Maximizing Employee Retention

Posted on September 5, 2022September 5, 2022 by Franchise Strategist

Photo by Desola Lanre-Ologun on Unsplash

Maximizing Employee Retention
By Johnny Day

An engaged employee contributes to the organization and feels valued by it. In addition, an engaged employee can be more productive, loyal, and energetic than a disengaged one. And when employees are happy at work, they tend to stay longer with their employer. For this reason, companies are increasingly focusing on improving employee retention rates. However, not all companies have the same needs or resources, and there are no simple solutions that apply across industries or countries. So here we will look at some strategies for maximizing your company’s retention rates:

Stop focusing on the costs of retention.
One of the biggest mistakes you can make is to focus on the costs of retaining employees. The price may be slightly higher than recruitment, but it’s a good investment for your business.
Retention rates are typically 20% higher than recruitment costs, so if you can retain just one good worker for an extra year, you’ll have saved more money than you spent on hiring that person in the first place!
Retention can lead to increased productivity and morale within your company, which helps ensure everyone stays motivated at work. It also means less turnover and improved efficiency during work hours because everyone knows what they’re doing now.
The reasons above don’t even include all the additional benefits of employee engagement when people like their jobs.

Create a retention strategy
The first step in creating a retention strategy is ensuring it aligns with your overall business strategy. A solid retention plan should be implemented at all levels of the organization, from executives down to frontline employees. Additionally, it should use data related to turnover rates and reasons for leaving—to shape its strategies and methods. Once you have decided on how you want to approach employee retention (and are ready for action), several tools can help:
Surveys are great tools for gathering information from employees about their work environment, including areas where they feel happy and satisfied and where they see room for improvement. You can use them to determine why employees choose one company over another when deciding between job offers. This information will give you insight into what matters most when making offers yourself!

Exit interviews: Though exit interviews don’t always happen before an employee leaves a company (sometimes managers ask them after someone has already left), they’re still valuable because they provide feedback directly from former employees who have new insights into what made them decide to leave their old jobs or departments within their organizations.*
If you can’t think of anything else to do, then focus on improving the employee experience. You want to ensure that your employees are happy with their work environment, coworkers, and tasks.Exit interviews allow you to find out what employees liked best about their work. They will also help you understand why they chose to leave; they also help you identify ways to improve your current practices or create new ones. These interviews can be conducted face-to-face or over the phone; some companies even use an online survey tool to gather information from departing employees.

Audit your human resources workflows. The first step in improving your retention is determining where you fall short and how. You can do this through an audit of your HR workflows, which will allow you to identify areas where there are gaps, bottlenecks, or redundancies. To do this, ask yourself:
* Are our new hires being onboarded properly? Are there any areas that need improvement (e.g., training) or opportunities for streamlining (e.g., documentation)?
* Do we have an effective method for recognizing and rewarding employees for their contributions? Is it efficient enough that we won’t lose valuable employees because they don’t feel appreciated quickly enough?
* How does our performance management process work from end to end? Does it provide timely feedback so employees can improve their performance and stay engaged?

Speak with your employees
To retain employees, you need to listen. Your employees are the experts on their well-being, so invite them into the conversation about how the work environment can improve things at work. Ask what they like about their jobs and what they would change if given a chance. Ask if they are happy where they are in their careers and whether or not they feel successful in their roles. Ask them if there is anything that the company could do differently to improve morale or make life easier for them at work. If someone feels valued at a company, they will happily recommend it to others who might also benefit from working there.

Retaining good workers can save you time and money as long as you care for them.
Retaining good workers can save time and money in today’s competitive business world. Here are a few tips to help you keep your employees happy and productive:

Appreciate them! Giving praise and showing appreciation for their work shows that you value their contributions, encouraging them to continue doing great things for your company.
Please give them the tools they need to succeed! If an employee is struggling with something they’re working on, helping them out or getting different technology might be enough to get them back on track again. If not, having a dedicated mentor on hand may be helpful too!

Encourage team bonding activities like group lunches or outings (always keeping safety in mind).
How do we measure and evaluate our employees’ performance? Is it timely enough to make an impact on their career development? How do we ensure that all employees receive regular feedback on their roles, responsibilities, and expectations? If you can answer these questions effectively, you can create an HR strategy that keeps your best talent. Many happy companies have taken to social media to understand their customers better. They are listening and responding to the needs of their audience. If you want your employees to feel valued, you should do the same thing. Ask them what they like about working for your company and what changes could be made to improve things even more. These questions will help your employees feel closer to each other and their workplace, which may encourage them to stick around longer. Offer growth opportunities! If an employee has been with you for a while, consider giving them more responsibility or training on something new to expand their skill set.

Conclusion
We hope this guide has been helpful for you and that it’s helped you think about employee retention in a new way. While most HR professionals know retention is essential, many don’t spend enough time planning for it or taking action to improve their retention strategies. But by following our tips here—and making sure your own company is prepared to do its part—you can help ensure that your employees feel valued and appreciated at work, which will lead them to stay longer with your organization. And if all else fails? Try giving out some nice bonuses!

