Chapter #1 - The Importance of Planning for Your Kiosk Program

Imagine you've just been assigned manager for your company's kiosk project. If you're like most employees given this task, you may lack the experience in setting up a successful kiosk program. Also like most, you may not have even known what a kiosk was until your management team started to talk about it.

But now you're the kiosk manager. Whether you work for a retailer, private firm, restaurant or consumer goods company, your main goal is to build a box that will encourage customers to walk up to this environment and purchase product, all the while providing a good value. Maybe the bar has been set even higher to build market share and become the leader in your industry.

First thing is not to panic. The kiosk market is full of professionals, like F.C. Dadson, that can answer your questions or get you in touch with network partners that will help you set up your kiosk program.

Before setting up your first meeting with your in-house team or an outside vendor, you should do some research on the market. There are plenty of sources online. Even just taking a walk through your local mall can be beneficial as you can see some kiosks up close and chat with the kiosk operators about the pros and cons of their kiosk programs, what all went into putting together their kiosks and the long-term maintenance involved.

As part of this research process, you should also be thinking about

• What the main purpose of the kiosk is
• What kinds of products/services you are going to offer and how many
• What type of functions the employees will need to complete within the kiosk
• What kinds of locations are most ideal
• What the timeframe is for getting your first kiosk in place
• How you will go about putting the program together

Kiosk designers can give you thousands of looks with thousands of options for what can go into your kiosks. Without the answers to the above thoughts, you'll easily eat up a large amount of your timeline just getting to a finished design. I would recommend communicating upfront with your designer/manufacturer about how you imagine your kiosk looking, what functionality it needs and the types of locations you plan to enter.

I also recommend being upfront about your timeframe for the project and the date you want to install the first kiosk. Consider every aspect of the kiosk rollout, including negotiating mall leases, securing permitting, and producing, shipping and installing the kiosk at the location. Write everything down and plot out a timeline from when you want to install the kiosk and work backwards. This will determine if you have allocated the proper amount of time and if you have a realistic start date in mind. Many people make the mistake of skipping this step in the planning process and end up paying unnecessary rent because their lease has started but they have no kiosk in place.

Setting goals and establishing timeframes are just two pieces of the planning puzzle. Stay tuned next month for Chapter #2, where I'll divulge perhaps the most important piece - how to budget for your kiosk project.

-Marie VanDrisse (For more about me, visit my LinkedIn page.)

State of the Retail Design Industry

I think we all love a little optimism in the morning, so I was pleased to find that DDi Magazine titled their 2009 State of the Retail Design Industry Survey results article, "Showing Signs of Light." A shot of positivity to sweeten my morning cup of joe -especially after the last year or so in retail.

One thing that can be said about most retail designers is that they are very resourceful, and it appears that this resourcefulness is what's keeping us in the game. "The post-recession marketplace gives the opportunity for creativity and trying new things, which may benefit the retail design industry in the long run," writes Alison Embry Medina, the article's author. However, with the latest shift in focus to numbers and analysis with regards to retail expansion and development, in addition to offering creativity in their designs, designers "will be called upon to provide solutions to lagging sales, via means other than a percentage-off sign," as Brad Lenz, vice president of global architecture and construction for Juicy Couture, puts it.

What else do survey respondents see coming in 2010 and beyond? A slowly recovering economy, a retail designer's growing importance in projects, and a larger focus by retailers on remodeling and improving upon existing locations in known markets. Just as the economy has influenced the American consumer's spending habits, it continues to influence retailers' too.

To download DDi's complete survey coverage, click here.

--Larry Myer (Find out more about me over on LinkedIn.)

Experience is Everything

"Anne DiNardo, VMSD.com: How are the store design rules different between specialty retail and food?

Todd Taylor, Director of Design, Darden Restaurants: Restaurant design is a balance between what is seen and experienced by the guests and what happens outside of their view. The design team must not only effectively design a front-of-house experience, but create an efficient operating kitchen. Without this successful balance, it's unlikely a guest will return for a second visit."

For any business owner -restaurant or otherwise- that is looking for a new design, it's important to find a designer with experience in your industry. While your back-of-house isn't always seen by customers, as Taylor points out in a recent interview for VSMD, it has just as much impact on a customer's experience as what they can see. A designer with applicable experience will not only make the whole place look good, but they will make it function well too.

On-the-Job Passion

During my 15 years in the professional world, I have worked for 5 different employers in positions covering sales to account management. Some of those jobs were merely a way to pay the bills while others were positions that I was truly passionate about. I think as we all enter the New Year, we need to ensure that one of our resolutions is to not just get up every day and go through the motions, but to jump out of bed and attack the day with passion.

How does this fit into the world of franchising? As many prospective franchisees look to embark on the American dream of owning their own business, I believe that first and foremost they need to ensure that they begin by finding an opportunity that they can be passionate about. Sure, everyone is passionate about a new opportunity through the first year or so, but once the honeymoon is over, will the passion still be there? Passion is what will drive you in year two and beyond. It is the passion that will ensure you create a positive experience for every new customer that visits your retail store, restaurant, etc. It is your commitment and positive interactions that will create an atmosphere that will ensure visitors become repeat customers.

So as you look at the thousands of opportunities the world of franchising offers, I hope that you will first take a look at what things you are passionate about in your life. What are some of the things you take part in because you choose to and not because you have to? What is it that you truly enjoy? Once you have this figured out, you can start narrowing your search to concepts that not only match your budget, but also match your passion. At the end of the day, we all want to make money and be successful. However, when you're putting in endless hours a day to make your concept work, I think most would agree that it takes more than just money to keep pressing on.

