Our aim is to make Burger Singh the ‘Subway’ of burgers

Founder and CEO, Burger Singh and Tipping Mr Pink Pvt. Ltd., Kabir Jeet Singh, spoke to FoodService India about his chain‘s hectic expansion plans over the next three years and growing the brand equity in the fast casual dining space.

 Our aim is to make Burger Singh the ‘Subway’ of burgers, says Kabir Jeet Singh

Tell us about your chain’s progress in all these years of operation. How many outlets have you been able to add in this period and how many more do you plan to add?

We opened our first outlet in November 2014 in Delhi and today we have expanded to nine outlets in Delhi-NCR. As of today, Burger Singh operates one night kitchen in Gurugram apart
from another experience store there (3,000 sq.ft. with a liquor licence). Besides, we run seven smaller QSR models out of which five are located in Delhi and two in Gurugram.

We are now at a stage where we have put in the hard work, done the experiments and know what is working for us. We have a national supply chain, depth of management and systems in place to make Burger Singh a national chain. We have started franchising the brand. Burger is a highly franchisable product and no franchise industry is more mature than that of the fast food hamburger. Examples include Wendy’s, Johnny Rockets and the big daddy of them all, McDonald’s. In order to compete with these industry giants, we need to have a product differentiator, which we do in the desi burger. Also, we need to move quickly, otherwise someone else will capitalize on the niche that we have created.

We will soon be expanding in Pune, Hyderabad, North India and plan to open a total of 40 outlets in these areas in the next 24 months. The aim is to make Burger Singh the ‘Subway’ of burgers. The plan is to franchise aggressively with small 500 sq.ft. stores, which cost the franchisee under Rs 30 lakh to open. These outlets will come up in high footfall locations and have an efficient delivery system. We will continue to expand our footprint in NCR with a mix of our own and franchisee stores and expect to open 10 of these in the next 12 months.

Some the leading foreign QSR brands have been witnessing slowing same-store sales growth over the past few quarters?

That’s not how I look at it. Most of the big boys have been showing y-o-y growth for many years and at some point a correction happening is not unusual. These are big companies and have been around the block for quite sometime. I am sure they will come back strong.

We are the new kids on the block and too young to see a decline. In fact, our revenue per outlet has increased by 37 per cent. I am no economist but I feel that India’s growth story is robust. In the short-to-medium term, India appears to be in a position to sustain the current growth momentum. As for the QSR sector, the three things that favour the industry are its demographic advantage, robust domestic consumption and cheap labour and these factors will not change in a quarter or two.

Is it right to say that the food business is not affected by the turns and tides of the economy?

Eating out is a luxury, it’s not really a necessity. When the times are tough, any sensible person will spend his resources on the most pressing needs. So I think the QSR industry does get affected by economic downturns. I will go to the extent of saying that the impact on the food service business might be even larger than the average standards for the overall industry.

What do you think is the scope for making value additions to the QSR format and what will be the new innovations to this format in India?

We like to describe ourselves as a fast casual restaurant rather than a QSR. Fast Casual borrows from QSR and Casual Dining. Fast Casual features a more upscale and diverse menu selection in comparison to the QSR format. Unlike Casual Dining, Fast Casual has no table service and orders are placed and paid first and customers are directed to the assembly area where the food is ready for you to bring to your table. Some chains have a slight variant here – they will take your order, let you proceed to your table and a food runner will bring your meal to you. The ambiance is more upscale versus fast food with designs ranging from upscale elements and soft colors.

I feel that going forward, there will be two new innovative trends visible in the Fast Casual segment. A lot more innovation will happen to Indianize the menu. And a lot more independent fast casual restaurants and food trucks will burst on the scene. Casual dining chains will ‘downscale’ to grab this set of consumers and quick service chains will ‘upscale’ for the same reason.

How do you assess the market potential for the burger category in India. How do you see it performing versus the Pizza category and which new trends and infl uences will shape the growth of this category going ahead?

The organized F&B industry is expected to reach over Rs 150,000 crore (US $25 bn) by 2018 from Rs 75,000 crore (US $12.5 bn) in 2013 at a CAGR of 16 per cent. Burgers constitute only 2 per cent of the QSR market but are growing at a much faster rate of 25 per cent. So we are in a good spot. I still feel the pizza category will maintain its position and burgers will take time to catch up. I feel a lot of smaller players like us will enter the market and create home-grown competition in the burger category. I think what will shape the growth of this market and spur the funding landscape. In the recent path, a lot of investors have burnt their fingers in the food and food tech space and therefore the funding sentiment for this sector is not the best at the moment.

