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Tag: Franchise

  • 5 Ways Franchises Can Benefit From Leveraging Offshore Talent | Entrepreneur

    5 Ways Franchises Can Benefit From Leveraging Offshore Talent | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Emerging franchise brands are laser-focused on growth, and rightfully so. However, growth consumes a lot of cash, and many are undercapitalized and unable to staff adequately in the initial stages of the business. A more nuanced approach to talent acquisition can facilitate success.

    Leveraging offshore talent is a lesser-utilized growth strategy for emerging franchise brands. Outsourcing no longer fills just junior or customer service roles — a common misconception in today’s landscape. Now, high-value, skilled workers are available around the globe to support completing higher-level work. Offshoring helps franchisors proactively hire as part of their growth strategy, instead of staying reactive while conserving cash.

    Historically, I have seen very few brands leverage outsourced labor. However, that is beginning to shift as franchise leaders begin to understand the benefits of having an international talent strategy. There are compelling reasons that fast-growing franchisors can benefit from leveraging offshore talent.

    Related: Your Most Pressing Offshoring Questions, Answered

    1. Access to a broader talent pool

    Talent scarcity persists as a substantial issue that won’t soon go away. It’s becoming harder to find, afford and retain top talent. A ManpowerGroup report revealed that 75% of employers say they have difficulty filling roles, and a study by Korn Ferry found that by 2030, there could be a global talent shortfall of 85 million people — to the tune of $8.5T in unrealized annual revenues if the issue is left unaddressed.

    A shift in the talent procurement process is necessary to address this scarcity. Offshoring provides access to a much broader, global talent pool. Franchises need access to a wide range of skills and expertise that may be limited or fiscally prohibitive in their local markets. Offshoring can be particularly beneficial for more specialized roles within the business.

    2. Cost efficiency and scalability

    A significant outsourcing advantage is cost savings. Offshore talent carries a much lower expense compared to local hiring, with significantly reduced budgets for wages and benefits. With the right offshore talent, work quality won’t be sacrificed. This can be crucial for franchisors that need to maximize their resources during periods of rapid growth.

    It takes a long time for a franchise brand to become royalty-sufficient, which is why growth is especially important for new businesses. As franchises grow, the need for broader skills and additional staff rises. Offshoring provides the flexibility to expand or contract the workforce as needed, without the expense or complexity of hiring locally.

    3. Quality improvement

    Any business in growth mode struggles to hire ahead of the demand curve. Hiring proactively can help franchisors expand their capacity ahead of that curve to maintain high quality, brand value and customer satisfaction. Often, they delay hiring crucial roles or bring on less experienced workers to reduce costs. These are not mutually exclusive.

    Most people think of outsourcing as transactionally delegating low-level tasks that no one wants to do. Instead, franchisors should consider offshoring, hiring skilled workers to fill roles earlier than they could otherwise with domestic workers.

    For example, leveraging offshore talent could mean that domestic employees can take on new roles, such as management responsibilities, expanding capacity and facilitating greater business value.

    4. Round-the-clock operations

    Offshore teams often operate in different time zones. Meaning, they can complete their work outside of the franchise’s local business hours, effectively enabling 24/7 operations.

    Operating with longer hours can significantly increase project turnaround times and improve customer satisfaction.

    5. Leadership focus

    Within growing companies, executives often get mired in operational or administrative details. Through offshoring, franchise executives can affordably find support that relieves operational burdens and allows them to focus on core activities, such as franchise development and strategy and management, which spur growth and expansion. Offshore teams can handle repetitive and time-consuming tasks, which in turn increases organizational efficiency and productivity.

    With this level of support, leaders can expand their bandwidth and add strategic value to the organization.

    Related: Hiring Offshore Talent? Here Are the Top 10 Countries to Recruit From.

    Investing in offshore talent allows room for franchises to grow. Businesses gain access to a wider range of skilled talent, and they can upgrade internal teams and foster leadership capacity and effectiveness. Cost-efficiency and 24/7 service provide much-needed relief to young franchise businesses — and customer service and profitability don’t suffer in the process.

    Offshoring helps growing franchises increase organizational value. The flexibility that engaging today’s offshore talent provides creates a skilled global workforce that fulfills more roles than customer service.

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    David Nilssen

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  • Want to Leave Your Franchise Business Behind? 4 Exit Strategies to Consider | Entrepreneur

    Want to Leave Your Franchise Business Behind? 4 Exit Strategies to Consider | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    When considering the exit of a franchise business, it can be easy to assume the reason for exiting is due to one of two possibilities: Either the business was so successful that someone made an offer to purchase it, or it was such a failure that the owner had to “get out.” As with most things, the real answer is often more complicated. There are plenty of other reasons someone might be looking to exit their business.