Macro Methods To Control Food Costs In A Restaurant And Maximize Profits

Posted on September 3, 2022September 4, 2022 by Franchise Strategist

Photo by Tim Toomey on Unsplash

One way to get better-quality products is by buying local ingredients or those grown locally (naturally). This helps reduce transportation costs, which can lower food cost due to fuel prices—and it also reduces waste since you wouldn’t be shipping food across country lines when there are local farms nearby!

Macro Methods To Control Food Costs In A Restaurant And Maximize Profits
By Gary Occhiogrosso – Managing Partner, Franchise Growth Solutions.

Restaurant owners, chefs, and managers know the value of controlling food costs. But understanding how to manage your restaurant’s food costs can be tricky. This is because so many factors determine what goes on your menu and how much it should cost, from food and labor costs to waste management. Here ais a quick overview on how you can manage your restaurant’s food cost:

Food Cost Percentage
Food cost percentage is the amount of money spent on food divided by total sales. It’s a measure of how much of your sales are going toward the cost of goods, which is used to calculate your profitability.
In addition to being an overall measure of profit margin, food cost percentage also allows you to track discrepancies between weeks and months regarding budgeting. For example, if one month shows a high percentage while another shows a low one, some shifts in staffing or inventory may need addressing before they become problems later on down the line.

Keep Track of Inventory
You must keep track of your inventory. This is the first and most crucial step in controlling food cost. You must know your inventory, its location, and how much has been used or sold. There are several ways to keep track of your supply inventory: a spreadsheet (like Microsoft Excel) or a software program (like QuickBooks or Restaurant 365). You could also use cloud-based inventory management systems such as Restaurant Manager Pro or Inventory Doctor that automatically sync with your POS system.
The benefits of using an automated system include: tracking a cost per item; recording sales by SKU; producing purchase orders based on demand; monitoring stock levels; receiving alerts when stock gets low; comparing product costs against competitors’ prices via price comparison reports; sending out notifications when ordering needs to be done soon because inventory will quickly run out (or vice versa—notifying suppliers that there is excess capacity).

Quality Products
Regarding food costs, the quality of your products is one of the most critical factors. You may be able to save money by buying less expensive ingredients and products, but if they’re not good quality, then you will have wasted your time and money because they won’t taste as good. One way to get better-quality products is by buying local ingredients or those grown locally (naturally). This helps reduce transportation costs, which can lower food cost due to fuel prices—and it also reduces waste since you wouldn’t be shipping food across country lines when there are local farms nearby! Also, local farms tend to use safer pesticides than big corporations because they want their customers happy; nothing makes people mad like finding out that pesticides are used on their food without them knowing about it!

Avoid Waste
Reduce food waste, Recycle food waste.
Recycling programs allow you to turn your leftover food into an asset by turning it into compost or animal feed or donating it to those in need. You can also use recyclable materials and packaging for other items in the restaurant or kitchen, such as cutting boards, aprons, and dish towels. Donate food waste to charity organizations such as homeless shelters, soup kitchens, and food pantries, where it will be used as an ingredient for meals served to those who need them most in our communities. This is helpful from a cost-saving point of view and helps promote community values through charitable giving while helping reduce hunger in America overall! The key is to find a system that meets your needs. For example, if you are a small business owner without an IT department, then a cloud-based solution might be the best choice for you. However, if you have an IT team and can afford software like QuickBooks or Sage 50 US Accounts Plus, then, by all means, use that instead. In addition, you should consider buying local ingredients and products to save money on food costs. They tend to be of better quality because they are grown in the area where people live. This also helps reduce waste since there is no need for shipping across country lines when local farms are nearby!

Use Technology to Manage Inventory and Recipes
The second key to controlling food costs in your restaurant is using technology to manage your inventory and recipes. You can use technology to manage inventory by using a POS system. A POS system tracks sales, manages orders, records customer information, and orders supplies. If you don’t already have one in place at your restaurant, consider getting one before the end of summer because they are beneficial when it comes time for peak season in October (Halloween), November (Thanksgiving), and December (Christmas). Use technology as well when it comes to managing recipes at your restaurant. Recipe management systems allow you to access each recipe anytime via an app or web browser. These programs work on any device with internet access, such as tablets or laptops located in the kitchen area where WiFi connects all these devices. They work together seamlessly even if multiple users operate them simultaneously without slowing down their performance, which means efficiency ratings go up. In contrast, labor costs go down since they no longer need any additional cooks hired just for this task alone since now everyone knows exactly what needs to be cooked next, so no more wasted time spent looking things up!
To restate the top ways to manage the Cost of Goods.

Know your food cost percentage: This should be considered the most important. The food cost percentage is a measurement of how much it costs to make and sell your food (expressed as a percentage). It includes all direct ingredients, packaging materials, labor, overhead, and other expenses associated with preparing ingredients for sale at retail. If your food costs exceed 30 percent of sales, you’re probably losing money on every dollar of revenue generated by your business.

