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Feature Story:

Restaurants Take The Blame For Others' Mistakes »

Multi-Unit Franchisee

Industry research firm Technomic just released a new study "On Demand Delivery: Disrupting the Future of Foodservice" that confirms that even if restaurants have a formal agreement with third-party ordering portals and delivery services, the majority of consumers (76%) hold the restaurant at least partially responsible for any errors.
"This puts operators' brand reputation at risk each time a customer orders delivery through these services," says Melissa Wilson, a principal at Technomic Inc. "Even if delivery is not a current strategic initiative, operators should educate themselves about and understand the dynamics of the third party delivery market so they can put guardrails in place to maintain quality and brand reputation."
The On Demand Delivery study helps operators and third-party delivery services interpret the evolving dynamics with this distribution channel to strengthen their ability to create effective strategies for capitalizing on this emerging trend, devising plans related to the potential impact on operations, product mix, and store design, or developing their own delivery offering...

Feature Story:

Speed Thrills: Today's Customers Expect Instant Response »

By John DiJulius

Time and speed of service are critical to the customer experience. Everyone in the organization has to understand how valuable time is to the customer. In today's busy world, it is vital for businesses to demonstrate to their customers that their time is always regarded as a critical resource. It doesn't matter what industry you are in today. Companies like Google, Zappos, and Amazon have changed your business because they have affected the expectations of your customers.

It's all about time
The world of the Internet has made everything instantaneous, from information and answers to questions to getting products into people's hands. Today a friend can recommend a book for you to read, and within 30 seconds it can be in your hands on your iPad, Kindle, or other e-reader...

Feature Story:

Multi-Unit Franchisees Are Satisfied But Expect More »

Multi-Unit Franchisee

New data released by Franchise Business Review reveals that multi-unit franchisees are more satisfied overall and enjoy operating their franchise businesses slightly more than single-unit franchisees. The data was obtained from a study involving nearly 25,000 franchisees representing more than 350 brands that the firm conducted during the previous 18 months. 9,478 franchisees (38%) of the study's participants identified themselves as multi-unit operators. Franchise Business Review is a market research firm specializing in franchisee satisfaction and performance.
Overall, multi-unit operators tend to score 2% to 7% higher than single-unit operators on their satisfaction and enjoyment with their franchise business. That said, multi-unit franchisees also have higher expectations for their franchisor and are more critical of areas like technology, system innovation, advertising, training & support, and communications...

Feature Story:

Creating Harmony In Sibling Partnerships »

By Champ and Kendall Rawls

Sibling partnerships create a dynamic environment - especially when managing relationships in a highly competitive multi-unit franchisee organization. Everything can feel personal because nothing can be "just business."
It is common to have varying opinions and differences in your personal relationships, and this is especially true with siblings. Growing up together, you share common memories and history. If your history resembles closeness, and reflects a deep and trusting bond, this can play into partner dynamics both positively and negatively. Sure, you all work together wonderfully, and are able to accomplish great things as a team. However, on the outside, to non-family members, your bond and togetherness might be intimidating and work against you in gaining the trust and respect of your other team members...

Feature Story:

A Model Of Success: Franchising's Future Grows Bright »

By Dean Zuccarello

Franchising has proven to be a successful and popular business model since its mainstream inception many decades ago. Three constants have fueled its growth: the desire to expand, the need for capital to fuel that expansion, and the goal of operating seamlessly across large geographical distances. While the earliest uses of franchising can be traced to the Middle Ages when the church was seeking to broaden its central government control, credit for developing the restaurant franchising model we know today belongs to Ray Kroc, who discovered McDonald's when it was still a small California hamburger stand.
This enticing operating platform has grown massively in scale since the 1950s, becoming one of the most prominent and favored business models for those with a desire for self-employment...

Feature Story:

What College Students Expect From Quick-Service Restaurants »

Multi-Unit Franchisee

A new study finds that college students are no longer satisfied with eating cheap food on the go. These kids were raised on well-prepared foods with a variety of cultural influences and trained to seek deals given economic uncertainty. Today's campus consumers expect more from quick-service restaurants (QSRs), according to the findings of a new survey from leading college marketing and insights agency Fluent.
"The next wave of consumers starts with a higher set of expectations for engagement than past generations: food that is tasty yet affordable, made with quality ingredients, and a social environment," says Fluent EVP Michael Carey. "In changing strategies over the past few years, QSRs set a new bar for themselves. Even a quick meal is an opportunity to relax, gather, engage or find quiet time, and enjoy...

Feature Story:

Family Business Perspective Matters »

By Kendall Rawls

An owner's perspective about the purpose and who the business serves directly impacts culture, ability to recruit and retain good people, and drive performance - all of which influences customer perceptions, revenue, and profits. In the franchise industry, often times, multi-unit franchisees do not intuitively view themselves as a family business owner. This misperception can and does have an impact on overall business success, sustainability, and value.
Is the purpose of your business to serve you and your ambitions? Or is the purpose of the business to serve and provide opportunity to your community? Is it a mix of both? If the mission and vision of your business includes serving those around you, then it is important to begin thinking like a family business owner...

