3 Trends Poised For Growth In 2022 And The Tech Startups Helping To Fuel Them

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

3 trends poised for growth in 2022 and the tech startups helping to fuel them

(BPT) – The past year has brought a flurry of changes for many people. Maybe you’ve embraced online shopping and want to start to incorporate meal planning into that experience. Perhaps you’ve gotten into selling things from the comfort of your home or you’re now working remotely with people around the world.

Digital solutions meet modern needs so you can do these types of things successfully, whether you’re a consumer or an entrepreneur. Three of the top digital trends of 2022 showcase the growth of technology solutions by innovative startups focused on making life better.

Trend 1: Simplified online grocery shopping

The food marketplace is an evolving space with two trends poised for continued growth: online grocery shopping and meal planning. Grocery Shopii is the solution for shoppers who want to integrate meal planning into a customized online shopping experience.

Today, meal solutions are helping consumers tackle meal fatigue and save time. Not only are Shopii recipes curated by top bloggers, they’re hyper-personalized to each client’s preferences, offering suggestions that align with existing shopping habits. Plus, Grocery Shopii utilizes machine learning to expedite meal planning and online grocery shopping to 5 minutes or less.

Grocery Shopii is free for shoppers and helps grocers provide a tailored experience, which in turn builds customer loyalty. Learn more at GroceryShopii.com.

Trend 2: Interactive fashion resale marketplace

What people choose to wear defines who they are, and today more people than ever want to stand out in their own unique way. That’s why interest in vintage clothing, upcycled fashion, and handmade accessories is soaring, and Galaxy is connecting passionate sellers with engaged buyers.

Galaxy is the first platform of its kind to fuse live shopping and fashion resale, creating a truly social, entertainment-geared shopping experience with sustainable fashion at its core. With Galaxy, shoppers can have conversations while buying, allowing them to make more informed decisions and understand the stories behind the pieces they’re browsing.

Galaxy enables the next generation of fashion entrepreneurs to find and build their community, plus, unlike other platforms, takes no commission or fees. Visit Galaxy.Live for more information.

Trend 3: Symbiotic solutions to labor needs and economic empowerment

The labor shortage crisis, the Great Resignation, diversity challenges — job economy topics continue to capture headlines. Companies of all sizes are struggling to fill roles with quality candidates who meet their needs.

Meaningful Gigs is one solution that solves many issues that companies are facing today. This tech-packed platform connects skilled African designers with companies seeking high-quality digital design work. Their vision is to create 100,000 remote skilled jobs in Africa by 2028.

Meaningful Gigs provides companies with a way to tap into global diversity while also delivering critical design solutions for their businesses for creative, product and marketing teams. By supplying people in Africa with skilled jobs, the company focuses on continuous economic empowerment and socioeconomic advancement. Discover more at MeaningfulGigs.com.

2022 is sure to be a year of continued change as people increasingly rely on digital solutions. Explore these trends to see how they impact your life, and consider new technologies to meet your needs.

HOW TO ATTRACT AND RETAIN EMPLOYEES AS WE EXIT THE PANDEMIC

Posted on December 2, 2021December 3, 2021 by Franchise Strategist

Some of the causes of the great employment disruption of 2021 are beyond the influence of employers. However, there are a number of initiatives that can be implemented by employers to retain employees and attract those who are looking for a change in what they do. So, how do you retain and attract employees?

HOW TO ATTRACT AND RETAIN EMPLOYEES AS WE EXIT THE PANDEMIC
by Stan Silverman
Article originally published in the Philadelphia Business Journal on November 15, 2021.

Due to the effects of the pandemic, 2021 will be known as a year of immense employment disruption. This is especially acute in the restaurant, hospitality and other service industries, where employees now have higher-paying employment alternatives.
The cause of the Great Resignation is not limited to dissatisfaction with pay. Many employees who are nearing retirement have decided to leave the workforce earlier than they had planned. Other employees have reevaluated their lives and decided what they were doing was not for them.

Some employees are burned out dealing with hostile customers and working to meet pent-up demand. Others have left the workforce because they cannot afford childcare. There are those who point to governmental assistance as the reason people are not working, but that assistance ended in September.

Employees come before customers

In my columns for the Philadelphia Business Journal, I have emphasized the importance of delivering a great customer/client experience as a way to become the preferred provider in the marketplace. It’s your employees who deliver a great customer/client experience.

Quoting Sir Richard Branson, co-founder of Virgin Group, “Clients do not come first. Employees come first. If you take care of your employees, they will take care of the clients.” Treat your employees well. They will help you become a preferred employer.
Nurture a culture in which your employees develop a sense of ownership in what they do. Listen to their ideas. Value their contributions. Never micromanage. Set expectations, empower them and cut them loose to do their thing.

Compensate employees so your company is an attractive employment alternative

For years, many have advocated raising the federal minimum wage to $15/hour, with little success. Today, many businesses need to pay $20/hour or more to attract employees. Why? Employees have alternative employment opportunities not only within the same industry, but also within other industries that are rapidly growing. For example, an employee working at a restaurant can quit and go to work for Amazon instead. Pay employees competitively with their alternatives to keep them and attract others.
Will increasing the compensation of employees require companies to raise prices? Yes. The economy will adjust as it did after the dramatic increase in oil prices during the 1970s.

Differentiate your company and its culture

Just as you differentiate your company so customers/clients want to buy from you instead of your competition, differentiate your company so employees want to work for you rather than their alternatives.
Treat all employees as important to your success. Show your appreciation for what they do. Where practical, depending on the job, institute a hybrid model, giving them flexibility to work remotely or at the office. There are companies that have been operating 100% virtually with great effectiveness for many years without adversely impacting employee collaboration. Saved commuting time is spent working on business issues, as well as taking care of personal matters, which reduces employee stress and increases morale.

Differentiate your company from others. Treat your employees as you would like to be treated. Make it part of your brand. Your reputation will attract the employees you need to run your business.

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About the Author
Stan Silverman is founder and CEO of Silverman Leadership and author of “Be Different! The Key to Business and Career Success.” He is also a speaker, advisor and widely read nationally syndicated columnist on leadership, entrepreneurship and corporate governance. He can be reached at [email protected].

