Can you share an instance where one of your franchise locations faced a significant challenge or crisis, and how you managed it?

We all face adversity in life. Many times, the difference between success and failure is how we respond to those situations. Some people may panic, act erratically, or go the other way by ignoring the problem and doubling down on a mistake. Others can calmly process a situation, strategically determine the best response and be better from having gone through the experience.

People who own a business long enough, particularly a restaurant, will eventually face a crisis situation. Mistakes can and will happen and restaurants operate within the public eye. Throw in the addition of social media and negative attention can spread like wildfire. In some cases, a crisis or challenging situation comes through no fault of the restaurant owner. Regardless, they need to quickly handle each case with a thoughtful and measured response.

Franchise Update asked several multi-unit restaurant franchisees about a challenge or crisis they have faced and how they managed it. While the situations varied, how the operators handled the issues required strength and leadership. Franchisees must also consider how their response impacted customers, employees, and the profitability of their business.

Similarly, we also asked operators about the hardest lesson they learned as a restaurant owner. Although many would probably not want to go through that experience again, it is likely that they learned from those experiences and became better business owners as a result.

Jacob Webb

Company: MPUT Holdings LLC

Brands: 22 Marco’s Pizza, 4 Tropical Smoothie Cafe

Years in Franchising: 11

A former member of the team intentionally sabotaged one of my stores. He convinced the entire team to walk off the job at the height of our peak business, leaving a lobby full of very unhappy customers. I was out of town and had to cut my vacation short. It was stressful. I raced home and got to work. All the customers were contacted and refunded. All my attention was temporarily focused on restaffing and training.

We re-opened a couple of weeks later, and I then spent the next few months doing damage control. This included calling customers, responding to complaints online, and marketing the business locally to encourage trial. It took time but we eventually built the business back, and then some. In hindsight, my positive attitude made all the difference throughout the crisis. I was determined to succeed. Failure was not an option. But if I could do it differently, I would have had a stronger bench in place.

Sam Batt

Company: Batt Enterprises, LLC

Brands: 14 TCBY franchises, one TCBY/Mrs. Field’s co-branded location

Years in Franchising: 14

The pandemic was undoubtedly one of the most challenging periods for my business. Beyond the operational hurdles, staffing has always been a persistent challenge. The experience taught me the importance of building a resilient team and adapting to unforeseen circumstances. One of the ways I’ve navigated these challenges is by fostering a strong company culture. I make an effort to understand what motivates my employees and create an environment where they feel valued and supported. This approach has helped me retain most of my team over the years and build a sense of community within the business. I believe investing in people and creating a culture of trust and mutual respect can be instrumental in overcoming these obstacles.

Bryce Bares

Company: QSR Services, LLC

Brands: 30 Dunkin’, one Baskin-Robbins

Years in Franchising: 13

We had a manager pass away from a heart attack in the parking lot of her store right before a shift and it sent a shock not only through her store, but the entire system. We rallied around her family, both emotionally and financially, and we brought the team together to honor her. We closed the store briefly and gave the team time to grieve and recover, and then made it a mission to commit to a seamless store operation in the face of that tragedy. It required patience and empathy to ensure the team was properly supported.

Chris Aslam

Company: Aslam Group LLC, Tribox LLC, West Box LLC, Best of Cluck LLC, Rock Hawaiian LLC

Brands: 64 Jack in the Box, 9 Hawaiian Brothers, 4 Golden Chick

Years in Franchising: 28

Our industries and brands run in cycles, and experiencing both good times and difficult times, such as value wars, Covid-19, staffing challenges, and supply chain shortages, is part of the experience. During challenging periods, I always reminded myself that millionaires are made in good times and billionaires are made in bad times. With this mindset, finding opportunities during difficult times made our group stronger and the journey enjoyable. If this was easy, everyone would do it.

Shane Paul

Company: PGC Foods

Brands: 9 Jack in the Box

Years in Franchising: 7

2022 was a particularly challenging year. With stimulus funds running out and a tight labor market, staffing became a major issue. On top of that, rising commodity prices put pressure on margins, forcing us to make tough decisions, including temporarily reducing our 24-hour operations in some locations. This experience taught me that once you scale back hours, it’s incredibly difficult to reinstate them. Communication was critical during this time. I held regular meetings with my team to discuss challenges and solutions, and I kept my business partners informed to maintain trust. Our team worked harder than ever, showing incredible dedication, and together, we weathered the storm. That year reinforced the importance of transparency, teamwork, and perseverance.

FRANCHISEE BYTES

Hardest lesson learned?

Trust but verify. I once gave blind trust to a manager and later learned he was stealing from the business I was overseeing.
-Bill Aseere, CEO, Space Cowboys Restaurant Group, 17 Donatos Pizza, 3 Guthrie's Chicken, 2 Whit's Frozen Custard

Growing too fast in 2009 when the economy crashed. Our sales decreased, and one of our competitors built stores right next to several of our locations. I never felt like we wouldn’t make it, but things were bleak for a while. We were on the last leg of our SBA loan, and things were pretty tough. We were fortunate to make it through.
-James Brajdic, President, Customer Maniacs and Green Bay A Dub, 13 A&W

I was too focused on marketing when I opened my first location without preparing enough operationally. We did not provide great service, and I lost most of the crew as a result. I worked very hard to make it successful but learned you have to balance a lot when starting a new business.
-Nadeem Bajwa, CEO, Bajco Group, 207 Papa Johns

I gave an independent general contractor a check for $120,000 to build a Sonic, and a few weeks later, he unfortunately died. I never got the money back, and as a result, I work with large companies now.
-Jerome Johnson, Multi-Unit Franchisee, John Cove Management and Jbar Inc., 4 Sonic Drive-In, 10 Dunkin', 4 Baskin-Robbins, 1 Jersey Mike's Subs

Focus on the who but not the how. You can't do everything alone, so it's important to surround yourself with a team of driven leaders.
-Phillip Scotton, COO, Primo Partners, 23 Ben & Jerry's, 2 Starbucks

Never shortcut someone's training. Whether you take someone out midway through training or one day short, it can create an assumption from the trainee that they did not get enough support. It may also give a lack of self-confidence that they think they missed something. I got to a point where I said that will never happen again. If the training program is eight weeks, it will be eight weeks, and if it is 12 weeks, it will be 12 weeks. We want to make sure people are confident in what they are doing.
-Keith Johnson, COO/Franchisee, Amazing Food Concepts, 20 Qdoba Mexican Eats, 15 Captain D's, 1 Epic Wings

Learning to delegate better. I tended to take everything onto myself. It was hurting the business because I couldn’t handle everything that needed to get done. I had to learn to let go, prioritize, and trust my leaders.
-McLain Hoogland, President, Hoogland Restaurant Group, 117 Marco's Pizza