What has been the market response to your especially crafted vegetarian menu for Indian consumers. Are you looking to expand its scope further by bringing in newer ingredients?

The response has been phenomenal and this has given us the strength to bring in a new category of vegetarian burgers in the sub-Rs100 range. This range was launched in the first week of May 2017. The purpose of this range is to help us get into smaller cities and attract the value seeking consumer.

International burger chains operating in India usually have third party vendors from whom they source their ingredients. How do you ensure that the vendors meet the quality parameters and benchmarks?

We are not looking to reinvent the wheel. The big boys have set up some exceptionally robust systems and processes throughout the industry. We have adopted a lot of what these first world companies have brought in and it is working well for us. The industry has a lot of people for sourcing the products from. However, there are only a handful that can ensure and maintain consistent quality. We are working with these players. These quality third party vendors are expensive and it is a strain on a small company like ours; but I sleep well at night knowing that I have not compromised on the quality for saving a few coins.

Considering the peculiarities of the supply chain in India, have you introduced any specific innovations to make your back-end operations foolproof?

I think the cold supply chain in India has drastically improved over the last few years. So it is foolproof at a certain scale. We are yet to reach that level of scale but are fairly close to it. The innovation that we have brought to this aspect is predominantly our internal systems of forecasting demand and ensuring minimum wastage.

What has been the response to your home delivery service? How much of online sales are you doing currently and how do you see this segment growing for you?

About 42 per cent of our sales comes from home delivery. This is a big number as the industry standard for burger home delivery ranges from 6-10 per cent. Therefore, we can open smaller stores and compete in this environment. And since demonetization, almost all of this delivery business comes to us through online channels and is almost always prepaid. I don’t see this number changing drastically as a segment of our sales. But this is also the most challenging aspect of our business, especially the last mile logistics.

You spoke of expanding the chain through the self-owned and the franchise route. Are your investment and expansion plans limited to the Indian market for now?

Our plans are not limited to just the Indian market. Burgers are a scalable product and accepted around the world. Indian cuisine is popular around the world and so it makes sense for us to look at the world and not just India. You will soon see a Burger Singh signage in an International capital.

For the Indian market, we will be opening months is to open 40 franchisee in cities of Pune, Hyderabad and north India over the next 36 months. Besides, we are looking to open 40 company-owned stores in NCR, Bengaluru and Mumbai. We are in the process of getting ourselves ready to hit the market to raise the capital for this expansion.

Source

CarXpert Plans to Start Pre-Owned Car Franchise Business in FY 2018-19

CarXpert intends to scale up gradually to a level of 100 franchisee workshops in 2017-18 while gaining close to 500 franchise partnership by 2020.

Carxpert

Indian automobile industry is the largest in the world and accounts for more than 7% of the country’s GDP. Several initiatives by the Govt of India and increasing presence of major automobile players in the Indian market are expected to make Indian car market a world leader by 2020.

Resultantly, the car servicing business is growing faster to meet the increasing demand from this large car population in the country. The market research data states that only one third of the cars go back to dealer workshops post warranty and rest opt for local multi brand garages, which can provide reliable and cost effective service with closer home advantage.

It is typically seen that car care ends up becoming a massive issue, with restriction in budget coming in the way of proper servicing. Owners tend to pay a visit to authorised workshops for many of the services as a compulsory check-up ensures that the functioning of the vehicle is in high order.

Mandated workshops square measure expensive and can’t be afforded for normal maintenance. Hence, once the warrantee amount nullifies, customers tend to estrange from the authorised workshops particularly for nominal updates like oil change/paid services and minor accidental repairs. This is where the unorganised sector takes its share from.

The affordability and adaptability of local garages square, measure a large success amongst owners. Additionally the 24×7 handiness of those little repair retailers signify convenience. Their economical cost of repairs guarantees that the engagement remains intact. However, there’s no guarantee on the experience of workmanship or maybe the spare parts used by such garage. Owners require the boost of expert auto parts, at an affordable price-range. CarXpert aims to be that middle road of multi brand workshops- providing quality service at costs as low as local garages.

CarXpert Car Service
is a franchising business under Skylark Group, an Indian Business Conglomerate with business Interests in EPC, Highways O&M, Security Services and automobile aftermarket industry. With pan India presence and a team of over 22,000 employees it is one of India’s fastest growing companies.

