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Franchising Best Practices

Unlocking Franchise Success: The Power of Integrated Business Systems

In today’s fast-paced business environment, franchises constantly seek ways to enhance operations and drive growth. Integrating business systems is one of the most effective methods for achieving these goals. By unifying disparate systems, franchises can streamline their operations, make better-informed decisions, and ultimately unlock new levels of success.

The Challenges of Disconnected Data

Franchise and multi-unit operations are inherently complex, each with its own data and systems. This complexity can lead to a siloed approach to data management, where information is isolated and inaccessible across different departments or locations. Such disconnect can result in several challenges, including:

  • Inefficient Operations: Without a unified view, brands may experience delays in decision-making, as retrieving and compiling data from separate systems is time-consuming.
  • Inaccurate Reporting: Disconnected systems can lead to inconsistent data, making it hard to generate accurate reports and insights.
  • Missed Opportunities: Without a comprehensive understanding of data, brands may miss out on potential growth opportunities.

The Benefits of System Integration

Integrating business systems offers numerous advantages that can significantly enhance franchise and multi-unit operations:

  1. Streamlined Processes: Integrated systems eliminate redundancies and automate routine tasks, freeing up valuable time for leadership and key individual contributors to focus on strategic initiatives.
  2. Enhanced Data Accuracy: By centralizing data, franchises can ensure that all information is consistent and up-to-date, leading to more accurate reporting and insights.
  3. Improved Decision-Making: With real-time access to data, leadership can make informed decisions quickly and confidently, enabling faster responses to market changes.
  4. Cost Savings: Integrated tools reduce the need for multiple software licenses and maintenance costs, providing a more economical solution.

How the FranConnect Command Center Facilitates Integration

The FranConnect Command Center is a powerful tool designed to address the challenges of disconnected data in the franchise industry. It seamlessly integrates various business systems, connecting data from different sources to provide a unified view of operations. Here’s how it supports franchise and multi-unit success:

  • Centralized Data Hub: The Command Center is a central repository for all franchise data, making it easily accessible to organizational stakeholders.
  • Actionable Insights: By consolidating data, the Command Center delivers actionable insights that help leaders identify trends, assess performance, and make strategic decisions.
  • Increased Efficiency: By automating data collection and analysis, the Command Center streamlines operations, reducing the time and effort required to manage data.

Real-World Impact of Integrated Systems

Imagine a franchise fast-casual restaurant chain that struggles with inventory management due to disconnected systems. They can comprehensively view inventory levels across all locations by integrating their point-of-sale, inventory, and supply chain systems through the FranConnect Command Center. This integration allows them to optimize stock levels, reduce waste, and ensure timely restocking, ultimately leading to cost savings and improved customer satisfaction.

In another example, a fitness franchise uses integrated systems to track member attendance, feedback, and billing. Having all this data in one centralized location allows the business to personalize customer experiences, improve retention rates, and identify opportunities for new services or classes that align with customer preferences.

Conclusion

The power of integrated business systems in the franchise industry cannot be overstated. By connecting disparate systems, franchises can overcome the challenges of disconnected data, streamline operations, and make decisions that drive growth and success. Tools like FranConnect play a crucial role in this transformation, offering a unified platform that enhances performance and accelerates business development. As franchises navigate an increasingly competitive landscape, leveraging integrated systems will be essential for long-term success.

Streamlining Franchise Operations: The Benefits of Centralized Data Management

In the competitive world of franchising, operational efficiency is paramount to sustaining growth and maintaining a competitive edge. One of the most effective ways to achieve this is centralized data management. By consolidating all franchise data into a single, unified system, franchises can streamline operations, enhance decision-making, and foster better communication across all levels of the organization.

The Pitfalls of Decentralized Data Management

Decentralized data management, characterized by disparate systems and scattered information, poses significant challenges for franchise businesses. When data is stored in multiple locations, it creates silos that can lead to inconsistent information, miscommunication, and delayed decision-making. These silos can inhibit a franchise’s ability to react quickly to market changes or internal issues, ultimately impacting performance.

Decentralized systems can also complicate compliance processes. Without a central repository for critical documents and records, tracking and managing compliance-related activities such as FDD administration, renewals, and contract management becomes cumbersome and error-prone, increasing the risk of legal issues.

The Advantages of a Centralized System

Centralized data management solves these challenges by providing a single source of truth for all franchise-related information. Here are some key benefits:

1. Enhanced Efficiency and Decision-Making

With a centralized data management system like FranConnect Info Manager, franchise operators can access all necessary data from one platform. This accessibility enables faster, more informed decision-making, as all stakeholders have a consistent and up-to-date view of the franchise’s operations. By eliminating the need to consult multiple systems, franchises can significantly reduce the time spent on data retrieval and analysis.