    In the excitement of starting a franchise business, an exit strategy is frequently overlooked, despite its importance in the planning process. This is understandable since we usually don’t like to think about the end of a journey before it’s begun. However, during my years as a franchise consultant and franchisee, I learned the importance of having an exit strategy in place. The best thing you can do? Plan ahead so you aren’t making critical future decisions under duress.

    Optimize your exit value by planning before a major change forces your hand. Common reasons people exit a franchise include:

    1. Getting a job offer they can’t refuse
    2. Deciding they are ready for retirement
    3. Experiencing a major life change (divorce, family change or illness)
    4. Receiving an unsolicited offer for a successful business
    5. Choosing to acquire or expand in another business
    6. Breaking up with a business partner
    7. Financial struggles in an existing business

    For this last reason, it’s important to remember that just because the business didn’t deliver the outcomes desired by the franchisee, it doesn’t mean there is no value. It’s common for business owners having trouble operating a business to sell it to a new owner who can step in and make it successful. After all, initial efforts by the original owner have likely shortened the launch ramp for a new buyer, including critical and time-intensive startup tasks such as securing a commercial lease, procuring equipment and inventory, recruiting and training employees and building a customer base.

    With all that in mind, here are four ways you can exit your franchise.

    Related: 6 Things to Consider When Getting Out of a Franchise Agreement

    1. Through the franchisor

    This option depends on the maturity of your franchise system. For example, say your franchise brand has been around for 40 years. In this scenario, they may have an entire team dedicated to resales, including special programs in place to work with lower-performing locations to encourage them to cycle out. Alternatively, say the system is a younger franchisor — in this case, the brand may not have a resale team in place, but they could still have relationships with brokers or consultants to assist you in a sale. The main point here? Don’t keep your franchisor in the dark — you and the franchisor have aligned interests (what’s good for you will likely be better for them in the long run).

    That said, keeping open communication with the franchisor does not mean they will solve the problem for you, but there will be more options available if you are transparent.

    2. Hire a business broker

    Selling a business will always take time, but if you need to move more quickly (sell in six to 12 months), the highest likelihood of success often lies in hiring a business broker in your area. The benefit of working with a broker is their industry knowledge and access to a large database of buyers in your local market. It’s their business to send out opportunities to their large network of potential buyers frequently.

    Business brokers are professionals at conducting transactions — so they can also connect you with other people who will help with the process (attorneys, due diligence, closing, escrow, etc). Keep in mind: Like a good real estate agent, they are likely looking for an exclusive listing. These agreements are often in place for 12-month terms, although terms are often negotiable. You may also be able to negotiate fee exclusions for specific buyers such as selling to another franchisee, etc.

    How much are the fees? The fees will be a percentage of the final sale — expect this to be as much as 10% or a minimum flat rate on smaller sale transactions.

    3. Go it alone and sell yourself

    At the end of the day, there is nothing that says you can’t try to sell your franchise independently. Maybe you have customers that love your business and would dream of owning it one day. Occasionally, even if you weren’t thinking about selling, someone may approach you and put in an offer. In this case, you can hire an attorney and forgo the broker process (win-win).

    While this may seem like an appealing option, there are a few things to consider. If you don’t have a readily available buyer, it takes a substantial amount of marketing to promote your business of sale. For example: Think about selling your house without an agent — not as many people will see it and you may have to pay a buyer’s agent regardless. The main challenge in selling independently is being able to find ready, willing and able buyers.

    Related: Before You Enter into Franchising, Consider Your Exit

    4. Contact a franchise consultant

    A lesser-known option may be to contact a franchise consultant who works with your franchise brand (choose a franchise consultant who is part of a national network in your market). While they probably don’t have as large of a local database as a business broker, they have a steady stream of buyers looking to start a franchise business. They may have current candidates or former candidates that align with your brand. And though they may not have as large a local database of a business broker, an experienced consultant residing in your market could have possible buyers for you — but expect that any fees required are paid by you, not the franchisor. A franchise consultant may not be a silver bullet, but it’s worth having a discussion.

    Ultimately, there is no one-size-fits-all process for setting up an exit strategy, but it’s important to do the research early so you’re not making any hasty decisions from a position of duress.

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    David Busker

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  • RAVE Restaurant Group, Inc. Reports Second Quarter Results

    RAVE Restaurant Group, Inc. Reports Second Quarter Results

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    DALLAS, February 1, 2024 (Newswire.com)
    –
    RAVE Restaurant Group, Inc. (NASDAQ: RAVE) today reported financial results for the second quarter of fiscal 2024 ended December 24, 2023.

