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Industry Focus



Benefiting from a repeat and referral business

Market research shows that over more than two thirds (69%) of the 34 million vehicles on the UK roads suffer from minor car damage which can be rectified by mobile automotive repair franchises. This means that franchisees in the industry can enjoy massive demand from a rapidly growing market, which we estimate to be worth over £3.6 billion.

Furthermore, an increasing number of car owners are beginning to learn of the time and money-saving benefits of recruiting a mobile automotive franchise to repair their vehicle. As more customers learn that there is a practical and cost effective alternative to local body shops and rectifying their car damage through their insurance policy, the market will keep on growing.

Opportunity to do something you love

If you like cars and motors, then an automotive repair franchise is a perfect opportunity for you to combine your passion with your career!

Not only does an automotive repair franchise enable you generate a high level of turnover through a proven business model, it also gives you the opportunity to work on a wide range vehicles and do something that you enjoy, ultimately providing you with a happier life.

Loyal, repeat market place

The automotive repair sector benefits from an excellent level of repeat and referral business, as more and more customers become aware of the benefits of using a mobile franchisee.

At ChipsAway franchise, for example, recommendation is one of the main drivers of consumer leads. Customers are so impressed with the outstanding quality of their repair and the convenience of the service, that they tell all their friends and family all about the company who has come to repair their vehicle!

Management expansion opportunities

In a market which is growing in demand, owning your own automotive repair franchise provides excellent opportunities for expansion as your become more established in your local territory.

Depending on your business ambitions, it is possible to expand from a single operator by taking on new staff, develop into a multi-van and multi-unit operation and purchase a larger territory, which will give you access to a higher number of customers and vehicles.

ChipsAway

Established over 20 years and as the originators of minor automotive paint repair technology, ChipsAway have built a fantastic reputation for providing high quality repairs to minor car paintwork scratches, bumper scuffs, alloy wheels, smart repairs and dents to car body work.

More about Chipsaway's franchise opportunity can be found here. To look at other franchises which work within the automotive industry, click here.


Working within a £billion sector with a virtually untapped marketplace

In the last 3 years, the UK’s domestic cleaning sector has grown by 91%, and the market is currently estimated to be worth £2.86 billion. Research has shown that Ovenclean operators currently deal with less than 1% of potential demand across the UK.

With over 26 million households in the UK alone, oven cleaners will benefit from a huge, virtually untapped marketplace as well as growing demand from emerging business markets – after all, everyone has an oven that will need cleaning at some point!

Loyal, repeat marketplace

Research carried out by Braun CareStyle reveal that oven cleaning is the most hated household chore, with a third (30%) of individuals across all generation claiming that they least enjoy scrubbing the oven. So once customers become aware of the incredible benefits of having their oven cleaned, they will never look back!

At Ovenclean, for example, we are able to drive demand through repeat and referral recommendations due to word-of-mouth and a wealth of satisfied customers. Ovenclean franchisees can restore the sparkle to ovens in just a few hours – results which would not be achievable by a customer on their own. Therefore, customers want their oven cleaned time and time again and will tell all their friends and family about the company who has come to clean it!

Opportunity for growth

Due to oven cleaning belonging to a sector which is rapidly growing in demand, there will be opportunities to grow and expand your business.

Depending on your business ambitions, you will have the chance to take on new staff, new territories and turn your business into a multi-van operation.

Satisfaction element

Oven cleaning as a career that is also very rewarding. Rejuvenating a dirty oven into a sparkling clean one is almost guaranteed to put a smile on customers faces, and the feedback and remarks from customers evoke a tremendous amount of satisfaction!

What’s more, an oven cleaning franchise usually benefits from low overheads, a high level of profitability and an easy-to-learn business model, which can be shaped to the individual’s life style and business ambitions. This means that franchisees can maintain an excellent work life balance, leading to a happier life.

Ovenclean

Ovenclean is the UK’s original oven cleaning service with over 20 years’ experience. More about their franchise opportunity can be found here.

To look at other franchises which are van-based or mobile, click here. Alternatively, have a look at franchises for sale within the Property Maintenance and DIY sector, here.