Keep track of supply inventory: Make sure you have accurate records of what you have on hand at any given time to avoid running out unexpectedly and losing customers because they can’t get what they want when they want it! You also don’t want to overstock supplies or make more than necessary if demand is low; that’ll waste money! Please ensure everyone in the kitchen or warehouse knows their responsibilities regarding stocking shelves with new products. In addition, make sure there’s always someone available who understands inventory management software programs (like this one!) so that even if someone leaves unexpectedly due to not knowing how these programs work, there will still be an easy way.

Use compostable materials: Compostable materials are made from organic material that can be decomposed by microorganisms and turned into compost, which can then be used as fertilizer for gardens and farms. Using compostable utensils, plates, and cups at your restaurant or event venue will reduce landfill waste each year to get things done.

Conclusion
As I mentioned up tpo, this is a overview. There are numerous resources on the internet as well as restaurant consultants that assess and recommend a variety of ways to save on food cost and increase profits. While it is difficult to control food cost in a restaurant these simple ways that have proven successful.

The first step is to determine the percentage of your total sales that should go toward food costs. This will give you an idea of how much money you need every month or year to operate at a given profit level.

Next, keep track of supply inventory to keep up with demand and avoid waste by ordering more when needed.

Quality products are also crucial because they will save time (and money) during preparation while providing better flavor profiles at lower prices than similar items sold elsewhere!

Finally, use technology like software platforms to manage recipes and inventory levels without overspending on supplies like employees who take care too long between tasks like chopping vegetables or preparing meatballs.

THE ADVANTAGES OF OWNING MULTIPLE FRANCHISED UNITS – Part 1

Posted on June 30, 2022June 30, 2022 by Franchise Strategist

Photo by Eiliv-Sonas Aceron on Unsplash

In an already established franchise system, it is easier to find staff that is competent and trustworthy. Instead of hiring new staff from a company you are unfamiliar with, the odds are greater, in a multi-unit franchise, that they have worked in your orbit. In this sense, the ability to hire

THE ADVANTAGES OF OWNING MULTIPLE FRANCHISED UNITS
By Gary Occhiogrosso, Managing Partner of Franchise Growth Solutions.

The advantages of a franchisee owning multiple units are simple and plentiful. First off, the more locations that someone has, the more money they have a chance to make. Buying multiple franchise units may be an initial risk, but once you make the decision to pursue that path, it is advantageous. Because of the large network of administrative staff and resources one has at their disposal, one is able to use the same resources in one location as in any other. This means that you get more growth despite using less resources.

In addition, one can use existing overhead at multiple locations. Because not all the cost goes into one location, it’s easier to spread the risk, as sometimes one location may have a better performance than another. Because a franchise is a network of locations within one company, it is simple to spread the resources around to multiple different locations.
According to the 2016 franchise report by the British Franchise Association (bfa) and NatWest, approximately 29 percent of all British franchisees now own more than one single franchise unit.

“The bigger you get, the more of an opportunity you have to grow and strengthen your bench team, and our bench team is built to take on additional locations and grow,” said Mike Sartwell. Sartwell owns the development rights to the entire state of North Dakota and Montana. His plan is to open three Slim Chickens locations every year until his company’s portfolio reaches 18 units.
I love it, ” Sartwell said about being a multi-unit and multi-brand owner. “It’s fun and exciting, even though it can get a little overwhelming at times. It’s for those reasons that I feel very fortunate to represent two great food brands that offer plenty of support and guidance. Slim Chickens has a southern hospitality way about it and it puts its people, its guests, and its employees first. That’s the kind of brand we want to grow with.”

Most simply put, the knowledge, expertise and resources you get from starting a multi-unit franchise build on one another. Chances of success and competency greatly improve with the more units you have. It is in your best interest, as a franchisee to seek out multiple locations if at all possible.

Stay tuned for part two of this article were we discuss other reasons why owning multiple franchised units is a modern day method of empire building.

PRESS RELEASE – ASIAN CHICKEN AND RICE CONCEPT, ROOSTER & RICE, SIGNS FIRST FRANCHISE

Posted on June 21, 2022July 1, 2022 by Franchise Strategist

Rooster & Rice plans to expand its restaurant business model from 12 locations in 2022 to 16 to 20 locations by 2023. Franchisees benefit from ongoing coaching and company support on everything from site selection, protected territories, third party financing, training, and marketing. Rooster & Rice franchises are currently available in California, Texas, New Jersey, Pennsylvania, and soon to be offered in New York, New Jersey and Connecticut.

FOR IMMEDIATE RELEASE
June 21, 2021
CONTACT: Gary Occhiogrosso
917.991.2465
[email protected]

CHEF-DRIVEN, ASIAN CHICKEN AND RICE CONCEPT,
ROOSTER & RICE, SIGNS FIRST FRANCHISE

San Francisco, California, June 21, 2022 – San Francisco-based, fast-casual restaurant concept, Rooster & Rice, signed its first franchisee, Gore Song.
Song’s plan is to develop at least three Rooster & Rice units in Orange County California.

