No secrets: you move what you measure: in the franchising business, data is much more than a simple person, place or idea: it is the whole show.

Author:Bower, Ralph
Position:BEST PRACTICES
 
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It's no secret this is a challenging economic environment to drive a business forward. It's no secret that performance and metrics are linked. But what may be a secret is the sheer, unadulterated power that exists when a system takes a data-driven, no secrets, move of its measured approach to every, single aspect of the business.

Data is defined as factual information used as a basis for reasoning, discussion or calculation. In literary use, data is a noun, In the franchise business, data is much more than a simple person, place or idea: it is the whole show. Improving the health of the business is attributed to using data to drive decisions that improve day-to-day operations, such as marketing campaigns, financial decisions and customer service standards, while providing the groundwork for resolving concerns and even disputes.

Power in Building Relationships

From the first syllable of the relationship, franchisors have an opportunity to demonstrate how data has shaped company policies and procedures. This kind of transparency creates a culture of trust. Through reasoning, discussion and calculation, franchisees are empowered to understand data-based brand plans for achieving big-picture goals. This data infusion will underwrite increased trust in the organization, and an influx in brand loyalty.

Power in Understanding the Needs of the System

The power of an informed, data driven, no secrets system is that it helps create an atmosphere of trust which enables many things, one of which for Popeyes is the collection of P&L data from more than half of our system. In the absence of this kind of data, the effects of corporate decisions can't be known. With the data in hand, corporate now has the information needed to identify and implement cost-management strategies. Franchise owners can benchmark their results, identify their outliers, see what others are doing differently and prioritize savings opportunities. They can have a good idea of where the low hanging fruit is, whether that's something like waste collection, utility costs, insurance costs, credit card fees and so forth. In addition, introducing initiatives such as standardized back-of-house software to provide theoretical food-cost calculations can help operators highlight where their food costs deviate from ideal costs.

When there is something new to introduce to the system, there is an understanding that we, as the franchisor, are committed to profitability and that kind of support is why entrepreneurs...

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