How do restaurants succeed at the franchising game? A panel at the Restaurant Franchising and Innovation Summit shared some key strategies.
How do restaurants succeed at the franchising game? There are many factors to consider: from picking the right partner and setting up an attractive program to gaining franchisee buy-in for technology upgrades or customer experience initiatives. A panel at the Restaurant Franchising & Innovation Summit, held in Kansas City, Missouri from March 24 to 26, examined the ins and outs of this topic.
Joleen Hodits, franchise restaurant specialist at Square, moderated a panel that included Sara Carhart, VP of operations at SPIN! Pizza; Geoff Henry, president of the Americas at Gong cha; Josh Kern, CEO at SPB Hospitality; and Rob McColgan, brand president and co-founder at Modern Market Eatery.
McColgan said when it came to picking the best location for franchised locations, you need to find the best partner — someone « Who can not only operate our brand successfully, but also someone we can learn from. »
Technology
Technology is a core component of modern restaurant strategies, but how can it work with franchisees? The panelists argued that restaurants need to be more strategic about how, when and why they deploy new tools.
« Brands can lose sight of delivering that great guest experience by always chasing the next thing, » McColgan said. Modern Market Eatery uses brand health surveys to determine what customers want from the brand and push out technology that meets those specific needs.
Henry said you need to deliver the right technology for the right customers. At Gong cha, loyal customers want innovation and new flavors, but new guests might be overwhelmed by too many choices, so Gonga cha uses its kiosks to push out just the right amount of information, such as the top five and top ten best-selling items, along with limited time offers or a few new items.
To AI or not to AI
Although many restaurants are beginning to adopt AI and automation tools, none of the panelists said they were using AI tools. Instead, they were using technology for improving operations.
For example, Carhart said that SPIN! recently selected a curbside management software system because the restaurant was running into a problem of « forgetting guests at the curbside. » The software has « been a game changer for us. »
Kern said that SPB uses Crunchtime to gather analytical data to help them better understand inventory and gather data from four different POS systems to create a single « source of truth. »
For Gong cha, Henry said the kiosks were the most crucial piece of tech, because most of their customers are between 16- and 30-years old, and so they prefer kiosk ordering. He said kiosk orders tend to be « 10-to-15% higher. »
Helping your franchisees
Even if you have the best technology in the world, it won’t matter if your relationships with franchisee is weak.
McColgan said that his brand treats « our franchise partners just like our regular team members, and we include them on all aspects of internal communication. » Modern Market Eatery doesn’t « funnel all information through a franchisee consultant. »
This type of regular communication can take many forms such as advisory councils on the side of Gong Cha or weekly calls and in-person support with SPIN! Pizza.
On a practical level, Henry said it’s important to « put yourself in the franchisee’s shoes, » especially when it comes to changes.
« You want to be fresh and current, but there’s only so much change you can push through at one time, » Henry said.
Kern agreed, stating that it’s important to test out initiatives first before sending it to the franchisees.
Finding the right fit
On the flipside, when Hoditz asked the panelists how people can know whether becoming a franchisee is right for them, the panelists all stated that passion was key, including the brand itself.
McColgan recommended that potential franchisees ask the right questions for the franchisor such as what problems they have dealt with and how they overcame them.
Kern said that it is important that successful franchisors don’t just say yes to every applicant. Instead, they should seek out people who can do the job and « preach patience » to those people when it comes to the process.
Ultimately, Carhart said the most important element for both franchisors and franchisees was to be « committed to the people working for you. »
