Office Space News
Regus Hints at Office Revolution in the UK
Published May 28th, 2009 by Jennifer LeClaire
You say you want a revolution… Well, you know, we all want to change the (office) world…
OK, why am I reciting a familiar Beatles song in a column about officing? Because an executive office suites industry giant is suggesting a revolution, or at least an evolution, in Great Britain’s national infrastructure.
Call it the McDonaldization of the serviced office industry.
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Marx Dixon, CEO of The Regus Group, has a vision of a Britain where every small town has its own Regus office. As he sees it, this scheme would all but eliminate the frustrations of long commutes for about 15 million Britons.
Regus, Regus Everywhere
I am not sure how probable this is, but the concept is a breath of fresh air for anyone who fights traffic morning and night (and sometimes noon, too). Think about it. You could leave home later and come home earlier. You could even go home for lunch.
Dixon wants to see as many Regus office spaces as there are local pubs. (If you’ve ever been to London, you’ll understand the magnitude of that statement.) Today there are about 150 Regus offices in the United Kingdom.
“It’s about convenience. If someone lives in Penzance, it’s no use saying we’ve got an office in London or Bristol,” Dixon told The London Times. They want one that’s down the road that they can use a few times a year.”
Targeting Corporations
Dixon didn’t say whether Regus would launch a rapid expansion plan across the UK. But the serviced office behemoth is laying the foundation for a larger network of flexible office spaces across the nation. Regus recently launched a smart card that buys individual customers five days at any Regus center in the country for £60.
One of Regus’ competitive differentiators is its determination to bring megacorporations into its business centers. Regus launched a smart card program for corporations, for example, that allows bulk orders. Nissan and Britvic are early adopters. Regus is also pushing a card that offers unlimited access to business lounges equipped with free Wi-Fi connections, tea and coffee for £17 a month. (Watch out, Starbucks!)
“Larger companies say they need to fundamentally change the way that they work because they can’t afford the same overhead cost they had before,” Dixon told The Times. “This is changing the whole face of real estate, which has been very fixed around the idea that we’ve got this building and everyone has to come to that building.”
Consider the Possibilities
Can you imagine such a set up in the United States? Get your imagination going. Consider how gas stations now comingle with Subway Restaurants. Look at how other unlikely mixed-use projects are succeeding, like wine cellars in self-storage facilities.
Could we see a Regus join forces with a Starbucks competitor and rapidly expand on the back of convenient offices and great coffee? What about Regus partnering with a Hertz so travelers could drop off their vehicles and catch a ride back to the airport from the office?
Those scenarios may seem like a stretch. But my point is this: If Regus teams up with another major brand that’s on the rise, one that would add value to its customers, we could see faster expansion across the U.S. and beyond. We could see a Regus in every town.
What kind of potential partners can you think of for a Regus office space?
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Melanie Jones May 28th, 2009 at 7:40 am
What a concept. That puts the burden on Regus rather than the employees. I am not sure if companies will ultimately take on that kind of expense just to keep employees happy — unless there is no centralized workplace. I’m just not sure how realistic this is.
Rob Zeus May 28th, 2009 at 9:59 am
Maybe I am missing something. I don’t see how realistic it is, either. For companies that send out mobile professionals, it would be the ultimate convenience. But for most companies, I just don’t see it. On the other hand, having a Regus in every town might be the answer for entrepreneurs who don’t want to work from home but don’t want to drive to another city. From that perspective, it might make sense. Everything is a matter of market dynamics, though.
Elizabeth Sanchez May 28th, 2009 at 10:47 am
How about a Regus with a Kinkos? That would be an interesting combination. I could see mini-Regus centers where the serviced office tenants would rely on Kinkos at a special discount. This would keep Regus from having to purchase a lot of the copy equipment, which would lower their expansion costs. Kinkos customers might also want to use conference rooms. Sounds like a win-win. Regus, are you listening?
Bill Brookshire May 28th, 2009 at 10:53 am
A Regus with a Starbucks would be the ultimate in my view. You see folks without office space working in Starbucks all the time. They might want to rent an office for a few hours for a meeting, or rent a meeting room or video conferencing capabilities. For its part, Regus could serve better coffee. Just kidding. I’ve never had Regus’ coffee. But I bet it’s not as good as Starbucks.
Maggie Correta May 28th, 2009 at 11:03 am
Why not think of it differently. Instead of colocating with another brand, what if Regus struck deals with other brands so their serviced office clients could get discounts at places like Starbucks, Kinkos, dry cleaners, etc. And what if Starbucks customers could get discounts at executive office suites for day offices or conference room rentals, etc. Just a thought.