Feature Story:

Overcoming Franchise Marketing Constraints »

By Alex Vaccaro

Owning a franchise business has its pros and cons. On one hand, you benefit from your franchise having a strong, trusted identity. Local customers may choose to visit your business based on what they know about the national organization, and you have a vast network that can support your business with ideas and resources.
On the other hand, you may feel constrained in marketing your business within your franchise's standards. It's a delicate balance: you want to get word out about your business, but you don't want to violate the overarching organization's specifications.
Here are some suggested solutions and tips for dealing with three top concerns related to branding your franchise.

Concern #1: I'm Worried About Breaking Franchise Rules
You've got a great marketing idea for your business, but it breaks several different franchise rules...

Feature Story:

Expertise On Call: Making Multi-Unit Knowledge More Available »

By Darrell Johnson

A couple of years ago we worked with a really big search engine client to help them better understand and approach the franchise community. Their epiphany (which we in franchising all know) is that franchising is a business model, not an industry.
Until then they had been frustrated in both their vertical industry sales efforts and in the efforts of their regional sales partners to crack the franchise code. They knew success would lead to hundreds of millions in sales. They now are realizing it. I mention this because multi-unit operators (MUOs) have a similar set of characteristics: like franchise brands, they frequently span industries with the same basic attributes.
Sometimes stating the obvious provides new perspectives. Here the obvious perspective is to consider MUOs their own community, something Franchise Update has been instrumental in creating over the past couple of decades...

Feature Story:

Managing Uncertainty: Trends To Watch In 2016 »

By Carol Schleif

After an extended period of complacency, markets have whipsawed in 2016. Will this level of heightened volatility continue? Does it signal an impending recession? We think the answers may well be "probably" and "we think not." Let's look at what could go right, what to watch, and what might be different in 2016.

What could go right?

Feature Story:

The Emotional Toll Of The DOL Ruling »

By Dan Schneider

Well, there they go again. Those folks at the Department of Labor (DOL) just can't leave well enough alone. This time they've changed the overtime rules creating administrative/legal headaches for HR departments, and essentially reclassified a lot of people from salaried back to hourly positions. As a result, many franchisee owners are convinced that the impact will be complete demotivation of those who have been 'demoted' by the DOL. Long-term, it probably won't have a negative impact on your franchise business because your high-value employees will be promoted back into an exempt higher-salary position.
Reason says that this change isn't the end of the world, but individual motivation is based more on emotion than on reason. So if you have some disgruntled employees come to you concerned about their take home pay, their ability to grow in the organization, and feeling demotivated because the bureaucrats in Washington, D...

Feature Story:

Multi-Unit Franchisee Bill Hall Elected Treasurer Of IFA »

franchising, leadership, dairy queen, multi-unit franchisee, investing, ifa

Longtime multi-unit franchisee and Multi-Unit Franchising Conference board member and former chair, Bill Hall, was named treasurer of the IFA at the board's summer meeting earlier this month. Hall has more than 35 years of franchising, financial management, and investing experience.
He has been a multi-unit franchisee of various brands since 1986 and is currently the CEO of Treats Investments, LLC, owner/operator of five Dairy Queen locations in Texas. He is also the CEO of Align Capital, LLC, a private equity firm in Austin, Texas, focused on investments for family offices. 
During his career he has also owned and operated community banks in Texas, independent restaurant concepts, various private equity operating companies, and real estate investments...

Feature Story:

Consolidation Nation: Large Franchisees Continue Expanding »

By Eddy Goldberg

In the world of multi-unit franchisees, the big keep getting bigger. In our Multi-Brand 50 rankings, which we began publishing in 2008, the number of units operated by both the top 5 and top 10 franchisees has climbed steadily since 2010, following a post-recession drop-off when franchisees retreated from growth and instead focused on operational efficiency and selling or closing under-performing units.
Also during the past decade: many franchisors worked hard to refranchise their corporate stores; a generation of retiring franchisees with sizable portfolios sold them, whole or in part, to other large operators; and to help grease the skids for all these asset transfers, bankers relaxed their underwriting criteria, alternative lending sources sprang up, and the coffers of private equity firms (overfilled and searching for investment opportunities) expanded their strategic and acquisitional sights from franchise brands to franchisee organizations...

Feature Story:

Millennials Looking For More Purpose In The Workplace »

Multi-Unit Franchisee

Millennials have something of a mixed reputation when it comes to work.
Studies show that they aren't loyal to employers so much as to the job itself. They also want to find a purpose to their careers beyond making money - which is a pretty good thing, says Jackie Dryden, co-author with Bethany Andell of Get Your Head Out of Your Bottom Line: And Build Your Brand on Purpose.
Companies have had a front row seat in recent years for watching the difference between Millennials and previous generations, the latter being motivated more by traditional incentives, such as money.
"Millennials might be feeling the backlash of receiving negative press but they are right - a company must first start with purpose; then innovation and profits follow...

