As a result, investors, entrepreneurs and small business owners seeking franchise opportunities are among the most active drivers of local SoCal retail markets.
These enterprising folk are always on the lookout for the latest thriving consumer retail concepts. And when a new franchise opportunity appeals to their business savvy, they’re buying in.
Importance of Franchising to the Retail Shopping Center Industry
Representing one of the most significant and consistent retail shopping center space lessees, retail franchisees are a huge commodity in the Shopping Center industry. Suffice it to say, retail franchisees are among the most coveted shopping center tenant pools. And a big reason why retail franchising trends matter enormously in retail leasing.
2014 Retail Franchising Trends
The “latest and greatest” retail trends butter the bread of active franchisees, providing fodder for their next investment vehicles. There’s often, however, a gap between “hot” and “proven” concepts, with the former being the sexy choice and the ladder being a more stable investment. But either choice represents a gamble, as both the “new” and the “proven” run the risk of becoming oversaturated concepts.
Obviously retail trends come and go (for a variety of reasons), but more often than you might think a presumed “oversaturated concept” still offers investors profit potential if they exploit the right Niche.
In an effort to identify some of these untapped niches, the experts “in the know” at USA Today, offer their predictions for 2014’s the hottest franchising opportunities…
Quick Serve Restaurants (QSR)
According to stats compiled by several SoCal leasing brokerages, QSR tenants accounted for two-thirds of all 2013 leasing transactions. Now you might think that volume defines oversaturation, but in this case you’d be wrong. Restaurants are one of the few retail concepts that can’t be duplicated online. And the affordable “Quick Serve” format appeals to a variety of demographics. As such, this business model is a surefire bet that shows no sign of glutting the marketing.
Hence, it’s only fitting that Pizza Studio, a fast growing “Build Your Own Masterpiece” fast casual franchise should lead the pack.
SoCal-based franchisee, Jeff Burrill, signed 25 Studio Pizza franchise agreements in late 2013. And Studio Pizza plans to continue full steam ahead signing up new franchisees across Southern California throughout 2014.
Well in the case of Yogurtland, you (and everyone else) are DEAD WRONG!
Originators of the Self-Serve frozen yogurt concept, Yogurtland found a niche-within-a-niche and managed to both standout and succeed financially in an overcrowded marketplace.
SoCal based franchisee, Peter Chopra, decided to invest in Yogurtland after his then pregnant wife couldn’t seem to get enough of their tasty frozen treats. Chopra now owns two SoCal Yogurtlands and plans to open four to six more across Southern California in 2014.
For more info, visit Yogurtland’s franchising website
But once again, finding the right niche makes all the difference. And Massage Green Spa has exploited this approach to perfection.
Capitalizing on the “Going Green” craze that’s consumed our culture, Massage Green Spa offers traditional day spa services, in facilities which use environmentally–friendly operations methods. Their tagline: “Healthy Buildings, Healthy Bodies,” illustrates their unique approach to this concept.
Washington based franchisee, Allie Mallad, enamored of the Green-Friendly concept opened her first SoCal Massage Green Day Spa in December 2013 and her second in January 2014. Currently researching locations up and down the West Coast, Mallad has begun negotiation with partners to open nine additional locations.
For more info, visit Massage Green Spa franchising website.
Are you a Landlord seeking Franchisees to lease space in your shopping center?
Are you a Franchisee seeking a space to lease for your latest venture?
In either case, CBM can help! Contact Rick Rivera @ 310.575.1517 x201 or firstname.lastname@example.org