Internationalizing Franchising: 4 Actions to Do It. The Case: Flower Burger.

Internationalization is the dream of every franchisor. Exporting a format is an uphill road, especially when doing business in the food industry, where competition is high, and consumer eating habits can vary greatly from one country to another.

The complexity of internationalizing a food format and, above all, the strategies to be implemented to succeed, is precisely what Matteo Toto’s story, who launched Flower Burger, a formula focused on preparing and selling vegan burgers, discusses. Founded in 2015, Flower Burger now has 15 locations in Italy and several outlets abroad, including two in London, and others in Amsterdam, Marseille, and even the USA.

Create an appropriate strategy for each market

Every market has its own story. It may sound like a cliché, but many entrepreneurs who attempt internationalization fail because they do not consider the inherent variations in each country. For Matteo Toto, who worked as an export manager before venturing into entrepreneurship, this is an essential lesson. Before deciding which country to move into, he recounts studying the markets where he intended to establish his brand thoroughly and then diversifying his strategies. “In France, a market more similar to ours, I started with a single franchisee, whom I met by participating in the Franchise Expo Paris. While several steps were needed in the UK, a much riskier market with various entry barriers,” Toto told me.

Rely on partners in complex markets

To enter the UK market, Toto knows he needs to rely on a partner. Therefore, he chooses to be supported by a master franchisee, a contractual form in which a franchisor entrusts a company with the rights to expand its brand in a territory. The benefits are in relying on someone who already operates in a market and knows it perfectly well. The contract stipulated by Flower Burger involves opening 15 outlets every five years, with a duration of 15 years. “In London, opening a store can cost up to 300 thousand euros, there are many risks, and you can reduce them by relying on a master franchisee. However, we manage the raw materials with our laboratory in Milan, the Flower Factory, which produces burgers and bread for all of Europe,” Toto explained.

The situation is different for the American market. Here, Toto needs to create a dedicated company to start the production laboratory, of which he, as the parent company, holds shares. As for finding the right partner in America, there is less strategy and more chance: he succeeds when he meets an American tourist in Italy, with whom he becomes friends. After contacting me for information about franchising, we spent two years talking on Skype to understand together if all the prerequisites were there to build this partnership. The latter falls in love with the Flower Burger formula and decides to export it to the USA.

Pay attention to communication (and its differences between countries)

Another aspect not to be underestimated for those who want to internationalize their format is communication, which cannot be centralised, as Matteo explains: “You have to consider that a joke that makes an Italian audience laugh would not have the same effect in the UK or France, where the sense of humour is very different,” reveals Toto. For this reason, especially when choosing to focus on very engaging communication, you have to choose local marketing agencies, also considering the costs to be incurred: “Three things are needed: an editorial plan for each country, a budget for sponsorships, and a widespread influencer marketing activity,” Toto advises.

Always check the costs of professionals

Even the costs of professionals can vary greatly between countries: “While 2,000 euros may be enough for a marketing agency in the UK, Italy, or France, in the USA, you will need at least 8,000,” Toto warns. A similar situation applies to other professional figures involved, such as lawyers: “In the USA, only the lawyers who have signed the agreements between me and my partner have cost us 150,000 dollars. Therefore, my advice is to inquire beforehand about the costs of professionals and understand if you have the means and the possibilities to cover them,” Toto concludes.

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