Feature Story:

The Trouble With Saying 'I Got This' »

By Champ Rawl

Designated successors generally have a vision of what one day being "the leader" is; I will do this better, this differently, and these changes will be made immediately. As one works toward this role of leader or owner, one key component to understand is the practice of humility. In addition, and probably most important but hardest to understand, is the idea of patience. As you take the stage, natural inclination may be to get overly excited with the mantra "I got this" and work full steam ahead towards your agenda and showing everyone how capable and competent you are.
A hiking analogy comes to mind. When tackling a big hill, I look ahead and find the highest peak; mentally take note of it and then put my head down and go for the top...

Feature Story:

Social Media Listening Builds Relationships Between Brands And Customers »

Multi-Unit Franchisee

A new report that examined the overall performance of 100 restaurant brands across social media, looking at more than 740 million restaurant-related posts, has found that the most successful brands are focused on listening to and engaging with customers online and creating some best practices that are applicable for many others. The results are in NetBase's, a social analytics company, first NetBase Restaurant Report.
"It's clear from the NetBase Restaurant Report that companies who listen to their customers - whether it be critical customer service feedback, ideas for new recipes, or excitement over a recent promotion - reap the benefits of real-time feedback and higher quality social interactions, which can ultimately lead to more sales," says Paige Leidig, chief marketing officer at NetBase...

Feature Story:

When Is Big Too Big?: Re-Evaluating Unlimited Multi-Unit Growth »

By Dean Zuccarello

Consolidation is perhaps the single most significant trend we have seen in the restaurant industry over the past decade. It is easy to understand why franchisees and investors have chosen this direction. Under the right leadership, consolidation leads to greater predictability of operational results and returns through economies of scale, implementation of modern technology, market control, and fixed-cost leverage. We have entered into the era of the "mega-franchisee," but as these entities become ever more massive, is there a case to be made for these organizations to strategically divest assets, becoming smaller over time?
There are two catalysts for where a mega-franchisee could find deconsolidation the best course of action: 1) when it reaches an inefficient tipping point in the context of day-to-day operations, or 2) when it becomes more beneficial to break apart the whole to maximize shareholder value as it relates to an exit strategy...

Feature Story:

Breakfast Market To Heat Up In Next Few Years »

Multi-Unit Franchisee

Nobody needs to tell Americans that breakfast is the most important meal of the day. The statistics tell the story. The consumption of breakfasts and morning snacks is forecast to grow faster than the U.S. population over the next few years, reports The NPD Group, a leading global information company. Total breakfast occasions, in- and away-from-home, are forecast to grow by 5 percent through 2019, ahead of the expected population growth of 4 percent. Annual morning snack occasions per person have increased by 17 percent over the past six years, according to NPD's continual tracking of U.S. eating behaviors.
The need for speed, affordability, and portability are the reasons why morning meal traffic, which includes breakfast and morning snack, at traditional quick service restaurants has been growing...

Feature Story:

New Overtime Rule Compels Problems For Franchisees »

Multi-Unit Franchisee

The U.S. Department of Labor's new overtime law will force thousands of employers to shift the pay status of their employees from salaried to hourly and diminish their quality of work life, says the International Franchise Association (IFA). The group has previously expressed its concerns in comments to Department of Labor and meetings with Office of Management and Budget.
"Far from 'giving America a raise,' the new overtime rule will compel many franchise businesses to reduce their managers' take-home pay simply to comply with the extreme new salary level," said IFA President & CEO Robert Cresanti, CFE. "The rule is unfair to employees who will need to be reclassified from exempt to non-exempt, and thus effectively demoted. The Administration irresponsibly failed to conduct any economic analysts of this rule's impact on myriad stakeholders and millions of employees will experience reduced take-home pay, opportunity and flexibility in the workplace as a consequence of the Administration's actions...

Feature Story:

Beyond CRM: 5 Tips For Using Predictive Analytics To Boost Your Bottom Line »

By Lang Smith

For any sales-driven business, it isn't the size of your data that matters, it's what you do with it. No longer a discretionary luxury, predictive analytics is now the name of the game for marketers determined to use customer metrics in a meaningful way to establish a competitive advantage, gain market share, and boost bottom lines. 

Just what exactly is predictive analysis? Simply put, it's the ability to more precisely predict a customer's future spending based on their past behaviors. Of course, there's no way to actually predict the future, but predictive analytics can give companies invaluable insights that can make or break a CRM system. If you're not using predictive analytics, your current CRM system is likely falling short in several areas...


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2016 MVPs: Celebrating This Year's Outstanding Operators    

Multi-Unit Franchisee Magazine

Issue III, 2016

Multi-Unit Buyers Guide    

2016 Multi-Unit Buyers Guide

Special Edition

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