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What’s changing in the restaurant industry, and what will likely continue to change as years pass, is an apparent shift in demand coming from all sorts of customers, though a particular crowd of diners, the “millennial” bunch from around 18-30 years of age, is attracting extra attention.  Demand shifts which can in part be linked to the millennial mind, though not entirely, involve costs and quality.  More and more movers and shakers in the restaurant industry are looking for ways to serve up what’s on order, bypassing restaurant industry powerhouses with a different approach.

On the list of 2013’s trends, which will likely remain even in coming years, is an even greater consumer focus on finding locally sourced meat, seafood, and produce.  The general public interest in the environmental impact of meals, whether made at home or purchased while dining out, may not necessarily be a new idea, though it certainly is becoming an even more important one.  Particularly for restaurateurs who wish to stay in business.  Concerns over children’s health and food sources for families, even on a tight budget, are reaching a new level of importance in the lives of consumers.  Creatively presented and affordable foods are also in-demand, with pressure placed on restaurant owners increasing to please choosier consumers.

With an ever more calculated approach to dining out, and consumers considering more heavily where their money is spent, creative thinking has entered the scene to build a rapport with locals.  From restaurant based gardens serving up local foods, to an interest in creating a positive impact versus simply profits (by designing or revamping a dining space for sustainability purposes, for example), restaurant owners can approach food service in an entirely new way if they’re ready to gear up for these industry changes.  The franchise industry in particular has been turning to a new page with adapting food franchise concepts built to satisfy millennial tastes, consumers’ healthier preferences, and leave behind practices that generate unnecessary extra costs and no longer appeal to conscious consumers.

A major drain for the food industry remains a combination of cost increases, including higher labor, water, energy, and food prices.  Droughts, floods, lack of production, and food waste continue to challenge the food industry as a whole, with 40% of food in America going unconsumed and entering landfills, according to the research article entitled “The Progressive Increase of Food Waste in America and Its Environmental Impact”.  The integrity of food producers, on a local level where consumers frequent their favorite restaurants, bakeries, and cafes, is becoming the critical component that determines where dollars flow, rather than simply a focus on consistency, a changing industry-important concept that newer generations are redefining.  The new definition of what constitutes a worthy local dining establishment where dollars can flow is now being defined, and this is changing and will continue to change the health of the food industry across the U.S.

Most all healthy franchise businesses that have experienced success, whether new or established, attest to the value of the individuals making it all possible on a daily routine basis:  Employees.  Or, in a more detailed light, the individuals who perform the various and numerous tasks required to make a business function, bring in new customers, keep those customers happy and returning, and streamline product output and maintenance.  The value of these individuals is enormous for thriving businesses and without them no business could function.

One key to honoring valued employees, especially those who shine, is to treat all with fairness in terms of work load and expectations.  Particularly skilled employees may feel overwhelmed if constant pressure to perform is placed on their shoulders in unfair amounts simply because of their obvious talents.  By valuing excellence without creating unreasonable expectations, franchise operators show they respect each employee for who they are, and expect each team member to work as an efficient part of the entire team.

One way that some franchise system operators are giving back to their esteemed employees is through employee stock ownership plans, which allow employees who stick with the franchise to better invest in their own futures.  Funds earned through these kinds of plans can be transferred to certain investment plans or used during retirement.  It’s long been known that content employees can make all the difference in a business.  By setting up an option that allows employees to invest directly in the business with which they work on a regular basis, franchisors can open their business up to a new level of prosperity.  This also heightens employee awareness of what it means to be involved as a co-owner of a business as they invest their time and energy into it, alongside the stock option plan.

Honoring employees also to a great extent involves how time management systems are put into place.  By implementing flexible options for employees to better manage daily life, which honors personal needs as well as the ability to satisfy those needs along with the professional realm, flex-time options increase employee satisfaction.  It’s no secret that granting freedom to employees highlights a trusting relationship on the job, and franchise systems that implement flex-time options enable their team members to live a richer life by adhering to a more reasonable system.  Overall, everyone gains a greater sense of empowerment and personal freedoms are respected.

What can US franchisees and franchisors learn from international franchisors eyeing the US market to expand their system?  Plenty.  Expanding a franchise is an arduous and rewarding shift in a business that can reap huge gains if done well.  Movement in either direction, be it from the US or into the US, requires serious planning.

Many successful franchise operators from countries outside the US aiming to move into the US market can indeed hold their own amidst existing US franchise companies to create healthy competition where a demand exists.  For some European franchisors, the US market is one of the major world markets left untapped that remains desirable, and one that could afford much success if the move is handled well.  Starting off successfully in one’s home country is key, and evidence that your product or service will be well received is important.

For many European companies, the American market is promising because there is evidence of an existing appreciation for specific types of services or products, space available to build on that appreciation, and reason to believe it’s possible.  One well appreciated European import concept that can hold ground in the US stems from the idea of bringing old world traditions and artisanal crafts of various kinds into the US.  These traditions and crafts have roots in countries where many American families perhaps originated some generations ago, and this along with the “handmade” feel of the concept is appealing to US consumers.

