Category: News

• IWG has signed an agreement to open its first franchise-owned locations in Scotland as demand for hybrid work grows
• The partnership will see three new centres open in North and South Lanarkshire over the next three years, allowing those in the Central Belt’s neighbouring towns to reduce their commute
• IWG reports a rise in demand of over between 20-25% in suburban hotspots of Scotland, including Livingston, Motherwell and Stirling.

IWG, the world’s leading provider of flexible workspace including Regus and Spaces, has signed its first franchise agreement in Scotland to meet growing demand for hybrid ways of working. The new deal will serve towns and suburbs in the Central Belt of the country and give those previously commuting into cities such as Glasgow and Edinburgh the chance to work closer to home long-term.

The new agreement will see three franchise-owned centres opened across Lanarkshire between now and 2024. This growth follows a surge in demand for IWG workspaces in Scottish suburban areas, where the provider has witnessed a 20-25% increase in enquiries for its centres over the last quarter.

Partnering with IWG to spearhead its franchise expansion into Scotland are Tommy Nevin, experienced BT and EE franchisee; Graeme Orr, freelance Project Management Consultant for multiple blue chip organisations; Tony McCabe and Scott Gibson, both vastly experienced Operations Directors who have ran and partnered with some of the UK’s biggest organisations in Financial Services and Telecoms.

Tommy Nevin is one of Scotland’s most experienced franchise investors and with Scott and Tony now runs 70% of BT’s Scottish operations through his existing portfolio. They are planning to move their BT staff members to the first IWG franchise centre in the country.

The pandemic has accelerated demand for flex workspace outside the UK’s cities, with many seeking greater freedom in where and how they work in the long term. Indeed, half (46%) of Brits now say they would quit their job if asked to return to the office full time with 83% more likely to apply for a job that offers flexible working.

Julian Chambers, Head of Franchise at IWG – UK & Ireland said:

The pandemic has accelerated a trend that we were already seeing across the world, the shift towards hybrid working. Employees want the freedom to work closer to home, avoiding a lengthy commute to the office and businesses are listening.

We’ve seen the demand soar considerably around the world in 2021 with more than a 350 percent increase in new locations committed by franchise partners so far this year, compared to the same period in 2020. Our UK partnerships have played a huge part in this and now, we are delighted to bring the opportunity to Scotland where there is still plenty of unmet demand across the country.

Graeme Orr said: It’s a hugely exciting time for the flexible workspace sector and we’re delighted to be spearheading IWG’s franchise network in Scotland. For years, people have commuted to cities such as Glasgow, Edinburgh and further afield for work, sometimes spending over two hours on public transport or on the motorway. Additionally, we believe many Organisations will be seeking property solutions with greater flexibility, that can rise and fall in line with actual business demand, providing agility that is missing in traditional real estate arrangements.

Tommy Nevin added: We’re putting our collective business knowledge together to make a real difference to the lives of commuters, and we are on the lookout for property owners who are interested in helping this vision come to life.

In the UK, IWG has formed multiple new franchise partnerships to date across 75 city and suburban locations, as demand for flexible workspace continues to surge following the pandemic.

Nikki Dempsey and Niamh McCreery, our new multi-unit franchise partners, have exclusive territory rights to Ireland with an eight-site development deal. They joined the TRIB3 family earlier this year, supported by their partners who have a wealth of experience in the fitness market. We are thrilled to partner with them to bring the TRIB3 experience to Ireland, with their first store opening in Q4 2021.

We spoke with Nikki and Niamh to learn more about what lead them to joining the TRIB3 family and their journey so far in franchising.

What did you do before franchising and what prompted you to make the change?

Niamh: I’m actually a yoga instructor and before teaching private classes, I was a personal trainer for eight years, working at a gym. My partner and I have always been into fitness, playing sports, going to the gym, traveling to cities to try new workout classes. I’ve always wanted to own my own business and franchising has been a concept that I had been following for the last two or three years so I felt I could pair my passion with a proven business model.

Nikki: I’m new to the industry, having been an insurance broker for over ten years now. I’ve seen close family and friends become really successful running franchises so that sparked my interest in wanting to invest in a franchise myself. Since finding this opportunity, I’m really excited about getting more involved in the fitness industry and hope to teach TRIB3 classes as well as operating several of the stores too.

What drew you to TRIB3?

Niamh: The concept is so unique, especially with the three zones in the studio, which we hadn’t experienced in any other classes we’ve done anywhere before. We knew immediately it would be a great concept to bring to Ireland as it was completely different and we saw a lot of opportunity to grow and scale this concept across a new territory.

