Kütchenhaus Sheffield | RETAILER PROFILE
‘We recognise the importance
of independence’ Head of
marketing Paul Lee spells out the benefits of a Kütchenhaus franchise
Q & A
Q: What are the main reasons people go down the Kütchenhaus franchise route? A: Our premium German kitchens are increasingly attracting new and experienced business owners alike. People are recognising the opportunity of buying into an aspirational product, delivered by Europe’s number-one kitchen manufacturer, Nobilia.
Franchisees have the ability to actualise strong annual turnovers, as well as having a clear route for expansion. We’re very proud too that around 20% of partners open multiple showrooms. We
also recognise the importance of franchisee independence and freedom to plan their own events and local engagement.
Q: Do franchisees have to pay a joining fee or any other fees once they are open? A: There’s no initial franchise fee, so the start-up costs are relatively low. Typical year- one running costs for franchisees are between £80,000 to £120,000.
“They take a 5% franchise fee. Whatever you spend with Nobilia, you pay 5% back to Kütchenhaus.” So, being experienced in the KBB world and retailing, why did Teehan and Fagan decide to go with the franchise model?
“A Kütchenhaus franchise is a great fit for anyone who is perhaps working in the KBB industry as a salesperson at the moment and perhaps needs a bit of business support,” explains Teehan. “On the other hand, it is also a great fit for someone who is a business person at the moment and doesn’t need administrative support, but does need the KBB support. They’ve got the support from both angles, even down to things like recruitment.
Brand value “However, you might look at our situation and think, we have the experience, why do we need them? The answer is that the Kütchenhaus brand really has good value. If you’re going to spend £25,000 on a kitchen, would you rather go to a big, national chain, or would you rather go to a family business that really cares about your design, takes a lot more time over it and thinks about how you are going to use the kitchen? You could argue that Kütchenhaus gives the best of both worlds.”
Kütchenhaus of course helps its potential franchisees with all aspects of setting up and running a business, but there are other benefits, says Teehan: “The most important is the economies of scale you get with marketing when you get above a certain
December 2022 ·
size. It’s not a one-man-band trying to feel their way around social media marketing. You have a team of experts who know how to do it correctly.” Another advantage our duo found in having Kütchenhaus behind them was when they looked at offering consumer finance. They helped make the process a lot easier.
So what did it mean for Teehan to share the milestone of becoming the 60th Kütchenhaus store? “I take pride in having started out my career in the KBB business at Kütchenhaus. It is nice to be able to say that now we have opened their 60th store. Their first five were very big and looked very different – now they are lovely boutique stores that are easy for customers to get to and provide a comfortable, quiet space to sit and think about their kitchens. I think it is a great business.”
For the future, will the guys look at opening further showrooms? “Yes, without a doubt. I am probably more comfortable looking after more stores than just one. The plan always was to have multiple stores.” And would he recommend going the Kütchenhaus route to other budding KBB retailers? “Yes, absolutely,” enthuses Teehan. “Some of those I set up when I was at Kütchenhaus have been really successful. If you can sell, then you are lining yourself up with a product that will genuinely sell itself. Add to that the support in terms of administration and logistics – all of those things are taken care of for you. It’s a business in a box.”
Q: Kitchen designers are not necessarily businessmen. What support do you offer franchisees to run their business? A: We welcome franchisees with support to find new locations and free showroom installation. A dedicated regional manager will look at all aspects of running their business from coaching sales colleagues in showrooms to advice on accounts and cash flow. Additionally, partners benefit from marketing support including national advertising and sales leads from our website, plus consumer finance.
Q: What qualities and experience are you looking for in a new franchise partner? A: Although kitchen design and background experience is key, an entrepreneurial spirit is also important. We’re looking for partners who are going to open a fantastic showroom, deliver great service and enjoy strong cooperation with our head office team. We’re looking for people with ambition to make their own business successful.
Q: Why do you think the Kütchenhaus franchise has been so successful? A: The support we offer gives showrooms the best start possible with quick access to product and buying at very competitive prices, which are passed on to customers. Alongside this, our lead-marketing agency continues to push our brand awareness with effective marketing campaigns.
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