HOW BUSINESS AND CONSUMERS CAN STAY SAFE DURING THE ONLINE HOLIDAY SHOPPING SEASON

Posted on December 1, 2021December 3, 2021 by Franchise Strategist

Doing holiday shopping or making financial transactions when a device is on a public network can be risking identity theft.How are companies safeguarding consumers from identity theft and other forms of fraud? With a thoughtful approach that combines forward thinking with cutting-edge technology.

How businesses and consumers can stay safe during the online holiday shopping season
COURTESY OF BRAND POINT

(BPT) – The 2021 holiday shopping season is bound to break records. The National Retail Federation predicts an increase in sales between 8.5-10.5% over last year, and a record 87% of shoppers plan to shop online, according to PYMNTS.com. That’s an increase of 13% in online holiday shopping compared to last year.

In fact, approximately 263 million people in the U.S. are currently online shoppers. This dramatic growth in online shopping, especially over the holidays, brings with it increasing concerns about keeping accounts safe and secure from fraud — both for consumers and for the companies where they do their shopping. More than four out of ten (42%) consumers expressed concerns about security when shopping online, according to recent reports.

According to Juniper Research, retailers could lose over $20 billion in 2021 due to online fraud, which includes identity theft, illegal access to online accounts, using forged or stolen credit cards, SIM card theft and more.

Customers and companies can play an important role in protecting themselves from fraud over the busy holiday shopping season.

How customers can help defend their accounts from fraud

From the customer point of view, here are three things that can help keep accounts safer while shopping online:

1. Be password smart. Using stronger passwords, such as phrases, and making sure each password is unique for each account will improve security. A password manager is a good way to beef up security, as it generates stronger, unique passwords and keeps track of them.

2. Shop with trusted vendors. Buying from familiar retailers is usually safer, as is going straight to the website, and avoiding clicking on links from ads on social media or random emails. This comes down to KYB (“Know Your Business”): Customers need to ensure that the website where they do their shopping is secure. Does the web address begin with “https”? Are user authentication protocols in place, and do they offer secure checkout?

3. Stick with secure networks. Doing holiday shopping or making financial transactions when a device is on a public network can be risking identity theft.

How are companies safeguarding consumers from identity theft and other forms of fraud? With a thoughtful approach that combines forward thinking with cutting-edge technology.

How companies are working behind the scenes to help protect consumers

Companies today take identity theft and fraud seriously, as it affects their bottom line — and jeopardizes their relationships with customers. Fortunately, technology is constantly advancing to help safeguard against fraud and stay one step ahead of the criminals. This is more crucial than ever when holiday shopping online is at an all-time high, and online fraud and identity theft are, too.

“Protecting companies and customers against predatory behavior is increasingly difficult, as online fraudsters continue evolving and adapting,” said John Troutman, director, Digital Identity Expert Team at TeleSign. “Just as fraud attempts become more complex, protection for any business must keep up with that complexity. We use multiple approaches, tailored to each client, to find the most effective, up-to-date solutions.”

Here are three ways companies use innovative technology to guard against theft and fraud:

1. Two-factor authentication

Companies and financial institutions improve security by adding another step to verify customer identities. With two-factor authentication, the business sends a single-use authentication code to a customer’s email, phone (voice) or text (SMS).

However, even two-factor authentication has one area of vulnerability: Identity thieves trying to access an account could enter their own phone number to obtain the authentication code, or in some cases, can even swap out the SIM card on a customer’s cell phone.

Fortunately, TeleSign, an authority on fraud protection and safe e-commerce practices, helps corporations guard against these and other threats with products and services to help them evaluate customer behavior and detect signs of fraud.

For example, behavioral attribute insights determined using TeleSign’s Score product can identify safe and unsafe activities. This technology helps companies “see” into network actions to determine the answers to these questions:

Is the text behavior abnormal?
Is abnormal activity happening at off hours?
Are numbers calling or texting a customer from unusual area codes?
Is a customer’s number being used for malicious purposes?

These insights help detect unusual use of a cell phone to let companies know that there’s a problem. This high-level analysis helps keep customers safer, and works to avoid account takeovers and fraudulent activities.

TeleSign can also help determine the status of a customer’s phone number to see if it is active, and can do a recent SIM card check to see if a SIM card was swapped.

2. Knowing their customers

With millions of transactions being conducted over a busy holiday shopping season, how does a company know their customers well enough to detect fraudulent activity on their accounts? They need to use Know Your Customer (KYC), an approach which relies on A.I. and machine learning to accurately assess patterns in behavior — and detect changes in those patterns, which could signal fraud or identity theft.

TeleSign uses advanced Application Programming Interfaces (APIs) to help companies know their customers better. APIs deliver user verification, data insights and communications to help companies prevent account takeovers, support company ecosystems inside and out, minimize fraudulent transactions and securely verify customer phone numbers.

3. Companies need to leverage the best possible support for effective fraud prevention solutions

TeleSign’s technology uses complete in-depth data analysis to identify and prevent possible breaches, helping businesses set up and prepare fraud prevention solutions to create a frictionless, E2E customer journey. TeleSign’s solutions are trusted by some of the world’s largest platforms, including Citrix, Skype, Electronic Arts (EA), ByteDance and Salesforce.

To learn more about how companies can protect their holiday shoppers from fraud and identity theft, visit TeleSign.com.

THAT 1 PAINTER CONTINUES TO GROW AT AN INDUSTRY RECORD PACE

Posted on December 1, 2021December 3, 2021 by Franchise Strategist

His desire to lift his community up merged with That 1 Painter’s vision for giving: “My goal is to create jobs for the people around me, so when I read the statement Steven gave about Paint It Forward, I liked the idea of giving back to the community in that way.”

That 1 Painter Signs Franchisees in Houston, San Antonio & Las Vegas
By That 1 Painter

That 1 Painter has officially signed three more franchisees, bringing its total to five signed franchisees in their first four months of launching, paving the way for upcoming locations in Houston, San Antonio, and Las Vegas.

These franchisees aren’t shying away from big goals. Motivated by the challenge of growing with a new enterprise, they’re looking forward to seeing That 1 Painter’s proven systems play out in their hometowns to offer jobs to their communities and offer resources to those in need.

