Aaron Allen

Franchising is about replicating success, but each market presents unique challenges—what works in one region might not work in another. We call this "Brand Translation" -- to find the right mix of core brand attributes that work globally while adapting to different geographical and cultural nuances as well as consumer dining behaviors that need to be localized to resonate with a 'sense of place' vibrancy and awareness. Example: Firehouse Subs puts custom oil paintings in each location and usually incorporates local elements (such as a famous fire or landmarks) to connect with the neighborhood. #restaurants

We expect to see substantial improvements in restaurant loyalty programs as new use cases for artificial intelligence are incorporated to enhance efficiency and efficacy. Advanced AI tools can help with everything from adoption and new trial to engagement and analytical capabilities. We've come a long way since the days of paper punchcards, but still light years from where it can and will be in the years ahead.

Think value creation over cost containment alone. Anyone with a quotation/estimate can think they are a skilled negotiator by demanding a discount; the smart up-and-coming managers demonstrate their worth by delivering revenue growth and business momentum, not just cost containment.

One of the things that tears franchise systems apart is infighting - the franchisor and franchisee in some systems get at odds on the origins and future opportunities for the brand. Keep culture and chemistry in mind when evaluating a franchise brand.

Anonymity is key. All too often we have seen well-meaning internal research initiatives turn into witch hunts. One case study from almost 20 years ago still haunts me… The CMO of the franchisor (a start-up at the time that later sold for over $1b) commissioned us to get a true pulse of the organization. Anecdotal comments collected under the promise of anonymity turned up many concerns (thematically) about the CEO’s mother terrorizing corporate staff and franchise partners. Rather than take it in objectively, the leader demanded confidentiality veils be removed so the discontented could be rooted out. We lost the account protecting the trust of respondents, but it definitely sticks: True objectivity requires some level of anonymity.

I would agree with most of these but would also emphasize franchisee satisfaction as a key metric. Large foodservice systems like McDonald’s and many others in the industry use this as a critical factor in measuring the health of the system. It can be double-edged though as it can also contribute to more infighting if not properly managed. Happy franchisees are a big part of the overall equation though (objectivity and mediation are also important considerations to take into account to balance this metric in the overall scorecard, especially for #restaurant franchises).