Brothers David and Charlie Cohen are relishing the challenge of turning their medium-sized Matchbox franchise into a national giftware franchise. Along with their parents, Ross and Fran, and younger sister Annabel, David and Charlie are expanding the family-owned-and-run Melbourne-based Matchbox chain via the franchise model.
The family acquired the retail franchise in 1996, when Mr and Mrs Cohen bought Matchbox outlets in Chadstone and Armadale. In the past 10 years, the operation has expanded across Victoria to include nine company outlets and one franchise store.
David, 34, and Charlie, 32, grew up around the giftware franchise and have come to the retail operation from different industries. Charlie worked as a trading assistant and data analyst in London, while David was a civil engineer involved with the CityLink project.
A retail franchise storeman during his university years, Charlie is now the company's operations manager, while David is general manager. Although the pair worked as high school and university casuals for the family business - which before Matchbox involved a one-hour photo shop - it is the first full-time foray into retail for each of them.
"I think it's something that you learn as you go," Charlie says. "I started off in the storeroom; then I started managing a store. When I started as store manager I really didn't have much experience, but the staff seemed to respond to me and the shop seemed to go well after I started.
"And off my own bat, I guess, I moved into a more centralised role. I didn't really get invited, I just did it and I think I've learnt as I've gone. You've got to be pretty adaptable. I think you've got to be flexible and have an open-minded way of approaching things."
David, who like his brother started working full-time at the Matchbox franchise after returning from a stint overseas, says he "just knew" it was the right time to become involved.
"When I came back it just sort of happened, I suppose. I began helping out. I had always been interested in working in my own business in some way, shape or form, and the timing was right."
David says the giftware franchise plans to open 40 stores nationally in the next five years, positioning Matchbox as a large, independent player in Australia's highly competitive, multibillion-dollar home and kitchen accessories sector.
"We've had a really good run, especially in the last 12 months or so," he says. "Trade is very tough; it's a really competitive market. But we've been reasonably pro-active in the past 12 to 18 months and it's really helped us keep our head above the game a little bit. The market is a bit tough at the moment - I think all retail is probably a little bit tough at the moment - but we've been quite happy with our performance."
The pro-active measures David mentions include the decision to change to a retail franchise operation, which will allow the business to increase its market share, while freeing up time for the Cohens to work on enhancing the Matchbox brand and its business systems. The brothers and their father are heavily involved with the franchising process, analysing potential sites and opportunities, and liaising with a recruitment agency about suitable candidates.
Now both in their 60s, Ross and Fran Cohen are still actively involved in the buying side of the Matchbox franchise, while Annabel oversees administration in the Elsternwick head office. Youngest daughter Lucy, who also worked for the business on weekends and school holidays, is now an assistant fashion stylist.
"With a family business I guess success is much more satisfying," Charlie says. "I don't think I would have had the level of higher-up input at any other job that I've had than Matchbox and that's been fulfilling. There's a challenge there, it's live and die by my own decisions and I've got no one else to blame if it doesn't come off. I think we've made more decisions that have been good than bad, so we're ahead of the game.
"I work very closely with David and we complement each other. We get along very well. He probably approaches the side of the business that maybe I'm not that good at, and I probably look after the parts that aren't his strengths. So that's worked out well and it's just happened."
Charlie suggests potential retailers should seek advice before going into business and recommends having the appropriate business systems in place.
"Having systems and control, and knowing that you're in control, is really, really important. And I guess traditionally we make decisions on the hop a lot, almost sort of crisis-management from one crisis to the next without managing them before they actually become crises.
"You need to put it into plan ... particularly with franchising, because you can't just transfer what's in your head to a franchisee. You've actually got to have it in place."
27-Feb-2007