That 1 Painter Signs Three More Franchisees
At That 1 Painter, we work hard to build a culture in which everyone thrives because everyone lends a helping hand.

We Show You How To Build Your Team to Build Your Business
For Houston’s Donald Nguyen, knowing this local business thrives in a competitive market is what pulled him to T1P: “I looked at a few of the competitors and liked that That 1 Painter is local. Because That 1 Painter is a new franchise company, the market is more open – compared to the older ones. Also, I like challenges and that’s another reason I want to go with a new one!”

Vegas’ own Jose Mendoza sees similarity of vision between he and T1P’s founder “I was looking for a business that was fairly new for opportunities to grow. Steven seems very hands on and shares the same goal to expand.” and knows he’s the best guy to serve his hometown community: “I have been in Vegas for over 30 years and have seen it grow. I enjoy working with people and have extensive customer service skills.”

Josh Montana brings his love of people to San Antonio, “That 1 Painter offers services that help a homeowner make their vision a reality. Our work has a positive ripple effect that starts with the customer and permeates into their neighborhood. The joy achieved by renewing our living space creates a chain reaction of positivity in our neighborhood and personal life.”

That 1 Painter’s dedication to fantastic service is a huge part of what draws people to sign on for a franchise. Evidenced by a multitude of stellar reviews and their doubling revenue during the pandemic, this company has proven their systems work and that they know how to teach them. With an extensive training program that involves personal coaching, a remarkable Brand Team, and seamless scheduling systems, franchisees have enough support to hit the ground running before their business even launches.

That 1 Painter is offering a $10,000 discount off of the regular price of $39,000 to the first ten franchises they sign. That means there are only 5 spots left! Visit that1painterfranchise.com to learn more, and if you’re interested in taking advantage of this limited time special, contact Gary Occhiogrosso at FRANCHISE GROWTH SOLUTIONS [email protected] today.

About That 1 PainterBorn out of a passion and purpose to help people, That 1 Painter has grown since its founding in 2011 to offer over 18 painting services to the communities of Austin, San Marcos, Tyler, Longview, Frisco, and Plano with other locations already in the works. T1P uses its resources and talents to offer free painting to those in need, through their Paint It Forward program and extends it’s missional outreach to refugees in Africa. The very core of this business is to spread love and generosity throughout the world and to bless their customers with outstanding service while achieving their mission
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Franchise Your Business and Expand Your Brand Learn more here: www.frangrow.com

Learn Why Your Should Franchise:https://www.forbes.com/sites/garyocchiogrosso/2020/12/09/5-key-reasons-to-franchise-a-restaurant-concept/?sh=3b4686245309

KEY TIPS FOR LAUNCHING A SUCCESSFUL RESTAURANT

Posted on December 1, 2021December 3, 2021 by Franchise Strategist

Key Tips For Launching A Successful Restaurant.
BY Gary Occhiogrosso Contributor

For many people, opening a restaurant is a dream. One of the many things I find so interesting about the restaurant business is the blend of creative artistry and the detailed and challenging business aspects necessary to be successful. As an Adjunct Instructor at NYU’s School of Professional Studies, I teach restaurant concept development and business planning. On several occasions, I have been asked by my students to summarize the top issues that one must consider when planning to open a restaurant. Generally, regardless of the type of restaurant, the planning and considerations are the same. I’ll cover a few of the top line elements here.

At the beginning of the process, you should write a simple business plan. It would help if you thought about the many pieces of the puzzle connected to a successful outcome. Many novice restaurateurs, very often chefs, only consider the food component, but there is so much more. A well thought out business plan will include creating a unique concept, a competitive analysis, site selection, financial projections, equipment needs, staffing, and of course, the menu.

Let’s start with a concept

It’s essential that your restaurant offers a unique experience. It could be a Wine Bar with small plates, or a BBQ theme or a Create Your Plate concept. Whatever you decide, it is critical that the environment and “vibe” within the restaurant places the guest firmly inside the experience you’re attempting to create. Don’t confuse the guest with a concept that’s disconnected. As I often remind my clients, “everything touches everything else.” For instance, you wouldn’t use elegant tableware in a fried chicken restaurant or disposable plates in an upscale steakhouse. As obvious as this may seem on the broader elements, it’s essential to take that idea to every detail of the restaurant concept, no matter how small. Everything from the paint color to the music to the tabletops to the wall hanging must work together. The decor elements, the menu, and the service level need to provide the guests with a seamless experience that, when done well, goes almost unnoticed because it’s natural and authentic.

If You Build It, Will They Come?

Building a clientele is never as easy as hanging a sign over the door. It takes smart planning, execution of marketing, and living up to the promise in your mission and brand position statement. You should never assume, “if you build it, they will come.” Questions to ask yourself are; how will my restaurant connect with people? Why does my restaurant exist? What type of people am I looking to attract? What do they read or watch? How do they spend their spare time? What is the best way to reach them? Your concept should appeal to a particular, selected audience. There is no such thing as “everyone is my customer.” Knowing why and for whom your restaurant exists is crucial to success. Your marketing plan should offer compelling reasons why that guest base should frequent your establishment regularly. Is the concept created for health-conscious people? Is it aimed at Millennials or Baby Boomers? It is a full menu or dessert brand or a convenient, fast food, value-based concept. Your social media, print ads, and community outreach should focus on one single audience with one single message. Once you’ve built a loyal base of customers and repeat business, then you should consider expanding your base by marketing to others in the area with a proposition that appeals to them.

Your People Plan is Key

A great team will help you win everyday. Hiring great people is the first step in delivering service excellence and a consistent product to your guests. Your mission statement “the why” along with a corporate culture that emphasizes respect for employees, commitment to your guests, service to the community, and concern for the environment will guide you when selecting your staff. It’s not enough to hire people with restaurant experience; they should also understand and be excited about the mission of the restaurant. If not, they will go through the motions with an inauthentic approach and often fail at exceeding guest expectations. Examine your corporate core values and hire people that match it. Next, supply your staff with comprehensive, ongoing training and the proper tools so can they carry out the day to day tasks flawlessly. Hire for qualities, train for skills.

