No to DIY. Yes, to DIFM!
by Kitchen Studio
last updated 04/12/2024
Kitchen Studio franchisee since 1989 still going stronger than ever.
John Wilson once considered himself somewhat of a rebel franchisee. “My first experience as a franchisee was with a retail-based franchisor from 1981 until 1987. Then, in 1989, with my wife Tricia, we bought the Wellington Central territory of Kitchen Pak, which was later to restructure and rebrand as Kitchen Studio.
“I know both franchisors found me quite a nuisance,” John smiles. “I was forever asking questions like ‘why not this’ and ‘why not that’? Then I’d be making suggestions that I felt would help us franchisees be more profitable and better enjoy our businesses.
“I kept telling Tricia that if only franchisees could also be shareholders in their franchisor’s business, they would be listened to and could make a real difference. Then it happened. In 2003, the Kitchen Studio franchisor advised he wanted to sell up.
“This was the opportunity I had been waiting for. With a fellow franchisee and an independent businessperson, our offer to buy the Kitchen Studio franchise with ourselves and fellow franchisees as shareholders was accepted.”
NZ’s first kitchen franchisee shareholders
“With that, we relaunched Kitchen Studio as the country’s first kitchen design and retail co-operative where success is a mutual benefit for the franchisee and franchisor. The better franchisees do, the better the franchisor does, the higher the dividends and rebates are for franchisees/shareholders. Based on a fair and equitable formula, all new franchisees automatically become shareholders in Kitchen Studio,” explains John. “In 2017, we opened a satellite showroom in our franchise area.
“I don’t think anyone would disagree that our co-operative business model has made a major contribution to Kitchen Studio being voted Most Trusted Kitchen Brand in New Zealand for eight consecutive years.
“Further reassurance for franchisees comes from the Kitchen Studio governance structure: Two independent board members, one of which is the Independent Board chair, plus three shareholder board members – I was one for 18 years – and an independent CEO.”
An independent Kitchen Studio board member since 2021, Dawn Engelbrecht was then appointed CEO in 2023. Considered one of New Zealand’s most successful franchisors, Dawn grew Safe Kids in Daily Supervision (sKids) into the country’s leading before/after school care and holiday programme provider for primary-age children.
“Dawn’s entrepreneurial flair is already being felt,” says John, “with upgraded processes and systems, and renewed commitment to franchisee recruitment.”
More than financial rewards
John enthuses, “We love what we do and can’t recommend Kitchen Studio enough. It’s the franchise where the rewards are far more than just financial. Our customers are typically homeowners in their 50s who, on seeing their new bespoke kitchen, are often lost for words, until recovering enough to give compliments like, ‘This is life changing.’ This is always an emotional, appreciated moment for us.”
John and Tricia have the honour of being Kitchen Studio’s longest-standing franchisees. A qualified carpenter and master builder, John says it was home renovations that led the couple to becoming Kitchen Pak franchisees. At that time, Tricia, whose background was in admin and IT, had her hands full with five young children. It wasn’t until they were at school that she could become far more involved with the couple’s franchise.
Do. It. For. Me.
“The brand Kitchen Pak reflected the franchisor’s focus on flat-pack DIY kitchens. However, that changed in 1995, when a research paper showed 85% of people were not interested in taking on a kitchen renovation as a DIY project but wanted DIFM, meaning ‘Do It For Me’.
“Our franchise business model was changed almost overnight, with franchisees having to provide a concept to completion service. Although, back then, we were hindered by cumbersome manufacturing and distribution.”
Discussing how kitchens have changed over the years, John and Tricia say they have enjoyed the journey from early kitchen renovations to where the kitchen is now the heart of the home, bursting with design innovations and labour-saving features. Statistics suggest that around 120,000 kitchens are replaced annually, with Kitchen Studio having a significant share in the $20,000 to $90,000-plus market segment.
“For us, a favourite kitchen replacement is on Wellington hillsides. Those wonderful old villas, with their sweeping views of the harbour and kitchens relegated to the back of the house. Today, we are bringing beautiful, functional kitchens to the front of these villas, to create marvellous open-plan environments that make the most of the views.”
Existing and new opportunities
“Kitchen Studio is not a complicated or overly restrictive franchise. Investing in an existing Kitchen Studio franchise is generally the easiest option, with the showroom, staff and contractors all part of the package.
“For a new territory, access to capital is necessary for employing or contracting qualified design and installation staff and fitting out a showroom.”
Investment in an existing franchise starts around $500,000. Franchise fee for a new territory is from $150,000+gst. This includes extensive training, marketing, and ongoing support.
John adds, “From our own experience, Kitchen Studio is an ideal franchise for couples, like-minded friends or family, splitting operational and sales responsibilities. Business and sales experience is also a plus.”
To become a franchisee and shareholder in New Zealand’s most trusted kitchen brand, call Dawn today.
See this advertorial on page 21 of Franchise New Zealand magazine Year 33 Issue 04
Contact details for Kitchen Studio
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