2. Improved Communication

Centralized systems facilitate better communication across the franchise network. By storing and tracking critical data for each unit, owner, and legal entity in a unified location, franchises can easily share information across the organization. This transparency ensures alignment on unit status and history, fostering a collaborative environment where everyone is on the same page.

3. Streamlined Compliance Management

Effective compliance management is critical for franchise success. Centralized data management simplifies this process by automating compliance workflows and providing reminders for critical tasks. Tools like FranConnect Info Manager help franchises proactively manage compliance, minimizing the risk of human error and ensuring that all legal obligations are met efficiently.

4. Better Multi-Unit Management

Managing relationships between franchise owners and their units can be complex, especially for multi-unit franchises. A centralized data system simplifies this process by tracking relationships between owners and their units, making managing and analyzing multi-unit operations easier. This clarity helps franchises optimize their strategies for growth and scalability.

Real-World Examples of Success

Consider a franchise that adopted a centralized data management system to address its operational inefficiencies. Before the implementation, the franchise struggled with delayed decision-making and compliance issues due to its fragmented data systems. After integrating a tool like FranConnect Foundation, the franchise experienced a notable improvement in operational efficiency. Compliance tasks were automated, reducing legal risks, and communication across the franchise network became seamless, leading to quicker and more strategic decision-making.

In another example, a multi-unit franchise leveraged centralized data management to streamline its multi-unit operations. Having a clear view of each unit’s performance and a solid relationship with the franchisor, the franchise could make informed decisions supporting growth and enhanced competitiveness.

Conclusion

In today’s fast-paced franchise landscape, centralized data management is not just a luxury but a necessity. By adopting a unified system to manage franchise data, businesses can overcome the challenges of decentralized systems, ensuring efficiency, compliance, and robust growth. Tools like FranConnect offer franchisees the opportunity to harness the full potential of their data, paving the way for enhanced performance and sustained success.

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The Hidden Crisis in Franchise Training: Are Multi-Unit Owners Set Up to Fail?

A silent crisis is unfolding in the dynamic world of franchising, where entrepreneurial dreams intersect with proven business models. It threatens the success of ambitious franchisees and the growth of entire franchise systems. The culprit? There is a startling lack of specialized training for multi-unit franchise owners.

Imagine Sarah, a successful single-unit franchisee of a popular fast-food chain. Buoyed by her success, she expanded, acquiring two more units with her franchisor’s blessing. But as her empire grows, so does her sense of being overwhelmed. Managing multiple locations, Sarah quickly realizes, is a whole new ballgame—one for which she feels woefully unprepared.

Sarah’s story is far from unique. A recent review of several hundred franchise disclosure documents revealed a disturbing trend: only a tiny fraction of franchisors offer formal training on the nuances of multi-unit ownership. It’s like asking pilots trained for single-engine planes to captain a commercial jet fleet suddenly without additional instruction.

The jump from single to multi-unit ownership is like going from checkers to chess
 the rules are similar, but the strategy is entirely different.

The Multi-Unit Sales Boom: A Double-Edged Sword

Before discussing the essential components of multi-unit ownership training, it’s crucial to address a growing trend in the franchise industry exacerbating this hidden crisis: the boom in multi-unit franchise sales.

Franchise brokers, incentivized by commission structures that reward larger deals, have been increasingly pushing the sale of multi-unit packages—often in bundles of three, five, or even ten packs. It’s not hard to see why: brokers stand to earn substantially more from these multi-unit deals compared to single-location sales.

The allure of rapid expansion is strong. However, many prospective franchisees don’t realize that managing multiple units requires a different skill set than running a single location.

While lucrative for brokers and appealing to ambitious entrepreneurs, this trend could be a recipe for disaster if franchisors don’t have robust training systems. The gap between the skills needed for single-unit and multi-unit ownership is vast, and without proper preparation, new multi-unit franchisees may find themselves overwhelmed and underprepared.

Before accepting multi-unit leads, franchisors must ensure their training and development systems are equipped to handle the complexities of multi-unit ownership. Otherwise, they’re setting up their franchisees—and ultimately themselves—for failure.

With this context in mind, let’s explore what comprehensive multi-unit franchise training should entail:

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1. The Art of Strategic Thinking

The first lesson in Multi-Unit Ownership 101 is that you can’t be everywhere at once. Successful multi-unit franchisees learn to work “on” the business rather than “in” it. This means stepping back from day-to-day operations to focus on big-picture strategy.