Nikki: It was definitely the people we met while getting involved in the process. The brand and the concept are brilliant but the actual people that you’re working with, makes all the difference. Everyone we’ve met on the team and at TRIB3 have been so supportive and I can see myself working with them, which is the most important thing to me.

Why did you want to bring TRIB3 to Ireland?

Niamh: We saw a huge gap in the market for it, so for us it was a no brainer. The combination of the workout, the music and the energy that you feel coming out of a TRIB3 workout was incredible. We’re hoping that there will be a big demand for it and we’ll be able to keep opening up more and more stores.

Nikki: Like Niamh, we wanted to bring something to Ireland that’s not been done here before. There’s a big trend for people wanting to train together so group exercise is starting to become quite popular here but there still isn’t a concept quite like TRIB3 available yet.

What qualities does someone need to be a successful multi-unit franchisee?

Niamh: You have to be willing to be patient, follow the journey and trust the process. Take in as much information as you can, as you have a team around you with so much support and guidance to give.

Nikki: The three things that are most important when it comes to franchising are people, process and product. You have to trust the process and work with the right people. Especially with being a multi-unit franchisee owner, you have to not be afraid of failing – learn from your mistakes and have the courage to keep moving forward.

Would you recommend franchising and this franchise opportunity to others?

Niamh: Definitely. I’ve seen people become very successful in franchising but you have to be passionate about what you’re doing. Also having the support of a franchisor, you’re backed by their knowledge and expertise, which you normally wouldn’t have running your own business. After my initial conversations with the TRIB3 team, you can just tell there’s so much experience within the network so it’ll be great to pull from their experience while being able to put our own touch on it too.

Nikki: 100% because franchising is being given a bag of tools to run your business. The processes are there so especially for people that have little experience in business, franchising is a great way to do it. During hard times and economic downturns, people tend to turn to franchises because the processes are there. I definitely recommend TRIB3 because the processes are there, the brand is developed and there’s a good team of people.

Ready to join our global fitness movement? Enquire today.

As fitness innovators, Snap Fitness is making exciting changes and pushing boundaries of what we expect a fitness company to do.  They are increasing their focus on helping members move their moods as well as their bodies and are on a mission to help people create positive lifestyle habits that make them feel fantastic.

This new philosophy comes after results of a global research project that found a new generation of consumers see fitness as one part of an overall holistic approach to health and wellness. Yet, 34 percent of people are intimidated or even fearful to go to a gym. That number is even higher for women in particular. The team at Snap Fitness believes there is substantial opportunity to better serve their current members whilst also attracting a new untapped consumer segment of members.

The starting point is a shift in the go-to-market strategy, which is visible in the marketing and club design. However, they are focused on creating a technology led holistic approach, which will launch in late 2021, to supporting members whether in or out of club, recognising that all fitness is valid fitness, making it simple so it sticks and rewarding members.

Jon Cottam, EMEA CEO, said Snap Fitness is built upon the fundamental drive to continually innovate and elevate our offering for members, our teams and Franchisees. Our evolution in approach not only better reflects our position in the market, but also reflects our view that no one member, or their journey, is the same. We have a firm belief that fitness should be as fun as it is fulfilling. We understand that all fitness is valid, both in and out of the club.

Learn more about franchise opportunities with Snap Fitness here.

German Doner Kebab will open soon at The O2, bringing a new fast-casual dining experience to the world’s most popular music, entertainment, and leisure venue, located on the Greenwich Peninsula.

The gourmet kebab chain has confirmed that it will open a new Flagship restaurant within the Entertainment District at The O2.

The restaurant is scheduled to open early July and will create in the region of 40 new jobs, bringing employment to the local area.

The opening has been announced as German Doner Kebab forges ahead with plans to open 47 new restaurants in the UK during 2021, building significantly on the 12 opened during 2020.

German Doner Kebab is revolutionising the kebab in the UK, bringing a fresh, high-quality taste sensation that has made it the number one spot to enjoy a kebab.

Freshly prepared in front of customers, the game-changing kebabs are made using premium, lean, succulent meats and fresh local vegetables, served in handmade toasted breads with unique signature sauces.

The new restaurant will be the brand’s 65^th site in the UK as it continues to bring the GDK experience to more locations throughout the country.

Daniel Bunce, GDK MD for UK and Europe, said: We’re delighted to officially announce plans to bring the German Doner Kebab experience to The O2.

The O2 has long been in our sights and to be launching our new flagship restaurant in such an iconic London location represents a landmark moment in the growth of GDK.

Our game-changing kebabs are revolutionising the kebab in the UK and we are excited to be bringing a new fast-casual experience to The O2.

