New Kiosk Model for Mr Rental in Regional Areas

Mr Rental Franchising has launched a new-look kiosk model as part of a strategy to improve market penetration in the regional areas of Australia. The home appliance rental franchises’ new Tier 2 kiosk model involved lower costs, which can then help channel growth into more opportunities for franchisees looking to expand.

“Within the next two years we’ll have all 115 of our territories across Australia and New Zealand committed but this new model will create further opportunities to penetrate the existing market,” says Alan Payne, Mr Rental’s General Manager.

Payne says the new model was an entirely different investment opportunity.

“For under $100,000 franchisees can add another unit to their franchise operation that utilises existing logistics making it an easy investment and a quick contribution to their business. “

“It’s an attractive proposition that will give franchisees looking to expand through multi-unit franchising the opportunity to do so. Some franchisees can also consider other retail stores with business synergy as working partners for their new retail outlet.”

According to Payne, around 20 areas in Australia and New Zealand have already taken advantage of the Tier 2 kiosk model in their hire franchises, which would be rolled out in the next two years.

Mr Rental Franchising plans to continue introducing the new Tire 2 kiosk model as part of a new trend toward using a hub and spoke distribution model.

“The idea will be to have many franchisees operating out of only few larger, more efficient warehouses in each region. For example, Melbourne and Sydney may only need three, as opposed to eight in each city,” says Payne.

“It will also mean people have specialised responsibilities – some will be experienced at showing customers through our showrooms while others will specialise in storage, servicing and logistics.” This will be a good outcome for both our franchisees and customers; with improvements in both the home delivery and customer service areas.”