To minimize challenges when unpredictable consumer behavior and legislative changes collide with the franchise industry, here are three areas where food franchise brands operating across the U.S. are focusing their efforts to build and sustain their brands:
Coexisting Brands in One Portfolio
Alternative brands stemming from a primary franchise venture are an enticing and stabilizing force for franchisees. By investing in and managing different types of brands that coexist together without directly competing, which in itself requires diversification of product and service, franchisees can access a powerful franchising arrangement.
Learning from the management of multiple brands and what works for each is part of what brings success to multiple franchise investors. This has benefited brands operated simultaneously such as Arby’s and Taco Bueno, as well as Panera, Applebee’s, and Chevy’s Fresh Mex.
When franchisees invest in two or more solid brands that stand on their own, not only can potential challenges associated with changing economic situations be mitigated through diversified income sources, but franchisees open educational channels for themselves and their teams. Each type of franchise concept feeds the other in its operation and where one develops the other may likewise develop with new lessons as learning curves are executed. This leads to the next area of diversification benefit.
Concept & Real Estate Sharing
Where multi-unit or master franchising has brought on the unification of various franchise brands under one management scheme, this aspect of diversification involves sharing the policymaking success of one franchise with all. Whether running full service or quick service restaurants or stepping into a portfolio of ownership that features non food related franchise sectors, franchise owners benefit when successful policies are shared where relevant between franchises. From subtle to obvious changes, including policies regarding employee conduct to special promotions that are shared between brands, each franchise investment benefits as a whole when its successes and knowledge gained from its operation are shared.
What about land and location? Practicality has led many investors to plan the development of franchises together, buying one lot of land that can sustain two or more specific franchise locations. When multiple franchise concepts are part of an investment portfolio, it makes sense to consider how to minimize costs by seeking locations that are cost effective, and when concepts are non-competitive their simultaneous development works well. This has worked well for a multi-unit franchisee managing Arby’s and Taco Bueno, two quick service restaurants offering different food ingredients and flavors though shared standards of production and service such as daily fresh food production.
Location Expansion & Product Diversity
Whether expansion occurs regionally throughout one part of a city, state, or covering an entire grouping of states, franchisees that actively seek expansion based on what promotes the greatest degree of success for their brand allow diversity to work in their favor. This has led some franchisees to stick to major areas, such as the greater New York metropolis, or spread out into various states across the U.S. depending on the franchisee’s ability to manage numerous locations.
Keeping an eye on the horizon and looking for new segments to serve and new products and services to offer can heighten the vitality of a brand, for consumers as well as management and each franchise location team. Remaining conscious of consumer trends is vital in this respect, and even recent healthier eating concept trends that influence food franchises have led to an even more creative degree of diversification in recent years with uncommonly offered ingredients for alternative diets and allergy sufferers. These are inventive ways to offer in demand alternative services for a wide consumer base.