Tell me, who would you pick?
According to Márk Maczelka, head of communications with SPAR Magyarország, franchise has become more important since the pandemic, and businesses like to join a well-working and stable network such as SPAR. The retailer plans to open 15-20 new franchise stores every year.
Zoltán Matskási, marketing and business development director of Pek-Snack:
“In 2023 the biggest challenge is that in spite of the popularity of franchise business models, owing to the current economic hardships – planning is difficult and retail sales are dropping – the investment in joining a franchise network returns slowly.”
Sándor Lencsés, Hungarian franchise and concept director of Fornetti Group:
“If we take a look at franchise trends, what we see is that those are in a better position who keep investing in the future, despite the hardships. We also launched several projects in this difficult period, in order to compensate for the decline.”
New dynamism
Krisztián Kathona, owner of the Borháló Franchise:
“More and more partners apply to join our network; we definitely see an upward trend in entrepreneurship and many new shops open. In 2022 our brand was present at the biggest Hungarian festivals, promoting our product selection and franchise stores.”
Café Frei’s representative told our magazine that the number of their units grew both in Hungary and abroad in 2022. The expansion continues in 2023, primarily in the domestic market. They operate more than 80 coffeehouses in eight countries and 70 in Hungary.
Loyal to the system
Márk Maczelka: “SPAR’s network building concept hasn’t changed in the last few years, we prioritise quality over quantity to create a strong network that is viable and successful in the long run. Franchise partners get regular advice from our experts on how to operate their stores based on the SPAR know-how.”
Everything Pek-Snack does is directed towards persuading shoppers to visit a Pek-Snack shop every day. The company’s other focus area is international expansion: their products are available in more and more shops, and the number of stores in the franchise network is growing.
Fornetti Group also provides regular support to partners, having integrated certain mechanisms into daily operations, thanks to which efficiency has increased and the impact of inflation was mitigated.
With us or without us
Borháló reacted to the Covid crisis by intensifying communication channel use. They organised online wine tasting programmes and started offering contactless delivery. Rising prices and raw material shortage cause problems to them, as the extra work generated by these diverted attention and took the time from development work for a while.
Cafe Frei’s price policy is to offer the best Café Frei product prices in their own cafés – 90% of these products are various types of coffee. A central element in the Café Frei concept remains regular renewal and innovation work, in terms of both the products served in the cafés and available on the shelves.
Which way to go now?
In the current economic situation, SPAR would like to help partners in the next 2-3 years to operate their stores as profitably as possible. Building the franchise network is going to continue at the same pace as before. Fornetti Group’s market leader position isn’t threatened by the current economic hardships, thanks to the conscious crisis management work. Their marketing mix hasn’t changed, but online communication is getting stronger. The know-how transfer works so well that it needs no modification.
Borháló believes in the importance of good new member selection and organic network growth. It really attracts franchisees if they see that the company continuously monitors the shops, and the quality of their product selections and services. In the weekly internal newsletters partners can read about the franchise’s directions, standards and marketing ideas.
The Café Frei network keeps expanding, so the franchise owner dedicates special attention to communication and collective thinking with partners. Training programmes, e-learning services and marketing support help the work of franchisees. //
The best franchise owners and franchisees
This February the best franchise owners and franchisees of 2022 were announced in nine categories, at the Award Gala of the Hungarian Franchise Association.
Best franchise networks
– Franchise Network of the Year – BENU Gyógyszertár
– Most Dynamically Developing Franchise Network of the Year
Two winners were announced:
• Alpha Zoo
• Alma Gyógyszertárak
– International Network Expansion of the Year – Duna House
– Marketing Award of the Year – Cafe Frei
– Innovative Franchise Network of the Year – Stilianos babauszoda
– Internet Media and Web Award of the Year – Logiscool
– Recession-resistant Franchise Network of the Year – Fornetti
Best franchisees
– Franchisee of the Year 2022 – Olifan Kft., franchise partner of the DIEGO network
– Young Franchisee of the Year 2022 – Andrea Szigeti, franchise partner of EverDerm Laser & Beauty Clinic network
– Multi-unit Franchisee of the Year 2022 – Zita Jäger, franchise partner of Immo1 Ingatlan network
This article is available for reading in Trade magazin 2023/4.
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