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Baskin-Robbins franchise offers a winning formula

Baskin-Robbins franchise offers a winning formula

Baskin-Robbins is 100 per cent franchised, with each franchise owner holding a stake in the business’ success

Franchising can prove to be a great investment opportunity, as it gives franchisees a choice of being highly involved within one franchise or simply managing a portfolio. However, finding a franchise that offers this opportunity can be a daunting task.

Baskin-Robbins, the world’s largest chain of ice cream speciality stores, offers just such an opportunity. Founded in 1945 by Burton ‘Burt’ Baskin and Irvine ‘Irv’ Robbins, these entrepreneurial men recognised early on that to maintain the high standards they set when they started their business each store would require a manager who had an ownership interest in its overall operation. Even though they didn’t realise it at the time, the two founders had pioneered the concept of franchising in the ice cream industry.

The franchise model created by Burt and Irv decades ago is still used by Baskin-Robbins today. The company is 100 per cent franchised, with each owner holding a stake in the business’ success, while product development and merchandising are handled at Baskin- Robbins’ headquarters. This hands on, small business approach gives franchisees the ability to create a strong presence in local communities all over the world.

Here are three reasons why Baskin-Robbins is so successful in helping its franchisees achieve their goals with a multi-store franchise:

1. Low investment risk and high turnover with an award winning investment opportunity

Baskin-Robbins understands that when examining any investment opportunity, particularly one for which a high initial outlay may be required, there is much to ponder. The most obvious factors will always involve the level of risk and potential return on investment.

The company currently provides investors with the opportunity to purchase a multi-store portfolio comprising at least five stores, which requires a minimum investment of £300,000 liquid capital. A typical area containing fives stores has the potential to turn over £1 million in the first full year of trading with EBITDA of 10-15 per cent (full financial details are available during a discovery meeting).

Its track record in terms of reputation and enduring family appeal, combined with a proven business model that ensures investors spread their investment over multiple stores rather than relying on a single store location, has won Baskin-Robbins the Compare The Financial Markets award for The Best High Investment Franchise Opportunity 2013.

Franchisee Hani Omar says: “My bank advised me to look at investing in a franchise when I was looking at new business opportunities. Established companies like Baskin- Robbins can be a great investment and I could see a gap in the market for this particular business.”

2. Sell products that are popular all year round

Since 1945 Baskin-Robbins has introduced over 1,000 unique and much loved ice cream recipes and frozen drinks, including the company’s famous ice cream cakes. Its stores continue to be popular, as products are an affordable treat for families - Baskin-Robbins sells in excess of 300 million scoops of ice cream each week across 6,700 stores in 50 countries.

According to market research specialist Mintel, the UK ice cream market was estimated to have reached £841 million in 2012 and has grown as a result of perceptions of ice cream as an affordable luxury outweighing thriftiness and health considerations in the economic difficulties of the past few years. In the UK premium ice cream has proved hugely successful and now accounts for just under a quarter of value sales.

“The Baskin-Robbins ice cream parlour concept is fun and unique - I love the fact there are 31 different flavours of ice cream,” says franchisee Prem Gotru. “Everyone loves our ice cream cakes. We sell on average in a day three-four ice cream cakes in our store and this keeps us busy, even during winter. The potential market is huge. If the location is right, new store success will follow you.”

3. Industry leading training and support

Baskin-Robbins’ franchisees benefit from initial training performed by professionals, including a certified trainer registered with the Chartered Institute of Environmental Health. The company also provides franchisees with continuous support in the from of dedicated account managers and highly qualified head office staff. However, Baskin-Robbins’ support doesn’t end there, as it also coordinates quarterly franchisee meetings that provide an excellent opportunity for franchisees to network and share best practice.

“We had our initial training in the Baskin-Robbins store in Colindale,” says franchisee Ash Ghataaura. “Training in an existing store was extremely beneficial for us. We have also hired a store manager who used to work for Costa, which really helps and allows us to make the most of our store.”

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