With core values of Customer Delight, Speed & Excellence; CarXpert through its dedicated franchise network is designed to offer complete peace of mind to a car owner looking for reliable and cost effective car servicing solutions. Introducing a completely new business model to automotive aftermarket industry, CarXpert is quickly expanding its business to grasp the lucrative market opportunity through COCO and franchise car service stations.

BWDisrupt spoke to Navneet Pratap Singh, CEO and Co-Founder, Carxpert to know more about their future plans. Excerpts from the interview-

Inception and Business Module
Founded by Navneet Pratap Singh and Col Yogeshwar Singh Katoch and formally launched in Dec 2015, CarXpert is housed in Udyog Vihar phase 5 in the industrial focal-hub, Gurgaon- with a team of 15 dedicated employees. Currently, CarXpert has 1 COCO workshop in Palam Vihar, Gurgaon and a network of 19 Franchisees (17 in Delhi NCR and 1 each in Lucknow and Mohali).

After having consolidated their business model in August 2016, Carxpert has rapidly expanded up a franchise network of 19 franchisees in mere 6 months, getting the title of India’s fastest growing multi brand car service franchise company. The organization provides the A-Z of car servicing- from repairs, car care to insurance renewal, extended warranty. The CarXpert business model involves setting up of COCO and FOFO workshops, interspersed across the country.

USP
The USP of the franchise lies in providing high quality service at low cost to all stakeholders i.e. Car Owners, Insurance Companies and Franchisee Owners. They look at augmentation of existing unorganised multi brand car service stations to organize and elevate their business. In comparison to their competitors, they believe in creating car service centres rather than car service showrooms, thereby focusing on cost effective quality repairs rather than frills.

Future plans
CarXpert looks forward at organizing the local multi brand service stations by providing them support in terms of systems & processes, provision of spare parts, training, customer connect and most importantly cashless tie ups with insurance companies. The organization intends to scale up gradually to a level of 100 franchisee workshops in 2017-18 while gaining close to 500 franchise partnership by 2020. Plans to start Pre-owned car franchise business in FY 2018-19 are also in the pipeline.

Source: BWDisrupt


Voonik is Redefining Fashion E-commerce for Indian Masses

Voonik

When we talk about big e-commerce companies, we think of the usual Flipkart and Amazon, in India. While these companies were the ones that introduced the concept to urban Indians, little did they realize that next generation of online customers would need an e-commerce portal which could cater to their specific needs.

Shopclues is one e-tailer targeting Indians living in tier-2 and tier-3 cities, but Voonik is trying to be the fashion destination for non-brand conscious Indians who prefer value for money.

With a ‘lean’ marketplace business model operating without inventory and fulfillment centers, Voonik.com has entered the big picture delivering goods to consumers in over 28,000 pin codes all over the country. They have been a profitable forum for unbranded labels to compete with the big names in the online business and the start-up is also dynamically growing the networks in Handloom and Rural penetration.

Sujayath Ali is the Co-Founder and CEO of Voonik, the leader in the unbranded fashion category with an annual GMV rate of over 120 Million USD.

Rebranding the Unbranded

It has over 20 Million registered users, with 18 Million app downloads and Mr. Ali talked to Business Insider to give an insight about e-commerce that is not glitzy but practical,”We are very focused on the kind of people we want to attract. For an average Indian, fashion is practical and while they want to wear traditional garb, the definitely don’t want garbage. We have over 15 Lakh products from more than 25,000 sellers, from all parts of India. Our sellers are the masters of their craft; whether it is leather footwear from Agra or Silk sarees from Chennai, we put retailers online.”

Voonik has built deep technology to enable personalization that made it the most engaging eCommerce app in India with you finding a lot of options in the same app.

Ali sees the retail sector as a part of online commerce and that’s why Voonik is all-encompassing Indians at its core.

Source : BusinessInsider

Here’s when you should consider making your small business into a franchise

franchise

If you have a small business that can be effortlessly replicated, franchising is one of the best ways to expand it. And if you handle it the correct way, you can absolutely pump up the profitability.

The question here is, “How and when do you switch to selling franchises”

Can your business be replicated?

You have to examine if your company can be a homerun anywhere. It’s simple for entrepreneurs to underestimate how much value they personally add to the business, however, for a company to translate into a flourishing franchise, it must be ready to survive the everyday challenges and do as such without the founder’s personal touch.

True cost

Entrepreneurs should expect to have investing accomplices and in addition personal financial stake in the venture. Costs will rapidly multiply for brand development, courting potential franchisees, repaying experts and particularly covering legal fees. Franchises can’t get off the ground without inexhaustible cash flow, and if the franchise flops, it could all vanish. Individuals frequently look too hard at the potential earnings without considering the potential loss.

