Franchises Going Mobile

Remember the good old days when the ice cream truck would roll down the street and all the children would chase after it? It seems that the ice cream truck concept has actually evolved into a profitable venture for some franchises. According to Robert Stidham, president of Franchise Dynamics, LLC, a number of franchises may be taking to the road next year. Their trucks will be equipped with sinks and ovens -- entire kitchens even -- and they will patrol the streets with their products. Stidham declined to name which national food franchises may be entering this venture, but smaller chains such as Cousins Submarines, Inc. and Toppers Pizza Inc. have already started. Sites like Twitter, Facebook, and FourSquare have easy-access tracking devices so that customers can track where the trucks may be. This will be like a traveling extension of the brick-and-mortar store. Franchisees can come to their customers sometimes, instead of their customers coming to them.

This is revolutionary in a few ways. First of all, it can be good for the franchises in that the truck is like a mobile billboard. It is great advertising, so even if they do not provide services to everyone who happens to be on the street, they are still getting their name out further. Also, these traveling trucks are still very unique, and there is something fun and cool and perhaps nostalgic about getting food out of a truck on the street. The franchisee must still pay the same royalties as they would in their store, but it is a nice addition to the business. It should be interesting to see if the traveling truck concept continues to grow or if only a few franchises will catch on to it.

Catherine Reeves

http://online.wsj.com/article/SB10001424052702303341904575576760919368160.html?mod=WSJ_Retailing_leftHeadlines