Built around a simple Thai food favorite, Khao Mun Ghai, Rooster & Rice (with 11 owned and operated locations throughout California and 1 location in Houston, Texas) and its chicken and rice-based menu is redefining the Asian QSR market in the US. Created by chef Tommy Charoen and experienced restaurateur, Bryan Lew, and with backing from the Aroi Hospitality Group (AHG), which includes two founders of Caviar, Rooster & Rice offers a simple, healthy, and easy to execute menu bringing simple and comforting Asian tastes to American consumers.

Gore Song, Rooster & Rice’s first franchisee, was a fan first. “When I lived in San Francisco,” Song reports, “ I would eat at Rooster & Rice all the time. “Rooster & Rice is a satisfying meal anytime of the day, from breakfast, lunch and dinner to a late night snack. I love the menu and the business model and look forward to offering more opportunity for Californians to sample authentic Thai chicken and rice dishes.” In fact, Song adds, ‘the opportunity and scalability of the Rooster & Rice concept had so much potential that we signed on with a multi-unit franchise.”

“Most restaurant brands grow because they have an explosively popular offering or an air-tight operational model that makes them easy and inexpensive to scale. Rooster & Rice is one of very few brands that has both.” Says Bryan Lew, co-founder and CEO. “That winning combination has allowed us to grow rapidly throughout the Bay Area, and we’re finding increasing demand from neighboring markets. Franchising will allow us to meet this growing demand like never before while introducing our fresh, high-quality dishes to new customers across the country.”

Rooster & Rice recently expanded its operation from California to Texas. Their Houston location opened in June 2022. According to Rooster & Rice CFO, Min Park, “Rooster & Rice picked the Houston market for its evolving food scene and community energy.”

7-YEAR-OLD ROOSTER & RICE ASSEMBLES FRANCHISE TEAM

In addition to an already existing team of entrepreneurs with a long track record of success, the company engaged the services of well-known franchise industry experts, Gary Occhiogrosso and Fred Kirvan. They are charged with bringing Rooster & Rice’s simple, low cost and easy-to-model franchise concept to the California and Texas (Houston) markets and eventually franchising nationwide.

“The time is right to bring Rooster & Rice’s category-defining concept to more people.” Says Occhiogrosso. “Rooster & Rice’s mom-inspired, simple but delicious menu proved its worth during the pandemic. Their low overhead comfort-food concept continued to be successful as others fell by the wayside.” He adds. “Rooster & Rice has a proven business model and turnkey system that will allow franchisees to bring a one-of-a-kind concept to their neighborhoods at a time when budgets are top of mind and guests demand good-for-you and flavorful food at a great price.”

FRANCHISES AVAILABLE IN MULTIPLE STATES

For more information on the Rooster & Rice restaurant concept, please visit ownaroosterandrice.com. For information on owning your own Rooster & Rice franchise, please contact Gary Occhiogrosso at 917.991.2465 or via email at [email protected].
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ABOUT ROOSTER & RICE Rooster & Rice is a fast-casual concept originated from the San Francisco Bay Area and specializing in Khao Mun Gai or Organic Thai-Style Chicken Rice. Veteran restaurateur Bryan Lew & Chef Thomas Charoen founded Rooster & Rice. Regularly requested by Tommy Charoen’s fellow chefs after a long day’s work in the luxury kitchens of Las Vegas, Khao Mun Gai began life as a simple comfort dish from Thailand. Though today the dish is available in many different mouthwatering variations, Chef Charoen’s version is a clear standout––the result of years of fine-tuning, inspired by a recipe from his very own mom. Khao Mun Gai has since become the signature offering at Rooster & Rice, a charming, no-frills restaurant concept developed by Chef Charoen and co-founder Bryan Lew. The dish represents the best of Asian street food culture, proving good meals can indeed come in humble packages. Once you try our take on this delectable combination of fragrant rice, poached chicken, and homemade soybean sauce you won’t ever be the same. In 2018, Rooster & Rice teamed up with two former founders of the food delivery app Caviar (which sold to Square in 2016 and now part of Doordash) to expand from the Bay Area into developing a model fit for franchising efforts.

Modern Tech Can Give Restaurants An Edge

Posted on May 27, 2022May 27, 2022 by Franchise Strategist

It is much more likely that franchisors, with resources already on hand, will be able to promote system-wide improvements for all franchisees in their systems.

Modern Tech Can Give Restaurant Businesses An Edge
By Jeremy Einbinder

Restaurants are continuing to use newer technologies that have the potential to optimize the experience both for the consumer and the business. Anything that improve customer experience and reduce labor costs- which is very important in a tight market- is a win-win.

Franchised Restaurants Set Themselves Apart

All of these innovations are especially important for franchised restaurants and allows them to set themselves apart from other restaurants. For entrepreneurs looking to open restaurant locations, it can be difficult to gather all the technological resources available to improve operations. It is much more likely that franchisors, with resources already on hand, will be able to promote system-wide improvements for all franchisees in their systems. These technological enhancements are wide-ranging and could set off a franchise restaurant boom.

