Many retailers have spent the past few years cutting back on their commercial property portfolios or failing to renew lease agreements. However, confectionary chain Hotel Chocolat has made the decision to seek a number of franchise partners in order to facilitate a substantial expansion which will help the chocolatier break into new and emerging markets.
This plan was revealed following the news that Hotel Chocolat has increased pre-tax profits by a staggering 84 per cent during the last 12 months, while its earnings before interest, taxes, depreciation and amortization (EBITDA) climbed 41 per cent on a year-on-year basis.
Now, Hotel Chocolat is seeking to implement a five year plan which will see its consumer base increase markedly thanks to a establishing a presence in Central Europe, the Far East and the Americas.
Franchise partners should offer a sound knowledge of property and business legislation in their local market – or, as Hotel Chocolat puts it, “the resources to establish and develop a successful franchise business.”
Of course, individual investors or businesses seeking to form a partnership will also have to bring a plentiful supply of capital to the table in order to be taken into consideration.
Hotel Chocolat directors announced their intentions for the future on the company website, saying; “We are targeting key markets where we believe our brand will successfully resonate with local consumers.
“The expansion of our own stores will be supported through a global network of franchise partners.
“The exclusive relationships across agreed territories will allow us to adopt a more collaborative, supporting and flexible role where relationships can be built and rewards are shared.”
At present, the retailer operates a total of 67 stores, the majority of which are located in the UK. However, four company-owned stores already exist overseas which are already proving to be extremely popular – two are in the United States, with the remaining two in Denmark and the Netherlands.
Furthermore, this is simply a glimpse of the potential profits an international expansion could yield, as the brand has a sizeable Asian following on its various social media sites despite the fact that it does not yet trade in any of the Far Eastern markets. This, the company believes, is due to the fact that the London stores are frequently visited by Japanese tourists.
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