franchising trends
Southern California’s high population density and booming consumer trade attracting franchisees with a magnetic pull, making SoCal one of the the nation’s most active franchising markets.

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)

Pizza Studio

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.

For more info, visit Francihsing.com and Studio Pizza’s websites.

Frozen Yogurt

yogurtland
If you’re like most investors, you probably thought frozen yogurt was a completely oversaturated retail concept.

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

Day Spa

Massage Green Spa
The traditional Day Spa – providing massages, facials and a variety of beauty treatments – is another retail concept many thought had seen its peak.

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 rickr@033ee62.netsolhost.com


By the Chicago Tribute, Tuesday, March 25, 2014

Walgreen Co. to close 76 unprofitable stores

Walgreens
Walgreens saves 40 million by closing 76 unprofitable stores

Walgreen Co. on Tuesday said it plans to shutter 76 unprofitable drugstores by August as part of a plan to save $40 million to $50 million per year beginning in its fiscal 2015.

The Deerfield-based drugstore chain, the nation’s largest, declined to specify the locations of the stores slated to close aside from saying they’re “spread across the country.” Walgreen said it will confirm the closures in the coming months after it notifies employees.

Most stores that will close either have had other Walgreens locations open in the same area or have seen real estate values decline since they’ve opened, the company said.

Read more…


By Fast Casual, Monday, March 24, 2014

The 500 largest U.S. restaurant chains registered a 3.5-percent annual sales increase in 2013, a decline from 4.9 percent the prior year.

coffee cafe bakery
Asian, bakery-café and coffee segments leading restaurant growth

According to data released today by Technomic Inc., in its annual reporting on the top U.S. restaurant organizations, U.S. systemwide sales for the Top 500 chains grew to an estimated $264 billion in 2013, up more than $8.8 billion over 2012.

“Although we have seen overall growth within the Top 500, the pace has slowed since last year,” Ron Paul, president of Technomic, said in a news release. “Competition for share of stomach is getting more and more challenging. But brands that have found a way to differentiate themselves are gaining market share.”

Read more…