“I had to learn to let go,” confesses Pat, a multi-unit owner of a leading personal services franchise brand that treats families for head lice infestations. “Realizing that my job was to guide the ship, not to staff every station, was a game-changer.”

This strategic thinking involves:

– Long-term growth planning

– Resource allocation across units

– Brand consistency and development

2. Building a Management Dream Team

With multiple locations to oversee, having a reliable manager at each unit isn’t just helpful—it’s essential. But how do you find, train, and retain these crucial team members?

Effective multi-unit training programs teach franchisees the finer points of:

– Hiring and developing talented managers

– Delegating responsibilities effectively

– Building and leading a cohesive management team

– Fostering a positive organizational culture across all units

“Creating a cohesive culture across multiple units was my biggest challenge,” acknowledges Bill, a multi-unit, multi-branded franchisee who owns several units of a leading QSR restaurant brand and a beauty salon franchise. “Each location had its personality, and bringing them all under one vision took skills I had to learn on the fly.”

3. Crunching the Numbers (Without Getting Crunched)

Financial management takes on a new dimension when dealing with multiple units. Multi-unit and multi-brand franchisees need to understand:

– Complex budgeting processes for multiple locations

– How to allocate resources effectively across units

– The potential for and implementation of economies of scale

– Advanced financial analysis and forecasting

“I wish someone had taught me about the financial intricacies of multi-unit ownership earlier,” Sarah reflects. “It would have saved me a lot of sleepless nights and costly mistakes.”

4. Harnessing the Power of Technology

Technology is the multi-unit franchisee’s best friend in today’s digital age. Tech-savvy is no longer optional, from point-of-sale systems that provide real-time data across all locations to analytics tools that help identify trends and opportunities.

Training in this area should cover:

– Implementing systems for multi-unit oversight

– Analyzing and interpreting Key Performance Indicators (KPIs) across multiple locations

– Utilizing data to make informed business decisions

Enter franchise management software like FranConnect and learning management systems (LMS) like World Manager. These powerful platforms are revolutionizing franchise operations and training, offering a centralized single source of truth, a hub for playbooks, performance tracking, and learning and development activities.

“World Manager has been a game-changer for us,” says Collin, a multi-unit owner of a famous QSR franchise brand. “Its gamification features have made training fun and competitive, dramatically improving engagement and knowledge retention among our staff.”

Indeed, gamification—applying game-design elements to non-game contexts—is a powerful tool in franchise training. Leaderboards, badges, and point systems tap into employees’ natural desire for competition and achievement, making learning more enjoyable and effective.

5. Mastering the Human Element

With a larger workforce comes greater HR responsibilities. Multi-unit franchisees need to be adept at:

– Conducting performance reviews across multiple units

– Managing conflicts and maintaining morale

– Developing and implementing standardized HR policies

– Creating and maintaining a consistent culture across all locations

6. Becoming a Master Trainer

One often overlooked aspect of multi-unit ownership is the need for franchisees to become effective trainers. This is where “train the trainer” programs come into play.

“Learning how to teach others was a pivotal moment in my multi-unit journey,” reflects Mark, owner of several automotive service franchises. “It allowed me to scale my operations while maintaining consistency across all locations efficiently.”

Train-the-trainer programs equip multi-unit franchisees with the skills to effectively pass on their knowledge and the franchisor’s systems to their managers and staff. This ensures unit consistency and empowers franchisees to build strong, self-sufficient teams.

Many franchisors are now incorporating train-the-trainer modules into their multi-unit training programs, recognizing that effectively training others is a crucial skill for successful multi-unit ownership.

The Franchisor’s Responsibility

Given the increasing prevalence of multi-unit deals, franchisors are responsible for ensuring their training programs are up to the task. This means expanding existing single-unit training and developing comprehensive, multi-unit-specific programs that address the unique challenges of managing multiple locations.

“Franchisors need to resist the temptation of rapid expansion through multi-unit sales if they can’t support it with equally robust training,” warns Sean Fitzgerald, the President of Tru Blue Home Service Ally. “The long-term costs of franchisee failure and system instability can quickly overshadow the short-term gains from selling multi-unit packages.” Nothing will cause your franchise sales program to stall more than having multi-unit failures.”

