Small Wonders

Due to their affordability and flexibility, kiosks are a hot option in franchising.

By Devlin Smith

Opinions expressed by Entrepreneur contributors are their own.

Freedom and flexibility. Those are the two major reasons Michael Haith, president of Maui Wowi Inc., says the smoothie franchise is operated out of kiosks rather than stores. "[Kiosk] franchise owners and operators have a low-investment cost, a high return and flexibility to go when and where they want with minimal risk," Haith explains. "If a location doesn't work, they can move it somewhere else."

Jeff and Jill Summerhays, the founders of Maui Wowi, realized the power of kiosks when they first started the company in 1983. "They wanted the freedom to work weekends and the ability to take their cart to concerts and festivals, as well as the option to leave the cart in fixed locations," Haith explains. Since then, kiosks have become a huge presence in the franchise world, as malls and other venues have recognized the benefits these small-scale outlets offer.

"We've been in business for 30 years, and we get more and more inquiries every day," says Jeffrey J. Morris, the founder of All A Cart Manufacturing Inc., a manufacturer of carts, kiosks and mobile vending vehicles whose clients include Arby's, Pizza Hut and McDonald's.

Morris believes the slowdown in the economy is actually helping to increase his business. "Some malls, the ones that are maybe dropping off in popularity due to increased competition, are suddenly scrambling for opportunities to bring [shoppers] in," Morris explains. "Where they might have previously prohibited carts or kiosks, they're now realizing that, to stay in business, they have to be flexible and offer these types of locations."

According to Morris, mall developers are also warming up to carts and kiosks for another reason: an increase in cash flow. "This is valuable real estate. If you have an 8- or 10- or 12-square-foot kiosk producing several hundred or thousand dollars per square foot, suddenly it becomes a lot more attractive than a philodendron plant or a bench," he says.

Economic factors make kiosks attractive to franchisees as well. "The start-up cost is really low," says Patricia Norins, publisher of Specialty Retail Report, a Norwell, Massachusetts-based magazine aimed at cart and kiosk operators. "You can get into business for an initial start-up of anywhere from $5,000 to $15,000, so a lot of people are able to open their first retail business with a credit card. You don't even need a traditional line of credit from your bank."

Morris agrees. "The franchisees are seeing this as an opportunity, because not everybody has a half-a-million dollars to invest," he says.

Maui Wowi's Haith adds that kiosks generally require less staff than a storefront, and boast lower rents, lower overhead and lower operating costs. "I believe it's the reason our franchise is expanding so quickly," he says. "We're now adding one to two franchise owners a week."

Tom Scarda, a Maui Wowi franchisee since last year, takes full advantage of his locations' mobility-he operates two kiosks at the Jacob Javitz Convention Center in Manhattan and two at the Jones Beach Amphitheater on Long Island. "I can go where the people are instead of waiting for people to come to me," he says.

Scarda moves his carts throughout the convention center and amphitheater during the week. On weekends, he'll take one of his carts to a local street fair or private party. This Christmas, when New York's winter will make it nearly impossible for him to serve up smoothies outside, Scarda will be moving his operation into a mall.

But Scarda's not concerned if weary shoppers don't take a shine to his smoothies. "If it doesn't work out," he reasons, "I simply pull it out and move on."

Related Topics

Editor's Pick

This 61-Year-Old Grandma Who Made $35,000 in the Medical Field Now Earns 7 Figures in Retirement
A 'Quiet Promotion' Will Cost You a Lot — Use This Expert's 4-Step Strategy to Avoid It
3 Red Flags on Your LinkedIn Profile That Scare Clients Away
'Everyone Is Freaking Out.' What's Going On With Silicon Valley Bank? Federal Government Takes Control.
Leadership

How to Detect a Liar in Seconds Using Nonverbal Communication

There are many ways to understand if someone is not honest with you. The following signs do not even require words and are all nonverbal queues.

Celebrity Entrepreneurs

'I Dreaded Falling in Love.' Rupert Murdoch Is Getting Hitched for the Fifth Time.

The 92-year-old media tycoon announces he will wed former San Francisco police chaplain Ann Lesley Smith.

Leadership

How Great Entrepreneurs Find Ways to Win During Economic Downturns

Recessions are an opportunity to recalibrate and make great strides in your business while others are unprepared to brave the challenges. Here's how great entrepreneurs can set themselves up for success despite economic uncertainty.

Business Ideas

55 Small Business Ideas To Start Right Now

To start one of these home-based businesses, you don't need a lot of funding -- just energy, passion and the drive to succeed.

Starting a Business

Selling Your Business? Do These 6 Things Right Now.

If you want the maximum price you need to make these moves before you do anything else.

Business News

'Invest In That Future Now Before It's Too Late': Bill Gates Calls For Global Pandemic Response Team In Op-Ed

In the same month that the World Health Organization called the coronavirus a pandemic three years ago, billionaire Bill Gates reiterated his call for a "fire department for pandemics."