The Cheesecake Shop shows strong signs of resisting high rent trend
Despite recent media reports stating that retailers are struggling with high rent and rental increases, popular cake franchise company The Cheesecake Shop is showing strong signs of resisting the national trend.
The Cheesecake Shop’s National Franchise Development Manager, Nick Avgerinos, has been working closely with franchisees and their landlords. According to Avgerinos, he has noticed that their unique business model has managed to avoid the disturbing increase in overheads.
"One of the advantages of The Cheesecake Shop model is that we offer sites that include a mixture of neighbourhood centres and sub regional shopping centres. Avoiding major shopping centres has meant an avoidance of spiraling rents, which many other franchising operations have faced of late."
Not only are The Cheesecake Shop franchises not facing the difficult financial stumbling blocks like their counterparts, they have been able to renew nine leases and obtain 14 months of rent free from the landlord.
"This is equivalent to a saving of approximately $50,000 for our franchisees," says Avgerinos.
"On top of that, in a further three renewed leases we were able to convince the landlord to agree not to increase the rent and to keep the existing rent steady for at least two years."
Although they are currently experiencing successes with their rental agreements, The Cheesecake Shop is aware that increased rental costs are a significant issue for many businesses and are concerned by its effect on franchising.
In a pre-emptive move to protect their cake and deserts franchisees, The Cheesecake Shop has joined the Franchise Council of Australia’s recently formed committee to help create a proposal for a Retail Leasing Code.
With The Cheesecake Shop’s strong business model, combined with their pro-active action with the FCA’s committee, The Cheesecake Shop feel comfortable that their sweet success will continue well into the future.
Create mouth watering cakes and deserts - Franchise opportunities available
The Cheesecake Shop provides a comprehensive training course and easy to follow recipes. All you need is good old fashioned common sense, organisational skills, drive and passion.