Whether agreements with a master franchisee are made to bring the brand into the US or decisions are made to move the franchise headquarters to the US altogether, companies have to weigh the costs.  Depending on the home market and how well it is supporting the business, franchisors may opt to sell rights to their project and change region.  If the aim is to simply capitalize on the potential of doing business within an even larger market and population there may certainly be pay offs, though this alone does not guarantee a brand will find success in a new country.

Some of the legal requirements associated with franchising can impede progress to move into the US, or any country for that matter.  Legal requirements can make or break a project or plans to expand, and legal professionals who are familiar with the local territory are essential.  For the majority of companies wishing to expand, the franchise regulations are as strict as they come in the US, and this means an expensive endeavor to start and sustain a healthy business in the US.  These costs must be considered.

US franchisors and franchisees can analyze many of the same issues when global expansion is considered.  What is it that a certain brand bringing a locally successful product or service into a new country has to offer that would really please consumers from another cultural world?  Language alone does not decide culture, and regardless of the simplicities associated with same language business transitions between countries, each country has its own past, present, and future.  Tapping into that and understanding it, as well as how it relates to a brand and business concept, is what makes transition possible and successful.

What makes technology so amazing for the franchise world is the variability it creates when customers and businesses unite.  Custom ordering through a simple and neutral space continues to grow in popularity as consumers become more and more comfortable with smart phones, tablets, and computers for ordering products and services that come right to their front door.

The appeal of kiosk ordering is hitting markets internationally as well as select parts of the U.S. which allows kiosk managers and the franchisees that monitor their use for their own location to closely observe customer response.  Domino’s Pizza, Taco Bell, and KFC are three global brands that have integrated kiosk ordering with their customer contact system.  In college and tech savvy communities and demographics, these devices are especially popular due to their ease of use, and discounts that may be offered for using them rather than ordering through other means.

Now at 40 percent of orders, online and mobile ordering was at 20 percent in 2009 for pizza chains, revealing a marked increase in customers taking an active interest in ordering via alternative means, versus the traditional in-person or via telephone route.  Food franchising is particularly conducive to integrating these kinds of options for customers, and not only is phone and online ordering popular, but ordering through social media sites such as Facebook is an option.  Options for customers to create an order right from where they happen to be certainly opens the door for increased sells to spring up, and technology continues to increase exposure for many brands.

Kiosks can act as standalone advertising stations that remind potential customers of a product or service that may not have been on their mind, at least initially, and with the freedom to easily place an order through the system many potential customers may choose to do so.  The added close proximity benefit and convenience factor can make this point of sale process that much more appealing for customers.  Language barriers can be overcome with kiosks programmed to communicate to customers in their native language, while diverse U.S. consumers become more familiar with kiosk culture based transactions, such as at local grocery stores and airports.  The mobility that kiosk stations provide to brands is also appealing for companies that wish to place their brand in the midst of elevated foot traffic areas where potential customers may interact more easily with the brand on their day to day route.

Where franchise companies enter countries around the globe to further profits and expand their brand into new territories, regulations may alter the pace of growth and the interaction with locals.  Each country has its own legal regulations in terms of business management and expansion within its borders, and franchisors do well to consider how their business may progress in a new land as well as how it will be received locally.

In some countries, larger franchise businesses entering the scene procure so much business and local customer loyalty that small business owners dispersed throughout large to mid-sized cities are taking note.  This means addressing the changing scene with local governments and promoting new guidelines and regulations under which incoming franchise companies must operate.  Indonesia is one such country, with a number of business owners operating traditional establishments interested in leveling the playing field by promoting new government regulations.

The Indonesian government has offered a listening ear to established small business owners, to coordinate well between allowing major world players to enter the country and invest and playing fair with citizens who have long held businesses that must now compete with global enterprises.  Some of the new regulations involve mandates that require incoming franchise operators to work closely with Indonesian partners as opposed to a majority of international business managers in multi-unit operations.  Likewise, how and where supplies and products are sourced to run each business is getting more focused attention, with a requirement that global businesses procure at least 80% of supplies locally.

Both developments are attempts to unite local Indonesian citizens with a shifting business landscape and require international investors to interact even more closely with local producers of goods to keep the circulation of profits steadily moving throughout the country.  Major franchise corporations continue to work with government officials to find the right balance for expansion that makes sense while appeasing new regulations that may develop as the region sees more investment from global companies.

Franchise companies interested in global expansion must always consider regulations currently in place and the changing social conditions of the countries they plan to invest in, which means keep an eye on how international investors of large franchise companies will be received by governments and local business owners.  With each passing year countries experiencing increased investment may experience changes in terms of how investors are able to invest and to what extent, which naturally affects local businesses and citizens.  As new businesses rise in many countries, jobs are created and new opportunities abound, especially when locals are figured into development plans that respect the needs of citizens in the area.