immediate branding opportunities that an in home business might not be able to accomplish out of the box.
The first are national woman clothing boutiques. I suspect that the growth and popularity of these concepts is due in large part to the resurgence of non-mall shopping complexes that are more localized and their models to locate within smaller retail areas within community and neighborhood commerce centers. Positioning themselves out of the malls allows them to generally negotiate a much better lease structure and dictate more desirable space configurations which makes the store model much more efficient. Here is a boutique concept that is having great success in operating under this model.
Scout and Molly’s
One of the largest sectors of growth in franchising is temporary employment. The hiring surge in temp help accounts for 15% of all job growth nationally the last four years (not including self-employment), even though the industry makes up 2% of the nation’s workforce. And in some metropolitan areas, the share of job growth that can be credited to the temp sector is much, much higher: 65% in Cincinnati, 51% in Milwaukee, 46% in Kansas City. Even in bigger metros, like Chicago and Philadelphia, the temp sector accounts for more than 40% of new jobs since 2009. The required space for these locations is minimal so your lease expenses are not a huge factor and the build out expenses are very minimal.
Express Employment Professionals
The third retail model is food service. Many years ago the trend in food service was for large full service facilities but that trend has changed. The emergence of more niche concepts have created a whole new sector of restaurant options. Now for those who I have spoken with will attest pointing non food service people into a restaurant franchise is not something that I have done in the past. For the most part that still is the case however food service establishments are simplifying their models which allows them to bring in a broader range of experience in franchise owners. Two examples of that is Menchie’s and MidiCi’s both concepts that are operated by a group out of LA. Both of these concepts have designed their concepts so that they can be efficiently operated by non-food service executives with good results. Here is their information.
Menchie’s Frozen Yogurt
MidiCi’s Neopolitan Pizza
(click on the links below each company and you will get short synopsis of the company…if you find the synopsis interesting fill out your name on the form at the bottom of the page. It is not necessary to fill out anything else since I already have the rest of your information. Enter the code and hit the return interest key. That will send your interest back to me and I will follow up. Important: Unlike other searches that you do on the internet no one will be getting this information but me so you will not be getting any annoying calls)
These are just some of the retail models that are out there but there are literally hundreds of other examples in almost any industry. Happy exploring…
Stay tuned next I will cover the professional coaching models next.