The Market and Competition

Understanding the market area where you’d like to open your restaurant is a crucial element to the plan. Carefully research the demographics to ensure there are enough people in the area that match whom you believe will embrace your concept. When looking for your location, work with an experienced commercial broker that can supply you with data to help you choose the area and the site correctly.

A full competitive analysis is also essential. For example, check the pricing of your competition. Be sure you’re not over or underpriced for the market. Check other services they offer, such as delivery and online ordering. Spend time in the market area, dine several times at as many competitors as possible, and position your restaurant to address the missing needs in the market. Having a unique value and selling proposition will keep you ahead of the game. Remember, everyone is vying for the same consumer dollars, so you need to create points of differentiation that will help your establishment stand out from the competition.

Consistently Great Food

Your menu must not only be relevant to the concept and the market but should be prepared and served perfectly every time. Restaurant guests expect dishes they grown to love to have the same flavor and high quality each time they visit. Inconsistent products can lead to disappointed guests, bad reviews, and slumping business. Your menu should be not only delicious but also simple to execute. The more straightforward the menu, the less chance of mistakes in preparation. Consistency increases guest satisfaction. Some chefs and “foodies” create menu items that are too complicated and require a highly skilled professional in the kitchen. This approach is fine if you intend to open a high-end restaurant staffed with high price personnel, but not in a fast-casual or family restaurant setting. A winning menu is simple, fresh, relevant, and great tasting. A competent chef can assist in developing dishes that are unique and great tasting that are also simple to produce with less skilled labor. If you have aspirations of owning more than one location, then simple execution, and consistent products are a must to achieve the goal of operating multiple restaurants.

Cash Is King

There are many reasons why restaurants fold. It could be the wrong concept, poor choice of location, not correctly researching the competition, poor service, an uninspiring menu, or bad food, to name a few. That said, the negative impact of undercapitalization may be the most frequent cause of restaurant failures. Knowing how much money you need to launch the restaurant is only the tip of the iceberg. You must assess ongoing cash needs while the restaurant is newly opened and gaining momentum. It may take many months for a restaurant to break even and then eventually become profitable. Being able to support the financial needs during this phase is often the “make or break” challenge that many new restaurateurs cannot overcome. A well thought out projection model that you create with the help of a professional financial advisor can save you from the frustration, negative financial impact and heartbreak of a failed restaurant. Considering capital needs for the first twelve to fifteen months is not only prudent but essential to the success of any new restaurant. You must be prepared to cover the operational costs and expenses as the restaurant “ramps up.” Carefully consider your cash needs and how much working capital you must have on hand, ready to deploy.

Have A Plan And Follow Your Dream

Owning a restaurant can be personally rewarding and profitable. Many people have built great restaurant companies following these simple guidelines. Desire and passion will only get you so far. Create your business plan as a road map. Your plan will help you stay on track when dealing with the many moving parts of launching and successfully operating a new restaurant.
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About the author:
Gary Occhiogrosso is the Founder of Franchise Growth Solutions, which is a co-operative based franchise development and sales firm. Their “Coach, Mentor & Grow Program” focuses on helping Franchisors with their franchise development, strategic planning, advertising, selling franchises and guiding franchisors in raising growth capital. Gary started his career in franchising as a franchisee of Dunkin Donuts before launching the Ranch *1 Franchise program with its founders. He is the former President of TRUFOODS, LLC a multi brand franchisor and former COO of Desert Moon Fresh Mexican Grille. He advises several emerging and growth brands in the franchise industry. Gary was selected as “Top 25 Fast Casual Restaurant Executive in the USA” by Fast Casual Magazine and named “Top 50 CXO’s” by SmartCEO Magazine. In addition Gary is an adjunct instructor at New York University on the topics of Restaurant Concept & Business Development as well Entrepreneurship. He has published numerous articles on the topics of Franchising, Entrepreneurship, Sales and Marketing. He was also the host of the “Small Business & Franchise Show” broadcast in New York City and the founder of FranchiseMoneyMaker.com

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LEARN MORE ABOUT STARTING YOUR RESTAURANT: www.frangrow.com www.frangrow.com

JACK IN THE BOX, RELAUNCHING ITS FRANCHISING EFFORT

Posted on October 19, 2021October 20, 2021 by Franchise Strategist

JACK IN THE BOX, RELAUNCHING ITS FRANCHISING EFFORT
By Gary Occhiogrosso – Founder and Managing Partner – Franchise Growth Solutions

Today I have the pleasure of sharing insights from, Darin Harris the CEO of Jack in the Box. Founded by Robert Peterson in 1951, Jack in the Box is one of the earliest fast-food restaurants. Innovative for its time, the Jack in the Box brand was built with the “drive-thru” in mind. The brand was the first to use a two-way speaker system for its drive-thru ordering. Today the brand continues to evolve as it relaunches its franchising effort to expand into new markets and capitalize on its 70-year history and resilience.

Although today, Jack in the Box operates just over 2,200 locations, there were not many in the New York area when I growing up. However, we were fortunate to have a local Jack in the Box in Flushing, Queens. The iconic brand was a staple in my teenage years. It was very routine to stop in for some tacos and burgers with my buddies after a late night out. I recall Jack in the Box had a unique drive-thru ordering kiosk. It was actually “Jack” popping out of the box, ready to take my order. I remember the clown-faced “Jack” staring at me as my friends and I placed our orders, certainly a challenge if you suffer from Coulrophobia, the fear of clowns.

With prior franchisee disputes settled, Darin Harris, CEO of Jack in Box, reveals the issues and challenges in relaunching the franchising effort. From gaining trust with the existing franchise community to focusing on unit-level economics to a new prototype restaurant, the brand is poised for a franchising reemergence.

Gary Occhiogrosso: You took the reins of Jack in the Box at the onset of the pandemic in April 2020; what drew you to the brand, and what was your initial vision for growth?

Darin Harris: Prior to Jack in the Box, I was CEO of IWG Regus; however, most of my career was spent in the restaurant industry, building brands through franchising, operations, and more. I always noted the potential that Jack in the Box had, and I’m proud of the strides we’ve been able to take so far.

