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New Profit-Building Tools
February 2006
Chains such as CiCi’s Pizza are considering incentives for franchisees who meet multi-development targets ahead of schedule. |
Before you decide whether to add another restaurant under your current brand or diversify with a new one, take a close look at the range of business-building tools included in the franchisor’s ongoing support services. Franchisors are vying for growth with everything from yield-management training to new menu concepts. Programs to evaluate include:
- Technology. Look for an innovator. “Overall, the industry has been behind the curve in utilizing technology at the unit level,” says Melissa Wilson, principal with Chicago-based foodservice consultant Technomic. What signals a strong platform for franchisees: software that reaches through the depth and breadth of the operation—from table reservations to inventory. Look for technology that offers customers time-saving, computerized ordering and payment options. Ask about solutions that leverage promotional and cross-selling opportunities across your database.
- Incremental revenue drivers. Craig Moore, president, CiCi’s Pizza, Coppell, Texas, sees franchisors working to develop new
revenue streams. “One trend is to add ‘legs’ to the business with revenue drivers such as off-premise catering and to-go items,” says Moore. Expect further refinements on those themes as franchisors roll out signature products, such as popular salad dressings or desserts for retail sale.
- Training. “Few franchisors provide franchisee training on how to effectively operate multiple units and leverage these potential
efficiencies. One example of a franchisor that does is Panera Bread, which offers an optional seven-week course,” says Technomic’s Wilson. Panera, which only offers multiunit franchises, provides a class to prep operators for multiunit leadership, she adds.
- Incentives. Chains such as CiCi’s Pizza are considering incentives for franchisees who meet multiple-development targets ahead of their projected pace. Larger portfolios give franchisees more say in the decision-making process—from involvement on franchise advisory councils to participation in new product testing.
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