The message for franchisors considering multi-unit expansion is clear: before you begin accepting multi-unit leads, ensure you have your training and development house in order. This might mean:

  1. Developing specific multi-unit training modules
  2. Creating mentorship programs pairing new multi-unit owners with experienced ones
  3. Investing in advanced learning management systems to facilitate ongoing training
  4. Establishing clear benchmarks for multi-unit readiness

By taking these steps, franchisors can ensure they’re not just selling multi-unit packages but setting their franchisees up for multi-unit success.

The Benefits of Addressing the Training Gap

The advantages of comprehensive multi-unit training are clear:

– For franchisees: Smoother operations, faster growth, and higher profits

– For franchisors: Stronger system-wide performance and more rapid expansion

So why isn’t this training more widespread? Some franchisors argue that multi-unit skills are best learned through experience. Others haven’t recognized the need. However, as the franchise industry continues to evolve, with multi-unit ownership becoming increasingly common, this gap in training is becoming impossible to ignore.

The Path Forward

The good news is that change is on the horizon. Forward-thinking franchisors are beginning to implement comprehensive multi-unit training programs. These programs often combine:

– Classroom learning

– On-site training

– Ongoing support and mentorship

– Advanced LMS platforms for continuous, engaging training experiences

As for Sarah? After some initial struggles, she sought mentorship from experienced multi-unit owners and invested in her education. Today, she’s the proud owner of five thriving locations and is considering expanding further. She’s also become an advocate for comprehensive multi-unit training within her franchise system, pushing for the adoption of advanced learning technologies and train-the-trainer programs.

Conclusion

The lesson is clear: success in franchising is about more than following a proven system. It’s about having the right skills and knowledge to scale that system effectively. As the franchise business format continues to grow and evolve, closing the multi-unit training gap isn’t just an opportunity—it’s an imperative.

For franchisors, the message is simple: invest in comprehensive multi-unit training now, or risk watching your most ambitious franchisees struggle unnecessarily. This means developing robust training programs and leveraging cutting-edge learning technologies and methodologies to deliver them effectively.

And for aspiring multi-unit franchisees? Don’t wait for someone else to prepare you for success. Seek the knowledge and skills you need, embrace new learning technologies, and prepare yourself to become an owner, teacher, and leader. With the proper training and tools, you’ll be well on your way to building your franchise empire.

In the end, bridging this hidden gap in franchise training isn’t just about avoiding failure—it’s about unlocking the full potential of the franchise model. In doing so, we can ensure that the next generation of multi-unit franchisees isn’t just surviving and thriving in an increasingly complex and competitive business landscape.

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Written by Guest Writer Keith Gerson, CFE – President & CEO of Gerson Advisory Services

About the author: Keith Gerson, CFE, is one of the best-known experts in franchising and is well-known for his thought leadership. Keith brings 50 years of franchise experience to Gerson Advisory Services (GAS), offering unparalleled insights and strategic guidance for franchisors. His leadership and visionary approach have shaped successful franchise systems worldwide.

 

 

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The Future of Franchise Operations: Insights from Five Decades in the Trenches

Written by Guest Writer Keith Gerson, CFE – President & CEO of Gerson Advisory Services

When I first started franchising in the early ’70s, we didn’t even have fax machines, let alone the tech we’re using today. I remember lugging around a briefcase full of paper reports to every franchisee visit. Now, as President and CEO of Gerson Advisory Services and former President of Franchise Operations for FranConnect, I’m watching AI revolutionize the franchise industry. It’s been quite a journey, and I’ve got a few thoughts on where we’re headed next.

The CFXO: More Than Just Another Fancy Title

Let me tell you about a conversation I had last month with Scott, a franchisor client of mine. He was frustrated because his top-performing franchisee was threatening to leave the system. “Keith,” he said, “I don’t get it. Their numbers are great, but they’re unhappy. What am I missing?”

This is exactly why I’ve been pushing for the role of Chief Franchise Experience Officer (CFXO). It’s not just another C-suite title to hand out at the company holiday party. The CFXO is your franchisee happiness guru, your system’s empathy engine.

In Scott’s case, a CFXO would’ve spotted the issue long before it reached boiling point. They would’ve noticed that while this franchisee’s numbers were stellar, they hadn’t received meaningful support or recognition in months. Sometimes, it’s not about the numbers – it’s about feeling valued.

From Consultant to Coach: A New Breed of Support

If you’ve been around long enough, you’ll remember the old days when the Franchise Business Consultant’s job was basically to show up, check some boxes, and move on. Thankfully, those days are over.

I was at a franchise conference recently where I heard a franchisee say, “I don’t need big brother telling me to ‘increase sales.’ I need someone who can help me figure out how.” That’s stuck with me because it perfectly captures the shift we need to make.

