ArteVino Sets Sights on Pennsylvania, Connecticut, and New York for East Coast Expansion

The emerging New Jersey franchise is preparing to break out of the Garden State and establish its brand throughout the East Coast. 

ArteVino has taken over New Jersey. The art-and-wine studio currently has six locations open with more on the way. That's why the emerging franchise is now planning its expansion outside of New Jersey, with plans to target key development markets in Pennsylvania, Connecticut, and New York.

The five-year-old brand's impressive growth is the result of a boom in consumer interest in the segment. In fact, when Paolo Canale and Jakop Eskinazi opened the first ArteVino studio in Hoboken, New Jersey in 2012, the art-minded entrepreneurs did not have a franchise model in mind.

"Our only intention was to create something cool," said Eskinazi. "We were looking for a business opportunity, and Paolo and I were both into art, so we would meet regularly and think about how we could create a business around art. Those two things, business and art, don't always fit together so easily."

ArteVino offers art classes and studio time in a friendly, judgement-free environment. Unlike the bleak studio spaces where artists slavishly refine their techniques, ArteVino, which offers BYOB classes and parties, is designed to let guests create art as a way to have fun and unwind.

Almost from the start, ArteVino was primed for expansion. The concept was an immediate hit, and the demand for a casual art studio that invited artists of all experience levels seemed to extend far beyond the first studio's reach. Crucially, Eskinazi and Canale were nailing the execution.

"We were getting high marks in customer service and the overall customer experience in our feedback," said Canale. "And people really like our paintings. We have a mix of reproductions and original paintings, and we kept hearing from customers that they loved the options."

To keep up with the increasing demand for studio times, Canale and Eskinazi created a manual of procedures and best practices and opened up a second location. Then a third. Then a fourth and a fifth. Each location was finding success with the model developed at the fist location, and Eskinazi and Canale began to hear from customers who were interested in opening their own ArteVino locations. So, the team decided to franchise the business, not so much to push ArteVino to the next level, but to keep up with the growth that the brand was already seeing on its own.

ArteVino's plan to move into neighboring markets throughout the East Coast is a sound strategy, said Sean Fitzgerald, the chief development officer at No Limit Agency, which provides marketing consulting to franchise brands.

"Most brands, but especially smaller brands, want to grow out in concentric circles," said Fitzgerald. "That allows them to move into markets where they may already benefit from some amount of brand recognition."

Brand recognition is an area in which ArteVino already has a head-start. In its five years, the brand has already been featured in a number of high-profile television spots.

"We've been on Cake Boss three times and on Impractical Jokers twice," said Eskinazi. "That's not even part of our advertising strategy— people are reaching out to us and asking to put us on their shows."

According to Fitzgerald, starting with the relatively large markets of Pennsylvania, Connecticut, and New York is also well-advised first step.

"Those are markets with a lot of diversity and a lot of customers who come from or may end up in other parts of the country, so you can really get your brand in front of a wide variety of people who may have influence outside of their local communities," said Fitzgerald. "And of course, they have big cities, which means a certain amount of disposable income, which is important for an entertainment franchise like ArteVino."

ArteVino has the added benefit of an easy and attractive operating model for potential franchisees from just about any background.

"The studios don't need to be run by artists," said Canale. "The system can be managed by anyone who wants to be their own boss. We see a lot of interest from women entrepreneurs, investors from a variety of backgrounds and couples who are looking to open a store together."

Canale and Eskinazi anticipate even more interest from franchisee candidates who look closely at the financials.

"The initial investment is very modest," said Canale. "ROI is quick compared to other concepts. And the management platform is already established. An investor could hire staff, apply the system, and essentially use ArteVino as a second income."

ArteVino's growth prospects are astounding for any franchise of their age, even more so for a brand that did not set out to franchise in the first place. Eskinazi and Canale may have already exceeded their initial goal with the brand, but the team is eager to continue expanding.

Startup costs for an ArteVino location range from $99,800 to $123,850, including the franchise fee. For more information, click here.