As a sandwich franchise, Quiznos was once a true competitor for Subway. But since their 2006 peak of more than 5000 stores, they are now sitting at just over 2000, embroiled in several lawsuits from former franchisees, and heading for a bankruptcy restructuring. The downward spiral of the once proud franchise should serve as a warning to investors looking toward franchises as a safe place to put their money.
One of the first signs of franchisee failure was an internal memorandum revealed in a 2003 lawsuit stating that “40 percent of Quiznos units are not breaking even”. Potential franchisees were not privy to this statistic, nor did they know that, according to the Small Business Association, more than 23% of Quiznos franchises with SBA loans failed, compared to 4.8% of Subway stores. Another lawsuit alleges that Quiznos claimed to have sold 234 “trade areas” in New Jersey to ...
An important, but under-appreciated, aspect of running a small business is finding (and keeping) the right employees. In retail, your employees are a representation of your store and as such they need to be personable, motivated, and well-trained. Turnover can be expensive, as hiring new employees can cost you between 30-150% of their yearly salary, and any disruption in service caused by short staffing can put a bad taste in the mouth of customers, costing repeat business. Since many small business owners are new to the hiring process, even some basic tips and tools can dramatically improve the quality of candidates they find.
Keep a List
For starters, don’t wait until you absolutely need a new person, or someone quits on you, to find someone else. Running small searches all the time and parsing out the best candidates to keep on file is essential. You may need a new employee ...
Dollar stores are competing with major discount retailers like Wal-Mart. The surprising thing is that dollar stores are winning. Investors are cooling on the retail giant and the sluggish economy is making dollar stores an attractive destination. Dollar stores are stealing Wal-Mart shoppers and forcing Wal-Mart into the uncomfortable position of trying to innovate. What’s changed since their brilliant ascendancy to the top of the retail food chain?
The Budget Landscape is Shifting
One of the major factors is price and shifting demographics. As the recession has moved more former upscale shoppers into the budget bracket, they are foregoing Wal-Mart’s in favor of dollar stores. They prefer the product mix and atmosphere. Now that dollar stores are offering more national brands and consumables, customers can barely spot the difference. In fact, informal studies have found lower prices than Wal-Mart, long the discount king. If they can’t win the price wars, ...
Opening up any retail business, even a small one, takes a lot of time and expertise. A large amount of research has to be done before it can be decided if the idea merits more research and planning. The following are just a few of the steps any entrepreneur looking to start their own small retail business will have to complete before they can open the doors.
Research is Key
Initial market research is the first step. Can the area support your store? Are there competitors nearby? If so, are they doing well? These questions need to be answered early in the process. When finding an actual retail space, there are several factors to keep in mind. Foot and car traffic in the area is important. So is the composition of the area businesses. Most small retailers need to be in a location anchored by a major business of some ...
A Healthy Trend of Growth
While consumers around the world have become more health conscious in recent years, they are unlikely to ever lose their sweet tooth. The exploding popularity of frozen yogurt franchises brings this dichotomy into sharp focus. Yogurt fits into the ice cream market while providing a trendier and healthier alternative. The non-fat, low calorie treat has been gaining popularity while ice cream shops are on the wane. The decline of stores like TCBY in the late 90s appears over, and many new franchises are stepping in to tap the market which saw annual revenue growth of 21% over the past five years. The yogurt is tastier, offering unique new flavors and toppings to their growing customer base, and this trend is turning into a boon for investors looking for high-margin products.
Happy Owners and Happy Customers
The International Franchise Association reported that franchise establishments in general ...
This Dollar Watch focuses on two new dollar store owners who illustrate not only the comprehensive services that the company offers, but the transformation and personal empowerment that is possible through business ownership.
Woodrow and Sylvia Wills went through Dollar Store Services' development and training program and emerged business owners who are looking to now open two additional stores. See what business ownership has done for them and their family.
The partnering of the companies will help U.S. Veterans emerge from the military and become business owners.
Las Vegas, June 12, 2012: Discount Retail Store Services, North America’s largest developer of retail stores, today announced its plan to partner with Veterans Business Resource Center, a community-based economic development center that assists Veterans of the United States military in transitioning their military skills into small business and self-employment opportunities.
Heroes to Home
The Veteran Business Resource Center’s Hero To Home Program provides assistance and guidance to military members, their families and Veterans seeking to build small business clientele. They also assess skills and connect Veterans to alternative employment opportunities due to job elimination while deployed and identify replacement work due to conditions which make it impossible to return to previous employment. According to many Veteran program statistics, it takes an average of 6 months to actively participate in the transition ...