Franchise Focus
Get in the spirit F
With no entry fees and no royalties, Il Gusto’s ‘à la carte’ franchise model is worth exploring
INVESTMENT LEVEL: FROM £15,000
ounded in 2000 by businessman Richard Mosconi, ILG is the parent company of Il Gusto, an established retailer selling an array of quality oils, balsamic vinegars, liqueurs, exclusive spirits and gifts. The Il Gusto brand provides a direct link from producer to consumer and notably sells most produce direct from the barrel. With fi ve UK-based, company-owned Il Gusto shops and three franchise sites that have been open for over 10 years, Il Gusto is continuing its expansion worldwide. Following its fi rst successful test in CentrO Oberhausen in Germany last Christmas, ILG has also signed a master franchise in the Middle East, with an opening in Doha, Qatar, in May 2018. Plus there are more UK outlets to be opened this year. The concept was opened to franchise development options in the UK in 2005 and ILG has now researched and secured 30 prime locations across the country for franchisees to select from, with a ‘ready-to-go’ business model. In 2016, ILG launched its second business model, Cabaia. For the summer and winter seasons, it is a personalised accessories brand off ering fl ip-fl ops, socks and customisable hats.
Since almost 50 per cent of annual business is undertaken during the Christmas period, Richard has now created a seasonal approach to this model: the ‘à la carte’ concept. This off ers franchisees the fl exibility to work for a period of between three and seven months each year – mainly during the highly profi table summer and pre-Christmas periods – with a focus on popup shops and kiosks in high-traffi c malls and department stores. With this model franchisees have the ability to maximise profi ts while minimising costs, with the unique concept also endeavouring to provide further economies of scale for franchisees through reduced logistic costs and staff optimisation costs, improved rent and cross selling, all of which should ultimately result in increased turnover and profi t. With both brands suited to seasonal shopping (franchisees can choose to operate either one or both models), it makes sense to invest in a business
opportunity geared towards a commercially valuable time frame, receiving the same level of training and support that a full-time franchisee would but as an ‘à la carte’ operation. This ‘easy franchise’ model is based on no entry fees, no royalties, a low investment level (from £15,000), and a high profi t margin (52.5 per cent gross margin).
This innovative business model echoes
modern demand for fl exible working styles, giving franchisees the freedom to work part-time across the year. To help franchisees, ILG researches and secures prime locations across the UK for them to select from. Leases are then signed directly with ILG and full training is provided for each team, streamlining the process from start to fi nish.
Prior to launching the new model to market, Richard undertook a successful trial in Newcastle in the last quarter of 2016. During Christmas 2017, ILG operated a total of nine popup kiosks in Cardiff , Glasgow, Manchester, Newcastle and Nottingham, all of which ran successfully, with the Glasgow kiosk already running as a franchise. ILG is launching at least 20 popup units in major cities during 2018, with the
new kiosks all designed to be run on a franchise basis. ILG’s ambition is to see successful franchisees go from running one popup to managing a series of others in the same region, avoiding fragmentation and cannibalisation as the franchisee’s business grows. Richard has deliberately focused on creating a franchise template based on simplicity of setup to encourage regional expansion, encouraging growth with ease. Richard says: “I think this concept is very much of the time. For many people, the opportunity to work profi tably on a basis that is eff ectively part-time is highly attractive. Seasonality and personalisation are two key trends that support the potential success of any franchisee with a relatively low level of investment.” See Il Gusto and discuss franchise opportunities at its stand (C70) at The Northern Franchise Exhibition.
Il Gusto Retail
www.ilgusto.com alexis.q@ilgusto.uk.com 07825 982 753
June 2018 |
BusinessFranchise.com | 83
Investment: £10k-£20k
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