Passion is also one of the most important characteristics a franchisor can relay to franchisees. Current franchisees want to know that you believe in the concept and will be there for them. When they look to you for guidance, your passion will help these franchisees see that they are more than just royalty checks, but respected members of the team. Your enthusiasm for their success and empathy when they hit a bump in the road will create a sense of family, and we all have an innate sense of wanting to be cared for.

In today's current marketplace, many franchisors are competing for a limited number of potential franchisees. Every franchisor can regurgitate countless points about why their concept is the best. How can you differentiate yourself? It all comes back to passion. When you engage someone with real excitement about what you do, it becomes contagious. The prospective franchisee starts to feel the enthusiasm and envisions him- or herself owning a unit and being successful. What can be better than that?

So, as we venture into 2010 with the optimism and opportunities a new year brings, let's not roll over and hit the snooze button. Let's throw off the covers, jump out of bed, and embrace it with passion for what the day may bring.

--Troy Schwehr (For more info about me, visit my LinkedIn page.)

Testing the New Franchisor Waters

Last Thursday, Tim offered great commentary on an experience he had working with a restaurant operator that wanted to start franchising his business. As a fitting follow-up to that post, I found this article on Entrepreneur.com that takes a look at the potential franchisee's side of things when evaluating new franchisors. As Tim's experience and the article show, unproven franchisors are a risky investment. If you're looking at buying a franchise and considering a newer concept, it's incredibly important to do your research.

The article suggests that potential franchisees check out things like how long the company has been in business and how much industry experience the management team has. Reading up on the financials and growth plans and talking with existing franchisees if there are any are also recommended.

As I was reading these suggestions, I started to think about what F.C. Dadson's team looks for when deciding to take on a new client, and you know what? Our evaluation process isn't too different from the one outlined in the article. A strong management team, solid financials and sales program, a realistic growth plan and established FDD and operations manual are all things we take into consideration. Of course there are other things like whether their design needs fit our capabilities and so on, but it was interesting to see just how similar we are to a potential franchisee when checking into new franchisors.

With money as tight as it is, very few of us can afford to take the same risks we could have a few years back. When making new investments -whether it's signing a franchise agreement or signing a new client, it looks like we could all benefit from doing a little homework before jumping in.

--Liz Blohm

Business Operator or Franchisor?

There are many, many solid reasons for wanting to grow a successful business using the franchise model. If franchising is your selected method of expansion, there are dozens of books, hundreds of consultants and even more so-called "expert" opinions on how to accomplish your goals. Some offer great advice while others could lead you down the wrong path. In developing your strategy, you will need to decide which path is right for you.

There is one issue that probably doesn't get the attention that it should and I've seen it all too often when working with start-up franchise concepts -the need to separate the role of being a franchise and being a business operator. Running a franchise is a full-time job just as running a successful retail store, restaurant, etc. is also a full-time job. It's incredibly hard to effectively do both at the same time. If running the day-to-day activities in a successful retail or restaurant operation is your passion, you may find the transition to becoming a franchisor a difficult one.

To illustrate my point, take an experience I had with a start-up restaurant franchise concept. About a year ago, a national franchise consulting firm invited me to take a look at a small restaurant concept and, if possible, help them develop a standardized build-out program. The concept had several corporate units open and was doing very well financially; and the rest of the pieces like a franchise sales plan, marketing strategy and franchise development were falling into place. So I eagerly jumped in.

Working closely with the new franchisor, F.C. Dadson helped develop a standardized but flexible set of architectural plans and renderings for future franchise locations. The plans detailed lighting, flooring, paint, graphics, menu boards, millwork and furniture pieces and a specified equipment list. Also included were budgetary costs for everything. The FDD could now be accurately presented, the operation manuals were brought up to date and the renderings could be used in franchise marketing materials. Our piece of the puzzle was complete -at least until the first franchisee signed on.

So I waited, knowing it takes time to complete the rest of the start-up tasks and sign on suitable franchisees. I stayed in touch with the franchisor throughout the year, but am still waiting word on that first franchise location.

A recent trip found me in the franchisor's hometown, so I decided to stop by for a visit. I was a bit shocked to see him, the president of a new franchise concept, working behind the counter serving customers. And then after a brief conversation, he had to run out on a delivery. Now I understood why this promising new concept hadn't gotten out of the franchise starting gate -the franchisor was passionate about serving his customers and the day-to-day operation of the restaurant. In other words, he loved being an operator.

I completely respect this franchisor's dedication and regret not seeing it earlier. If I had, I could have advised him on this shift he would need to make from operator to franchisor. Until he makes the switch or hires someone to run the franchise side of his business, he'll have a big hill to climb to build a successful franchise.

--Tim Matey (For more about me, check out my LinkedIn profile.)

Hello, 2010!

2009 was a tough year for many of us, but the good news is that it's over! 2010's here and with it comes conservatively-optimistic reports for businesses and our economy. While we may not be completely out of the woods yet, it seems we're nearing the edge of the forest and seeing cracks of daylight through the branches.

2010 is panning out to be a busy one for this marketing coordinator/chief blog poster. Not wanting The Dadson Diaries to take a back seat to other marketing stuff (you readers deserve better than that!), I've enlisted the help of some of my fellow F.C. Dadson employees to help keep the posting regular and the content fresh.

Introducing my new co-stars:


Tim Matey - National Account Executive


Troy Schwehr - National Account Executive


Larry Myer - Vice President of Business Development


Marie VanDrisse - Executive Account Manager

They are all excited and rarin' to go. Catch Tim's first post this Thursday.


Happy New Year,
Liz