How The UPS Store Is Delivering on the Dream of Entrepreneurship

Franchising plays a role in nearly every aspect of our daily lives, and the postal and business services industry is a prime example. With the rise of e-commerce and remote working, people increasingly rely on the convenience and speed of online ordering to stay connected to their friends, family and offices. This shift has coincided with an increase in returns, which is where franchise brands like The UPS Store come in. By making the lives of customers easier through shipping, shredding, printing, faxing, passport photos, personal and business mailboxes and notary services, they also offer a clear pathway to entrepreneurial growth for budding franchisees.  

Sarah Casalan Bittle is the president of The UPS Store, Inc. 1851 Franchise spoke with Bittle to learn more about the postal and business services industry, the power of entrepreneurship and more.

“Small businesses cross almost every industry and combine to form the backbone of the U.S. economy, accounting for over 40% of U.S. economic activity,” said Bittle. “The UPS Store serves to empower these small businesses through supporting products and services that enable entrepreneurs to actualize their big ideas into success.”

How a Nationally-Renowned Franchise Can Stay Local 

The UPS Store, which surpassed the 5,000 unit mark in 2021, is undoubtedly a leading player in the franchise space. This year, the concept ranked No. 2 (behind only Taco Bell) on Entrepreneur’s converted Franchise 500 list, climbing up one spot from the previous year and securing its highest position on the list since 2001.

“Putting the customer — franchisees, small business owners, and consumers — at the heart of our organization gives us a competitive advantage,” said Bittle. “The UPS Store is often top of mind for consumers in local communities because we have a deep understanding of their needs. In turn, this generates a loyal customer base for our franchise locations which our center owners find appealing as a franchise opportunity.” 

The core customer for The UPS Store tends to be small business owners who need help with their shipping needs. By finding ways to satisfy these local small business owners, Bittle says the UPS team also inevitably finds ways to position the small business owners within their own system — the franchisees — for success. 

“Because the small business landscape is always changing, The UPS Store has made it a priority to conduct multiple and regularly-scheduled waves of research to stay closely aligned with our small business owner audience — both current and potential customers,” said Bittle. “This allows the company to continue to understand their most pressing needs and challenges and therefore enhance the critical services the stores provide to both entrepreneurs and general consumers.”

This, Bittle says, all comes from an unwavering belief that the franchise business model needs to be local. With over 5,100 UPS Store locations nationwide, there is a store location within 10 miles of more than 84% of the U.S. population.

“Our center owners take pride in their work and are devoted to meeting the needs of their customers, making customer service a true brand differentiator at The UPS Store,” Bittle said. “In fact, customers are more than just customers. They become friends.”

When the COVID-19 pandemic hit, for example, Bittle says it was certainly a difficult time, but that locally-driven franchise attitude helped The UPS Store franchise owners become closer to their communities and the people they serve. 

“From an Indiana center owner who designed, printed and offered free signs to the community expressing support to front-line healthcare workers, to North Carolina center owners who offered free printing of takeout menus for local restaurants, and an Ohio center owner who offered free “We’re Open” signs for small businesses — seeing our center owners build trusting, deeper relationships with local small business owners was a direct result of their ability to step up during this challenging time,” said Bittle.

The Pandemic, E-Commerce and the Metaverse

Another core belief Bittle holds is that entrepreneurship and innovation should go hand-in-hand. When the COVID-19 pandemic first hit, The UPS Store also needed to lean on innovation to ensure franchise owners could adapt to the increasingly flexible and highly-competitive business world. 

“The UPS Store redesigned its store format to a more open floor plan that can be customized based on local customer needs,” said Bittle. “The redesign also included the addition of new technologies, such as digital menu boards and smart lockers that allow for 24/7 package pickup. And as the popularity of e-commerce skyrocketed for retail businesses, The UPS Store added the functionality to be a one-stop-shop for product returns.”

And while the peak of the pandemic may be over, the world certainly continues to change, which is why innovation is more important than ever. The UPS Store recently joined the metaverse through a collaboration with Inc. Magazine and Fast Company to create the “Helping You Be Unstoppable Store” in Decentraland.

“The Helping You Be Unstoppable Store provides small business owners access to three floors of exclusive content, tips and advice to help them succeed in their entrepreneurial endeavors,” said Bittle. “The store is designed to empower small business owners by being an immersive and interactive place to learn by doing, and even providing networking opportunities with other small business owners.”

Why More Franchise Growth Equals More Diversity 

With the “Great Resignation” leading to more interest in franchising, Bittle says The UPS Store expects continued momentum for the foreseeable future. The concept is currently focused on growing “non-traditional” UPS Store locations (stores inside hotels, military bases, college campuses, grocery stores, etc.) to better reach a diverse range of customers. 

The team is also hoping to reach a more diverse range of franchise owners as well — The UPS Store launched its Diversity Ownership Program in 2020 to contribute to the growth of minority-owned businesses by offering 50% off the franchise fee to eligible first-time Black, Asian, Hispanic/Latino, Native American and/or LGBTQ+ buyers.

“Some of our franchisees are generational owners, some own multiple franchises and have been in business ownership for years, and others are just starting their journey into franchising,” said Bittle. “Each center owner brings a personalized mix of experience and skills to their store, creating a positive business environment for both their associates and their customers.”

Now, despite supply chain constraints, raw material shortages, inflation, staffing

challenges and skyrocketing fuel prices, Bittle says The UPS Store continues to grow from a healthy topline revenue perspective and in terms of total store count.

“We’re optimistic about the future of The UPS Store,” Bittle said. “And we’re energized to keep innovating and helping our customers and franchise owners be unstoppable.”