Diverse franchise portfolio allows entrepreneurs to capture different markets
Entrepreneurship has many stages. First comes the desire to launch a small business, followed by actually doing so. Then, down the road, many business owners — especially those with franchise brands — begin to think about a second location, or maybe an entirely new option. And thus, a franchise portfolio is born.
A second location for a current franchise operation makes sense on many levels, especially if consumer demand is high. Expanding into a new franchise offering is also a wise move for many reasons. In addition to bringing a new product or service to the current market, the franchise portfolio owner is able to build up several strong businesses at once. Often, if they are similar, such as restaurants or other food-related brands, they can support each other through co-branded advertising and shared special offers.
It’s also a sharp economic play. Having several different holdings can inoculate the franchise owner from downturns. If one business has a slowdown, for example, another might see an uptick in business. As the old saying goes, “don’t put all your eggs into one basket”.
How to expand a franchise portfolio
So, how does a franchise portfolio get pulled together? A recent article from Entrepreneur magazine offers up several tips explored below. The upshot is to follow the same passion that led to opening a small business in the first place!
Finding a brand that complements current holdings
Look for a brand that complements the current holding. If the current business is a food-related franchise, then it might be wise to look for something that would fuel revenue growth for each.
For instance, if the current property is focused on full meals or sandwiches, then exploring an option around desserts or coffee might be the way to go. This will allow the franchise portfolio to grow in an organic way, and also one where each business can cross-promote the other.
Finding a brand that is entirely new
Plan B: Something totally new! Many franchise owners are justifiably proud of the business their hard work has built. But after a couple of years’ worth of pandemic-related lockdowns, they may want to move away from a specific service model, which can require a field team making visits to homes or offices, and toward a food-based venture.
The sky’s the limit. There are franchises offering full meals in a QSR, restaurant-style setting, others that are more ‘grab and go,’ and still others offering very niche products such as coffee, desserts, and more.
Finding a brand to expand in an existing market
As mentioned above, there’s always the option of growing a current business into more locations. That makes sense if the concept has proven to be a powerhouse and become well-loved in the community. Chances are, the franchise owner has already identified target neighborhoods or venues, and so expansion is simply a matter of working with the franchisor to obtain a second license, and then the support needed to open the new site or sites.
A huge benefit there, as well as opening a similar business with a slightly different offering, is the operational synergies obtained. Both can use the same back-office technology for inventory control and other operational tasks, for instance. And if the products are similar enough, many of the same vendors for raw materials and such things as utensils or produce.
Cold Stone Creamery can be the right expansion franchise
A perfect addition to any franchise portfolio is a Cold Stone Creamery™ location. For starters, ice cream is a perennial favorite dessert, and so there’s built-in consumer appeal before the doors open. Because Cold Stone Creamery’s model offers literally hundreds of ways to customize each order, building repeat business has allowed franchise owners to quickly grow their customer base and revenues.
Cold Stone Creamery also works for first-time owners as well as experienced franchise operators, because it works off a business model designed to be easy to run and easy to scale. There’s solid onboarding and ongoing training thanks to the experienced franchisor team at Kahala Brands™, including 120 hours of initial training that covers everything from marketing and public relations to initial business plans, production creation and even setting up ongoing coaching.
Add a Cold Stone Creamery to a franchise portfolio today!
“The beauty of Cold Stone Creamery is that anyone who enjoys ice cream finds this a fun business to own — whether as a standalone operation or as part of a franchise portfolio,” says Jay Goldstein, Vice President of Franchise Development. “We don’t require any experience in the restaurant industry or the service industry, because our training and support is so involved that we can teach any entrepreneur how to be a Cold Stone Creamery franchisee.”
“Our brand has franchisees who have been with us since the beginning, many of whom have scaled up to multiple locations,” Goldstein adds. “New franchisees are welcomed into the Cold Stone Creamery family with open arms, and the culture is inclusive, accessible and encouraging. Cold Stone Creamery is more relevant than ever, and our goal is to open hundreds of locations in North America and internationally in the coming years.”
Bring an ice cream store to your community today! Find out more by exploring our research pages here. If you’re ready to start a conversation with our franchise team, fill out our form here. We’ll be in touch with a copy of our Franchise Information Report. We look forward to hearing from you!
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