Overall

1. It must be pilot tested with company-claimed and worked outlets
2. Business must be successful, unmistakable and replicable
3. Take legitimate professional advice – Solicitor, Banker, Accountant and possibly a Franchise Consultant.
4. The Franchise Agreement must be composed by an accomplished Franchise Solicitor
5. Take time to compose an operations manual
6. Choose franchisees precisely and gradually
7. Avoid overselling and forecasts

Source : BusinessInsider

3 smart tips for growing your franchise

If you’ve ever thought of franchising your business, know that the procedure of becoming a franchisor is generally long and involves considerable capital. Still, many entrepreneurs dream of seeing their brand become a household name with a chain of franchisees spread from east to west and north to south. Franchising a business can help the business grow by leaps and bounds, but becoming a franchisor does not necessarily guaranty success, especially in the kind of economy we’re living in today. In addition to making some really smart decisions, becoming a successful new franchisor involves wading through a lot of legal paperwork to comply with state and federal laws. Here are a few tips on how you can expand your franchise:

franchise
3 smart tips for growing your franchise

Image : shutterstock

Pass on your learning

Since the time you established your very first franchise unit, you mfranchiseust have run into several obstacles. From selecting the perfect location to hiring the right managers to run that particular unit, you might have used different strategies on a trial and error basis and emerged successful eventually. Since you are now aware of the kind of problems you might encounter when starting yet another unit, it is only apt that you pass your teachings on to your store managers and employees. When you teach those under you how to run a successful business, they can replicate your model and use it to create another duplicate establishment which is as successful as the previous ones.

Create a strong brand identity

Make your brand a household name before expanding your franchise. For example, if your business sells women’s beauty products, your brand’s name should be the first thing that consumers think of when they want to purchase women’s beauty products. That’s how strong the recollection value of your brand should be. If you want your franchise to become successful, you need to come up with a business model that will make your brand popular throughout your country. The more recognisable your brand personality is, the more prosperous your franchise will be. This way, when you establish new units, they’ll instantly gain success as they’ll be strongly backed by your brand name.

Strike a balance between local and national

Your franchise may be national with several establishments strewn all over the country, but there still needs to be a balance between your national name and local identity. Each individual establishment needs to develop a connect with its local people by staying in touch with its community, doing local marketing, and acting as though it is a traditional small business. Relying on the brand name might work for the establishment in its initial few days, but it needs to foster relationships with the local people to become a hit in the neighborhood it operates in. The easiest way to do this is by hosting and participating in a variety of community events.

Keep the above tips in mind to ensure that your business approach is working well in the market you’re catering to. Spend wisely on advertising your franchise and you’ll drive sales to the growing chain like never before.

Source :  YourStory

IS FRANCHISING THE ANSWER?

 

franchising
IS FRANCHISING THE ANSWER?

Franchising is the answer. Many of those enquiring about franchise business opportunities are usually at a crossroads of their lives and looking to make a critical decision about their futures. There are many reasons why someone might consider becoming their own boss, such as a lack of job satisfaction, lack of opportunities for personal or career growth, or even the desire to make more money whilst not feeling that their current career can offer such chances.

Before you decide to take the leap and run your own business, you’ll need to address your own strengths and weaknesses. You’ll also need to decide if you want to utilise your existing skills or learn something new. If you’re going to make a career change, you’ll not only need to be happy with your decision but also be comfortable accepting your new role and the challenges that inevitably arise as a result.

Once you’ve addressed this, you can begin to consider what you’re looking to get out of your new role as a business owner. Is it job satisfaction, independence, money or security that you’re seeking? You’ll also need to consider if self-employment will suit you? What hours are you see yourself working and what is the extent of the investment you are comfortable making?

By considering all of the risks, you’ll enter your new business venture prepared and ready for the challenges and successes that lie ahead. You’ll also need to consider the risks and benefits of buying into an existing brand. Many people come to realise that the franchise sector offers a unique opportunity as it provides access to a proven business system, defines the required investment and is coupled with training, support and marketing. There are, however, many franchise systems operating across the UK, with varied levels of success and development.

Once you’ve established the answers to these questions, you should be in a confident position to know whether franchising is for you – and you can then begin to focus on finding the right franchise. The first step is to research and gain as much information on potential franchises. For example: how long has the franchisor been in business, what are the upfront and ongoing fees, is the brand trademarked and protected?

