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What are the secrets to triumph in the franchising sector? A group at the Restaurant Franchising and Innovation Summit divulged some pivotal strategies.
Joleen Hodits, franchise restaurant expert at Square, chaired a panel that featured Sara Carhart, VP of operations at SPIN! Pizza; Geoff Henry, head of the Americas at Gong cha; Josh Kern, CEO at SPB Hospitality; and Rob McColgan, brand head and co-creator at Modern Market Eatery.
McColgan emphasized the significance of selecting prime locations for franchised outlets, stressing the need to identify the best collaborator — an individual “Who can flourish in our brand and also impart valuable knowledge to us.”
Innovative Solutions
Innovation stands as a quintessential facet of contemporary restaurant tactics, but how can it be intertwined with franchisees? The panelists debated the necessity for museums to adopt a more strategic approach in implementing novel tools.
“Brands may divert focus from delivering exceptional guest experiences by always pursuing the next big thing,” McColgan remarked. Modern Market Eatery employs brand health surveys to decipher customer desires and offers technology that caters to those specific needs.
Henry stressed the importance of tailoring technology to cater to diverse clientele groups. At Gong cha, faithful patrons crave innovation and fresh flavors, while newcomers might feel overwhelmed by a plethora of choices, prompting Gong cha to utilize its kiosks to present optimal information, such as the top five and top ten best-selling items, coupled with limited-time offers or select new products.
AI Consideration
Despite the rising adoption of AI and automation tools within eateries, none of the panelists acknowledged utilizing AI tools. Instead, technology was harnessed to enhance operational efficiency.
For instance, Carhart highlighted that SPIN! recently adopted a curbside management software to address issues of neglecting guests at the curbside. The software has “revolutionized our operations.”
Kern disclosed that SPB utilizes Crunchtime to accumulate analytical data for enhanced inventory understanding, consolidating data from four diverse POS systems into a unified “source of truth.”
According to Henry, the pivotal tech component for Gong cha is their kiosks, as the majority of their customers fall within the 16- to 30-year-old demographic, favoring kiosk-based ordering. He noted that kiosk orders typically yield “10-15% higher” returns.
Supporting Franchisees
No matter how advanced your technology, weak relationships with franchisees can impede progress.
McColgan underscored treating “our franchise partners akin to regular team members, involving them in all internal communications.” Modern Market Eatery avoids “filtering all information through a franchise consultant.”
Effective communication takes various forms, be it advisory councils at Gong Cha, or weekly calls and on-site assistance at SPIN! Pizza.
From a pragmatic viewpoint, Henry stressed the importance of empathizing with franchisees, particularly during periods of change.
“While aiming for novelty and timeliness, limit the pace of change,” Henry advised.
Kern concurred, emphasizing the need to pilot initiatives before rolling them out to franchisees.
Finding the Perfect Match
On the flip side, when Hoditz inquired about determining a suitable franchisee role, the panelists stressed the importance of passion, particularly for the brand.
McColgan advised aspiring franchisees to pose pertinent questions to franchisors, addressing previous challenges and resolutions.
Kern emphasized the significance of discerning applicants capable of fulfilling responsibilities, advocating for patience within the process.
Ultimately, Carhart emphasized that the cornerstone for both franchisors and franchisees lies in a firm commitment to their team members.
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