kiosks Sep, 06 2009

Small Kiosks Big Business

Kiosk franchise, has taken the country by storm. From fast food, coffee and ice creams to portable gaming etc, the kiosks can be found in all set ups. Read on to know more about this popular business concept

By Abha Garyali
Sub Editor
Small Kiosks Big Business

For those who have big dreams to venture into business but are constrained due to lack of capital can take a breath and relax as kiosk franchising opportunity is in full swing!! Kiosks are small movable carts. Taking a franchised kiosk offers a lot more benefits as in a low start up cost, where you get a branded outlet with all facilities of a retail outlet. A kiosk can be of many types, though the most common are the coffee and the ice-cream kiosks that can be found at high footfall areas. Informing about the popularity of kiosk format, AG Puttaraj, President, Coffee Day Xpress said, “Franchising has greatly helped in our development, and thereby, today we are able to stand at 900+ kiosks out of which around 600 are owned and managed by the franchisees.”

Franchised kiosk Vs an outlet:

Finding outlets in high footfall areas like malls and high streets demand skyrocketing rentals. These hazards can be saved by taking a kiosk as it does not need much space and can be set up near high foot fall areas. In addition to low rent the kiosk is a small space that has low inventory. This keeps the running cost quite low as well. According to Puttaraj, “Area required for setting up a kiosk is 2 sq. meters to 25 sq. meters and the investment needed is Rs 2- 5 lakhs.”

Moreover, having a kiosk offers you a lot of flexibility, which a location would not offer.  A kiosk can be moved to any other convenient spot.  The kiosk would not need to employ a trail of employees.  Unlike a, store at the mall, the customers do not have the choice to enter a kiosk, and therefore, the franchisor is saved from expenses which may be required to incur on maintaining a large store But since kiosks are mostly located in high traffic zones, people may throng the spot, buy the goods or eatables and leave the place. Now, it is upon the kiosk owner to display the goods in a manner that can entice customers.  Making a kiosk attractive is no a big deal.  Therefore, a kiosk allows eliminating many of the expenses which an outlet owner cannot ward off before profits begin to flow in.

All these benefits can allure any aspiring franchisee into taking a kiosk franchisee.

On the other hand, a traditional mall or a high street outlet does not offer any of these benefits. Apprehension may arise that a small kiosk may not be very profitable, as the sales may not be very encouraging due to its small size, but then, as the business grows, a franchisee of a low cost franchising business can expand business by setting up kiosks at many places.

Running a kiosk

All geared up to take a franchised kiosk, but wondering how to make it successful! Here are some tips to remember while running a kiosk franchise:

  • It is most important to select a site at a prime location, where your kiosk receives maximum visibility
  • It is absolutely essential to have a branded kiosk as people are attracted by the brand.
  • Kiosk can be managed well with a single person. Customer service is crucial for the success of the kiosk. Do not keep the customers waiting.
  • It is important to market and advertise about your newly opened kiosk so that people become aware of it.

While we have discussed above the merits of kiosk low cost franchise business, let us also know of its flipside.  The kiosks, due to their small size are not likely to accommodate a large range of products, thereby, may limit the choice of the buyers. Another set back can be that the fewer number of employees in the kiosk can give rise to long line ups for waiting customers.

Related: Own a sunny and bright franchise business

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