You’ll also want to find out what is provided to potential franchisees – the quality of the training, the support being offered and the strength of the brand. Franchisees should also consider what the brand’s unique selling proposition is, do they have intellectual property that provides a competitive advantage and how does the satisfaction of existing franchisees within the system rate? You’ll also need to check the small print; the upfront costs and training might look enticing but, as with any contract, there can sometimes be surprises lurking within.

Find out what are the key terms, what the length of tenure and renewals are, whether it is an exclusive or non-exclusive agreement, and what conditions must be met at termination and post-termination of the agreement. Perhaps most importantly of all are the cost implications.

Consider everything as a whole, not just the attractive headline prices used to lure in franchisees. Take into account the franchisee fee, fit-out and equipment costs, the working capital required, cost of training, the cost of opening promotions, legal fees and office supplies. Finally, don’t hesitate to get advice whether it’s legal, business or accounting, speak to existing franchises and ascertain the level of satisfaction and lifestyle achievable through franchising.

As with any business decision, it may not offer guaranteed success but by finding the right company and style of business that suits you, franchising can be a much better choice than going it alone. Joining a franchise can provide you with the support, training, marketing and systems to help you run a successful franchised business. However, it will still be your own venture and the ultimate success will depend upon you to make it happen. But with the right preparation, you’ll have the chance to find success in your franchising venture and business independence for your future.

Source : franchiseinfo

 

 

 

 

Married to the Franchise Life

franchise life
Pretzels and a sound franchise system lured a married couple out of retirement and into franchising.

Franchise Life : Lisa and Tom Noak have been business partners for almost as long as the 37 years they’ve been married.

After spending more than 20 years as owners of a six-unit convenience-store chain, the Noaks went into retirement for a decade. But a chance encounter with a Ben’s Soft Pretzels location led to a talk with the franchisor and, eventually, a business plan to open five Ben’s stores.

Tom Noak shares the advice he’s learned throughout his career with his wife, including selecting the right partner and making a shift to the franchise model.

1. Minimize your risk

During retirement, we were ready to jump back into something. We didn’t really have a good idea what we wanted to do, but we didn’t want to get back into the convenience-store business, so that left other avenues open. We never thought about the pretzel business, and certainly hadn’t had a Ben’s pretzel before. It surpassed our expectations and experiences—that was the first thing to make us curious.

We were looking for something that had a framework or design we could follow. We knew that, of the businesses that were not set up as franchises, a lot would fail. Knowing what Ben’s corporate stores had done, and how they were going about it, helped us formulate whether it was worth us going into.

The whole idea of owning a business set us up for being more prepared in what to expect at Ben’s. There are a lot of people who have no idea what they’re getting into when they get into an ownership situation. In the end, if you look at a franchise business versus the number of people who start a business and fail, I think you’re a lot better off sticking with a franchise that has a proven system and a proven record. What it’s really come down to is: What is your tolerance for risk? No matter what you do, if you’re going to be in business for yourself, the buck stops with you, and there’s no backboard. There’s nobody back there who’s going to stop you from falling, so you need to make the best decision. Part of that is looking at the system and seeing if that’s something that you can benefit from.

We have been owners ever since we were in our 20s, and the only thing that I ever wanted to do was be self-employed. All those years of experience handling all the things you have to handle in the convenience store business coincided with our current work. We are selling a different product, but everything else is basically the same.

2. Pick the right partner

Lisa and I have a system. We got in our first business a year after we were married, and it made us so much stronger. It’s so much easier to have somebody who is on the same plane as you, who is working toward the same goal, who has the same interests in mind, and who has a different set of tools than what you have. That’s the reason that Lisa and I fit so well together and spend so much time together. She has the ability to be more into the details and the paperwork, and I’m more of a management person who goes with the big picture, the handling of employees and attorneys, and all that business stuff.

When I talk to other people about us probably spending 20 hours a day together for the last 37 years, many don’t understand that. They say, “Oh, we would’ve killed each other by then.” But for us, it works out well because of the different talents that she has and the different talents that I have. And I always tell the young men I know that it’s a lot easier to marry somebody smarter than you.

3. Create an environment for success

I’m very anal when it comes to order and things being in their right place and things being clean. At Ben’s, I looked at the operation and did not see the two things that made me never want to own a food business: a grill and a fryer. I had previous experience with this because we had roasted chicken in our convenience stores, and that was just a nasty thing to have; it created so many different kinds of problems. It’s the grease; it’s the continual cleaning; it’s what you do when you throw out the grease; and it’s the smell. I decided that I didn’t want any of that at all. When I looked at Ben’s, I saw the simplicity of running the business and producing the product. We basically have a mixer and an oven, and you have the equipment to serve that product. As far as the rules that we have to adhere to, we have such a simple process; we’re basically serving bread.