Making a profit from pizza

By Anthony Round, Business Development Manager, Papa John’s

Over the past 30 years, the UK pizza industry has grown into a thriving market. According to Pizza Delivery & Takeaway in the UK: Market Research Report 2016, the industry is expected to grow at a compound annual rate of 5.4% over the five years through 2015-16.

In the early days names like Pizzaland to Pizza Hut and Perfect Pizza, caught the imagination of the public. Consumers were looking for a tasty fast meal at a reasonable price. The benefits of convenience and affordability have now developed the UK pizza scene into an industry worth an estimated £2 billion in the UK today.

Industry Development

In more recent years customer demand has become more refined and a sophisticated customer base demands excellent customer service and a premium product.

As an illustration of the rise of the popularity of quality pizza in the UK, Papa John’s was founded in the USA in 1984 and first launched in the UK 16 years ago. Now, there are well over than 300 stores across the Nation. The franchise’s popularity doesn’t stop there however, the company now has more than 4,800 stores in 40 international markets and territories across the globe.

Many changes have shaped the industry over the years. Home delivery was a major introduction and now online ordering is taking over as the way to order a favourite pizza treat, with increasing numbers of customers having never visited a store at all.

Achieving Repeat Sales

One aspect of the industry that is critical, is the degree of repeat business it is possible to create. Competition is fierce as you would expect in any mature marketplace.

Repeat customers will only keep coming back for more if they are impressed about all aspects of the buying journey from their initial enquiry to the lay out of the store (if they visit it at all), to the openness and efficiency of the staff to the delivery of the product. 30 years ago there was little choice however, now, customer loyalty has to be earned.

At Papa John’s during our new franchisees’ first training days we get them to sample all the different pizzas available on the high street. As well as introducing a little market research of our own, this allows franchisees to benchmark their future offering against the competition. We emphasise ‘keeping the main thing, the main thing’: we will not compromise on the product. Produce a better product with better ingredients and keep the quality consistent and the customers will return. However, creating the perfect product is not enough on its own. Franchisees must lead on delivery, service speed, scrupulous store cleanliness, staff training and in fact, every aspect of the franchise operation.

Market changes

One interesting aspect about the pizza industry is that it seems less influenced by economic uncertainly than other food industries.

It is less expensive to have a delivery pizza than to take the family out for a meal for example. If the delivery companies have done their job properly, when the economic climate improves, customer loyalty will remain because of the better product quality.

Managing a store

When it comes to managing a pizza store it is important to understand and appreciate the overall customer experience. Staff need to be recruited and trained to provide a great product and service. Plus there is marketing and fulfilment to manage.

The role has huge variety and no two days are ever the same! The good news is that when you buy into a pizza franchise all training to enable you to run a successful outlet is provided. Ongoing support is also at the end of the phone. It is in the franchisor’s interest to see you succeed!

Papa John's

Papa John’s is one of the largest pizza delivery franchise companies in the world. More about their franchise opportunity can be found here

To look at other 'food and coffee' franchises, click here or, alternatively, look at franchises for sale in the 'retail' sector here.


 

Franchising in the greetings card industry

By Michael Johnson, Managing Director, Card Connection

Figures from the Greeting Card Association (GCA) put the UK greetings card market at £1.6 billion at retail. The GCA 2015 market survey also suggests 878.8 million single cards were sold in 2014 which was an increase on the previous year by more than 7%.

Have you ever thought about how many cards you send each year? In the UK ‘sending a card’ remains a popular cultural activity regardless of the economic climate. In-fact at Card Connection we have seen some of our high value cards being sent instead of a gift when it’s time for consumers to tighten their belts where spending is concerned.

Although no industry is recession proof, it has weathered the storm of recent economic uncertainty and sales in this established market have continued to remain stable.

Buying behaviour

Interestingly more women send greetings cards than men. The GCA survey suggests 85% of cards are bought by women. It is important to understand these industry statistics when selling greetings cards and as a franchisor we have studied them in depth to ensure our franchisees know how to design displays to appeal to the right customer demographic.

How customers browse and buy cards is also fascinating. Research that has been undertaken has given rise to how shop displays are organised. We encourage our franchisees to lay out greeting cards to a plan which reflects the ‘circle of life’ with birthdays on the left, moving across to wedding, anniversary, age and relations to sympathy on the far right – plus plenty in between! This researched, ‘formula’ for planned displays has helps maximise sales for retailers and franchisee alike.

