“Before Placer, choosing new areas for our franchise expansion never felt detailed enough. Now, Placer helps us maximize reach to our target customers with greater speed to market and confidence.”

~ Amy Dickerson, Managing Partner, Hydrate IV Franchising

The Challenge

Hydrate IV Bar seeks market insights for strategic franchise expansion into major metropolitan

Hydrate IV Bar started in 2016 with 12 reclining chairs and a goal to promote wellness with IV therapy. Since then, Hydrate IV Bar has rapidly expanded to 14+ locations across four states, hyper-focused on opening locations in areas where the audience and market matches the brand’s mission and values.

As Hydrate IV began expansion plans for a major new metro, Amy Dickerson, Managing Partner of Hydrate IV Franchising, knew they needed more detailed demographic data. How could Hydrate IV confirm the market’s potential and strategically expand its franchise presence while ensuring that new location openings capture the right audience?

‍The Solution

Strong market and highly ranked potential sites align with top location hourly visits and audiences

To analyze market potential, Hydrate used Placer’s Domestic Travel & Tourism Report for the metro, noting strong growth in both visitation (+12.5% YoY Visit Nights) and spending (+10.4% YoY Spending Potential). Seeing healthy market indicators, they dove deeper in search of the most promising sub-markets for new locations.

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To find high-growth sub-markets in the metro, the team compared potential shopping centers with one of Hydrate IV’s top performing locations,  noting that several locations ranked at or above the 90th percentile nationally, with some centers also leading at the state and local levels.

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While hourly visit distribution for the potential sites saw peaks in evening visits, matching the pattern for the top performing Hydrate IV locations, they also had strong mid-day visitation, offering additional revenue opportunities.

In addition, the Favorite Places report also showed an overlap in preferences for Beauty & Spa brands (e.g. Sephora, Ulta Beauty) for visitors at the top performing Hydrate IV location and for visitors at potential new locations, suggesting a similar psychographic profile for both audience bases.

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Finishing the analysis, the Hydrate team observed similar Household Income (HHI) distribution patterns between a top performing location and seven potential new locations. Notably, the potential new locations outpaced the Hydrate IV Bar location for households in $100K+ brackets, another good sign.

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‍The Outcome

SUCCESS: Demographic and visitation insights highlight 7 potential new franchise locations

Using Placer, Hydrate IV Bar validated the market opportunity and identified 7 potential new franchise locations in territories worth developing, strategically expanding the brand while serving the its target audience. Plans for openings are currently underway.