With employees, it’s a two-way street. There’s an element of trust involved. You have to trust people to put out a product that is going to be a great experience every time the customer comes in. You also have to make sure that they understand that the customer is the person who is paying the bill, and without them, we don’t exist. From that standpoint, I want to try to instill the idea in them that we have their back. There are things that come up that maybe they might need a helping hand in. For instance, we had an employee who needed a car, and one of these dealerships was going to charge a 27 percent interest rate, so she’d be paying $300 forever. I was able to talk with one of the people I know in the car business. He ended up finding a car that was significantly less, and I was able to buy it, and the employee paid me $100 a month for a year, and then she had a really nice car.

There are times when we can jump in and we can do things for people and help them out—even above what they’re doing in the store.

Source : QSR

 

Franchising : Millennials’ Next Frontier

franchise alpha
Members of the largest living generation have been called apathetic, lazy, and narcissistic. But as they come into their own, they’re proving to be a tantalizing franchise target.

 

 

 

 

 

 

 

 

 

 

 

Franchising : They’re the largest living generation in the U.S.

They spend more money in restaurants per capita than any previous generation, according to Restaurant Marketing Labs.

They’ve been credited with changing the restaurant landscape forever by seeking out brands that offer customized food choices, quality ingredients, freshness, authenticity, transparency, and environmental and social responsibility.

They grew up on more trendy fast-casual brands like Chipotle Mexican Grill, Panera Bread, and the dozens of fast casual 2.0 chains that came after them.

And they’re about to own a franchise near you.

Millennials—those born roughly between 1980 and 2000 and comprising the biggest American generation, according to Pew Research Center—are coming of age as entrepreneurs and business owners. Maligned by some, millennials have been called apathetic, lazy, and narcissistic. But as the generation ages and matures, some of its members are transitioning from their roles as demanding teen customers and misunderstood entry-level employees to innovative managers and business owners.

And franchisors should be ready to capitalize on their potential.

What sets millennials apart

Chicago area native Sal Rehman is a millennial who grew up working in his family’s diner. He graduated from DePaul University in 2010 with a degree in human resources and worked for several years as a recruiter for corporate technology firms. Eventually, he felt the pull of the family business and decided franchising was the best route to operating his own restaurant. He opened his first Wing Zone in suburban Glendale Heights, Illinois, in 2015 at age 27. Two more Chicago-area locations quickly followed, and a fourth is in the works.

Rehman says he took his time and looked at many different franchising opportunities, but Wing Zone attracted him because he liked its business model as a fast-casual restaurant with delivery and a broad menu made up of more than wings.

“The look and feel was right,” he says. “Some franchises are not flexible, but with Wing Zone, it’s more of a partnership. If franchisees have something we think we can improve on, they take that into consideration.”

The prudent approach Rehman took to finding the right franchise opportunity is typical of the millennial generation, says Dan Rowe, founder and CEO of the franchise development company Fransmart. They want to work for the best of the best and will do their research to find authentic brands that fit their lifestyles.

In fact, Rowe says, franchisors don’t always need to recruit millennial franchisees.

“Millennials find you,” he says. “Just authentically do a great job, run a company that other people authentically talk about that wins awards and accolades, and they will come to you. Millennials are looking for brands that are already functioning at a high level.” He adds that, very often, millennials find franchise opportunities the same way they find everything else: through social media.

Paul Tran is senior director of development at Fransmart, and COO of Halal or Nothing, the Southern California franchisee of The Halal Guys, a fast-casual Middle Eastern concept. The 34-year-old says millennial franchisees like him view social media as “second real estate.”

“You need to have actual real estate that’s accessible and convenient,” Tran says. “But sometimes, with social media, people don’t even care where you are. If you pop up on their phone, you’ll be top of mind and they’ll find you wherever you are.” He adds that millennials are always on their phones, which helps as a franchisee because “you might as well be where the customers are.”

Because millennial franchisees are savvy about technology and social media, Rowe says, they are able to generate their own buzz without paying to advertise. In addition, social media can build a sense of community among a brand’s millennial franchisees.

“Franchisees communicate with each other, sharing best practices,” Rowe says. “They are also very savvy about press and public relations, and they’ll get on each other about social media scores. They’ll get alerts on their phones and send them around to other franchisees faster than corporate can. They are driven by things like Yelp ratings, and that matters because that’s what their customers are looking at, too. They are able to generate all their own buzz.”

