A Dog Boarding Business is Profitable! Here’s Why
The pet care industry is booming, and more savvy entrepreneurs are looking at ways to get involved in this burgeoning market. Many may be asking themselves, “are dog daycares a profitable franchise?” The simple answer is absolutely. The profitability of dog daycare is on the rise in comparison to other pet franchises. More households welcome four-legged friends into the family each year. In fact, the number households with pets increased to 68% in 2016. That means that a majority of people in the country are spending real money on their furry companions every month of the year. The way people view their pets has also changed. More frequently, pets are being considered true members of the family and people are doting on their devoted canines. Luckily for dog daycare franchise owners, pet owners are more willing to spend a portion of their budget on their animals than ever before.
Just last year the pet care industry was valued at nearly $70 billion, making it one of the hottest markets for entrepreneurs to enter. According to the American Pet Products Association , more than $6 billion of that total number was spent on pet services like daycare, boarding, and grooming. The pet care industry is being fueled by two specific sets of people: millennials and baby boomers. Both of these populations are avid pet owners and dedicated to providing the best care and services for their canine companions. According to a piece by Inc. , 40% of pet owners that patronize the pet care industry are between 30 and 49 years old with nearly three-quarters of 30-somethings in America owning dogs. As for millenials, they are the first generation to view animals like true members of the family when compared to previous generations. This group is also putting off having children and instead opting to become dedicated pet owners. That disposable income goes directly toward showering their furry companions with all the latest and greatest pet care services.
Baby boomers, on the other hand, are filling their empty nests with pets. Once their kids have gone off into the world, they’re essentially replacing them with “fur children.” They also spare no expense when it comes to their pets. According to a recent article, spending in almost every category declines past 55 years old. However, the money spent on pets shows to actually be peaking between 55 and 64. Since baby boomers are retiring later in life, they still find themselves with a need for pet care services like dog boarding. They feel just as guilty as any millennials for leaving their precious companions at home alone while they’re at work or on vacation, which makes them more willing to patronize services like dog daycare and a dog boarding business!
The Hard Numbers
Figuring out how much does a dog boarding business make depends on a few variables. First, the territory in which the doggy daycare is located dictates the amount you can charge for services. The popularity of your location or the density of pet owners within the area is directly related to the number of dogs that you’ll have in-house each day. Of course, there are busier times based on the season, as well. As an example, any time of year that people are more prone to travel could provide an uptick in business. To calculate estimated dog daycare profitability, you’ll need to average the number of dogs being serviced each day multiplied by the cost for a full day of daycare for each then subtract operating costs. Generally speaking, dog daycare franchises, like K9 Resorts, are more profitable than other options. A franchise open for at least 24 months can average over $1.2 million in sales and nearly $400K in EBIDTA.
Doggy daycare costs can range anywhere from $29 to $46 for a full day of doggy daycare with a franchise like K9 Resorts. If you’re being very conservative in the number of dogs you service each day, assuming 30 dogs show up on any given day, you’d be set to bring in $870 on the low end and $1,380 on the high end each day. This works out to a minimum of just over $6K a week if your location is open seven days a week, putting you at more than $316K a year in daycare alone. These numbers don’t account for overnight stays or any additional services that you may offer. While the profitability of a dog daycare location is variable, there are things you can do to set yourself up for success. Instead of going the independent route, opening a trusted franchise could provide a better guarantee in your overall revenue.
Franchising is nothing new. Fast food joints and grocery stores have been doing it for decades. But recently, more industries are catching on to the convenience and security of franchising, specifically the booming pet care industry. Spending in the pet care industry only continues to rise and many see it as a recession-proof market where they can find solid footing in franchising – and they’re right. While franchising in the pet care industry isn’t easy, it is rewarding. Specifically opening a dog daycare franchise is a smart move because the market is underserved and growing. Because pet owners work long hours, they feel guilty leaving their furry family members home alone all day. As a result, they look to dog daycares to fill that void and provide a safe, community space for their dogs to thrive during the week when they’re at work. Most responsible doggy daycares put a limit on the number of dogs that can come to daycare on a given day, depending on the staff they have to handle the load. With the service in high demand, many are left without an option when the nearest dog daycare location fills up.
Investing in a dog daycare franchise gives you the opportunity to fill a growing need as well as run a business that is recession proof and profitable. More and more, pet owners are seeing pet care services and products as necessities instead of frivolous spending. Just as a working parent would need childcare during the day, the dedicated pet owner seeks out quality pet care, too. People respect quality franchises across any industry but specifically when it comes to the care of important members of the family. Knowing exactly what kind of care their pets will receive eases owners worries which creates repeat business. Investing in the right dog daycare franchise is crucial to any savvy entrepreneur’s success.
Do you love animals and have an interest in owning your own business? Learn why K9 Resorts is perfect for you:
The K9 Difference
Just as not all businesses are created equal, not all doggy daycares provide the same level of service. There are independent dog daycares on the market that have one or two staff members caring for 40 dogs each day, which is a recipe for disaster. When it comes to dog daycare franchises, having proven systems and procedures can not only keep pets safe but guarantee revenue through repeat business. Pet owners treat their pets like family and they seek out the best possible care for them. That means that if there’s a trusted franchise, they’re more likely to choose it. A dog daycare owner’s salary doesn’t just depend on how many dogs come through the door each day, it’s about a lasting relationship with each client.
A franchise like K9 Resorts caters to those pet owners who refuse to settle for average when it comes to pet care. Their resort-style doggie daycare offers unmatched homelike amenities coupled with interactivity to keep your pet stimulated and happy when you can’t be with them. Their commitment to quality dog daycare can be seen in the numbers. Since the company began offering franchise options in the beginning of 2011, they’ve since opened seven locations with another seven in development . Clients and franchisees alike recognize the brand’s commitment to the quality care of some of the most important members of your family. Their main goal is happy pets and happy owners and they achieve that through a proven business model and operational procedures.
Working with a trusted and growing franchise sets you up for success as a dog daycare owner. Along the way, you’ll receive training, support, marketing, and networking opportunities that allow you to build your business from the ground up. If you’d like to learn more about K9 Resorts franchising opportunities, contact us today.