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Why franchises prefer shopping centres or malls

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It has been proven time and again that choosing the right location is key to success in franchising.

According to the latest FASA (Franchise Association of South Africa) survey, more franchises are choosing to be located at a shopping centre or mall.

Morne Cronje, Head of Franchising at FNB Business says, “Before choosing a location, you should first consider the nature of your business and the ideal strategy for attracting customers. Therefore, doing your homework and research before choosing a location can determine the success or failure of your business.”

Cronje shares why more franchises are located at shopping centres or malls:

  1. Load shedding: Power outages form part of the main issues faced by businesses in our economy. Given that most shopping centres have invested in power generators, one of the benefits of having your franchise at a mall is that it shields your business operations from power cuts. In fact, during these past few weeks of power outages, we have seen an increase in people visiting food courts to dine at various malls around the country.
  2. More foot traffic: With your franchise being located at a mall, you immediately attract more customers and also gain their trust in your products and services.
  3. Security: Your franchise has 24/7 security supplied. As a result, this attracts and also makes customers feel safer. The cost of security will also be shared amongst all the stores in the mall, which means it is not all on you like a stand-alone store.
  4. Good infrastructure: Shopping centres or malls generally have great infrastructure and the buildings are thoroughly maintained. The franchise doesn’t have to stress about maintaining the premises. Furthermore, shops are required to adhere to certain quality standard which benefits the brand.
  5. Landlord relationship: During economic tough times, having a good relationship with a landlord is very important because it will enable you to have an honest conversation to negotiate leases and payment terms.
  6. Facilities: Shopping centres and malls provide a number of public services and facilities which provide convenience for consumers while shopping, such as parking space, restrooms, baby changing stations and facilities for people living with disabilities.

“Although renting space at an upmarket mall or shopping centre can initially be costly, businesses tend to benefit in the long term due to the advantage of a superior location and value-added benefits afforded to both consumers and businesses,” concludes Cronje.

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Alan Straton

Chief Cook, Bottle Washer and Broom Mechanic at MyPE
Passionate about Port Elizabeth and definitely NOT packing for Perth. Alan's ethos is epitomised in the words of Nelson Mandela; "I have fought against white domination and I have fought against black domination. I have cherished the idea of a democratic and free society. If need be, it is an ideal for which I am prepared to die." See more articles by Alan.