When is the right time to roll out your brand and try new locations?

Related tags Brand Brand management

Does the old adage 'build it and they will come', ever prove right? We're currently working with a number of customers who believe that now is the...

Does the old adage 'build it and they will come', ever prove right? We're currently working with a number of customers who believe that now is the right time to accelerate their roll-out strategies.

But for anyone contemplating establishing a franchise or considering when and how to roll out their brand further, there are a number of key points to consider.

Uppermost should always be 'is the market right?' Many businesses view the current economic situation as unsupportive of planned expansion.

But recession can be an opportunity, as JD Wetherspoon showed in the 1990s - and again more recently - by taking advantage of cheaper rents and property prices.

Fundamental to any roll-out strategy is location. But there is also a balance to be struck between replicating what may be a very specific first location and tweaking this concept to offer a scalable solution for expansion, all without losing what made the first location work.

Securing the best site to capture traffic and appeal to target consumers will always be the key focus; would-be investors shouldn't be swayed by a landlord offering a good deal, as a bargain rent doesn't make it the right site for your new venture and the best sites will always attract premiums and competition.

Management should also be rolled out carefully, with the best approach often to bring selected employees across to new premises, even temporarily, so systems can be effectively replicated.

Large chains will often have start-up managers, who move from new site to new site and have exacting standards - but this is only seen in more mature, and aggressive, businesses.

One thing that's clear in today's market is that increased consumer choice and price sensitivities are pressuring pubs and restaurants to differentiate offerings more than ever.

This has meant that brand management has become a core discipline of every savvy pub owner. Highlighting and promoting what differentiates you from the competition and makes you unique is going to help with rolling out to new locations, as long as you remain true to these values.

Coffee chains like Starbucks and Costa have become staples on the high street because they offer a standardised service and environment, delivering a trusted selection of products. Consistency in delivery is crucial to the success of these chains and it is the foundation stone of building a franchise. Consumers know what they like and like what they know.

But a struggle for those businesses achieving high brand recognition is the fact that the bigger you become the more of a target you are for a consumer backlash. Occasionally, big brands are seen as destroying and homogenising UK high streets, so it's important to adapt your offering to your local community.

By researching and stocking local products were possible, tailoring the building design and construction to something that reflects or is sympathetic to the local area and its surroundings should help with staving off critics. Even McDonald's is now modifying its shop fascias to fit with the locale.

Finally, using social media - such as creating a Facebook fan page or a Twitter feed - can be the first point through which a modern chain can build profile. It's not uncommon for a brand to build a following on-line that is disproportionate to the size of the chain. This not only creates a strong relationship with customers but can really boost an expansion move.

Another plus is that it can also be a helpful market research tool giving you immediate insight into what your customers love and loathe about your brand.

But if you do engage in social media, it is important not to use it as a one way promotional tool - you have to listen as well as talk and engage in a value exchange with your brand followers.

Bianca Dexter-Burnell is head of licensed trade at Barclays Corporate

Related topics Other operators

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