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Driving force: Bridgestone flags 300 stores

Sarah Stowe

Bridgestone Select is on track for its 300th store, no mean feat for any retailer in today’s economic climate.

The Grafton store is being converted from an independent auto workshop, and given the Bridgestone treatment.

“It’s not quick to do,” says Andrew Moffatt, Bridgestone’s managing director for Australia and New Zealand. But high standards are important to this company, which has been operating in Australia for 70 years, and franchising its brand since the 1980s.

The Select model was launched in 2006 and as a full format franchise is suited to metro and larger regional locations.  The smaller service centre model works well in more rural settings with a smaller customer base and population. Some of these franchise units cater for truck and agricultural vehicles.

The location of choice is a standalone site, he says. “We have to consider the property costs. In large sites with many stores, pricing can be horrific. The franchisee needs to have financial sustainability, to be able to afford the rent, run profitably and have a customer base.”

While Moffatt declines to discuss numbers, he insists the Select model is “not enormously expensive, it’s a modest option.”

He explains the franchise fee incorporates set-up and initial training and the interior fit-out of the store. The franchisor takes care of, and retains ownership of, the exterior signage.

“We have standards regarding our equipment in store, and the showroom itself. Our customers need to be satisfied with the whole experience,” says Moffatt.

The showrooms are tyre-free, customer friendly spaces that have freshly brewed coffee and WiFi connections on hand. Clean bathrooms and a tv for waiting customers are a far cry from the traditional tyre sales environment and represent the high standards expected by the franchisor.

“Select is constantly changing its model, it has to evolve to meet market needs and customer expectations.”

Moffatt says the company has good environmental standards which are important to the customer, as well as high safety standards.  Bridgestone is a trusted brand, he says, backed up by a Readers Digest people’s vote.

“We’re a long term, stable franchisor. We know what we’re doing. We have a clear direction, we are continuing to invest in product development, we are expanding auto services into stores to assist franchisees so they become a one-stop shop.

“The customer is always looking for a good deal, so remaining competitive is important, it’s a buyer’s market. The franchisees need to understand what’s happening in the market so our communication is vital.

“We have to tweak all the time. We see a flood of cheap, inferior product which can draw a customer initially, until they experience the effects of a poor product. We have to make sure our model delivers good customer service and high quality products.”

Franchisees are drawn from all walks of life, and bring their own perspectives and fresh ideas to the business, says Moffatt. “We are open to listening to new ideas. It can be quite refreshing to see people from different backgrounds.”

4 tips for buying a franchise

  1. Look at the franchisors and find out who you will be dealing with. What is their reputation? What is their longevity? You can easily find out information online.
  2. Look for an established franchisor that has stability and a track record you can see and understand their journey.
  3. Consider what consumers want. Do customers trust the brand and the company?
  4. Look at the support systems on offer. Is there educational, technical and product training? Can you talk to someone if there is a problem?