Taking the Industry by Storm: The Fun Franchise Phenomenon by Harriet Mills

January 17, 2017

Fun-focused businesses are only growing in popularity. Entrepreneurs looking to start a business outside the food, fitness and retail spaces should look closer at these new concepts.

By Harriet Mills

A quick glance at the lists of top franchised businesses finds the rankings dominated by quick-serve restaurants, specialty retail shops and fitness facilities, but a closer look reveals a variety of outside-the-box business opportunities that focus on fun and non-traditional, social entertainment. Consumers are eager to try new things when it comes to entertainment, and businesses that cater to those interests while providing an opportunity to spend time with friends and family in a carefree, social atmosphere, are thriving.

I came up with the concept for Wine & Design during a weekend getaway with friends. I had recently been laid off from my corporate job and needed some time off to relax, rejuvenate and re-charge. We were looking for a fun night out and booked a class at a local paint and sip studio. After a glass of wine or two (or three), I was inspired by the idea of combining a social, happy hour atmosphere with the creative environment of an art class. I knew I could take this idea and make it work back in my hometown. I left that evening with two things — a painting I could be proud of and the inspiration to start my own business.

Critical to understand customers

Crucial early steps in creating a successful business were to really think about our target consumer, develop a business model that provides what they’re looking for and think about ways to expand that audience. In addition to our core offering, we created distinct divisions that appeal to a broad spectrum of potential customers, including companies looking for a social activity to help employees bond, socially conscious people who want to do some good while having a good time and kid’s classes (non-alcoholic, obviously) that let the young ones explore their creativity. Because there wasn’t a playbook for how to succeed on a large scale with our type of business, it was crucial for us to understand how people enjoyed the service we provide and create options that keep the Wine & Design experience fresh, encouraging customers to come back regularly and bring friends with them.

For another example of a franchised business that succeeded by focusing on fun, look at Sky Zone. What started as a testing facility for a new, trampoline-based sport quickly pivoted to become an indoor trampoline park when they found that young people in the area were willing to pay to use the facility and bring their friends back to do the same. The recent explosion of escape room games across the country is tapping into the same phenomenon — people looking to get together with friends and do something exciting and different from what they’d do on a normal night out.

A closer look at new concepts

While our success hasn’t surprised our team internally, we’ve been very pleased with our rate of growth. After opening our first franchised location in 2011, we’ve grown to more than 50 by the end of 2015 and expect to have over 70 locations across 14 states by the end of 2016. This rapid growth is the direct result of tapping into the market for social entertainment experiences and leveraging the abundance of talented artists in each community to find the best instructors for our Wine & Design locations.

These fun-focused businesses are only growing in popularity. While there’s little doubt those mainstays of the franchise model will continue to thrive, entrepreneurs looking to start a business outside the crowded food, fitness and retail spaces should look closer at these new concepts. They’ll find opportunities with growing franchises outside the box, and who knows? They may even have a little fun while they’re at it — and better yet, with a glass of wine.

Harriet Mills is Founder and CEO of Wine & Design.