At FRANCHISEBIZ, we’ve known Aalrik Van Straten for a long time as a dedicated partner developing some of our prestigious international brands in Italy. His expertise and innovative approach have been invaluable in expanding our reach in the Italian market. We recently had the pleasure of sitting down with Aalrik to discuss his extensive background, his journey from a successful career in retail to founding AVS Consulting, and his insights into the franchising landscape in Italy.
Firstly, can you please tell us a little about yourself, your career so far and your connection with FRANCHISEBIZ?
Of course! Firstly, I was born in Paris and raised in Belgium and have lived in Italy for 17 years. I come from a very European family. I’m French with a Dutch father and a half-English mother. My nephew is German, my brother’s girlfriend is Spanish and my wife is Italian.
I always tell people I’m not from anywhere specific, I’m European!
I did an MBA in Paris then moved to Italy, where I’ve lived for 17 years. I had a long career with KIABI, (the H&M of France). It’s a massive retailer with a 2 billion Euro turnover and I worked for them for 15 years. I started at the bottom in a store, then moved up to regional director. They moved me to Belgium to open the country from scratch and eventually asked me to join the board. My mission was to increase the performance of 100 stores in shopping centres in 20 countries, but after COVID, my priorities changed.
I was traveling to and from work by plane every week and I realized I wasn’t spending enough time with my family. So I started my own business called AVS Consulting. We help international brands enter the Italian market and provide fractional management and other services, but our main focus is on helping businesses enter Italy.
Finally I love sport – especially golf and I’m a family man. I enjoy playing golf with my son but he’s better than me, he’s a young champion golfer!
What does your company do and how does your partnership with FRANCHISEBIZ help businesses in Italy?
My business started contacting international brands and Laurent Perry-Spencer (one of the FRANCHISEBIZ founders) heard of us and got in touch. What I really like about them is that they bring something useful and different to the market. The idea of being a head-hunter for franchises sounded like a good approach and I was convinced within a few seconds that I wanted to work with them.
As far as I know, they’re the only ones doing things this way. Most of the time in franchising you’re used to a ‘push’ not ‘pull’ activity, waiting for leads to come to you rather than going directly to the target. FRANCHISEBIZ turns this on its head and proactively finds high quality targets. I feel very much part of the team and I’m optimistic that it will grow and expand.
FRANCHISEBIZ brings brands together with candidates so they can develop in Italy. They are demanding and very selective about candidates and in my role, I’m behaving as the facilitator and mediator, so it’s an important role to bridge between candidates and brands.
There are many Italian brands that need the support of what FRANCHISEBIZ can do to grow them by entering new markets outside of Italy. So, AVS started bringing brands in and now we are working with FRANCHISEBIZ, helping to take them out!
How is the franchising industry performing in Italy right now? What do you think are its main challenges and opportunities?
There is momentum in retail real estate. Rent is relatively low right now and shopping centre companies are looking for new things. They recognize that new brands bring new people. They’re also opening their doors for private entrepreneurs, the Italian economy is doing well, unemployment is very low and so it’s a good time to be operating in this space. It’s a great moment for new brands to enter the Italian market.
A lot of Italians want to invest in their own business rather than work with established brands, so there are less candidates, but they will choose to work with these brands if they really like the product. Franchising is stronger here than in many other countries, but it really has to be the right product to appeal to investors.
Brands need to recognise though, that franchising here moves at a different pace to other territories. There’s a saying in Italy: “Chi va piano va sano e va lontano” or “slow and steady wins the race.” The build is deliberately slow for the first 10-15 stores, then when it reaches a critical mass, it expands rapidly.
So, there are strong opportunities here, but you have to deal with a franchise expert who knows the market because it is very different, and so is the mentality of entrepreneurs.
What advice would you offer someone considering becoming a franchisee in Italy?
Firstly, I’d reassure them that they will have strong support from the brand to help them succeed. They take off a lot of pressure doing things that normally cost a lot if you do them yourself – there is a lot of investment required in everything; marketing, advertising, merchandising and professional advice from experts. You will save time, money and reach turnover that you would take a lot longer to achieve if you did it alone. Also remember that when you work with big recognizable brands, banks are much more willing to lend you money to make it happen!
You recently became the development and management partner in Italy for Dreams Donuts. Congratulations! How have they performed in terms of franchise development this year, and what are your personal ambitions for the brand in the next twelve months?
At AVS Consulting we always insist that to take on a new brand it has to be new and useful in the Italian market, which Dreams Donuts absolutely is. They have 70 stores in France and the product is excellent. We have an agreement for development and management, similar to an integrated master franchising solution. I took on the challenge and I’m confident it will do very well, but it will need to time to flourish.
We search for franchisees, do the marketing and manage the store network so we do the whole process. We opened one store in January and the second one in May which is good progress. Things take time here, every city has different ways to interpret the law, so every city hall makes different demands. There are 4,000 cities in Italy. So, there’s plenty to keep me busy!
I would like to open six stores this year and my goal is to average one opening per month.
I know we can do it, but we are in the early stages of figuring out how to do it most effectively.
What kind of franchise partners are you seeking?
With Dreams Donuts we are looking for entrepreneurs who want to invest. We don’t mind about their experience but we do insist that they spend a lot of time in the store. It’s really important at the beginning to get them to see the store as something that belongs to them and to take care of it and build it up personally. We prefer hands-on partners who know how to make a bubble tea, a milkshake, to cook a donut by hand and deal with customers to set a high standard for their team. We don’t like passive silent investors and this may change in the future, but what we want right now is proactive hands-on managers.
For Iris Galerie, another franchise brand we support, we are seeking entrepreneurs who know their territory and understand their city. We also need people who are in love with the product. If you don’t fall in love with it, you won’t believe the incredible level of turnover that these stores can achieve! People cannot believe at first that the projected income is as good as we say it is, but when they really love the product, that’s when it clicks.
Finally, the fantastic global brand BoConcept is looking for a multi-unit franchise partner to expand in Italy. With over 67 markets covered by the brand, we are seeking a strong partner who can understand the perfect positioning of this Danish retailer and and has the knowledge of the Italian market for expansion. It is a wonderful opportunity.
Is there anything else you’d like to say to our readers?
Working with FRANCHISEBIZ is something that every brand considering franchising should consider because they offer a unique and special service that delivers really good results. You don’t just need lead generation; you also need to target the best quality candidates and reach the ones you really want to engage with, which is one of their biggest strengths.
Thanks, Aalrik! It was great to discuss with you and hear about your story!
If you’re an Italian entrepreneur or a franchise brand aiming to develop in the Italian market, please get in touch with Aalrik for a chat today!
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