Distress purchasing is also an interesting phenomenon in the industry. This is where the consumer may have forgotten to purchase a card, or chooses to buy one ‘en-route’ to meet the recipient. Therefore, we see sales in forecourts where these ‘distress purchasers’ are prepared to pay a premium price for cards, suddenly revealing a great market opportunity for suppliers!

Lucrative seasons

When we interview a new franchisee they often ask about Christmas! It is a big sales opportunity but interestingly sales across the industry only rise by 13% at this time of year which again shows the strength of every day sales of cards.

Although this is a seasonal business ‘bread and butter’ card sales tend to be in birthdays, congratulations, wedding, anniversary, get well and many events which happen throughout the calendar year. Occasions like Valentine’s Day, Mother’s Day and Easter are the icing on the cake as far as sales are concerned!

Unique distribution service

Methods of distribution of cards vary. Some retailers buy wholesale and some have card publisher designed displays. However, Card Connection works a little differently where greetings cards are supplied by the franchisee to the retailer on a ‘consignment’ basis.

This means stock and display equipment are ‘on loan’ and the retailer only pays for what they sell. The franchisee visits the stores regularly to merchandise displays and supply new and seasonal stock. This creates a win-win situation for both franchisee and retailer and has proved popular over more than two decades.

The greetings card market is one we are all familiar with as we will all have bought a card at some point! However, there is more to it than one might realise. From the design team that go into the process of developing cards based on trends to the various distribution methods and displays designed to tempt buying behaviour. For new franchisees there is a learning curve, however, the rewards are many including working in a flexible creative sector where no two days are exactly the same.

Card Connection

Card Connection is one of the UK’s leading greeting card distribution franchises. More about their franchise opportunity can be found here.

To look at other 'home-based' franchises, click here or, alternatively, look at franchises for sale in the 'retail' sector here.


 

Growth of franchising in the decontamination Industry

By Alan Wright, Managing Director of Bio-Rite

Regularly the media informs us about outbreaks of common infections such as MRSA, C.Difficile or Norovirus in our institutions and hospitals. The risk of infection is rising due to a number of factors: stretched staff resources, lack of expertise in dealing with such threats effectively, ward overcrowding and limited investment in our NHS.

In addition, the UK population is set to rise by an estimated 10 million over the next 25 years. The office for National Statistics has predicted that Britain’s society will also continue ageing, with more than one in 12 people aged 80 or over by 2039. The challenge of maintaining an infection free environment for vulnerable patients will be an ongoing one. As a result, increasingly hospitals and care homes are looking at outsourcing decontamination of equipment and wards to enable staff to rightly focus on their primary role of providing the best healthcare possible.

Market opportunity

In terms of a market opportunity for outsourced decontamination suppliers, contracts with the NHS and other institutions such as care homes do tend to be long-term.

At Bio-Rite we have worked with some of our clients for many years. By partnering with healthcare professionals in this way, we have developed a clear operational strategy to enable organisations meet prescribed performance indicators and in-turn make a significant contribution to providing the best infection free environment for vulnerable patients.

However, decontamination is necessarily a specialised sector. A deep understanding of infection control procedures and the use of the correct equipment is critical. Care staff also often need to be educated as it continues to be a concern that some institutions simply ‘wipe over’ used equipment, however, this is not a sufficient procedure to control most pathogens effectively.

Unique services

In-fact, there are few organisations in the UK that are able to offer a range of products and services that are needed to ensure an infection free healthcare environment.

For example, Bio-Rite uses highly specialised equipment including Hydrogen Peroxide Vapour (HPV) technology to decontaminate areas that are infected or are prone to infection and our service has been proven in over 40 NHS hospitals across the UK.

Increased demand

As demand for outsourced decontamination services continues to grow, this has given rise to the opportunity for properly trained and equipped franchisees to provide infection control services.

Clients include: NHS hospitals and other healthcare environments such as ambulances, private hospitals, care/nursing homes and sports facilities. Bio-Rite for example, has successfully completed more than 150 area decontaminations over the last 6 years.