We’re looking to build what I call “Jack’s House,” which starts with our foundation focused on culture, people, innovation, and technology. We really want to shape a caring high-performance culture by serving our people, guests, and franchisees well. We also want to build brand loyalty, drive operational excellence, grow restaurant profits and expand our reach. To do that, we needed to evolve our leadership team. We’ve hired a new CFO, CMO, COO, CPO, and a Chief of Franchise and Corporate Development to help take Jack in the Box to the next level. Additionally, we’ve focused on repairing the franchisor/franchisee relationship and announced the relaunch of our franchise development program earlier this year after a decade of hiatus. All of this creates a blueprint for Jack in the Box’s future, which aims to help grow total revenue, optimize return on invested capital, increase EBITDA, and create long-term shareholder returns.

Occhiogrosso: What were some of the obstacles you faced upon becoming the CEO? How did you prioritize initiatives when taking the helm during such a challenging time for the foodservice industry?

Harris: First and foremost, we needed to rebuild trust with our franchisees. We looked to re-energize our franchisees and develop meaningful relationships with each of them. Our franchisees are our family, and we needed to ensure they felt that way. After speaking with our franchise system and rebuilding the executive team, we looked to relaunch our franchise development program. Current and prospective franchisees have the opportunity to franchise and grow with Jack in the Box following the relaunch of the franchising program. We’re thrilled at the initial response as 2/3rds of our current franchisee network have expressed interest in growing. Prospective franchisees are very interested, as well.

We also needed to focus on unit-level economics, building a development strategy, digital strategy, and refreshing our guest research to ensure we’re meeting guests’ needs. Our four-pillar strategy will help guide us through the execution of each initiative. These include building brand loyalty, driving operational excellence, growing restaurant profits, and expanding our reach as a whole. These driving factors, coupled with the talented leadership team we’ve been able to build over the past several months, have aided my ability to lead every step of the way.

Amid the pandemic, we made a lot of the right decisions to ensure we were meeting our guests where they wanted to be met. Our model has proven to help us through the pandemic, and we’re fortunate that our drive-thru and third-party delivery strategy was executed well to help build sales at our locations. The first year at Jack in the Box has been exciting, and I’ve never had more fun in my career. Our restaurants are successful, and I love the people and personality behind Jack in the Box.

Occhiogrosso: Why was strengthening the franchisee/franchisor relationship important to you from the start? How did you go about doing this?

Harris: I’ve always viewed a company’s franchisees as its partners in strategy, and from the beginning, I knew we needed to re-energize that relationship at Jack in the Box. We cannot succeed unless our franchisees succeed, so it was important to get to know our franchisees and develop those meaningful relationships from day one. Once I accepted the position, I immediately started contacting our franchisees and spoke with about 25 of them. I wanted to hear the challenges they’ve had in the past and how they felt like we could improve, but most importantly, get to know them personally and learn about their families.

At Jack in the Box, we want to constantly strive to ensure our franchisees are equipped with the resources necessary to drive meaningful growth. The franchisee/franchisor relationship has significantly improved, so much so that 66% of our current franchisee network have expressed interest in growing. We’re really excited about the progress we’ve made and look forward to working with our franchisees as we grow in current and new markets.

Occhiogrosso: After Jack’s decade long hiatus from franchising, what motivated you to relaunch the franchise development program?

Harris: Over the past 18 months, we’ve proven that we are pandemic-resistant, and we’re eager to grow with our current franchisee network, as well as prospective owners. In fact, our existing franchisees had been wanting to expand for years, but the timing wasn’t right for corporate. While we currently rank first or second in unit count within our competitive set for 8 of our top 10 existing markets, we know there is a tremendous amount of whitespace to grow in existing and new markets.

The decision to relaunch our franchise development program began with reenergizing our franchisees and building those relationships, as I mentioned earlier. We believe there’s potential for another 1,500 restaurants in our existing footprint alone and 29 states remain untapped. The growth opportunity for Jack is enormous, and to grow, we need to work with our franchisees.

Occhiogrosso: While Jack in the Box is a longstanding brand in the QSR space, the competition in its sector continues to grow. How has the brand managed to report record-breaking sales the past few quarters?

Harris: It’s been an exciting time at Jack in the Box. Our guests are making more premium item purchases, and that helped increase system same-store sales 10.2% in Q3 2021. Franchise same-store sales grew 10.3% in Q3, with a balanced contribution from both average check and transactions. We’ve made the right pivots amid the pandemic and leaned into off-premise and menu innovation to help drive sales, which led to a historic start in 2021. Consumers are also using our mobile app more than ever, with our customer database growing by nearly 60% the since the start of the pandemic. We also launched our first loyalty program recently that consumer have been responding well to.

Another area of focus for us has been driving incremental sales with menu items like Tiny Tacos and our chicken sandwiches and chicken strips, which has helped raise system-wide sales and AUVs.

As we shift toward core premium entrees, we are observing an increase in items per order reflecting larger parties and fueling an increase in the average check. Our quarter over quarter growth has been remarkable to watch, and it’s a privilege to be part of the success. We look forward to building upon this momentum.

Occhiogrosso: Jack in the Box recently rolled out a new low-cost and drive-thru only prototype. How do you and your team plan to implement this new prototype into the development strategy? How does it play into the trends we are currently seeing in QSR dining?

Harris: Jack in the Box was the first major fast-food chain to develop and expand the drive-thru concept, so it’s in our DNA to grow utilizing the drive-thru. Our new prototype is off-premise only, featuring a lane for drive-thru and a lane for online pick-up and third-party delivery. With our drive-thru sales skyrocketing amid the pandemic, and restrictions lifting nationwide, the new prototype aligns with evolving consumer preferences. We believe that as we continue to progress out of the pandemic, off-premise will remain a preferred method of consumption for many of our guests, and we want to ensure we are meeting and exceeding their expectations.

Occhiogrosso: In what ways do you believe the new prototype will accelerate Jack in the Box’s growth?

