The Biggest Differences Between Mall and Stand-Alone Locations
Franchise companies have found success with all types of locations. Malls, stand-alone buildings, kiosks, and even the tiny drive-through shop that barely has enough standing room for multiple employees. And the general consensus seems to be: to each their own … so long as standards are met and profits are coming in. But for the new guys, which is best? What type of setup will suit their needs and skills?
Before making the call either way – on any type of franchise/restaurant building – look to these main differences to see which type of building you’ll most succeed at managing.
Buildings or establishments that host their very own brick and mortar offer plenty of perks. They don’t have competition under the same roof, can often host better and closer parking, and more, while kiosks set aside their very own list of pros and cons. But what really sets each apart?
With a Stand-Alone Building
- Business owners can enact their own rules (within legal and company policies). In mall or kiosk locations, companies are forced to follow rules put in place by the landlord.
- Employees and customers will have access to front-row parking, which is especially helpful in inclement weather.
- Customers show up to eat/shop at your establishment; there’s no competition (at least not in the immediate vicinity), and customers won’t be distracted by shopping or additional services.
- You set your own hours.
- Additional responsibilities might fall into place, such as being in charge of the building’s trash removal.
- Bills, such as electricity, etc. can (and generally do) come at a higher price.
- Rent, surprisingly, might be cheaper. (Or bank fees, if the location is owned by the establishment.) Especially depending on location; malls or other rented spaces can charge incredible per-month fees, often taking a large cut of business.
- Snow removal, ice management, lawn care, etc. must all be handled in a timely manner.
Mall and Kiosk Locations
- Bring on a heavy amount of competition. Outside restaurants are literally a few feet away, as are other distractions, such as department or other clothing stores.
- Eliminate weather or landscape responsibilities.
- Can deter customers who have to park and walk indoors, causing them to stop somewhere with a drive-through or shorter walk.
- Reduce the need for in-house marketing or advertising.
- Might host lower fees, especially in utilities. This is heightened from the fact that establishments are often smaller and therefore run with less power.
- Workers learn to work more efficiently as they’re given less space to move about. This also means fewer workers are required at a time, lowering funds spent on wages.
- Remove parking lot responsibilities, such as maintaining asphalt, etc.
- Can bring in folks who wouldn’t have thought to stop by on their own. When tired from shopping or smelling delicious food, many customers will impulse order.
- Brings on the opportunity for heavy shopping crowds. Some even pair with stores to create sales or coupons for some of the busiest days of the year.
Choosing a stand-alone or kiosk location is an important decision when setting up your franchise. (And often determined through the company you choose.) Look at each of the differences seriously to better determine which setup you prefer, and which option will best suit your company’s needs.
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