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Brick &
Mortar Retail Chains
(Off-line Dating Services: Chains &
Franchises With Physical Offices)
Summary
Marketdata Enterprises
estimates that this segment of the
industry was negatively impacted by the
dating websites and other competition,
and is struggling. The number of offices
operated by the largest “bricks and
mortar” dating services are declining or
flat—not growing. The price of a
franchise in this segment has been cut
since 2002. Marketing methods are not
yielding strong returns. Complaints and
actions by local authorities still
persist. All these indicators point to a
troubled market segment.
The top four chains or
brand names in this market segment
operated about the same number of
offices in 2003 as in 2001—about 218.
However, their estimated combined
revenues fell about 23% in two years.
A sea change has taken
place in the industry—a combination of
major competition from low-priced
Internet dating services such as
Match.com, and a slow economy where
debt-ridden consumers are very reluctant
to pay the high prices that the
“traditional” services charge. In
addition, it’s just a lot tougher to get
prospects in the door, since the return
on direct mail marketing that they use
is so abysmal. Furthermore, the major
credit card companies have imposed
tighter restrictions on dating services.
These chains or
franchises represent a middle ground
between the least expensive dating
services (dating websites) and the most
expensive (independent matchmakers).
They may be attractive for singles who
want a higher level of personal service,
and background checking or at least
knowing that their matches have been
seen in person to verify their weight,
height, age, whether the man is bald,
etc. If you are willing to part with
$3,000 - $4,000, this may be the option
for you. Just realize that this segment
of the industry has had lots of
unscrupulous and aggressive sales reps
in the past. Keep your guard up, don’t
be forced into contracts that don’t
sound right, try to contact unbiased
references, and “let the buyer beware”.
Niche Segments
In the category of
“other” dating services with physical
operations (not just online), we include
speed dating outfits and other companies
such as: Table For Six Adventures,
Dinner for Six, Dinner Dates, Lunchdates,
PerfectMatch.com,
Renaissance For Singles, and other small
operations. In fact, whatever growth
occurs in this segment of the market is
likely to be driven by niche operators
such as speed dating.
The Major Chains
Following are the major identifiable
chains that are still operating:
|
|
No. of offices
2001 |
No. of offices:
2003 |
|
|
|
|
|
Great Expectations |
54 |
54 |
|
Together |
90 |
70 |
|
Matchmakers Intl. |
40 |
29 |
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It’s Just Lunch |
30 |
65 |
|
Total: |
214 |
218 |
Source: company information, Marketdata
estimates
Great Expectations
Based
on our own research, and conversations
with competitors in various segments of
the industry, Marketdata believes that
GE may be operating the same number of
offices as in late 2002. The problem
with Great Expectations is that it is no
longer a coordinated franchise system
with a head office. Each office is
individually owned and has its own
marketing practices and policies. It
appears from the company’s current
website that GE still operates about 54
offices nationwide, and that two people
own the bulk of them
One can find the locations of these
offices by using the website:
www.great-expectations.com.
Marketdata estimates that
the average customer pays GE
$3,000+ for its services. Unfortunately,
the company still struggles with bad
publicity regarding deceptive and high
pressure sales tactics that we thought
had been eliminated years ago. Not so,
as evidenced by a February 2004 lawsuit
against the firm by the Kansas Attorney
General.
Together Dating Service
Headquarters:
5026 Dorsey Hall Drive
Suite 205
Ellicott City, MD 21042
(410-730-8866
Websites: www.therightone.com and
www.togetherdating.com
Management reports that
the dating websites that they compete
with have actually helped their firm,
increasing awareness and eliminating
some of the social stigma of
introduction services in general
Together Dating Service was founded in
1974, and is now a Boston-based company
called Together Management Group, that’s
run by partners Paul Falzone and
Bradford Megahan. The company has about
70 franchised locations throughout the
United States (compared to 90 in late
2002). The firm operates two separate
companies that carry different “brand”
names: Together and The Right
One. Each of these operates roughly
35 offices.
Matchmakers International
Matchmakers International (Avalanche
Advertising)
331
Alberta Drive, Suite 104
Amherst, NY 14226
(716-833-1341)
website: www.matchmakerinternational.com
This
company now operates 27 offices, putting
it among the top three chains still
operating. This is down from 40 in late
2002. The company is still selling
franchises, at a total investment cost
of $20,000-40,000 (vs. $75,000 in 2002).
Like
other off-line dating services, this
operation has been hurt by the dating
websites, but many customers do say that
they’ve tried the online services and
ultimately trade up to more
personalized, higher priced services
such as Matchmakers International.
Management claims that the chain at its
peak operated 56 offices coast to coast.
Now, all offices are located east of the
Mississippi, with a high concentration
of them in the Midwest. One can
view the addresses of all offices at the
website.
It's Just
Lunch
It’s
Just Lunch
919 4th
Ave., Suite 2500
San
Diego, CA 92101
(619-234-7200)
www.itsjustlunch.com
It's Just Lunch doesn't
offer high-tech hook-ups. The
matchmaking service sets up busy,
professional singles with potential
partners for lunch dates based on
personal interviews instead of the much
maligned introduction videos or online
dating pools. The company, which
operates some 65 locations across the
US, charges singles $1,500 for a
12-month membership. Apparently, this
offline dating company has grown since
2002, since it then had only 30
locations.
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