We’re moving towards what I call Franchise Success Coaches (FSCs). These aren’t just consultants; they’re part business guru, part psychologist, and part cheerleader. They need to be able to dig into the numbers, but also to be able to read between the lines of what a franchisee is really saying.

I’ve seen this work wonders. A client of mine implemented this approach last year. Their customer satisfaction scores have gone up 22% since then. Why? Their FSCs aren’t just looking at sales figures; they’re coaching on everything from staff morale to local marketing strategies.

Tiered Support: Because One Size Fits None

Here’s a hard truth I’ve learned: a franchisee who’s been in business for 10 years needs very different support than someone who’s just opened their doors. Sounds obvious, right? You’d be surprised how many systems still use a one-size-fits-all approach.

I’m betting that many of you have a long-term franchisee who has been in the system for many years and who is consistently a top performer. But when you sat down with him, he was considering leaving. Why? He said, “I’m tired of sitting through the same basic training sessions year after year. I need something more.”

I’ve had those conversations over the years, and that’s when the idea of tiered support really crystallized for me. Now, I advocate for systems where new franchisees get intensive, hands-on support while veterans of your system get advanced strategies and peer networking opportunities. It’s not about less support for experienced franchisees – it’s about different support.

Real-Time Data: The Good, The Bad, and The Game-Changing

Let me take you back to 1991. I was working with a specialty food franchise system, and we had just installed our first real-time POS system. I remember standing in a franchise location, watching those sales figures roll in live for the first time. It was like magic.

Fast-forward to today and the data we have access to is mind-boggling. But here’s the kicker—data alone isn’t enough. I’ve seen franchisors drown their franchisees in numbers without providing any real insights.

The game-changer is using this data to have meaningful conversations. One of my clients was able to spot a trend in negative reviews about the speed of service and worked with franchisees to make immediate improvements. Result? A 15% jump in positive reviews in just three months.

Revolutionizing Franchise Operations with Playbooks.

Playbooks are essential in helping to create stronger, more resilient franchise systems by replicating best practices with unprecedented speed and precision. For franchisors looking to drive consistent performance, this tool is a game-changer. The key is that you’re not just collecting data – you’re using it to drive action. It’s not just about making corporate jobs easier; it’s about giving franchisees the tools and insights they need to succeed.

I didn’t really have to gaze long into my crystal ball, as what I initially thought were future capabilities exist today. FranConnect, I’ve found, has the best playbooks in the business when it comes to franchise operations. They have developed the ability to transform how we use real-time data to drive improvements across franchise systems.

Playbooks can turn data into immediate action. Imagine a restaurant franchise where, if a location’s cleanliness scores drop below a certain threshold, the system automatically assigns a detailed cleaning and maintenance playbook to that franchisee. It’s immediate, targeted support exactly when and where it’s needed.

Playbooks can be created for any performance indicator – customer satisfaction, upselling, you name it. It’s like having your best performers mentor every location, but automated and scalable.

AI and Machine Learning: The New Frontier

Now, I’ll admit that when I first heard about AI in franchising, I was skeptical. I had concerns over data privacy, content ownership, “hallucinations,” ethical concerns, a lack of human touch, etc. But I’ve come around in a big way.

Last year, I heard of a franchised B2B concept that implemented an AI system to generate performance improvement playbooks. The system analyzed data from across their 500 locations and created customized strategies for each location.

The results were impressive, but what really sold me was a conversation I had with their CEO. “For the first time,” he told me, “I feel like the advice we are giving is truly tailored to our franchisee’s locations, not just generic one-size-fits-all solutions.”

The Hybrid Model: Balancing High-Tech and High-Touch

The pandemic forced us all to go virtual, and let me tell you, it wasn’t pretty at first. A franchisor I spoke with at an IFA event told me about one video call where a franchisee accidentally left their mic on while making some colorful comments about corporate. Not their finest hour.

But we learned, we adapted, and now I’m convinced that a hybrid model is the way forward. There’s still no substitute for sitting across from your franchisee, looking them in the eye, and shaking their hand. But the efficiency of virtual check-ins? That’s here to stay.

One approach for consideration is bi-annual in-person visits, with bi-weekly virtual calls. An example could be to deliver in-person visits in January and July, followed by virtual calls every two weeks (26 calls per year), and an option for additional ad-hoc virtual calls as needed.

Another approach could consist of an annual in-person visit (reserved for annual strategic planning and critical hands-on support). These are offset by quarterly extended virtual sessions (2-3 hours) for in-depth reviews and bi-weekly brief virtual check-ins (15-30 minutes for quick updates). It’s recommended that one in-person visit be scheduled in the first quarter for new franchisees.

