Feast to Famine- Why Franchises Fail and others Prosper
The last few years have been tough for many businesses, especially those selling speciality, or ‘luxury’ items.We need only look to key franchises in Australia, ones that were once riding high on success, to understand that even well-known brands can fail.There are many wrong decisions that contribute to franchise failure. Things like undercapitalisation, selecting the wrong franchisee, and expanding too quickly.But one thing that is consistent amongst those that rise to fame, only to fall from grace years later, is a lack of innovation.Basically, if you don’t change while the world changes, you lose relevance.
Take cupcakes for example, three years ago people couldn’t get enough. Many individual cupcake businesses and brands grew quickly, going from start-up to franchisors in just a few years. But by 2014, the trend had settled, the novelty had worn off, and unfortunately, a number of high-end cupcake businesses have since been forced to close their doors.Product or service innovation as a result of reacting to market changes and listening to customers means that; businesses stay relevant, the brand grows and you increase revenue streams by not having all your eggs in one basket.
Identifying this in a Franchise
When looking to buy a franchise, it is easy to select a brand based on its relevance right now, with no thought to its longevity or how this business might operate in 10 years’ time.Long-standing franchisors, like Ferguson Plarre Bakehouse, are such because they constantly strive to improve customer service and menus. This keeps them relevant and able to compete in the food retail industry- a lucrative, but highly competitive market.
Older and Wiser
Ferguson Plarre Bakehouse has been innovating for over 110 years, surviving World Wars, the Great Depression, and tough economic conditions that have challenged many businesses since.Starting out as a traditional bakery, Ferguson Plarre have always been committed to producing the highest quality products with the best ingredients, and are committed to providing individual and warm customer service- exactly the way their forefather’s did.Their product range is vast. From savoury pies, pastries, wraps and rolls, to desserts, custom celebration cakes, wedding cakes and party catering. Their menus are even seasonal, with Christmas cakes, puddings and gingerbreads on offer, along with Easter delights and even barista made coffees.
As far as franchising goes, Ferguson Plarre Bakehouse prides themselves on their business model and treatment of franchisees as ‘part of the family’. They take no royalty payments, nor do they charge marketing fees. This allows franchisees to enjoy their own earnings, whilst having the backing of an iconic bakery brand behind them.For more information on the benefits of becoming a Ferguson Plarre Franchisee, click here.