For instance, instead of third-party delivery apps, many customers report a preference for ordering directly from the restaurant itself. It would be beneficial, if possible, for a company to have their own internal delivery app. In addition to building brand recognition, this also helps businesses avoid paying exorbitant fees.

Fred Kirvan, Founder and CEO of Kirvan Consulting, a New Jersey based restaurant optimization and consulting firm said: “At this year’s National Restaurant Show, we observed some notable improvements in tech-driven kitchen equipment aimed at providing a more consistent product to its end-user but much of the new tech seemed to be aimed at employee retention.”

Look But Don’t Touch

Payment technologies which allow for no-contact money transfer can also prove to be crucial, especially since the pandemic. In keeping with no-touch technology, it is becoming commonplace for customers to also access only menus and order without contact, allowing for a much safer environment for everybody. The cost reduction for restaurants can be substantial.

There are also tech payment options for employee payroll. Kirvan noted: “Companies offering early pay options and incentives were the noticeable standouts for me. Employee retention is key when you can consider all the software available for taking orders, you’re going to need people to prepare those orders.

Reservation applications like Eat App, Tablein, or OpenTable allow customers to see available time slots, and book their times at their convenience. In such apps, users simply view the time slots available with the number of seats needed and select one. This takes away any awkward interaction with staff of someone calling the restaurant and asking for a specific time for a reservation, only to realize it’s not available. For the business, it allows much greater flexibility in managing waitlists as well as customer loyalty.

Reducing Friction for the Front and Back of House

For streamlining customer orders, Kitchen Display Systems are very efficient, allowing both customers and kitchen staff to seamlessly log orders, instantly displaying them on screen according to priority. This also makes accommodating dietary restrictions much easier.

Radwan Masri, a 30 year veteran in the hospitality industry and a leading international culinary consultant and franchise expert with Ayy Karamba Hospitality added “The other side of food service tech driven business is FOH & BOH automation. Labor shortage in the service business combined with an increase demand for delivered food has impacted how food orders is being processed from start to end. Self-Serve ordering stations, QR codes scanning procedures. Your order nowadays through a drive through window is not the same as it used to be. i.e. I order in Chicago via a drive through window while my order is being processed by a mom sitting at home in Atlanta GA!”

This type of innovation is incredibly valuable and can easily cut down on unnecessary laborious tasks for employees. In addition, artificial intelligence technologies like Winnow reduce food waste. Using a camera, Winnow “learns” to recognize different foods being thrown away. It then calculates the financial and environmental cost of this discarded food to commercial kitchens. This in turn saves company’s money.

In Conclusion

If franchisees and independent restauranteurs expect to stay relevant and competitive they need to take advantage of these burgeoning technologies. The guest expectation has risen as a result of the pandemic and most guests will give a restaurant one, perhaps two chances to meet or exceed their exceptions. When it comes to the the overall guest experience, using these technologies gives operators a better chance to succeed.

Does Your Franchise Program Contain the Elements of a Top Franchise?

Posted on May 25, 2022May 25, 2022 by Franchise Strategist

Here are 10 elements that you will find in the top performing franchise programs. If you are a franchisor and want to enhance your franchise performance, make sure these are a part of your franchise operation.

Does Your Franchise Program Contain the Elements of a Top- Franchise?

By Ed TeixeiraFranchise Expert, Author, Franchise Executive and Former Franchisee with 40 years of Franchise Industry Experience.

Ever wonder what sets the top franchise brands apart from the rest? There is a big difference between the indicators of a good franchise program and how the franchisor got to that stage. Whether a franchise system has 10, 100 or 1,000 units there are certain practices that separate the top franchise brands from the rest.
Here are 10 elements that you will find in the top performing franchise programs. If you are a franchisor and want to enhance your franchise performance, make sure these are a part of your franchise operation.

1. Stick to your franchisee profile
Have a franchisee profile and when franchise candidates do not fit the profile, say no! If using brokers, then remain in control of the franchise sales process.

2. Be candid with prospective franchisees
Provide prospective franchisees the tools they need to be a successful franchisee.

3. Have an effective training program, evaluate it, and continue training
Top performing franchisors have an effective training program that continues as an on-going activity.

4. If the franchise program needs adjusting, then do it
If certain marketing programs, products or services are not delivering the results then make changes.

5. Franchisee profitability must be a priority
The structure of the franchise program both operationally and financially must provide franchisees an opportunity for success that does not require extraordinary performance. If the franchisees follow the program and do not earn an ROI commensurate with their original investment, then the franchise is flawed. There must be balance between the earnings of the franchisor and its franchisees.

6. Franchisor leadership must be fully engaged in the franchise operation
Franchisor executive leadership must be totally involved in the franchise so that there is total awareness of successes and failures. There is no room for “surprises” when it comes to franchise operations. Whatever the forum, franchisee feedback must flow to franchisor leadership.

7. Solicit Franchisee input for important operational and marketing decisions
Whether through a Franchise Advisory Council, advertising committee or other representative body use them as a sounding board before making major operational decisions.