I’ve also seen systems that offer a flexible system based on each franchisee’s performance.

  • High-performing franchisees: Annual in-person visit, with bi-weekly virtual calls.
  • Average-performing franchisees: Semi-annual in-person visits offset with bi-weekly. virtual calls.
  • Underperforming franchisees: Quarterly in-person visits with weekly calls.
  • Additional ad-hoc virtual calls can be scheduled as needed for urgent matters or specific concerns.

Looking Ahead: The Only Constant is Change

As I look back on my five decades in franchising, one thing is clear—this industry never stops evolving. The challenges we face today are different from those we faced in the ’80s, ’90s, or even last year. However, the core of what we do remains the same: supporting franchisees in building successful businesses responsibly.

The future of franchise operations is about embracing technology without losing the human touch. It’s about using data to inform decisions but not letting numbers overshadow relationships. It’s about providing tailored support that evolves as our franchisees grow.

Is it going to be easy? Not at all. But in my experience, the most rewarding things rarely are. As we navigate this new frontier, let’s remember why we got into franchising in the first place – to help people achieve their dreams of business ownership.

Here’s to the future of franchising. It’s going to be one heck of a ride!

A McDonald's at night

Inspect What You Expect: Achieving Quality Control and Brand Consistency

“The Founder” is a 2016 movie based on Ray Kroc and McDonald’s origin story, which won critical acclaim for Michael Keaton. In one important scene, Kroc (played by Keaton) visits a franchise location only to find that the operator has introduced fried chicken on the menu to compete with KFC. This flies directly in the face of the menu standardization he hoped to enforce across the McDonald’s system. If you haven’t seen it, I highly recommend that you do.

This scene is pivotal as it demonstrates the issues and challenges in achieving brand consistency. As a true visionary, Kroc wanted more than to sell burgers and fries. He aimed to deliver the same quality burgers and fries no matter where McDonald’s was located. And isn’t this the true goal of all franchises? To have uniform consistency from location to location? This was the key to what ultimately led to McDonald’s franchise dominance.

The crux of this article is that this uniformity becomes the cornerstone of all successful franchise brands, along with learning how to achieve it.

Inspect What You Expect

This mantra and approach go beyond establishing expectations and having a mechanism in place for verifying that expectations are being met across your entire system. So, how do you ensure that this principle is embedded in your operations?

Establish Clear-Cut Expectations

Do your franchisees clearly understand what you expect of them through regularly ongoing communications? These can best be conveyed through town hall meetings, newsletters, and updates to your franchise operations manual. However, based on FranConnect, franchisee visitations aren’t frequent enough to create sustainable changes.

Enter the Playbook

The playbook is a comprehensive document that outlines an organization’s key strategies, processes, and practices. It’s a “living, breathing document that serves as a roadmap for operating a business. It helps to ensure consistency and efficiency and to align with a brand’s goals and values. Your playbook can be used to ensure adherence to your vision and vision statements, core values, roles, and responsibilities. However, the most utilized facet of franchising tends to be around the business’s operational processes. It is a step-by-step guide to daily operations and routine activities critical to the business.

Systematic Audits

We have found that the trend has shifted to where more and more Franchisors are augmenting their franchise visitations by having their franchisees conduct their self-appraisals on the present state of their businesses. This translates into a regular cadence and approach that combines unexpected and announced visitations with franchisees “keeping score” with their utilization of franchise playbooks such as those deployed within FranConnect. Your audits should inspect strict adherence to your standards, customer service protocols, and operational requirements. You can readily conduct these assessments on your own accord, through your franchisees, and with solutions like RizePoint, a quality management system for multi-location businesses.

Utilize Checklists

Playbooks are critical to guiding your Franchise Business Consultants to assess each component of the operator’s execution and compliance with your standards. Well-defined checklists or playbooks deliver on your “inspect what you expect” program and can take average performers. With the help of your most accomplished Franchise Business Consultant, top Franchisees can be used to share their insights through your published playbooks. You’ll quickly see how this can transform your rank-and-file franchisees into exceptional operators.

Your Digital Tools of the Trade

Using technology tools and platforms that can aid you in monitoring your operational metrics, including your sales performance leading indicators, customer feedback through NPS, or other customer experience tools, can make good performers great performers. Your compliance checklists will provide you with the ability to provide on-time interventions when your standards aren’t being met.