Harris: The new off-premise prototype is targeting a reduction of development costs by approximately 20%. The first two prototype locations are slated to open in fiscal year 2022. Understanding that consumer trends and demand are evolving, we needed to build a prototype that makes it easier for our guests to access the brand. Off-premise is going to remain a preferred method of consumption for many guests, and this prototype fits their expectations. Additionally, 95% of our stores have at least one of the four major delivery providers (DoorDash, GrubHub, Postmates, Uber Eats), with 80% of them using at least three of the four. With the introduction of our new prototype, we’re committed to a strategy focused on driving delivery and off-premise sales while making our brand more easily accessible to our guests.

We’re excited about this prototype and development in general. In 2020, we opened 27 restaurants—the most in the past 20 years. We’re also looking at the possibility of non-traditional restaurants and signed a deal with Reef Kitchens to open eight dark kitchens. We’re focused on reaching a 4% annual restaurant growth by 2025. The future at Jack in the Box is extremely bright, and we’re thrilled to ramp up development.

My take-away from this interview is simple; the restaurant industry must continue to innovate to meet the ever-changing consumer trends due to a range of issues, from Covid to work habits to generational lifestyles. Darin Harris and the Jack in Box brand continue to be innovative in the Quick Service Restaurant segment.
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About Darin Harris. He began his role as Chief Executive Officer in June 2020. He was previously CEO of North America for flexible working company, IWG PLC, Regus, North America, from April 2018 to May 2020. Most notably, Harris is the former Chief Executive Officer of CiCi’s Enterprises from August 2013 to January 2018. For just under five years, Harris also served as Chief Operating Officer for Primrose Schools from October 2008 to July 2013. He previously held franchise leadership roles as Senior Vice President at Arby’s Restaurant Group, Inc, from June 2005 to October 2008 and Vice President, Franchise and Corporate Development at Captain D’s Seafood, Inc., from May 2000 to January 2004. He was also a prior franchise operator of multiple Papa John’s Pizza and Qdoba Mexican Grill restaurants from November 2002 to June 2005. Harris has more than 25 years of leadership experience in the restaurant industry encompassing operations, franchising, brand strategy and restaurant development.

8 Key Costs To Consider When Opening A Restaurant

Posted on September 1, 2021September 3, 2021 by Franchise Strategist

8 Key Costs To Consider When Opening A Restaurant
By Gary Occhiogrosso – Managing Partner – Franchise Growth Solutions

Two of the most frequent questions I’m asked at a seminar, workshop, or when teaching a restaurant development course at New York University are; “how much money do I need to open a restaurant, and how do I get the money?” This is the first installment of a two part article answering those questions.

Before we can address how to fund your restaurant, we need first to understand what we’re building and its cost. The type of restaurant you’re opening will determine the amount of money you need. In addition, the kind of restaurant will affect the type of funding and who may have an interest in investing or supplying a loan. Additionally, you’ll need to evaluate how much of your own money you need to provide. That’s because part of the process necessary to convince an investor, banker, or private lender is that you’re genuinely committed to the project. You know the expression, “put your money where your mouth is”

For the sake of this discussion, let’s say you’re opening a fast-casual restaurant. Not a franchise but an independent concept that you have developed on your own. This type of project may require a conventional business loan or an SBA loan. In many cases, investors other than family and friends may not be interested in investing in a brand new concept with no track record of success. It becomes further complicated if this is your first foray into the restaurant industry.

Fast-casual restaurants typically cost between $250,000 and $400,000 to “turn the key” and open the doors for business. The various costs associated with opening a restaurant will range depending on factors such as location, size and condition of the space, everything from security deposits to the reserve capital you’ll need to carry possible shortfalls the first few months you’re open.

Investment Costs to Consider

* Professional fees: This is usually necessary to set up your business entity, whether a corporation or LLC. Also, you’ll want to have a lawyer review any lease you may sign to rent a space where you will construct your new restaurant.
* Security deposits: This may be one to three months of rent paid to your landlord. In addition, many utility companies require deposits to set up electric, water, and Internet connections.
* Equipment: The cost for all of your kitchen equipment. Items include hoods, grills, ovens, stoves, stainless steel prep tables, shelving, hot tables, cold tables, a Point of Sale (POS) system, and a walk-in refrigerator. In addition, small wares, things like scoops, ladles, fry baskets, flatware, dishes, glasses, and other small items you need to prepare your menu and serve your guests. Now let’s move to the front of the house. Additionally, you’ll be looking at furniture and fixtures, countertops, workstations, tables, chairs, decorative shelving, and other items. These are the items you use in the front of the house to create the environment that will best suit the concept you’ve created.
* Leasehold improvements: In most cases, this will be your most significant expense. Leasehold improvements are generally construction costs for electrical installations, hood venting, plumbing, heating, and air-conditioning. These items are referred to as “the mechanicals.” And let’s not forget building one and, in many cases, two ADA-compliant bathrooms. Also, installing the proper ceiling, flooring, millwork, painting walls, and other elements that we typically think of as construction. On a side note, you can take advantage of opportunities due to the abundance of restaurants that have closed during the pandemic. These empty restaurant spaces are referred to as “second-generation restaurant spaces.” You can save thousands of dollars if you find and secure a space that was formerly a restaurant. In many cases, you will find the mechanicals have remained in the building. These second-generation restaurant spaces help to reduces your cost if you don’t need to install a hood, venting, plumbing, electrical, and restrooms.
* Signage: Properly identifying your restaurant will mean you will need to sign for your storefront. Also, consider that you may need lighted signs in the windows and other signage throughout the restaurant.
* Start-up inventory: This is probably the most extensive inventory order you’ll ever place. This initial order is for food, paper, beverages, and other supplies you’ll need in your restaurant daily. You’ll replace these inventory items as you use them, but when you first start, you’ll need to stock your restaurant from scratch with every single thing for the first time.
* Grand Opening Advertising: This is an item that most restaurateurs neglect. You’ll want to launch your restaurant by making a big splash in the neighborhood. To do this, you need the proper budget for social media, print, and other forms of advertising & marketing so you can get the word out.
* Reserve Capital: As I mentioned earlier, you will need to reserve cash in the bank. This reserve cash is required to meet shortfalls that may occur when you first open your new restaurant. You may not break even for months. Therefore, it would be wise to be prepared to cover payroll, inventory, utilities, and other costs incurred as you operate.

