How Does Site Selection Work?
Store location is critical to success
Once you have qualified to become part of the Gigi’s team, our Support Center works closely with you to secure the ideal location for your Gigi’s Cupcakes bakery. We implement location and demographic studies and analysis to direct the process of site selection. Population statistics, traffic flow and local competition are crucial factors that we analyze before drawing conclusions about the development of any new market or individual site.
The Gigi’s leadership team has decades of experience working in restaurant and franchise management. We leverage our knowledge and expertise to help ensure each franchisee opens their Gigi’s in an optimal location. Once you’ve returned home from your Discovery Day with Gigi’s corporate leadership team and your request to become a franchisee is approved, we will connect you with a local commercial real estate broker to help guide you through the site selection process.
We focus on three criteria: Accessibility, Visibility and Affordability.
- Accessibility. The storefront should be easily accessible from the road, and customers need to be able to get in and out of your Gigi’s location easily. Our franchise development team can assist you with more information on this latest feature to our Gigi’s footprint.
- Visibility. The ideal Gigi’s location is easily seen from the road, without any buildings obstructing the store’s visibility.
- Affordability. Rent and lease agreements must be reasonable for franchisee success. Unit-level economics are the secret to the success and profitability of Gigi’s.
Population is key
Gigi’s Cupcakes’ bakeries have done well in urban and rural settings, but, in general, market areas with a population of 30,000 and up can successfully support a Gigi’s. Our franchise team has closely studied the characteristics of our most successful stores, and areas with a good mix of daytime and nighttime population tend to support a steady flow of customers. A good ratio is 30,000+ people and 15,000+ homes in the market area. As far as daytime population, the most successful Gigi’s locations are near busy office parks and office spaces where people are commuting daily during the workweek. We also look at strong nighttime population, with enough homes and residences in the surrounding area to support business in the late afternoons, after school and in the evenings. Restaurants in the area, which create foot traffic, are also important to site selection.
Demographics fuel demand
Our prime demographics include a local population with discretionary income that can be spent on an indulgent treat like a gourmet cupcake. Gigi’s customers tend to make a higher income than the general population, and 70% of Gigi’s customers have a college degree. Our research also shows that 60% of our customers have children.
Site selection is a crucial portion of the franchise process, and we have invested considerable thought and research into identifying ideal Gigi’s locations. Our team will work with you every step of the way. An optimal territory offers a general population with discretionary income that can be spent on an indulgent treat and a good mix of residential nighttime population.