In a world of uncertain economic times, it can be reassuring for Kennedy's franchisees to have a recurring source of income thanks to the brand's membership model.
Membership-based businesses have typically been associated with gyms. But now, many franchises are starting to embrace the model because of the predictability it offers, while simultaneously allowing franchisees to plan ahead for growth. Kennedy’s All-American Barber Club President and CEO Jay Hummer said being a membership-based business has many perks, one of which is the source of steady income it can provide and the connection it enables them to make with clients.
“We like the membership model because it’s a monthly recurring income, but that doesn’t work if you don’t provide great service,” Hummer said. “We pride ourselves on being a world class barbershop, but we are more than that. People want to go to a place to feel comfortable and have a place that feels like home. Our members find that experience here.”
Hummer added that the environment of every Kennedy’s barbershop can feel like a sanctuary for its members, who can drop by at any time and socialize. Providing a quality service for customers will keep them happy and ultimately, it’ll encourage them to continue using their membership package. A superb customer experience can also lead to members telling non-members about it, resulting in a whole new line of income for franchises.
The membership model also gives Kennedy’s franchisees the opportunity to better forecast what sales are on the horizon. With the help of an appointment-based system, Hummer said that the brand has better foresight into how many clients will be coming their way in the coming weeks or months.
“In a membership-based business model like ours, local business owners can better project sales and services delivered based on their member count and their activity. For example, are they coming in once a month or once a week,” Hummer said. “Since Kennedy’s customers come back for a haircut or shave on a regular basis, offering a membership program makes perfect sense.”
The benefits of Kennedy’s membership program aren’t limited to the brand—they also carry over to consumers. Hummer went on to say that the business model helps lower costs for members. But at the end of the day, Kennedy’s continues to see success with its membership program because it only offers the highest quality services.
“If your service is not good, the membership model will not work. Success is ultimately driven by giving guests the best possible experience,” said Hummer.