In it's Leica Shops. Even if they just collect it and ship it out to a contracted vendor. It will give people more reason to shoot film, Leica has three current production film cameras, it will draw more people into their stores, Leica users or not.
Digital is dieing in the non pro market thanks to smart phones. Film, while a niche market, is showing resurgence. Leica is a niche player no matter what. This will connect them directly to being all about photography. It will link their past to their, and photographers, future.
It has to be a quality service, not the junk that was offered in drug stores in the past. It can be offered for a reasonable price, considering that places like northcoastphoto etc can do it for a reasonable price with high quality.
Could it be successful, if Leica would be offering film processing and silver-halide prints in their Leica stores?
Yes, probably, if they are doing it right:
1. Make partnerships in the specific countries where the Leica stores are located with the best labs.
2. Best labs means high-quality labs with reasonable costs. There are quit a lot of it.
For example in the US: AgX Imaging, Dwaynes, The darkroom, North Coast Photographic services.
In Spain Interphoto.
In Germany Photo Studio 13.
In Austria Fayer.
In Italy Agenzia Luce.
In Singapore Analog Film Lab.
And so on.
3. Leica should avoid the overpriced labs like Indie Film lab, FIND lab, Carmencita etc. Despite their much too high prices they also have only a very limited programme of lab services (they are more scanning services than real full service labs).
4. Leica is already offering their own branded Instax film for the Leica Sofort. They should also add high quality films from Fujifilm, Ilford, Kodak, Adox selling in the Leica stores. So they can offer more service to their customers.
5. By offering films, processing, prints Leica could intensify the relationship to their customers: Their customers will come much more often to the Leica stores! The more often their customers come to their stores, the higher the possibility to sell more Leica equipment to them.
6. The additional services around film can strengthen the cash-flow of the shops.
The strong decline of the digital camera market will also affect Leica in the coming years.
To profit from the film revival and be an active part of it (or even a driving force) could be one part of the global strategy to handle the problems in the digital camera market.