The new franchise landscape

Technology has also created new ways for millennials to afford the dream of owning a franchise.

Companies like ApplePie Capital, an online lender solely dedicated to the franchise industry, have made it easier for potential franchisees to borrow money for startup costs.

“The target audience of these types of sites is millennials,” Rowe says. “We didn’t have that 10 or 20 years ago. Today, there are endless amounts of money available online, but you have to be tech-savvy and social media–savvy to get it. I’ve heard stories of people with no money at all who raised enough to open three restaurants.”

Still, as with other generations, millennials don’t want to have to do everything themselves. That’s partly why franchising is attractive to them, experts say; millennials are in tune with what they are good at—and what they aren’t.

“Personally, I’m not a chef,” Rehman says. “I have a passion for business and the food industry, not for cooking. I told my family if I open a franchise, there’s branding, funding, and background behind me. I like the model where I don’t have to do back-end work figuring out suppliers and logistics; that is already provided.”

Tran says he believes millennials have a lot of energy and a strong work ethic, two skills necessary in a franchise environment.

“We’re also willing to take advice from mentors and business people who have come before us,” he says. “We don’t know it all; we’re very moldable and adaptable to change. We’re also aware we can’t do it ourselves. We can’t do it without a good, strong team.”

Tran says members of his generation dine out more than any previous generation because they are starved for time. Because they eat out so frequently—and because higher-quality limited-service options have been available to them since they were young—they’ve become foodies who pay close attention to the quality of their meals. That ability to be discerning about the food they eat, he says, has led to being discerning when selecting a brand to franchise.

“[Millennial franchisees] are doing this because we’re fanatical about a brand, not just to get a paycheck,” Tran says. “We want to do something meaningful and share it.”

Why millennials choose franchising

Sharing is something millennials do a lot of, usually through social media. Andrew Gruel, chef and founder of the rapidly growing seafood fast casual Slapfish, acknowledges that he’s sometimes frustrated by millennials who care more about how his food will look on Instagram than how it tastes. But he appreciates the usefulness of social media for attracting franchisees to his brand.

“We get so many more leads off Instagram and Facebook than traditional lead generation,” he says.

The 36-year-old Gruel says another reason some of his peers, especially in tech-dominated California, are interested in becoming franchisees is that they made money at a young age in startups and are looking for new ways to invest their money.

“Restaurants are traditionally viewed as risky, but not to them,” he says. “They’ve gone through risky with tech. They see franchise agreements as a built-in insurance policy. They’ve got proven data, unit economics, operations manuals, legal protections … and that’s built-in safety.”

Gruel says there are some negatives when it comes to millennial franchisees.

“The human variable is not a widget or a digit,” he says. “If someone is coming from the tech space, technology is binary and there’s not as much of a human element. In a restaurant, if three people who were scheduled to work call in sick and you can’t find fill-ins, your service goes down the drain and you might get a bad Yelp review and it’s a slippery slope. A lot of millennials don’t understand and appreciate that human aspect.”

While some millennials are interested in franchising because they made money in the last decade or so and need a relatively safe place to invest it, others are interested because they lived through the Great Recession between 2007 and 2009 and are looking for opportunity.

This especially applies to fast-casual franchises, Gruel says. He points out that many millennials came of age during the recession, a time when fast casuals started to take off as casual-dining customers traded down. Private equity investments in fast casuals started to explode, he says, and many concepts started to go viral through Instagram and Facebook.

Tran says the recession set three things into motion. First, it taught millennials that nothing is guaranteed and the best way to control one’s destiny is to be your own boss. Second, he says, the recession “ruined” real estate markets, which made it more affordable for young franchisees to open restaurants.

Finally, Tran says, many people were laid off, giving them the push they needed to start a business. “The recession helped fuel franchise growth with new brands, and less expensive brands, and more unique brands,” he says.

Another characteristic attributed to the millennials is that they are the boomerang generation, moving back home with their parents, at least for a while, after college graduation. A 2016 study from Fidelity Investments found that 21 percent of millennials were living with their parents, up from 14 percent in 2014, and two-thirds of the survey respondents said it’s acceptable for children to live with their parents.

This shows that millennials likely have a tighter bond with their parents as adults than previous generations did, something that has led to more franchising partnerships between parents and children.

The lifestyle factor

While attention has shifted in recent years to fast-casual brands that have pledged not to franchise—thereby creating the impression franchising is more a thing of the past—it seems owning a franchise is just as attractive to millennials as it was to past generations.

