Article
Designing the next business model before the current one plateaus
How companies can identify new value pools and build business models that combine differentiated customer value with scalable economics.
Build retail and franchise networks around formats, locations and economics that remain attractive as the system expands
We develop retail and franchising strategies that connect network growth, unit economics, format design and partner incentives.
Retail and franchise networks can grow quickly while becoming economically weaker. New locations add revenue, but they can also dilute sales density, increase operating complexity and create inconsistent customer experiences. Franchising introduces a second layer of economics: the model must work for both the brand owner and the operator, while incentives, territories and support requirements remain aligned. As networks expand across regions and formats, historical assumptions about store size, ownership, catchment and partner roles can lose relevance. Strategy must therefore determine where to grow, which format belongs where and what economics are required for each unit and stakeholder.
Focus
What makes the next location worth opening?
Network growth creates value only when incremental demand, unit economics and strategic coverage justify the capital and complexity added.
Read nowStrategic Challenges
A franchise model has two customers
The consumer proposition must remain attractive while the economics and operating model also work for the franchisee.
Read nowStrategic Impacts
Format is a strategic variable
Store size, assortment, service model and location type can change capital intensity, customer missions and network economics.
Read nowObserved Patterns
Expansion can conceal declining network quality
We frequently see location counts rise while sales density, franchisee returns or new-unit payback gradually deteriorate.
Read nowStrategic Challenges
A franchise model has two customers
The consumer proposition must remain attractive while the economics and operating model also work for the franchisee.
Read nowStrategic Impacts
Format is a strategic variable
Store size, assortment, service model and location type can change capital intensity, customer missions and network economics.
Read nowObserved Patterns
Expansion can conceal declining network quality
We frequently see location counts rise while sales density, franchisee returns or new-unit payback gradually deteriorate.
Read nowPOV
A network is not stronger because it is larger
Growth becomes destructive when new units cannibalise existing demand or require economics that operators cannot sustain.
Read nowOur approach
Design the network from unit economics and market potential rather than allowing expansion targets to determine where and how the business grows
Our approach starts by mapping customer demand, catchments, existing formats, locations, ownership structures and unit-level economics. We assess how store size, format, channel interaction, territory and local market characteristics influence revenue, cost and capital requirements. For franchise systems, we examine both franchisor and franchisee economics, including incentives, support requirements and the balance between local autonomy and network consistency. Alternative network models are then tested against growth, cannibalisation, payback and operational complexity. We define priority formats, ownership logic, location criteria, partner models and expansion sequencing.
The data and estimates presented are indicative and intended for illustrative purposes. Actual outcomes may vary based on each company’s specific context, market conditions, operating model, implementation choices, and the quality and consistency of execution, including actions undertaken by the client.
Keypillars
Explore the key pillars that define this capability and shape how we create focused, measurable business impact.
Format economics
Formats are designed and compared through customer demand, capital requirements, operating costs and unit-level returns.
Network architecture
Locations, territories and ownership models are structured to increase reach without unnecessary cannibalisation or complexity.
Aligned incentives
Franchisor, franchisee and customer economics are considered together so network growth remains sustainable for all parties.
If you stopped measuring success by store count, which parts of your network would still look attractive?
Get in touch with our Retail and franchising strategy team to examine formats, network economics and expansion choices.
Get in touchStrategic Framework
Explore our Strategic Framework
Explore our strategic framework applied to page_title and discover which model we apply to help you achieve your goals and objectives.
Discover our framework01. Network baseline
Map formats, locations, ownership models, market coverage and unit economics across the current network.
06. Expansion roadmap
Sequence openings, conversions, partner development and format changes around network economics and market potential.
05. Network modelling
Test expansion, cannibalisation, payback and partner economics across alternative network configurations.
02. Demand mapping
Assess catchments, customer missions and geographic demand to identify where different retail formats can create value.
03. Format design
Define format roles, economics and operating characteristics across different market and customer contexts.
04. Ownership design
Determine where direct ownership, franchising or hybrid structures provide the strongest strategic and economic fit.
How we help
Determine which formats to scale, where new locations create value and how ownership and franchise models should evolve
We address strategic questions across retail formats, network expansion, ownership models, franchise economics, territorial design and portfolio optimisation. Work can include retail strategy, franchise strategy, format development, network planning, location economics, direct-versus-franchise assessment and franchisee value propositions. We examine unit economics, cannibalisation, market potential and operating requirements to identify where growth strengthens or weakens the network. The work can support new concepts, accelerated expansion, international growth, network restructuring or established systems whose formats and economics need renewal.
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Retail strategy development
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Franchise strategy
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Retail format strategy
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Retail network strategy
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Franchise economics design
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Location and catchment strategy
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Direct versus franchise strategy
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Franchisee proposition strategy
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Retail network optimisation
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Retail and franchise expansion strategy
Explore our FAQs
Find answers to the most common questions about this service, including key features, processes, and practical considerations. Explore our FAQs for additional insights and guidance.
It defines how retail and franchise networks should grow across formats, locations, ownership models and economics.
Strategy defines formats, network and growth choices; operations manages the ongoing performance of individual locations.
Franchising may fit when local operators can add capital or capability while preserving viable economics and network consistency.
Economics should work for both franchisor and franchisee across investment, margins, fees, payback and operating requirements.
Locations can be assessed through demand, catchment quality, cannibalisation, costs, capital needs and expected unit economics.
It defines how different store concepts should serve customer missions, market contexts and economic roles.
New units can shift existing sales rather than create demand, weakening economics even when total network revenue increases.
Redesign may be needed when formats, customer behaviour, unit economics or market coverage no longer support strategic goals.
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Which customer problem deserves another year of investment?
Product resources are scarce, making the value and strategic importance of the problem more consequential than the length of the feature backlog.
What makes the next location worth opening?
Network growth creates value only when incremental demand, unit economics and strategic coverage justify the capital and complexity added.
Strategic challenges
Enterprise coherence does not require identical strategies
Different businesses can pursue distinct markets and economics while remaining aligned around a common corporate direction and contribution.
Successful products can become strategically obsolete
Revenue may remain healthy after technology, customer behaviour or competitive alternatives have begun weakening a product's future role.