Services provided by franchises combine the best practices involved with both manual and mechanical disinfection techniques while taking advantage of the very latest advances in safe and effective decontamination technology. As a result, franchisees can offer a decontamination solution that is flexible, comprehensive and cost effective to many clients who rely on them to deliver day-in and day-out. For the franchisee, as well as running a lucrative business there is the chance to make a valuable contribution to society by making a significant impact on reducing infection within our UK institutions for the benefit of patient safety.

Bio-Rite

Bio-Rite is a British Franchise Association (bfa) Provisional Member and staff and franchisees are also members of the Infection Prevention Society (IPS). More about their franchise opportunity can be found here.

To look at other franchises within the 'Health and safety' sector, click here or, alternatively, look at franchises for sale in the 'cleaning' industry here


 

A healthy looking organic market for Riverford

When veg boxes first entered the market, they were much more than just a box full of vegetables. They enabled small scale farmers to earn a living and bridge the gap between the field and the table, cutting out the middle man (mainly supermarkets) and reducing food miles. Today the competition amongst box schemes is on the increase but those founding principles still remain.

After a worrying dip following the last recession, the latest Soil Association report states that the organic market is looking healthy again, in fact for its third consecutive year it has seen growth and is currently worth nearly £2 billion. This growth has been reflected in Riverford Organic Farmers’ sales, which has shown an 8% increase in sales on the prior year.

Growth in the industry

Riverford remains one of the largest and leading home delivery schemes but competition is growing. Over the last year, new smaller box schemes entering the market has increased by 11%.

To remain competitive, companies have to stay relevant and original. For Riverford, that’s been done by introducing new product lines and listening to what customers want.

The overall growth in the organic market is primarily down to the great work bodies like the Soil Association have been doing. Promotion of organic products is high and consumers are becoming increasingly aware of what they are eating and where their food has come from.

There is obviously some concern following the recent referendum result, but as yet, it is too early to establish how or even if, Brexit will affect the organic market over the next couple of years. For the moment though, the market continues to out-perform the non-organic grocery market which has seen a decrease. In the same period organic sales saw a growth of 4.9% whilst non-organic saw a drop of 0.9%.

Role of social media

Social media is playing a big part in increasing awareness, with more and more people interacting, sharing news, recipes and experiences online and taking more responsibility for their carbon footprint.

Riverford has encouraged online interaction with their brand by launching its dedicated recipe channel on YouTube; a marketing tool that has proven to be effective at engaging customers.

Research has shown that the highest increase of people purchasing organic produce are the 18-29 year olds. Awareness amongst the millennial generation suggests they are more likely to purchase organic food to fit their personal health and wellbeing lifestyle, choosing quality and provenance.

Recognising the benefits of organic produce

There are five main reasons why consumers are switching to organic products, these stated as being: no pesticides, better flavour, more environmentally friendly, higher animal welfare and quality of food.

Fruit and vegetables are being cited as the first products consumers make the organic switch to when adopting a more organic lifestyle.The increase in home deliveries can also be attributed to the fact many supermarkets have reduced their organic product lines and given up shelf space to other goods.Consumers are now choosing a home delivery and shopping at smaller stores instead. By doing this they are also supporting smaller, independent businesses.

Even cost conscious consumers are switching to home delivery box schemes in an effort to avoid the trappings of the supermarkets and that £20 shop for a pint of milk that most of us have experienced.

Constantly innovating

Riverford have had to adapt to the change in habits over time. Consumers that were once happy to receive the same vegetables week in and week out as long as it was organic have now been replaced with those that want variety and the option to substitute items they don’t like.

Customers want to be able to make an interesting meal and learn new techniques along the way. This obstacle is being overcome with the introduction of tailor made recipe cards, cooking hints and tips and the ever increasingly popular recipe box range.

On the whole this is an exciting time to become involved in the organic market. Customers are historically loyal, once they’ve settled in to life with a veg box. As long as the customer receives great produce and service, a business within this sector will flourish and remain profitable.

Riverford Organics

Riverford Organic is a multi-award-winning organic delivery franchise business. More about their franchise opportunity can be found here.

To look at other franchises within the 'food and coffee' sector, click here or, alternatively, look at 'van-based' franchises for sale here.


 

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