Understanding the actual cost of opening your restaurant is vital. An investor or bank will want to see that you’ve applied critical thinking to the project by taking time to evaluate the start-up cost honestly. In addition, you will need to prepare a business plan and projections to secure bank financing or satisfy an investor. Properly evaluating the required investment will lead to accurate budgeting these key startup costs.

So now that you have an understanding of cost, you should be prepared for a banker or investor to inquire how much of your own money you’re willing and able to invest into your business. In many cases, the SBA, private lenders, or conventional loans through a bank will require that you supply somewhere between 15% and 25% of the total amount necessary. As an example, if you project a cost of $400,000 to open your new restaurant, you will need between $80,000 and $120,000 in cash. Your cash investment demonstrates to the bank or investor that you have “skin in the game. “I have never seen a bank or investor finance a new restaurant 100%.
Now that we’ve covered the investment information necessary to open a new restaurant, we’ll tackle the second question in our next article. We’ll dig into funding methods such as a conventional business loan with a bank, an SBA loan, a private investor, and of course, family and friends.

About the Author:
Gary Occhiogrosso is the Founder of Franchise Growth Solutions, which is a co-operative based franchise development and sales firm. Their “Coach, Mentor & Grow Program” focuses on helping Franchisors with their franchise development, strategic planning, advertising, selling franchises and guiding franchisors in raising growth capital. Gary started his career in franchising as a franchisee of Dunkin Donuts before launching the Ranch *1 Franchise program with it’s founders. He is the former President of TRUFOODS, LLC a multi brand franchisor and former COO of Desert Moon Fresh Mexican Grille. He advises several emerging and growth brands in the franchise industry. Gary was selected as “Top 25 Fast Casual Restaurant Executive in the USA” by Fast Casual Magazine and named “Top 50 CXO’s” by SmartCEO Magazine. In addition Gary is an adjunct instructor at New York University on the topics of Restaurant Concept & Business Development as well Entrepreneurship. He has published numerous articles on the topics of Franchising, Entrepreneurship, Sales and Marketing. He was also the host of the “Small Business & Franchise Show” broadcast in New York City and the founder of FranchiseMoneyMaker.com
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FRANCHISE YOUR BUSINESS TODAY: www.franchisegrowthsolutions.com

THE LABOR CRISIS – HELP IS ON THE WAY!

Posted on September 1, 2021September 3, 2021 by Franchise Strategist

THE LABOR CRISIS – HELP IS ON THE WAY!
By Roger Lipton

The labor crisis is more than obvious. The contributing factors are open to debate. Is it the fear of Covid (from working indoors and/or being in close contact with customers and other employees), the need to stay home with the kids who are not back in school full time, or the lack of urgency (thanks to government assistance) to earn the dollars that will balance the family budget.

Here’s a data point for you. Call it “anecdotal”, not statistically relevant, but FWIW: On the conference call of an Indiana based restaurant chain, the CEO reported:

“…the labor shortage is real, but the causes grossly misrepresented….”

“…the hourly workforce in restaurants is and always has been in large part transitory and part time. A significant percentage of these part time folks work for extra household income, extra spending money, for income while they’re attending college or for any other reasons.

However, when you flood the economy with stimulus checks, monthly unemployment bonuses, extra food assistance debit cards, IRS refunds and the elimination of rent eviction, a lot of incentive to work part time for extra cash is eliminated.”

Here’s the data point:
“Indiana had opted out of the additional government unemployment bonus payments, which resulted in an immediate resurgence of applications at our restaurants, but this was quickly squashed when the court challenges reversed that decision.”
The following conclusion is the hope for the industry.

“With the federal program set to expire in September, we’re hoping that the labor market revives some after Labor Day”.
Call it anecdotal, just one CEO’s opinion. You can recoup the higher wage rates, as you must, with higher menu prices, but you can’t get that far without a kitchen and service crew. Sounds like relief from that standpoint is not far away.
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About the Author:
Roger Lipton is an investment professional with over 4 decades of experience specializing in chain restaurants and retailers, as well as macro-economic and monetary developments. After earning a BSME from R.P.I. and MBA from Harvard, and working as an auditor with Price, Waterhouse, he began following the restaurant industry as well as the gold mining industry. While he originally followed companies such as Church’s Fried Chicken, Morrison’s Cafeterias and others, over the years he invested in companies such as Panera Bread and shorted companies such as Boston Chicken (as described in Chain Leader Magazine to the left) .
He also invested in gold mining stocks and studied the work of Harry Browne, the world famous author and economist, who predicted the 2000% move in the price of gold in the 1970s. In this regard, Roger has republished the world famous first book of Harry Browne, and offers it free with each subscription to this website.
In the late 1970s, Roger left Wall Street to build and operate a chain of 15 Arthur Treacher’s Fish & Chips stores in Canada. In 1980 he returned to New York, and for the next 13 years worked at Ladenburg, Thalmann & Co., Inc. where he managed the Lipton Research Division, specializing (naturally) in the restaurant industry. While at Ladenburg he sponsored an annual Restaurant Conference for investment professionals, featuring as keynote speakers friends such as Norman Brinker (the “Babe Ruth” of casual dining) , Dave Thomas (Wendy’s) , Jim Collins (Sizzler & KFC), Jim Patterson (Long John Silver’s), Allan Karp (KarpReilly) and Ted Levitt (legendary Harvard Business School marketing professor, and author). Roger formed his own firm, Lipton Financial Services, Inc. in 1993, to invest in restaurant and retail companies, as well as provide investment banking services. Within the restaurant industry he currently serves on the Board(s) of Directors of both publicly held, as well as a private equity backed casual dining chains. He also serves on the Board of a charitable foundation affiliated with Israel’s Technion Institute.
The Bottom Line: Roger Lipton is uniquely equipped as an investor, investment banker, board member and advisor, especially related to the restaurant, franchising, and retail industries. He has advised institutional investors, underwritten public offerings, counseled on merger transactions, served on Board(s) of Directors, public and private, been retained as an expert witness, conducted valuation studies and personally managed a successful investment partnership, all specializing in restaurants/retail. He has studied great success stories over the last 40 years, from McDonalds to Shake Shack. Even more important he has watched scores of companies stumble and sometimes fail. It is this insight that Roger brings to this website. His post, dated 9/30/15, called “VISIT THE GRAVEYARD…..” lists a long list (though only a sample) of companies that have come and gone over the length of Roger’s investment career. This platform is his way of maintaining a dialogue with other professionals in the field, improving his own investment results, and remaining well informed on industry issues.
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Franchise your business today: www.franchisegrowthsolutions.com

Magic Cup Travels West: New Location in Southlake Arriving Soon!