The Power of Data-Driven Insights

Franchisors often find themselves with limited access to the systemic insights that exist within their organization based on data being kept in operational silos. This can gravely impact your franchise team’s effectiveness and the utility of playbooks. While playbooks are a standard operations framework, your data-driven insights allow your franchise operators to craft strategies that impact local market conditions. Imagine the power of sales data and customer feedback and how they could help franchisees adjust everything from your quality standards marketing to customer service and execution.

Performance benchmarking is one of the greatest benefits of aggregating data into a format that allows franchisors and franchisees to benchmark performance across different locations. By allowing your technology to analyze data on sales, product quality, customer satisfaction, and operational efficiency, you can make informed decisions that can greatly enhance system-wide performance.

Continuous Improvement

With the average span of control of one Franchise Business Consultant to every thirty Franchisees, our research and pulse surveys show that the frequency of visits to franchise locations is too infrequent to bring lasting change. In having a technology-enhanced solution such as FranConnect’s automated operational playbooks, some triggers go to the Franchisee, Franchise Business Consultant, and others within the organization to allow for follow-up and a drive for continuous improvement. This can also help you continually update the playbooks to convey the most effective strategies and processes for the location and system.

Conclusion

Franchise Business Consultants equipped with data-driven insights can provide the most effective advice to franchisees, who can use those insights to address the individual challenges at each location and optimize their operations based on objective evidence. Additionally, since the onset of the COVID-19 pandemic, we have seen an ever-increasing trend toward franchisees completing unscored self-appraisals using playbooks.

For those taking the best practices approach to leveraging the skill set of your top performers and expanding that knowledge through playbooks, you will have the advantage of taking average performers and turning them into your best performers.

And breaking down silos and taking a data-driven approach will help transform operations and strategic planning and allow you to evolve your system into a model of brand consistency.

A female coffee shop owner holds a clipboard while wearing an apron

How to Create a Menu for Your Coffee Shop

Running a business is a kind of feedback loop—the happier the patrons, the better the business does. The better the business does, the more opportunities it has to wow customers. When designing a menu for your coffee shop or multi-location coffee shop, the trick is finding that sweet spot where both business and customer thrive equally.

Design a Coffee Shop Menu You and Your Customers Love

While brainstorming coffee shop menu ideas, you want to offer as much variety and intrigue as possible while honoring each shop’s realistic capabilities. There’s more value in doing a few things excellently than doing many things just OK. Let’s explore some of the ways your shops can achieve success through a well-conceived menu.

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Learn How to Create a Coffee Shop Menu With Variety

The average American spends $20 or more on coffee weekly, and their orders vary significantly from person to person. Research has identified three distinct types of coffee drinkers in today’s market — the general coffee enthusiast who loves their morning pick-me-up, the flavor adventurer who seeks new and exciting taste experiences, and the quality-oriented coffee drinker, dedicated to drinking only the finest brew their area can provide. To please all three customer types, your coffee shop needs variety.

Hot Drinks to Sell

Hot drinks are the main event at cafés and coffee spots, and every outlet is expected to sell a set of beloved staples. These crowd-pleasing hot beverages are crucial to impressing your everyday coffee enthusiast. Items your customers expect to find on your menu include:

  1. Drip coffee: This is standard black coffee made by slowly running hot water over coffee grounds and filtering it. Some people add cream and sugar to taste, while others prefer black coffee.
  2. Espressos: Served in 1- to 2-ounce cups, espressos are stronger versions of drip coffee made with fine, dark-roasted coffee grounds and pressurized water. They have a rich, foamy crema on top and are used in several other hot drink orders.
  3. Lattes: Combine a shot of espresso with some steamed milk, top it with a thin layer of milk foam, and you’ve made a latte. Many popular coffee shops offer hazelnut, vanilla, caramel, or other syrups to flavor the drink.
  4. Teas: Green or matcha tea, English breakfast, Earl Grey, and herbal teas like chamomile and peppermint are all welcome additions to a standard café menu in America.
  5. Mochas: Mocha combines the classic latte with chocolate syrup or cocoa powder and sugar to create a decadent grown-up hot cocoa. They are usually topped with whipped cream and chocolate shavings.
  6. Americanos: Americanos are similar to drip coffees, but they generally have a richer and more intense flavor because they are made with a shot of espresso and hot water combined.

This is by no means an exhaustive list. Macchiatos, cappuccinos, chai teas, oolong teas, and flat whites are all popular hot drinks that would be excellent on a coffee shop menu. After you’ve created your budget and decided which market your brand aims to appeal to, you can decide whether to swap out one staple for another to customize the menu for your needs. Just be sure to pick quality coffee grounds to endear your brand to the quality-oriented clientele.

