Driving Unit Economics: New Division Focuses on Unit-Level Growth

Throughout my 14 years with East Coast Wings & Grill, we have constantly strived to develop a laser-like-focus on our unit economics. This vision recently led to the creation of a new division for our brand: Unit-Level Economics/QA.

Systems and structures are logical responses to complexity, which grows almost exponentially as a company expands. Within these systems there is data that, if not measured and held accountable, could be the difference between a franchise unit's bottom line or sustaining a positive one: data drives prediction, data holds accountable the result.

The ultimate goal of imposing a new structure and instituting a new system is, of course, predictability. Unless a brand has the ability to determine where a franchise unit is today and project where it might be tomorrow--in a week, a month, this quarter, and ultimately this year--it is not on a trajectory for growth.

The need to navigate through all aspects of a unit's economics is imperative to that unit's success. In our restaurant industry, market dynamics and cost are changing month by month, which challenges the franchisee's ability to manage their unit-level economics. The need for the franchisor to identify these changes and have the ability to predict and assist a franchisee in navigating their unit sales and expenses is going to be the difference between sustaining great unit-level economics or building them.

The quality of unit-level economics is reflective of the data, systems, structure, and culture a brand has set for both franchisee and franchisor. Clearly articulate the desired result and promise your franchisee you will hold it accountable.
Sam G. Ballas is CEO of East Coast Wings & Grill.

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