What-Franchise-Issue-20.1

Launching a franchise brand is one thing, but what does it take to merge two? Xmarks the spot 01 Trying to be different The X-Model has been part of a wider aspiration fromMSZ Brands to be disruptive. “The directors always wanted to be different to everyone else in the market and stand out to its competitors, not only in terms of franchising but from a consumer point of view,” says Kamran. Initially, this started with kitting Little Dessert Shops out with their own bakeries, enabling franchisees to have tighter control of what’s being produced, how much is being spent, and ensuring menu items remain exclusive. It was this innovation that in-part began to attract franchisees who have propelled the brand’s presence across the UK. 02 Creating a testbed MSZ Brands knew it wanted to expand its food portfolio, having seen the demand for Little Dessert Shop. The new brand had to be something that would capture the QSR market as well as have the potential to lend itself to an X-Model in the future. This is where Betsy’s was decided upon, and in 2021 two corporate- owned stores opened, aiming to run for two years before pushing further ahead with franchising. “We were running the model to make sure we were happy and it worked before distributing it,” says Kamran. “The last thing we wanted to do was to run it too soon and have 10 stores open before realising we should have corrected the model.” 03 The franchise model Once MSZ Brands had ironed out the wrinkles in the Betsy’s shops, it was able to set its sights on rolling out the franchise model for Betsy’s as well as Betsy’s X Little Dessert Shop. The move was announced at the National Franchise Exhibition – a hotspot for potential franchisees looking to invest in F&B. The X-Model was launched with a higher investment cost, due to the additional revenue streams and space requirements. “We’ve got three different models for Betsy’s and Little Dessert Shop: takeaway, café model (so 20-25 seats) and then a restaurant store,” says Kamran. “The X-Model must be a restaurant size store.” Customers in Wolverhampton lined the streets earlier this year as MSZ Brands unveiled its new ‘X-Model’ – a permanent collaboration between two of its existing franchise brands: Betsy’s and Little Dessert Shop. Cynics may assume that umbrella companyMSZ Brands sawthe chance to merge two of its successful food businesses together, creating a novelty that would garner a quick buck. However, the collaboration has taken more than five years of planning. In fact, Betsy’s was specifically created with the future ambition to produce an X-Model with already-established Little Dessert Shop. Kamran Hussein, head of franchise at MSZ Brands and Little Dessert Shop franchisee explains howthey did it. 34 WHAT FRANCHISE Issue 20.1

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