8. New products and services should be evaluated and measured by select franchisees before introducing
Obtain objective results from these franchisees, which will enable you to obtain a franchisee system buy-in when implemented.

9. Measure franchisee results on a regular basis
Use key performance indicators (K.P.I.s) to measure franchisee performance on a scheduled basis, whether monthly or quarterly. This enables a franchisor to know how its franchisees are performing.

10. Protect the integrity and standards of the franchise program
It is critical that the franchisor uphold the standards of the franchise. The franchisees that follow the program deserve it and the customers that use the product or services provided by the franchisees are entitled to consistency. Franchisors that do not protect their brand are not respected by their franchisees.
When franchisors have these elements in their franchise program, they can feel confident their franchise brand will be a top performer.

About the Author:
Ed Teixeira Franchise Expert, Author, Franchise Executive and Former Franchisee with 40 years of Franchise Industry Experience.Ed is a recognized franchise expert with over 35 years experience in the franchise industry. He has served as a corporate executive for franchise firms in the retail, manufacturing, healthcare and technology industries and was a franchisee of a multi-million dollar home healthcare franchise. Ed is the author of Franchising From the Inside Out and The Franchise Buyers Manual. He has participated in the CEO Magazine Roundtable Meetings with business leaders from around the country and spoke at a number of venues including the International Franchise Expo and the Chinese Franchise Association in Shanghai, China. Over the course of his career, Ed has been involved with over 1,000 franchise locations and launched franchise concepts from existing business models. Ed can be contacted at 631-246-5782 or [email protected].

5 TOP ITEMS YOUR SMALL BUSINESS NEEDS ON ITS CYBERSECURITY TO-DO LIST

Posted on May 14, 2022May 27, 2022 by Franchise Strategist

No matter the size of your business, you can take practical steps to help defend against cyberattacks, which will save your company time, effort and money in the long term.

5 top items your small business needs on its cybersecurity to-do list

(BPT) – If you run a small to medium-sized business, you may think your risk of cyberattacks is slim to none. But just because your business is smaller and you have your data stored on-premises does not exempt you from risk. According to the Ninth Annual Cost of Cybercrime Study by Accenture, 43% of cyberattacks are now aimed at small businesses — but only 14% of those businesses are prepared to defend themselves. Since the pandemic, cybercrime has increased by 600%, according to Embroker.com. And the cost of cyberattacks — from business disruption and lost data to system downtime, damage to your company’s reputation and even legal liability — is higher than ever. Cyber defense needs to be a major component of your business strategy.

What can your business do to help prevent these attacks in the first place?

Types of cyberattacks

It helps to understand where cybercriminals are most likely to strike, which is at most companies’ biggest point of vulnerability — the human factor. The Ponemon Institute’s State of Cybersecurity Report has identified the most common types of cyberattacks on small businesses:

Social Engineering/Phishing (57%): This can take the form of an email that appears to be from a trusted source, like a co-worker or supervisor, asking for help and requesting you click a link or download something.
Compromised/Stolen Devices (33%): Devices without sufficient security safeguards in place can be vulnerable.
Credential Theft (30%): Hackers obtain usernames and passwords to access accounts. Having strong, unique passwords and multi-factor authentication to access accounts can help prevent unauthorized access.

Strategies to safeguard your business

No matter the size of your business, you can take practical steps to help defend against cyberattacks, which will save your company time, effort and money in the long term.

Here are 5 tactics that should be on your cyber defense checklist:

1. Educate your employees about security best practices

Make sure everyone in your business understands common cyberthreats, and is well trained on how to identify typical phishing and social engineering scams. In addition, help remote employees secure their home networks by offering training on setting up secure Wi-Fi.

2. Keep business and personal devices separate

Especially as many employees continue working remotely all or part of the time, reduce security risks by emphasizing the importance of everyone in your organization using only company devices for work purposes.

3. Beef up security measures for employee accounts and network access

Require only strong, unique passwords for employee access, as well as implementing multi-factor authentication practices for an extra layer of protection.

4. Get a unified software platform for security and patch management

Make sure your entire system is more secure by using a single, effective software platform that can manage identity, access and devices in the cloud — as well as managing security upgrades and patching. For example, JumpCloud offers IT admins at any business the ability to control and manage a wide variety of configurations with Zero Trust security to secure your organization.

JumpCloud provides an easy, frictionless solution for small to medium-sized business requirements to hedge against increasing cyberthreats, with several security features to help your business improve its security posture, including:

Multi-Factor Authentication
Single Sign-On
Device Management
Zero-Trust
Patch Management

Even better, JumpCloud lets customers use all premium features for free, for up to 10 users and 10 devices.

“Any business owner today needs to be aware of and take active measures to protect against cyberattacks,” said Benjamin Garrison, technical evangelist at JumpCloud. “For any size business, JumpCloud provides an effective solution, all in one place.”

5. Monitor for security breaches

In case of a cyberattack, your business will recover and overcome the loss much more quickly the earlier you can detect the problem. Set up a system for frequent monitoring of your network for any potential breaches, and keep working to defend against them with regular updates and trainings for all staff.

