7 Ways to Grow Your Kennel Business

PetCare Team •
7 Ways to Grow Your Kennel Business

Growing a kennel business isn’t about working harder—it’s about working smarter. These seven data-driven strategies help you identify opportunities, optimise operations, and grow sustainably.

1. Know Your Numbers First

You can’t improve what you don’t measure. Track these metrics monthly:


📊 Crunch your numbers: Use our free Pet Business Revenue Calculator to model your facility’s income and profit across all your services — with seasonal demand and capacity planning included.


Essential Metrics

MetricWhat It Tells YouTarget
Occupancy rateDemand vs. capacity65-80%
Revenue per available runPricing effectivenessTrending up
Customer acquisition costMarketing efficiency<1 month’s CLV
Customer retention rateService quality>70% annual
Average length of stayBooking patternsKnow your norm
No-show ratePolicy effectiveness<8%

How to Use This Data

  • Low occupancy + high retention = marketing problem (great service, not enough visibility)
  • High occupancy + low retention = service problem (filling beds but losing customers)
  • High no-show rate = policy problem (need deposits, better reminders)

2. Optimise Your Pricing Strategy

Most kennels underprice their services. Data-driven pricing means:

Competitive Analysis

Survey 5-10 local competitors quarterly:

  • Standard overnight rate
  • Premium room rates
  • Package pricing
  • Holiday premiums
  • Add-on services

Position yourself deliberately—budget, mid-market, or premium.

Dynamic Pricing

Adjust prices based on demand:

PeriodPricing Approach
Peak holidays+25-50% premium
Summer weeks+10-20% premium
Slow seasonStandard or slight discount
Weekdays (if slow)Promotional packages

Package Optimisation

Analyse which packages sell:

  • If 10-day packages outsell 5-day, consider adding a 15-day option
  • If nobody buys packages, they may be priced wrong
  • Test different discount levels and track uptake

3. Reduce Revenue Leakage

Revenue leakage—money you should have earned but didn’t—is often 10-15% of potential revenue.

Common Leakage Points

No-shows and late cancellations:

  • Require deposits (20-50% of stay)
  • Enforce cancellation policies
  • Send automated reminders
  • Track repeat offenders

Undercharging:

  • Audit invoices for missed add-ons
  • Ensure holiday rates are applied correctly
  • Check that multi-pet discounts are appropriate

Unbilled services:

  • Track all services delivered
  • Bill for late pickups
  • Charge for special feeding/medication administration

Quantifying Leakage

Calculate monthly:

(No-shows × avg rate) + (Late cancellations × 50% rate) + (Missed add-ons) = Revenue leakage

A 20-run kennel might leak ÂŁ500-1,000/month without realising it.

4. Increase Customer Lifetime Value

Acquiring a new customer costs 5-7× more than retaining one. Focus on lifetime value:

Retention Strategies

  • Exceptional first experience: New customers form lasting impressions
  • Personal touches: Remember pet names, preferences, birthdays
  • Consistent communication: Updates during stays, follow-up after
  • Address issues immediately: Problems handled well build loyalty

Increase Visit Frequency

  • Daycare add-ons for boarding customers
  • Grooming services
  • Training packages
  • Loyalty programmes with meaningful rewards

Upselling and Cross-Selling

Base ServiceUpsell Opportunity
Standard boardingPremium suite
Boarding onlyAdd daycare activities
OvernightExtended checkout
Any serviceGrooming before pickup

Train staff on natural upselling—not pushy, but informative.

5. Fill Capacity Gaps Strategically

Most kennels have predictable slow periods. Fill them intentionally:

Analyse Your Patterns

Track occupancy by:

  • Day of week
  • Week of month
  • Season
  • Room/run type

Identify consistent gaps.

Targeted Promotions

GapStrategy
Midweek lowsWeekday discount packages
January slump”New Year, New Routine” daycare push
Post-holiday dropLoyalty member exclusive rates
Specific room types emptyUpgrade promotions

Diversify Services

Services that fill different demand patterns:

  • Daycare: Fills weekday mornings
  • Grooming: Appointment-based, fills staff downtime
  • Training: Can run during slower periods

6. Invest in Marketing That Works

Stop guessing. Measure marketing effectiveness.

Track Acquisition Sources

Ask every new customer: “How did you hear about us?”

Common sources:

  • Google search
  • Google Maps/local listing
  • Referral from friend
  • Social media
  • Veterinarian recommendation
  • Drive-by/signage

Calculate Cost Per Acquisition

Marketing spend on channel á New customers from channel = CPA

Compare CPA across channels. Double down on what works; cut what doesn’t.

Focus on High-ROI Activities

Typically highest ROI for kennels:

  1. Google Business Profile optimisation (free, high impact)
  2. Referral programme (low cost, high-quality leads)
  3. Email marketing to existing customers (low cost, drives repeat business)
  4. Local SEO/website (medium cost, compounds over time)
  5. Vet partnerships (time investment, quality referrals)

Lower ROI typically:

  • Newspaper ads
  • Broad social media advertising
  • Sponsorships without clear tracking

7. Scale Operations Before Scaling Capacity

Before adding runs, maximise what you have:

Operational Efficiency

  • Software investment: Automate booking, billing, communication
  • Staff training: Cross-train for flexibility
  • Process documentation: SOPs for consistency
  • Equipment upgrades: Reduce cleaning time, improve safety

When to Expand Capacity

Expand when:

  • Consistently 80%+ occupancy for 6+ months
  • Turning away bookings regularly
  • Demand is documented, not assumed
  • Finances support the investment
  • Operations are running smoothly

Don’t expand to:

  • Fix operational problems
  • Compete on price
  • Because competitors are expanding
  • Without proven demand data

Putting It Together: Your Growth Dashboard

Create a monthly review dashboard:

MetricThis MonthLast MonthTargetAction
Occupancy70%
Revenue per run+5% YoY
New customers
Retention rate75%
No-show rate<8%
Revenue leakage<ÂŁ200
Marketing CPA<ÂŁ50

Review monthly. Adjust quarterly.

Frequently Asked Questions

How fast should a kennel grow?

Sustainable growth is typically 10-20% annually. Faster growth often strains operations and quality. Slower growth may indicate market or service issues.

Should I expand capacity or increase prices first?

Usually increase prices first. If demand remains strong at higher prices, then consider expansion. Expansion is expensive and irreversible; pricing is flexible.

How do I know if I’m ready to hire more staff?

When current staff are consistently maxed out, quality is suffering, or you’re turning away business due to capacity. Hire slightly ahead of need rather than in crisis.

What’s the biggest growth mistake kennels make?

Expanding capacity before proving demand and optimising operations. Many kennels add runs, then struggle to fill them, then cut prices, then can’t afford the debt.

How important is technology for growth?

Essential. Manual systems break down at scale. Software enables data tracking, operational efficiency, and customer experience improvements that manual processes can’t match.

Conclusion

Growth comes from understanding your numbers, optimising what you have, and expanding strategically. Resist the urge to grow for growth’s sake. Instead:

  1. Measure everything important
  2. Fix revenue leakage
  3. Maximise customer lifetime value
  4. Fill capacity gaps
  5. Market based on data
  6. Only then—expand

The kennels that thrive long-term grow deliberately, not accidentally.


Related reading: Financial Management for Pet Business, Dog Boarding Pricing Strategies, Marketing Dog Daycare & Boarding