“Being your own boss has great appeal,” Rehman says. “Being able to grow a business from the bottom and make it prosper takes a lot of work, and it’s exciting when you have it all set up and don’t have to be there 100 hours a week anymore.”

Tran says millennials are concerned about their quality of life, and franchising gives them the flexibility to either stop at one or two units or grow to 50 or more.

“It’s a personal decision; it’s a lifestyle choice,” he says. “We want to have quality of life. Some millennials want to work aggressively and have massive growth. There’s a prevailing philosophy that you work hard now so you can focus on family and have quality of life later. Personally, I think you have to have quality of life now or you’ll never slow down.”

Gallup reported in August 2016 that 21 percent of millennial workers changed jobs within the preceding year, and six in 10 were open to different job opportunities. Meanwhile, only half of millennials planned to be with their company a year in the future.

This propensity toward job-hopping is sometimes viewed as a desire in millennials to get rich quick. But it could also be a sign that many millennials are just looking for a perfect fit—a fit that franchising might be able to provide.

“Franchising is not a way to get rich quick, but it is a way to be your own boss quickly,” Gruel says. “At the end of the day, potential franchisees have to ask themselves if that is satisfying enough to endure the long hours and hard work of the restaurant industry.”

Source : QSR

The power of public speaking

Public speaking at exhibitions can be nerve-wracking and for most franchisors it is not their favourite part of franchise recruitment but it is a valuable and extremely effective way to generate those all-important leads.

Being nervous before giving a speech is natural and mafranchiseny franchisors will avoid public speaking or pass the job on to one of their team so that they don’t have to put themselves through it. However, speaking at exhibitions will not only help you draw in more prospects, it will also set you above your competition and choosing the best person for the job is very important.

Why speak at exhibitions?

Speaking at a franchise exhibition or industry event will attract those prospects who are curious to know more about you, your expert knowledge and your franchise opportunity. Whether that is directly to your stand or from a formally advertised speaking slot and then on to your stand, those who may not have wanted to approach you directly can feel more comfortable about engaging with you on a one-to-on basis after hearing you talk.

Franchisors who speak at exhibitions tend to leave with more high quality leads than those that don’t – if they do it right! Don’t forget that if the person delivering that talk for your brand isn’t vibrant, engaging, natural and well versed, then you could put prospects off rather than draw them in! So, no reading from slides, crumpled pieces of paper and definitely make sure your speaker knows the franchise inside out.

Scheduled speaking slots

Taking on a scheduled speaking slot that is available throughout the course of an exhibition is a great way to put yourself and, most importantly, your franchise in the limelight. If the speaking slot is scheduled, you will also have a profile in the exhibition’s show guide which will give prospects a great chance to schedule your slot into their day if they’re genuinely interested.

For these slots, make sure that you choose a topic that is educational and is not purely a sales pitch. Although it is a great opportunity to sell your franchise to gathered prospects, it’s also a great opportunity to set yourself as an expert in your industry. By speaking on a topic that is linked to your franchise, but is not openly selling your franchise, prospects will begin to trust you and want to speak to you personally. Make sure you finish your slot with a call to action. This will drive people back towards your stand and result in great follow-up conversations. Maybe you could offer them a free information pack or expert guide if they head over to your stand?

Speaking on stand

A speaking slot scheduled on your stand can be much shorter and more salesy so you can focus on selling your franchise opportunity. This slot can be around 5-10 minutes and can be repeated at regular intervals throughout the day. These slots will capture exhibition visitors’ attention and bring a stream of people over to your stand over the course of the day and help you to have quality conversations with people who are genuinely interested in what you have to offer.

Capture your audience

Being memorable means that you are more likely to have great conversations when you’ve finished your speaking slot. Make sure that your talk is interesting and represents your brand and franchise in the best possible light but also try to keep it fairly simple and concise! This will ensure more people stick around to find out more. It’s also a great idea to find a way to get contact details from prospects whilst you are talking to them, give them a reason to hand over their details such as offering an expert guide or more information on your upcoming discovery days. There’s no point having a good conversation if you can’t contact them later!

Follow up leads

The follow up is almost as important as the actual speaking slot. Before you even book your speaking slot, you need to plan how you’re going to follow up on those all-important leads. This will ensure that you and your team will be ready to follow your plan of action as soon as you all return to the office. Time is of the essence and you don’t have time to come up with a plan after the exhibition has taken place. Will you be inviting your prospects to a discovery day, emailing them an exclusive offer or sending over your latest newsletter?

Source : SelectYourFranchise