DELIVERING A PERSONALISED SERVICE
Inside Franchise Business looks at the trends for mobile businesses, fitness, and beauty which are delivering what today's Australian customers want.
MOBILE FRANCHISES GAIN MOMENTUM
Mobile services are a current trend in the franchise sector.
“From a market perspective, mobile franchises are less investment than a traditional food court or fast food business. So, it appeals to a wider demographic,” Jason Daniels, partner, business services, BDO, wrote in a recent blog.
“One of the biggest challenges with a bricks and mortar franchise is that trends change, and mobile services can respond to them better.”
Food trucks have emerged as a trendy alternative to larger food restaurants.
The biggest shift is said to come from millennials. It’s no longer seen as ‘off putting’ to buy food from a truck as the food is usually of a high quality. Having a mobile business means franchisees can take their business to the consumer.
Convenience is at the heart of the delivery/mobile trend, which is a global phenomenon.
It’s a trend that spy store chain OzSpy has picked up on – the retailer with the coolest gadgets has shifted its business model to open up a mobile option. Now franchisees can focus on providing an expert on-site service for what accounts for the bulk of the business, CCTV installation.
Service franchises on the go have come into their own. With constantly connected consumers, many of whom work flexible hours, the traditional mobile businesses such as dog grooming services, car detailing and lawn mowing, are now right on trend.
Blue Wheelers, for example, is a mobile wash, clip, and groom service that travels to client’s homes. Franchisees have the flexibility to choose their own time and clients don’t have to worry about the logistics of getting their dogs to the groomers.
For retail operations, going mobile means franchisees can also avoid the high rental costs common in today’s retail arena and can invest in a low-cost franchise option
Two brands, Anytime Fitness and Jetts, were instrumental in developing this sector in Australia. The convenient, 24-hour fitness club franchise with access to a wide variety of high quality cardio, strength and free weight equipment is now a standard. The gyms especially fit the lifestyle of fast-paced millennials who thrive on flexibility and convenience.
According to IBISWorld the fitness market as a whole will grow at 1.5 per cent till 2022.
US publication Entrepreneur reports “The US market currently brings in about $31 billion annually and around one in 10 of those dollars comes through a franchise, but in recent years, franchise growth has outpaced the overall industry.”
Instagram has also played a part in the success of 24 hour gyms as people enjoy being ‘insta-fit’ and showing off their 5 am muscles before starting their day.
SPECIALITY FITNESS TRAINING
Today there is a trend for niche, personalised options that deliver both convenience and results. New fitness models are providing personal trainers, Pilates and yoga instructors, with new business opportunities.
The fitness industry is seeing trends such as custom built gyms and speciality fitness training, which is starting to build momentum in the franchise sector. Speciality fitness is all the rage right now and boxing and kickboxing franchises are gaining a ‘cult following’.
Specialty fitness programs focus on a particular style of exercise, piece of equipment and sometimes even a philosophical approach. This is starting to explode in the US and it probably won’t be long till Australia starts following suit. Currently in the US there is even a gym
that is focused on rodeo training!
In Australia the Collective Wellness Group, which runs Anytime Fitness, has opened Orangetheory Fitness and just acquired Xtend Barre, a Pilates-based franchise offering a multi-studio ballet barre workout program. Xtend Barre expects to grow to 80 studios or more in the next five years.
Turn to page 32 to read about some new and upcoming fitness brands.
BEAUTY IS FLOURISHING
Wellbeing, results-driven beauty treatments and cosmetics are focal points in the beauty sector.
In the US 7‑Eleven is broadening its product offer with the launch of an affordable range of cosmetics, Simply Me Beauty. The convenience franchise plans to gain market share in this multi-billion dollar industry competing with drug stores and supermarkets which have 30 percent of the market.
In Australia pharmacy chains are keeping ahead of the trends.
A new big box pharmacy brand that focuses on delivering a holistic approach to healthcare and healthy living is the result of an initiative linking the pharmacy group Discount Drug Stores and two Cairns pharmacists.
Wholehealth Discount Drug Store and Healthfoods was founded by brothers and pharmacists Frank and Vince Pappalardo. Frank Pappalardo says the aim is to deliver a sought after retail experience to the community as consumers shift toward living healthier lifestyles.
The new model focuses on delivering a holistic approach to healthcare in order to improve patient outcomes, lifestyle and wellbeing, by offering expert health advice and professional services alongside the country’s widest and most affordable range of organic and natural products across nutrition, health foods, skincare and beauty.
The bigger format model, which ensures all new stores occupy a minimum of 500 sqm, will allow the Discount Drug Stores brand to expand into standalone and destination retail sites.
At a niche level, franchised beauty chain endota spa has taken its branding to the next level, announcing beauty and wellbeing ambassador partnerships with stylists Sheree Commerford and Sibella Court and makeup artist Teneille Sorgiovanni, and revealing its latest results-based product range.
In January the chain of 100 spas will introduce a new anti-ageing range of 24 products designed to meet customer demands for results-based treatments. The products are designed to work in conjunction with endota spa’s current anti-ageing treatments in spa which offer a supercharged facial experience, with take home products to maintain results.
Founded in 2000, the endota spa chain today employs more than 1000 people; 90 per cent of them women, and it has had more than 120 successful franchisees.
Read about one phenomenally successful franchisee who has nine endota spa outlets in our feature about multi-unit franchisees on page 50.
And for Australian Skin Clinics, the move into Western Australia with the opening of its Mandurah outlet is the first step outside the east coast.
Australian Skin Clinics’ CEO, Kevin Waite, said the company’s expansion into Western Australia is the result of a growing demand for medi-aesthetics in the state.
“Our focus is to empower our clients to look and feel fantastic by offering affordable, accessible and results driven cosmetic treatments in high quality facilities, delivered by experienced, qualified and highly trained team members.”
Our focus is to empower our clients.