Why Kiosks Are a Trending Format for Franchise Expansion

For any franchise company looking to expand their presence or an entrepreneur looking to venture into the franchise industry, starting a Kiosk is a remunerative business opportunity.

Everyone seeks a profitable business format, which has the benefits of selling in a high traffic area to targeted customers with low-cost market entry and lease term flexibility, all within a small area; and Kiosks offer exactly the same. Kiosks make about 2-3% of the modern retail at present, according to industry estimates. 

A kiosk (also termed to as a mall kiosk) is a store operated out of a merchant-supplied kiosk of varying sizes and shapes with lighting and décor that complement the mall and design features. They are typically enclosed with the operator located in the centre as customers can approach the vendor across a counter.

The use of kiosks is quickly gaining popularity in the global market as many international franchise brands are adopting the strategy of using kiosks to venture successfully into the international market and increase revenue. Some of the examples are Baskin-Robbins, Dominos, Dunkin donuts, Jawed Habib, The Body Shop, Cafe Coffee Day, Ferns N Petals, Chaiiwala, Coffee Point,  Wrap it up, etc. Here are the following reasons why Kiosks are the best low-cost franchise format:

Low Investment

Any budding entrepreneur, who is looking forward to venturing into the franchise world but is constrained due to lack of capital, can opt for kiosk format. Since kiosks are a smaller version of a full-sized store, they require much less capital than the traditional store format. This is mainly because a kiosk demands less area and human resource.

For instance, starting a Baskin Robbins kiosk you would require an investment of 12-13 lakhs for an area of 100-200 sq. ft. The operational cost estimates around INR 2-3 lakhs. A kiosk may require 1-2 people to run the outlet.

For a ChaiiwalaKiosk, you will be required an area of 250 sq. ft. with a total investment of 24 lakhs. For Coffee Point franchisee kiosk, you will require an investment of INR 3.54 lakhs for 100 sq. ft. area.

Flexibility

Another major benefit of a kiosk is that it offers great flexibility. Given the smaller size of the store, one can act faster to the emerging market trends and changes. A kiosk business also offers you the flexibility to move to a different spot within the mall if the current one isn’t generating enough business.  Moreover, kiosks are also easy to maintain.

Target Audience

Kiosks are generally located centrally in a mall. It gives way to prime access to your target customers who are already shopping. Kiosks generate a high footfall without spending a huge amount. You can also locate your kiosk near a bigger retailer whose customer base is your target for instant and effective exposure and sales, for example, an accessories’ kiosk can be placed right outside a big brand apparel store.

Easy Expansion

For an already established business, kiosks are a great way for aggressive expansion. Since it’s a small format business, it is a relatively inexpensive way to expand. One can strategically place their kiosks in malls in different cities with low investment.