Combined with a busy events calendar from late 2021 and into 2022, The O2 provides a complete day out destination with retail, leisure and entertainment all under one roof. Located just 15-minutes from central London, the venue is easily accessible by tube, (North Greenwich via the Jubilee line) by road or Uber Boat by Thames Clippers and has pre-bookable parking spaces available onsite.

Speaking on behalf of Waterfront Limited Partnership, the joint venture between AEG and Crosstree Real Estate Partners who own Icon Outlet and the Entertainment District at The O2, Alistair Wood, Executive VP of Real Estate and Development at AEG Europe commented: We’re delighted to be opening the flagship German Doner Kebab restaurant at The O2 this summer.

Their unique fast-casual dining experience is a great addition to our tenant mix as we continue to diversify our offering for visitors with independent and well-known food and beverage brands.

Once opened, German Doner Kebab will offer a full dine-in experience, subject to government restrictions, as well as Takeaway and Click and Collect. Delivery will be available through GDK’s Delivery partners.

Learn more about UK opportunities with German Doner Kebab here.

Brooklyn Dumpling Shop, the nation’s fastest growing dumpling automat concept, has signed its first franchising deal to bring five locations to Connecticut. The brand is poised to disrupt the quick-service restaurant industry with their innovative automat technology and contactless format. Even before the first location opens its doors in New York, potential franchisees are eager to sign on to the concept.

I am very excited about Brooklyn Dumpling Shop, the brand’s innovative technology is exciting and the food is delicious, says the first franchisee, who would like to remain anonymous at this time. Getting into the brand early is a very wise decision. In the next two or three years, I expect we will see a lot of automat restaurants, so it’s great to jump on board with the innovative concept now.

The unique flavor combinations are imagined by the founder, Stratis Morfogen, who is inspired by traditional diner delights such as cheeseburgers, French onion soup and even peanut butter and jelly. Each dumpling has a perfect bite, thanks to the advanced robotic technology creating them. Chefs and a full kitchen are not needed in this innovative concept, making it easy to find quality staff and perfect for small spaces.

We are thrilled to team up with this franchisee, who has a tremendous track record in [quick-service restaurants], says Morfogen. We couldn’t have picked a better partner for Connecticut.

The franchisee’s first location will be in New Haven, where Yale is located, as the concept is perfect for college cities and residents will be able to boast that they have one of the first Brooklyn Dumpling Shop locations in the nation. The 24-hour concept will be an ideal spot for college students who are awake at all hours of the night looking for a delicious to-go meal. The custom packaging is noteworthy, as it has been specifically designed to ensure all products from dumplings to Frosé.

This is the first of many deals expected to close for the brand on its goal towards launching 500 units in the next five years. Everything from the technology, packaging and food combinations has been thoughtfully designed to maximize return-on-investment and ensure a safe environment for customers.

Economic uncertainty and the pandemic didn’t reduce interest in new franchises during 2020, according to data from HSBC UK.

From January to September HSBC UK’s Franchise team took on 834 new customers, just short of the 894 new accounts in the same period of 2019 and comfortably exceeding the 727 new customers in 2018.

Food delivery, the storage sector, business technology, care in the home and tutoring were among the most popular new franchises started during 2020.

Fast-food franchises in particular adapted quickly during the first lockdown by pivoting to offer drive-thru, delivery and Covid-secure collection. The major brands saw huge demand and all have experienced like for like sale increases on the previous 12 months.

Andrew Brattesani, Head of Franchise for HSBC UK, believes the stability of new customer numbers can be put down to a combination of furlough giving people more time to consider their career aspirations, economic uncertainty putting jobs at risk and people wanting to take control of their own careers.

He said: Despite the huge economic challenges that businesses faced through the course of 2020 we haven’t seen interest in new franchises dwindle.

Through the uncertainty there have been opportunities and we’ve seen examples of people having more time to assess their options and look to franchising as a way to start their own business, be their own boss and find growth.

Even with the unprecedented disruption, franchising is booming. Having the benefit of a proven business model behind them has given people the confidence to take these new opportunities and run with them and we don’t expect that to change.

HSBC UK customer Gbolahan Laoshe from London took the opportunity to change his career and start a franchise during the pandemic.

He had been working for a financial services company in London, but after a couple of months in lockdown found his contracted hours reduced, giving him more time to consider his future career aspirations.

Gbolahan explains: I’d previously looked into starting a franchise but hadn’t taken the idea forward until things changed with my day job early in lockdown.