Posted on September 1, 2021September 3, 2021 by Franchise Strategist

Magic Cup Travels West: New Location in Southlake Arriving Soon!
By: SHAHRIAR KABIR – with permission from the Magic Cup Blog site

Coffee and boba tea aficionados in the greater Dallas area can look forward to a brand-new cafe in the near future. This month, our Vietnamese American-owned Magic Cup Cafe franchise announces its westward expansion to Southlake, TX, which is expected to provide trendy tea drinkers throughout the Dallas suburb with their very own novelty boba hotspot.

Our innovative beverage franchise––fresh off a recent opening in McKinney -––is proud to name nationwide entrepreneur Vinay Calyampoondi as the owner and operator of the new Southlake location. “We’re excited and honored to welcome Vinay to the Magic Cup family,” our COO, My Lynn Nguyen, says, adding: “Vinay has a proven record in business success, and, with his unique outlook and personal passion for the Magic Cup brand, we know he’ll be an excellent collaborative partner going forward. Our team can’t wait to grow with him.”

Vinay shares in My Lynn’s excitement, revealing he’s delighted to launch a Magic Cup location in the bustling community of Southlake. Originally trained in technology (he has a master’s degree in computer science), Vinay describes himself as a foodie at heart. Outside of an extensive real estate portfolio in New Jersey and a thriving MY SALON Suite franchise in Philadelphia, Vinay’s love of food recently led him to open a Cold Stone Creamery franchise in Southlake in October 2020 (with plans for one in Colleyville this fall).

While researching food and beverage franchises, Vinay notes he became aware of a massive potential within the boba tea franchise segment. Inspired by Magic Cup’s refreshing selection of multicultural fare and its inclusive atmosphere, Vinay decided a Magic Cup franchise would be the perfect way to continue his journey in the F&B industry. “I was looking for something with a ‘place to hang out’ vibe as well as something that would provide an ‘Aha!’ moment for customers of all ages,” Vinay says. “When I discovered Magic Cup, it all clicked. The cafe had everything I envisioned––from its menu to its décor––and I wanted to share that feeling of joyful discovery with my customers.”

Magic Cup invites Southlake boba fans to stay tuned for news of the upcoming grand opening. Readers interested in launching their own bubble tea business can contact us via magiccupcafefranchise.com to learn more about becoming a Magic Cup franchisee.
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Franchise Your Business today: www.franchisegrowthsolutions.com

Franchisor Focus – 10 Ways an Earnings Claim Can Help Grow a Franchise System

Posted on September 1, 2021September 3, 2021 by Franchise Strategist

It can assist a franchisee to more easily obtain financing, especially if it’s for a new or emerging franchise brand. Franchisors often offer a “negative disclosure” in this section, which means that no financial projections or representations regarding future or past financial performance are provided.

Franchisor Focus: 10 Ways an Earnings Claim Can Help Grow a Franchise System

By Ed Teixeira – VP Franchise Grade, Author, MA Economics, Industry Partner Stony Brook U. and member of Advisory Board Pace U. Lubin School of Business.

Those of us who have spent years working in franchising may recall when a small number of franchisors made an Item 19 financial disclosure. It’s been reported that 20 years ago less than 20% of franchisors made a financial performance representation (FPR) or earnings claims in their FDD.[i] Over the course of the past number of years that number has increased considerably and a recent review of over 2,500 Franchise Disclosure Documents by Franchise Grade found that 65% of franchisors provided an FPR in their Item 19. The FPRs vary from average franchisee revenues to a more detailed disclosure of average franchisee profits.

This change in Item 19 disclosure represents one of the most important alterations regarding the information a prospective franchisee receives in the FDD. Whether a franchisor is a startup or established, they should provide an FPR. In fact, a new franchisor with one company operation can make an FPR (subject to FTC and state disclosure regulations) and this information should be provided to prospective franchisees.

Some franchisors fail to do an FPR either because they lack attractive information to present, don’t want to invest the time in establishing the allowable process for obtaining and disclosing the information. Or they may fear a franchisee lawsuit which can be avoided by using competent and qualified franchise legal counsel.

An FPR isn’t just another FDD disclosure. More importantly, it can help franchisors to recruit, qualify and close more franchise transactions.

Here are 10 Reasons How an FPR will help:

The FPR can be used in franchisee recruitment materials and advertising to highlight notable franchisee financial results.

The availability of an FPR can separate a franchisor offering from a competitor who fails to provide one.

It allows for a more open discussion with a franchise candidate pertaining to how they expect to achieve the positive financial results in the FPR. This could be a useful tool for qualifying franchisee candidates.

A candidate can use the FPR as a basis to develop a more accurate and useful business plan and financial projections.

It can enable a prospective franchisee to analyze and construct their key performance indicators (KPIs) and to establish the probability of achieving their financial goals.

An FPR can establish franchisor transparency which strengthens the franchisor’s credibility.

It helps provide the most important information prospective franchisees are always interested in obtaining–namely “How much can I make?”

It can assist a franchisee to more easily obtain financing, especially if it’s for a new or emerging franchise brand.

Franchisors often offer a “negative disclosure” in this section, which means that no financial projections or representations regarding future or past financial performance are provided. This in turn often means that franchisees must consider earnings potential based on other factors.

When a franchisee is interested in selling their franchise an FPR can help support those franchisees financials and the overall franchise system performance.

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[i] International Franchise Association 50th Annual Legal Symposium May 7-9, 2017 JW Marriott Washington, D.C

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].
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FRANCHISE YOUR BUSINESS: www.franchisegrowthsolutions.com