Don’t wait until a security breach happens to get serious about cyber defense. Being proactive about the security of your business will be well worth it to defend everything you’ve created.

JumpCloud gives IT admins a single cloud directory platform to secure all their users in any device environment, wherever work happens. Visit JumpCloud.com to learn more.

Franchisors Shouldn’t Confuse Franchisee Validation with Endorsement

Posted on May 4, 2022May 4, 2022 by Franchise Strategist

Photo by Kenny Eliason on Unsplash

Successful franchisee validation is so important, it’s common for most franchisor development staff to be aware who their best franchise validators are. Franchisor staff might even recommend which franchisees to contact, because some franchisees don’t want to be bothered while others are flattered to offer their feedback.

By Ed Teixeira

It’s an established fact that to develop a franchise system the franchisor needs to have franchisees who will validate the value of the franchise, including franchisor services, support and quality of the franchise program.

Most of the literature that offers advice to prospective franchisees states that the most valuable source of information on a franchise system is from existing franchisees. In fact, it’s often said that franchisees help sell new franchises as much as franchise development staff and brokers.

It’s important to recognize the difference between franchisee validation and using franchisees to endorse the franchise brand. When a franchisor utilizes existing franchisees in ads or social media to endorse and promote the franchise brand there can be risks. For example, I recall an incident when one of the franchisees in our franchise system helped to obtain a prized national account contract. For his efforts, he was granted a financial benefit from the specific National Account revenues. However, as a further show of appreciation, the franchisor President had the franchisee thanked in a marketing piece and on the franchise web site. A few months later, a dispute led the same franchisee to file a lawsuit against us. It’s one lesson I’ll never forget.

Although franchisors may utilize their franchisees to market its products or services to customers, its different from having their franchisees actively promote and endorse its franchise opportunity.

When it comes to franchisee validations and endorsements, a franchisor should:

Expect franchise candidates to contact a franchisee in an ad for validation. This means that franchisee must remain satisfied with the franchise and franchisor support and services.
When using a franchisee for an endorsement avoid statements that may represent an earnings claim. For example, ‘I’ve made lots of income from this franchise.”
Be wary of how franchisee advertising funds are being used. Using ad funds that single out certain franchisees could cause other franchisees to be upset by publicizing certain franchisees.
In franchise locations visited by customers who could become prospective franchisees the franchisor should promote the franchise opportunity by having tri-fold brochures describing the franchise opportunity and signage to announce the business is franchised.
When recruiting franchise candidates be sure to recognize the difference between positive franchise program validation and using existing franchisees to endorse and promote the franchise opportunity. In the case of franchisee endorsements, there is always the possibility that the franchisee if disgruntled, could be embarrassing to the franchise program.

About the Author: Ed Teixeira
Ed Teixeira is a recognized franchise expert with over 35 years experience in the franchise industry. He has served as a corporate executive for franchise firms in the retail, manufacturing, healthcare and technology industries and was a franchisee of a multi-million dollar home healthcare franchise. Ed is the author of Franchising From the Inside Out and The Franchise Buyers Manual. He has participated in the CEO Magazine Roundtable Meetings with business leaders from around the country and spoke at a number of venues including the International Franchise Expo and the Chinese Franchise Association in Shanghai, China. Over the course of his career, Ed has been involved with over 1,000 franchise locations and launched franchise concepts from existing business models. Ed can be contacted at 631-246-5782 or [email protected].

Franchisor Focus: The One Responsibility of Franchising Too Many Franchisors Overlook

Posted on March 21, 2022March 22, 2022 by Franchise Strategist

The relationship between a franchisor and their franchisees touches every aspect of a franchise operation ranging from developing the franchise system to franchisees participating in aggressive price promotions. A positive relationship can enable success while poor franchise relations can thwart it.

Franchisor Focus: The One Responsibility of Franchising Too Many Franchisors Overlook
Courtesy of Ed Teixeira

As I consider subject matter for my franchise blogs it’s sometimes challenging to come up with a stimulating topic. Because I direct content mainly to franchisors, it’s important to provide helpful and constructive information. Whether as a franchisee, franchisor executive or providing operational advice to franchisors I’ve always advocated that a franchisor should have a strong franchise relations strategy. Certain franchisors are familiar with the clichés often attributed to fostering a climate of positive franchise relations, including having profitable franchisees, responding promptly to their emails, telephone calls and requests for assistance. Unfortunately, some franchisors don’t give franchise relations the attention it deserves.

In 1992 I was fortunate to contribute to the first IFA Franchise Relations booklet, so I decided to review articles written by franchisor executives. Although the booklet was published 29 years ago, in terms of franchise relationship management very little has changed. The same principles and policies that were advocated then remain the same. No other component of the franchise business model has remained constant.

Here are four questions that franchisors need answered to appraise the state of their franchise relations.

Are the franchisees profitable?
Whether using Key Performance Indicators (“KPIs”) or franchisee financial statements to measure franchisee financial and operational performance, this is an important responsibility of every franchisor. Rather than obtaining an answer to this question many franchisors focus on identifying the franchisees that aren’t profitable. The problem with this approach is that the franchisor lacks key financial and operational data that pertain to their entire system and individual franchisees.