The pandemic expedited my thinking and I got back in touch with Driver Hire, who I had spoken to previously, to see if there was still an opportunity there for a franchise in Bedford and Huntingdon.

Gbolahan went to private school in the UK before moving to Nigeria for university to study law, he then took over the family haulage business which he ran for seven years.

He returned to the UK where he settled with his family and worked in IT, but always had the desire to start his own business.

He said: Going out on my own felt scary and that’s why I looked at the option of franchising and got in touch with the British Franchise Association (bfa) and spoke to a number of franchisees to understand their experiences.

In October Gbolahan joined the Driver Hire ranks. The company is the UK’s largest specialist logistics recruiter with more than 100 offices and offers a full range of recruitment services.

He added: Some people might think it’s mad to start a business during a pandemic but as a famous author once said every adversity has the seed of an equivalent or greater benefit.

In uncertainties there are opportunities and while it’s daunting every day I love the challenge. I wake up each day with a desire to make things happen.

HSBC UK has an award winning franchise team who have been providing financial support, advice and expertise to both franchisors and franchisees for decades.

The bank works closely with the bfa and its members to encourage successful and ethical franchising

Mike Racz is a multi-unit, multi-brand franchisee, based in the North East with a passion for building businesses and developing people. He’s helping people build brighter futures and bringing life back to areas that have sometimes been neglected by investment. Mike currently owns Domino’s, Costa Coffee and Anytime Fitness franchises across the North East.

Name: Mike Racz
Location: North East England
Franchise: Domino’s / Costa / Anytime Fitness

What is your business background?
I don’t have one. Everything I know, I learned from experience; I started from the bottom, selling stickers in school when I was 6, started my first business at 13 under my dad’s name, and later moved into Domino’s and worked my way up from being an in-store assistant to manager to area manager and finally opening my first store and becoming a franchisee, learning as much as I could on the way.

Why did you choose Domino’s, Costa Coffee and Anytime Fitness franchises to invest in?
I loved Domino’s since I started working there in 2004. I didn’t pick it because it was a safe option, I just love the brand. I spent quite a while looking for Costa and Anytime Fitness, I needed to find the right businesses to achieve my vision and accelerate growth. I didn’t always get it right, I had another two franchises that failed but I think it only counts as failure if you don’t learn anything from it. I took those lessons and I made my other companies stronger.

What’s the best thing about being a multi-unit/multi-brand franchisee?
People. Finding talent is a very rewarding aspect of being a franchisee. I get to challenge people, give them opportunities and watch them grow. Most of my Head Office team started at the bottom. If someone has passion and ambition, I want to push that and get the best from them. No two days are the same within the Racz Group, everyone has the chance to develop, learn new skills and be who they want to be. A Barista at Costa could become a PT at Anytime Fitness if they wanted, there is always opportunity to try something new. Attitude is everything, you can’t build a successful company without enthusiastic team members and there is nothing better than finding someone who is a perfect fit.

How would you describe your role as a multi-unit/multi-brand, franchisee? What is your management style/method?
Strategic. Almost exclusively. I don’t involve myself in hiring and training etc., I have an excellent team whom I trust completely to take care of those things. I hold Marketing and Finance close to my heart, I focus on growing my profit level and my revenue, I like to know what the top and bottom lines are. Everything in-between is in safe hands with my Head Office team, Area Managers and Managers.

What training and support did you receive initially and ongoing from your franchisors?
I was an Area Manager when I opened my first franchise of Domino’s and I’d learned a lot on the job. I knew I wanted more, I wanted to progress, so I made sure to do my homework and educate myself on how to make a business thrive. Obviously, I’d been trained at an operational level but becoming a multi-unit, multi-brand Franchisee has largely been a self-taught venture. It’s been a hard journey but it’s definitely worth it.

What are some of the challenges you have faced being a multi-unit/multi-brand franchisee, and how did you overcome them?
When you expand quickly, you have to learn to let go of things. It’s very easy to think I know better than everyone else and that I’m the best at everything, but it’s just because I care so much and it’s not true half the time anyway. Learning to delegate and completely hand over control of some things was a tough one. Now I have a solid team, each of whom are experts in their respective fields. I can trust them to take even the vaguest idea and make it happen, and I know they’ll do a great job.

When you own a business, you need to take a holistic view. Make sure you have purpose and vision, define it and work on it. I had to not let myself get bogged down, finding a way to make my vision a reality would have been impossible without the team I’ve built.

What are your long-term plans for your business and what are your goals for the future?
I want to provide opportunities, I want to change the lives of my team members and our customers. I want to give people the chance to be who they want to be and achieve their goals. Ultimately, I want Racz Group to be the largest company based in the North East of England by turnover and number of team members. If you want me to put a number on it, I’d say £300 million in sales is step 1.

