Surely one of life’s little pleasures. Relaxing with some sugar loaded carbs and a latte. Does it get much better than that?
We’re getting a number of inquiries from people looking at patisseries /coffee shops franchises. Unusual as this may sound, we should look beyond the immediate issues of subdued trading conditions and lock-down restrictions.
In fact, we’re hearing of pent-up demand and sweetheart deals with enthusiastic landlords keen to have a tenant for their recently vacated premises!
Some new franchisees are able to negotiate hard for significant landlord contributions on new fitout, together with decent rent-free periods.
There is also an availability of good locations, with more likely on the way.
Then we need to consider the other key issues for the business itself:
Gross profit margin (usually strong because of product mix)
Certainty of supply chain, including alternative suppliers (just in case)
Staffing, roster and wages costs
Marketing, launch promotion, social media plans
Recruitment and staff training
Access to finance in a tight funding market.
Then there are the franchise fees, with franchisors particularly keen at the moment. Definite opportunities there, with up- front discounts and royalty honeymoons negotiable.
And be sure to get a pre-purchase review before you commit.
Let me know if you need a hand.
Peter