Are franchisee customers satisfied with the products or services?
Franchisors should have a method for obtaining franchise feedback regarding the level of customer satisfaction. Whether using customer satisfaction surveys, franchisee focus groups or surveying franchisees its important information that should be gathered. This data benefits the franchisor and its franchisees.

What are our franchisee competitors doing?
Franchisors that display an interest in the behavior of their franchisee competitors will receive high marks from their franchisees. Many franchisors rely upon their franchisees for competitive information, however when the franchisor plays an active role in this process it benefits the franchise system and enhances franchise relations.

Is the franchisor doing the best it can?
Whether using a third-party firm to survey franchisees or doing their own survey, a franchisor must have a method for measuring their franchisee satisfaction levels. When the results are tabulated, the franchisor will know which areas if any can negatively impact franchise relations and may require attention.

Despite the countless changes that have occurred in the franchise industry over the years, one constant is the importance of franchise relationship management. Franchisors should be focused on evaluating and managing their relationship with their franchisees.

About the Author: Ed Teixeira
Ed Teixeira is a recognized franchise expert with over 35 years experience in the franchise industry. He has served as a corporate executive for franchise firms in the retail, manufacturing, healthcare and technology industries and was a franchisee of a multi-million dollar home healthcare franchise. Ed is the author of Franchising From the Inside Out and The Franchise Buyers Manual. He has participated in the CEO Magazine Roundtable Meetings with business leaders from around the country and spoke at a number of venues including the International Franchise Expo and the Chinese Franchise Association in Shanghai, China. Over the course of his career, Ed has been involved with over 1,000 franchise locations and launched franchise concepts from existing business models. Ed can be contacted at 631-246-5782 or [email protected].

Guests Are Back: How The Restaurant Industry Has Changed Forever – And For Good

Posted on January 1, 2022January 5, 2022 by Franchise Strategist

The guests are back: 77% of U.S. consumers in Lightspeed’s poll are dining out at least once a month or more, with 40% dining out more than two to four times a week, and 30% saying they are dining out more than they were before COVID, taking advantage of what they’ve missed.

Guests are back: How the restaurant industry has changed forever – and for good

(BPT) – In this new era of hospitality, technology is driving customer retention, automation and efficient food costing, which have all become key to profitability. The pandemic forced restaurants to adapt to not only a new, leaner business model but new consumer behavior as well. With customers opting for alternatives to dine-in, restaurants adapted to build solutions to offer takeout, delivery and curbside pickup options. Meanwhile, restaurants are struggling with staffing challenges, government mandates and dynamic reopening in different regions.

In a recent Lightspeed and OnePoll survey of Global hospitality merchants, 90% feel that technology has helped their business survive the last two years, and 92% feel their business is more efficient today than it was one year ago. Peter Dougherty, GM, Lightspeed Hospitality, offers three ways tech is reshaping the hospitality industry:

1) Once seen as a job killer, automation will save an understaffed industry.

In a recent JobList survey of 13,000 hospitality employees, nearly half said they had left their job for good, and a third said they were done with the industry. This aligns with Lightspeed’s U.S. research which shows 55% of operators struggling to retain staff.

Amid this shortage, restaurant operators and customers are seeing the value in automation technology. This means saving time by automating functions like taking orders or processing inventory with a solution like Lightspeed Restaurant. Lightspeed found that 67% of hospitality merchants in the U.S. see more automation as the best way to combat employee turnover, 50% plan to utilize some form of automation technology within the next two to three years, and another 50% also see a future with more flexibility for hospitality employees.

2) Guests’ behavior drives technology, but also staff shortages.

QR codes, once seen as outdated tech, were one of the big winners of distanced dining. And with restaurants and bars more short-staffed than ever, guests are suddenly more comfortable ordering through a QR code while a smaller floor staff maintain a level of guest service. When it comes to U.S. consumers dining out, ordering through a QR code (21%) or contactless payments (31%) made them feel “safer.”

But this rabid return has had its consequences: 62% of hospitality professionals in the U.S. report that guests have been more demanding, and 40% said they were tipping worse. 48% of U.S. merchants say “more patience and empathy” from guests would help them retain staff.

3) Technology helps merchants diversify their business.

The pandemic forced a tremendous amount of change in the hospitality industry, with 90% of U.S. merchants surveyed noting they feel that technology has helped their business survive the last two years.

When asked what technology had the biggest positive impact on their business, nearly half of merchants (47%) noted online ordering; a habit once relegated to urban millennials that became a necessity during COVID-19. Lightspeed’s survey found that 37% of U.S. merchants have brought their online ordering technology in-house to avoid third-party fees, and 60% say guests are still ordering more takeout than before COVID.

Looking ahead to the future, 78% of the merchants surveyed see online ordering technology vastly improving in the next two to three years, which will likely be a time of consolidation and automation for the industry, as stand-alone players will struggle to compete with larger integrated solutions.