Cold Drinks to Sell

Cold drinks to sell at a cafe may include cold brew coffee, iced tea and iced coffee, and freshly squeezed fruit juice.

People don’t only visit coffee shops when it’s chilly outside, so it’s important to have a variety of cold drinks, too. These often require juicers, blenders, refrigerators, and ice, so consider how these extras will impact your budget, space, and the staff’s preparation time. Some cold drinks that will keep customers coming back include:

  1. Cold brew coffee: This chilled, caffeinated drink is made by steeping coffee grounds in water for up to 12 hours. This creates a refreshing drink with a smooth taste and minimal bitterness. Cold brew works well as a standalone beverage or as a milkshake concentrate.
  2. Iced tea and iced coffee: Iced tea and coffee are becoming increasingly popular in America, with millennial and Generation Z customers gravitating towards colder caffeinated beverages. These drinks need less preparation time than hot drinks, saving your staff time and giving your customers snappier service.
  3. Freshly squeezed fruit juice: Nourishing, fresh fruit juice blends intrigue health-conscious customers and flavor adventurers alike. You’ll have to invest in a commercial juicer and buy and store fresh fruit, so carefully consider whether the market you’re targeting would buy freshly squeezed juice over a can of soda.

Other frosty options include frappes, smoothies, canned and bottled drinks, homemade lemonade, and more. Your final menu choices depend on your space, the time the staff has to prepare drinks, and what you want your brand to become known for.

Decaf and Regular Drink Options

When possible, provide regular and decaffeinated versions of your hot and cold coffee drinks. You can sell your beverages as relaxing evening treats and morning energy boosters, and customers who drink no caffeine at all still feel included and well-served. You’ll likely earn more profits while endearing your brand to a wider audience.

Milk Varieties

The meaning of the word “milk” has evolved, and it’ll do you good to cover every definition in your coffee shop refrigerator. Popular creamers and milk alternatives besides full-fat cow milk that work well with coffee include:

  1. Oat milk
  2. Almond milk
  3. Soy milk
  4. Macadamia milk
  5. Skim milk
  6. Lactose-free milk

Some milk-alternative brands offer a standard product version and a special formulation made specifically for baristas. These varieties create better foam texture and are easier to steam, so investing in the barista versions is a fantastic idea if you’re servicing a location with non-dairy coffee drinkers. Just note whether they’re sweetened or not and let your customers know.

Offer Specialty Coffee That Wows Customers

Specialty coffee is coffee of the highest standard. Your brew can be considered specialty coffee if the beans that went into it scored 80 points or higher on the Specialty Coffee Association’s grading system. If your brand seeks a premium, high-end reputation that caters to quality-oriented coffee connoisseurs, consider stocking specialty coffee for your staple drinks.

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Create a Seasonal Coffee Shop Menu Cycle

While variety is the spice of life, novelty brings intrigue and exclusivity that makes a lasting impression on your customers. As seasons change, so do customer preferences, and therein lies an opportunity to offer them something new, memorable, and exciting. Examples of coffee shop menu items you can offer for each season include:

  • Spring: Offer a fragrant lavender-matcha latte that echoes the blossoms and freshness of new growth while still warming customers up as sweater weather ends.
  • Summer: Watermelon iced tea is a flavorful drink packed with sweetness, primed to cool customers off under the summer sun.
  • Fall: The golden milk latte is a trendy, healthy Indian twist on the ever-popular pumpkin-spiced latte. It sings with flavor and aromatic comfort while brightening customers’ day with a lovely bright gold color.
  • Winter: With the holidays in the air, what better way to warm up than with a luxurious peppermint mocha? Serve it complete with a candy cane to drive the cheery holiday spirit home.

Present Your Coffee Shop Menu in Style

Display your delicious drink ideas on a coffee shop menu board that invites customers in and gets them curious to try something new. You could decorate your chalkboard menu to match the season, theme it according to your brand’s unique aesthetic, or simply make it as legible and beautiful as possible. A menu’s look gives customers a visual taste of what to expect from your coffee shop’s products, so take the opportunity to really sell yourself.

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Coffee shops trust FranConnect's business softwareFranConnect is the gateway to scaling your coffee shop business and growing your brand with multi-location management technology and innovative ideas. We foster growth and efficiency within each unit, paving the way for the whole business to flourish in turn. We’re eager to help your brand expand its success, so fill out a demo request form, and we’ll get your multi-location coffee shop business on the path to peak performance.

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