IL GUSTO Stores UK
ILG Ltd launches new ‘a la carte’ business model for franchisees
Founded in 2000 by businessman Richard Mosconi, ILG Ltd is the parent company of Il Gusto, an established retailer selling an array of quality oils, balsamic vinegars, liqueurs, exclusive spirits and gifts. The Il Gusto brand provides a direct link from producer to consumer and notably sells most produce direct from the barrel.
With seven UK based company-owned Il Gusto shops, Il Gusto has now expanded to Germany, with Middle Eastern and more European outlets planned from February 2018. The concept was opened to franchise development options in 2005, and currently operates three successful franchisee sites with a ‘ready-to-go’ business model, in which ILG Ltd research and secure prime locations across the UK for franchisees to select from. Leases are then signed directly with ILG Ltd and full training is provided for each team, streamlining the process from start to finish for franchisees.
In 2016, ILG Ltd launched its second business model, Cabaia, a personalised accessories brand offering customisable hats. The brand offers premium bobble hats in a range of colours and styles. Each hat comes accompanied by three contrasting pompoms, which can be clipped on and taken off as desired.
With nearly 50% percentage of business undertaken during Q4 annually, Mosconi has now created a seasonal approach to this model, focusing on ‘pop up’ shops in high traffic malls and department stores during the busy October/November/December months that require a limited time commitment. This will offer franchisees the ability to maximise profits while minimising costs, with the unique concept also endeavouring to provide further economies of scale for franchisees through reduced logistic costs, staff optimisation costs, improved rent and cross selling, all of which should ultimately result in increased turnover and profit.
This ‘a la carte’ concept offers franchisees the flexibility to work for a minimum of three months per annum during the established and highly profitable pre-Christmas period. Il Gusto’s high quality, personalised food and drink products and Cabaia, are both ideally suited to the gifting market and ‘pop up’ franchisees can choose to operate either one or both of the Il Gusto and Cabaia business models. This innovative business model echoes modern demand for flexible working styles, giving franchisees the freedom to work ‘part time’ across the year.
Prior to launching the new model to market, Mosconi undertook a successful trial in Newcastle in Q4 2016. In the run up to Christmas 2017, Il Gusto is currently operating 9 of these pop up kiosks in the four cities of Newcastle, Cardiff, Glasgow and Nottingham, all of which have launched successfully, with the Glasgow kiosk already running as a franchise. In addition, IL Gusto’s novel Halloween products, including absinthe filled glass skulls, added an extra boost to the newly opened pop up initial sales.
The ambition is to extend to 25 pop up kiosks in 2018, with the new kiosks all to be run on a franchise basis. With both Il Gusto and Cabaia products ideally suited to Christmas gifting, it makes sense for franchisees to make the most of the opportunity to invest in a business opportunity geared towards this commercially valuable time frame, receiving the same level of training and support that a full time franchisee would, an ‘a la carte’ franchisee.
The ambition from Il Gusto is to see successful franchisees extend from running one pop up to manging a series of others in the same region, avoiding fragmentation and cannibalisation as the franchisee’s owned business grows. Mosconi has deliberately focused on creating a franchise template based on simplicity of set up to encourage regional expansion, encouraging growth with ease.
"I think this concept is very much of the time” said Mosconi. "For many people, the opportunity to work profitably on a basis that is effectively part time is highly attractive. Seasonality and personalisation are two key trends that support the potential success of any franchisee with a relatively low level of investment.”
Additionally, ILG Ltd have now finalised two further concepts to add to the ‘a la carte’ offering in 2018 and will explore European expansion to Switzerland and Austria in 2018, with further expansion also planned within Germany.
IL GUSTO was established over 15 years ago with 13 shops in the UK and 2 in Italy including concessions in prestigious stores such as Harrods and Selfridges. The plan is to open around 30 shops over the next 5 years, with all of these being owner operated franchises.
- We will assist you in all aspects of establishing and developing your business.
- We will help you to find suitable premises, plan the layout of your shop and provide you with full operational and logistic support.
- We will ensure you are fully trained in how to manage your shop.
- We will train you and make you an expert in selling our range of products.
- We will provide you with marketing and PR support.
- We will assist you to obtain funding from your bank.
- We will provide you with a personalised website, e-mail and intranet sites.
- Would you like the opportunity to build a business partnership with that could generate a turnover of up to 1 million pounds?
- Do you want to be part of a franchise network that has been established for over 15 years, and has international branding?
- Do you want to work with a franchisor with the ethos that only the best is good enough?
- Would you like the chance to own and run a prestigious retail outlet that you can be proud to call your own?
- Do you have a passion for fine food & drink?
- Does the thought of working with a professional, ethical and environmentally aware franchise network excite you?
- Would you like the opportunity to build a business partnership with IL GUSTO that could generate a turnover of up to 1 million pounds?
- Does the 60% gross operating margin enjoyed by franchisees appeal to you?
- The Initial Franchise fee of £ 15,000.
- Shopfitting and equipment from £ 20,000.
- Opening Stock from £ 20,000.
- Other variable expenses including rent deposits and leasehold improvements.
- VAT on the above.