What is the most invaluable piece of advice you could give someone looking to become a multi-unit/multi-brand franchisee?
Do not have an exit strategy. Every business guru will tell you to have one but it isn’t for me. You can’t build a visionary company by having the mindset that you’re only there to make money. You need purpose, passion, vision and values. You should focus on the company culture, build something meaningful. Enjoy what you do! You need to know where you want to go and what you want to achieve. It’s clich, but they’re right when they say you should never stop chasing your dreams.

John Kiely is a McDonald’s multi-unit franchisee in Coventry. Since opening his first restaurant in 2013, John currently owns 6 restaurants including 4 Drive Thru restaurants. In this exclusive interview with whichfranchise, John talks to us about the benefits of being a multi-unit franchisee, why he chose McDonald’s, challenges faced and his plans for the future with McDonald’s.

Name: John Kiely
Location: Coventry
Franchise: Jake Restaurants Ltd /As McDonald’s

Please tell us about your business:
I started as a Franchisee with McDonald’s by relocating to the Midlands and taking on my first restaurant which was a High Street Restaurant in Coventry City Centre in March 2013. I now have 6 restaurants in Coventry – the High Street Shopping Centre Restaurant and 4 Drive Thru Restaurants.

What is your business background?
Commercial background, mainly in the Construction sector, my last job was opening up satellite sales office worldwide for a UK Manufacturing company.

Why did you choose the fast food industry and McDonald’s?
I wanted my own UK business so I could be in charge of my own destiny and limit my travelling.  I looked at a lot of franchise opportunities from construction to retail. I chose McDonald’s as it was a big brand, well respected, always evolving and changing to suit customer expectations, they were not interested in me just for my money but more for the skills I had, including business development, strong P&L skills, building through people, customer centric, community ambassador and strong brand representative.

What’s are the benefits of being a multi-unit franchisee?
Spreading the cost of a structural organisation across stores, sharing skills at all levels, opportunity to develop staff across stores, benchmarking best practice, opportunity for greater involvement with local and city community, building a strong Coventry brand name and working with local companies to support your requirements.

What training and support did you receive initially and on-going?

• 9 months training, working in restaurants and developing from a crew member to a Business Manager – this enabled me to know every job role and requirements of a busy restaurant.
• In restaurant and Head Office training courses
• Support of a Franchisee Consultant every step of the way to answer any questions and develop my skills.
• All office functions at my disposal – marketing, HR, Finance, legal etc.

How would you describe your role as a multi-unit franchisee?  What is your management style/method?
My role is to set the vision for the organisation, to have strict guidelines in place for roles and responsibilities, to make sure we have an organisation in place that allows for coaching at all levels, encourage democratic discussion and decision making that reflects the needs of the business, customers and employees. My management styles can change based on the circumstances but are based around democratic and coaching teams. This aligned with the strong Franchise framework of McDonald’s works really well.

What are some of the challenges you have faced being a multi-unit franchisee, and how did you overcome them?
As your organisation grows the impact you can have individually can diminish as you spend less time than you would have done working with individuals and more time working through your managers. The key is to make sure you are visible around your stores, the hierarchy is recognised, there is always an open door to yourself if required and you prioritise your time on the needs of the business and the different restaurants. I find that I spend more time in the newer restaurants to help them to adapt to the changes that they will encounter so that they are understood and less challenging.

What is the most invaluable piece of advice you could give someone looking to become a multi-unit franchisee?
My success has come from identifying and nurturing talent so that as your business grows, the team that you have developed, are ready and equipped to support your new units. If financially possible, get your team ready to take on the new units before they come along. Also, do not forget your existing employees as they will be excited about their opportunities in a larger organisation. Organisational growth requires talent planning and development at all levels. Also, strong financial planning to make sure you are ready for growth.

What are the company’s plans for developing the business and your own personal plans for your business?
My plans are to keep growing the business organically through investment in existing restaurants and excellent customer service but also, where financially viable, and aligned to McDonald’s plans, to purchase other restaurants.  This will allow me to continue to develop and promote the great talent we are nurturing in the business and become a bigger contributor to the local community.

What advice can you give someone who dreams of becoming a successful multi-unit franchisee?
Make sure you are prioritising the unit[s] that you have already as them being successful financially, and continually developing talent, will allow your business to grow when it is ready. Business is all about developing talent with existing or new employees and giving them recognition for the great contribution that they make. Alongside strong financial discipline, and alignment to your partner Franchisor, your business will grow.