3 Keys to Franchise Success and Profitability
Posted on March 26, 2014
All franchisors, regardless of industry, have one thing in common: the need to drive profitability throughout their business entities.
That requires managing a distributed workforce with multiple locations while monitoring efficiency and compliance across franchisees with different systems of organization and leadership.
There are three keys to tightening up your business processes to make your franchise more streamlined, efficient and, of course, profitable:
1. Control what you can control.
With so many volatile factors affecting your business each day, such as the economy and government regulation, successful franchisors control whatever is in their power to control.
For example, use payroll and timekeeping systems that allow you to track labor costs and determine real resource needs. Do you need as many people behind the counter as you’ve scheduled? Little errors can add up over time to major losses. The first step to fixing such problems is identifying them.
2. Commit to checklists.
Once you’ve assessed your gaps and found solutions, stay on track by using checklists. Lists make sure nothing falls through the cracks, whether it’s stock level, cash control or job duties.
To augment your checklists, use a web-based reporting tool to collect and analyze data—keeping information from franchisees consistent and centralized so you know you have real information on which to base decisions.
Broad-based reporting will allow you to detect anomalies or site-specific needs across your business units. Seeing those nuances takes the guesswork out of decision-making, which boosts your credibility when you communicate changes to policy or practice with your franchisees. When they know your decisions are founded in accurate numbers and good data, the trust factor goes up—and so do the acceptance and adoption of your plan.
3. Be flexible and be prepared for change.
Trust is critical, because change is inevitable—no matter how strong your systems and processes are. The key is for those systems and processes to also be nimble and scalable so your business efficiency never suffers, even due to circumstances outside your control. If you run your business consistently internally, the external should have minimal effect.
Training plays a pivotal role here, from franchisors to franchisees and from franchisees to frontline managers. From the top down, the importance of consistent systems must be stressed, to ensure a uniform brand experience for customers and to maintain a standard of efficiency across the board.
Using a web-based HR information system, or HRIS, streamlines corporate processes and enables training and communication throughout the business. Franchisors and store owners can monitor training and certification for franchisees and new hires, in addition to managing a consistent performance evaluation process across all entities.
Are you maximizing your profitability by employing best practices throughout your franchise business? For more tips on increasing efficiency, download this free whitepaper. Then view this 2-minute demo to see how Paycor’s Perform platform offers everything you need—from payroll and time to HR and custom reporting—to stay in control of your business and your brand.
Source: QSR Magazine