Monday, April 24, 2017

Focused only on delivery franchises fold in size between 2012 and 2016

São Paulo-power networks dedicated exclusively to delivery have gained relevance in the franchise sector in recent years. The number of franqueadoras practically doubled from 2012 until last year, while turnover rose by more than 115%, in the same range, reaching R$ 567 million in 2016.
The data were collected by the consulting firm specializing in the field, Rizzo Franchising. "The business model began to gain relevance for some reasons: the consumer has left less to eat away from home with the crisis; There is a problem of traffic and safety in large cities, which also inhibit that movement; and there is also a change in the habits of the Brazilian, which increasingly seeks the convenience, "says the President of the consulting firm, Marcus Rizzo.
Despite the high expressive seen by segment, including above the market average of franchising, the expert considers that the result came about, in part, by the very low comparative base. "The extent to which the value is increasing, the trend is that this percentage of growth begin to diminish."
Lower costs
According to the Executive, another point which makes attractive operation, from the point of view of the investor, are considerably lower costs compared to a traditional power branch franchise. Rizzo explains that both the initial investment of this type of franchise as operating expenses tend to be smaller. "The supply is lower because there is the need to have a point of sale in a food court, for example. Is it possible to put in a side street, and still have a good view of the brand, "he says.
In respect of operating expenses, he says that the reduction is given on behalf of the business does not require an expense so high with care and maintenance of the store. The two factors combined are, in the view of the Executive, the return period of the contribution can be relatively shorter.
The factors cited by the consultant are proven by the delivery Didius Pizza. The company''s Chairman, Biazini, asserts that Elídio operating costs and occupation are smaller for a few reasons: first, there is a greater facility to occupy points of sale that other franchises would not have interest, for example, real estate corner (since there is no need for a parking lot).
He also says that as the focus is not the "service at the counter, at the point of sale are just the franchisee and the box. You don''t have to have the service: waiters and a great team of cleaning, "he says.
The businessman says that a period of return on investment is around one year and eight months, while the time to reach the break-even point (match income and expenses) is, on average, six months. Already the initial supply of 340,000 R$, whereas the capital and franchise fee.
For this year, the company, which has 26 units in operation, plans to open eight more sales points and grow around 16% in revenues (last year the amount spun around 30 million R$ and there was a high of only 1%). In terms of strategies, Biazini States that the main focus will be on digital platforms. "We want to strengthen our sales online, which already represent 30% of the total, and we''re about to launch our '' chatbot '', so that the client can perform the request by Facebook," he says.
He adds that the pilot of '' chatbot '' will be released within two weeks and that the goal of the company, by the end of 2018, is that sales through digital platforms will represent 50% of all revenue from the network.
The company, which operates exclusively for delivery today, says no plans to adopt the marketing at the point of sale. On the contrary, the President of the network account that year after year the company has been reducing the service space units. "Today size does not exceed 4 m ². About six years ago the area was three times higher. Our business is the delivery and we will focus increasingly on it. To give an idea, for sale at the counter represents only 15% of the total turnover, "concludes the entrepreneur.
DCI - 24/04/2017 News Item translated automatically
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