Table Tennis and Automated Franchises

Introduction

PingPod does not require a check-in counter, assistant manager, or manager on-site 24/7. If the space is not being used, it simply sits idle, saving on labor costs. This economic model has allowed PingPod to achieve best-in-class retail or brick-and-mortar margins, particularly at high-performing locations.

Patrick Findaro, co-founder of Vetted Biz, interviews David Silberman, co-founder of PingPod and leader of their franchise growth efforts.

About David Silberman

David Silberman left his banking career at UBS to pursue his passion for ping pong. Living in New York City, he noticed there were few places to play the sport he loved. He envisioned a new concept, blending socialization and sports, which led him to co-found PingPod with Max and Ernesto.

The Co-Founders

• Ernesto A six-time Filipino national champion in table tennis, Ernesto came to the U.S. on a special talent visa and became a top U.S. table tennis athlete. He also built a significant coaching network in New York City.
• Max Kogler Max has a traditional business background, including a key role at Super Soccer Stars, a youth franchise system he helped sell to private equity.

The Beginnings of the PingPod Franchise

PingPod started its first location in the Lower East Side of New York City in 2020, just before the COVID pandemic. The contactless nature of their business model allowed them to be one of the first non-essential businesses to reopen, attracting significant attention and enabling them to raise funds for expansion. Today, PingPod has 20 company-owned locations, with plans to franchise.

Key Advice Before Franchising

They were advised to wait until they had at least 10 company-owned locations before franchising, but they waited until they had 20. This allowed them to establish a solid brand and consistent operating model before opening the doors to franchisees.

Q&A – What Type of Franchisees are You Looking For?

PingPod seeks franchisees passionate about recreation, socialization, sports, and community-building. While a love for table tennis is a bonus, it is not a requirement. More importantly, they want partners who share their enthusiasm for community-building and uphold their core values.

PingPod Franchise Investment Amount

The Franchise Disclosure Document (FDD) outlines the investment needed to open a PingPod. The cost can be relatively affordable, as it’s a simple concept that does not involve restaurant equipment or costly ventilation systems. A one-table pod requires about 750 square feet, scaling up to 3200 square feet for a six-table location.

About Franchise Site Selection

PingPod is focused on selling 10 franchise licenses over the next 12 months. They prefer urban and densely populated suburban areas. Site selection is supported by Locate AI, which provides data analysis to help identify strong or weak locations.

About PingPod’s Support to Franchisees

PingPod is committed to providing strong support to its franchisees, including direct access to the corporate team and personalized training. Franchisees will receive operational manuals covering site selection, construction, and marketing, along with real-time training.

PingPod’s Technology System: PodPlay

PingPod developed its own proprietary technology system, branded as PodPlay. This includes reservation management, integrated video monitoring, instant replay, and scoreboard tracking. This technology not only enhances the user experience but also supports the franchise model by eliminating the need for on-site staff. The PodPlay system is licensed to other venue operators, including those in the pickleball space.

Autonomous Operations

PingPod’s business model relies on autonomous operations, with a video monitoring team overseeing all locations. This system reduces variable labor costs and allows the business to operate 24/7, provided landlords approve. Locations only require about 20% utilization to break even, making it a financially viable model.

Q&A – How Do PingPod Franchisees Make Money?

The key to PingPod’s profitability lies in its ability to eliminate variable labor costs. Locations that perform well can achieve operating margins of over 40%. While individual locations may not generate millions in revenue, owning multiple locations in a city or region can lead to significant income.

About PingPod’s Go-to-Market Strategy

PingPod’s real estate model does a lot of the marketing itself, with its visually engaging ping pong tables visible from street level. They also rely on viral content, paid social advertising, and word of mouth to attract customers. In addition, PingPod’s instant replay technology encourages users to share content on social media, further promoting the brand.

PingPod Franchise Operating Model

PingPod’s operational model is simple, which makes it an ideal franchise concept. Unlike restaurants that require managing inventory and staff, PingPod focuses on maintaining its technology and community-building efforts. Franchisees can focus on events, leagues, and member engagement rather than day-to-day operations.

Ping Pong: Sports, Media & Business

PingPod is capitalizing on the growing popularity of table tennis, particularly with events like the Olympics and partnerships with professional athletes. Additionally, a movie about a prominent table tennis player, directed by Josh Safdie, is currently in production, which could further elevate the sport’s visibility in popular culture.