Deciding on Locations for New Units: A Multi-Unit Franchisee Perspective
Choosing the right location for a new restaurant or coffeehouse is crucial for any franchisee looking to expand. It’s a multidimensional decision that involves weighing various factors and data points to predict the success of the new unit. Here, several multi-unit operators share their insights and strategies for selecting optimal locations for their businesses.
Utilizing Franchisor Expertise
For franchisees of Beans & Brews Coffeehouse, the strategy involves leaning heavily on franchisor guidance to identify optimal real estate. Key factors such as traffic volume, growth projections, and demographic trends are essential to ensure the viability of each potential site. This partnership has led to the discovery of prime locations, contributing to the success and expansion of their coffee shops within the Salt Lake City area.
Community Engagement and Understanding
Franchisees of Hungry Howie’s Pizza emphasize the importance of being close to the operation units and engaging with the community. By spending days learning about the community, assessing consumer preferences, and understanding the existing local engagement, franchisees can make informed decisions that resonate with the local populace, thereby ensuring continued success.
Comprehensive Location Analysis
Another critical approach involves a thorough analysis of several key factors before deciding on a new location. These include but are not limited to:
- Demand for the brand offering in the trade area.
- Potential cannibalization of sales at nearby locations.
- Comparative advantage over key competitors.
- Accessibility and visibility of the location.
- Potential for brand-new customer traffic based on the existing and “likely” customer base within the vicinity.
- Previous history of the proposed location, especially if it was previously occupied by a similar brand.
These factors, especially when analyzed with a keen understanding of brand-specific customer demographics and traffic patterns, can significantly influence the decision-making process, ensuring a location that not only attracts the target market but also offers a competitive edge in the area.
Childhood Ambitions and Diverse Aspirations
The journey towards becoming a successful multi-unit franchisee is often paved with varied aspirations. From dreams of being a pilot, doctor, or architect to owning entertainment parks, the backgrounds of franchisees are as diverse as their strategies for selecting new unit locations. These early dreams, though seemingly unrelated, contribute to the unique perspectives and innovative approaches they bring to their franchise operations.
In conclusion, the decision on where to locate new units involves a blend of franchisor guidance, in-depth community understanding, and a systematic evaluation of several critical factors. By adopting a bespoke approach that considers the unique attributes of each possible location, franchisees can maximize their potential for success and growth in the competitive restaurant and coffeehouse market.