    Second Quarter Highlights:

    • The Company recorded net income of $0.6 million for the second quarter of fiscal 2024 compared to net income of $0.3 million for the same period of the prior year.
    • Income before taxes increased 10.7% to $0.5 million for the second quarter of fiscal 2024 compared to the same period of the prior year.
    • Total revenue decreased slightly by $0.1 million to $2.8 million for the second quarter of fiscal 2024 compared to the same period of the prior year.
    • Adjusted EBITDA remained stable at $0.6 million for the second quarter of fiscal 2024 compared to the same period of the prior year.
    • Pizza Inn domestic comparable store retail sales increased 7.0% in the second quarter of fiscal 2024 compared to the same period of the prior year.
    • Pie Five domestic comparable store retail sales increased 0.8% in the second quarter of fiscal 2024 compared to the same period of the prior year.
    • On a fully diluted basis, net income increased by $0.02 to $0.04 per share for the second quarter of fiscal 2024 compared to the same period of the prior year.
    • Cash and cash equivalents were $5.3 million at December 24, 2023. 
    • Pizza Inn domestic unit count finished at 112.
    • Pizza Inn international unit count finished at 18.
    • Pie Five domestic unit count finished at 24.

    “Following a strong Q1, we’ve hit our 15th consecutive quarter of profitability with steady same-store sales growth at both Pizza Inn and Pie Five in Q2,” said Brandon Solano, Chief Executive Officer of RAVE Restaurant Group, Inc. “This fiscal quarter, we focused on our unwavering commitment to maintain tight cost control, which has been a cornerstone of our success. Our disciplined financial approach has allowed us to effectively navigate the competitive landscape, while our commitment to operational efficiency has positioned us for continued success in the ever-evolving market.”

    “Despite a slight decrease in total revenue, we saw steady profit growth with net income reaching $0.6 million compared to $0.3 million in the same period last year,” Solano continued. “This is a testament to the dedication of our team and the effectiveness of our financial strategies, positioning us for sustained growth and shareholder value.”

    “We’re also thrilled to welcome three new Pie Five franchisees into our family, taking over locations throughout Texas,” said Solano. “Their partnership underscores the attractiveness of our brand and continued confidence in our business model. Even in the face of varying same-store sales, including Pizza Inn’s impressive 7.0% increase and Pie Five’s solid 0.8% growth in Q2, our strategic initiatives have contributed to our overall positive financial performance.”

    On reimaging, Solano noted, “We’ve embarked on a significant journey to reimagine our stores, and I’m excited to announce 10 more Pizza Inn restaurants are set to begin the process, which elevates both the aesthetics and functionality. These dramatic updates reflect our commitment to enhancing the overall experience for both our franchise partners and guests, and we’ve been pleased to see strong results from the completed prototype in Asheboro, North Carolina. We anticipate completing most of these transformations before the end of the fiscal year.”

    “As part of our strategic vision, we’ve strengthened our organization by continuing to invest in key areas such as analytics, development and IT,” Solano stated. “The addition of team members to these functional areas reflects our commitment to innovation and growth.” 

    Non-GAAP Financial Measures

    The Company’s financial statements are prepared in accordance with United States generally accepted accounting principles (“GAAP”). However, the Company also presents and discusses certain non-GAAP financial measures that it believes are useful to investors as measures of operating performance. Management may also use such non-GAAP financial measures in evaluating the effectiveness of business strategies and for planning and budgeting purposes. However, these non-GAAP financial measures should not be viewed as an alternative or substitute for its financial statements prepared in accordance with generally accepted accounting principles.

    The Company considers EBITDA and Adjusted EBITDA to be important supplemental measures of operating performance that are commonly used by securities analysts, investors and other parties interested in our industry. The Company believes that EBITDA is helpful to investors in evaluating its results of operations without the impact of expenses affected by financing methods, accounting methods and the tax environment. The Company believes that Adjusted EBITDA provides additional useful information to investors by excluding non-operational or non-recurring expenses to provide a measure of operating performance that is more comparable from period to period. Management also uses these non-GAAP financial measures for evaluating operating performance, assessing the effectiveness of business strategies, projecting future capital needs, budgeting and other planning purposes.

    “EBITDA” represents earnings before interest, taxes, depreciation and amortization. “Adjusted EBITDA” represents earnings before interest, taxes, depreciation and amortization, stock compensation expense, severance, gain/loss on sale of assets, costs related to impairment and other lease charges, franchise default and closed store revenue/expense, and closed and non-operating store costs. A reconciliation of these non-GAAP financial measures to net income is included with the accompanying financial statements.

    Note Regarding Forward-Looking Statements

    Certain statements in this press release, other than historical information, may be considered forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and are intended to be covered by the safe harbors created thereby. These forward-looking statements are based on current expectations that involve numerous risks, uncertainties and assumptions. Assumptions relating to these forward-looking statements involve judgments with respect to, among other things, the effectiveness of our cost-cutting measures, the timing to complete as well as the continued returns on our reimaging initiatives, the strength of our development pipeline, as well as future economic, competitive and market conditions, regulatory framework and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of RAVE Restaurant Group, Inc. Although the assumptions underlying these forward-looking statements are believed to be reasonable, any of the assumptions could be inaccurate and, therefore, there can be no assurance that any forward-looking statements will prove to be accurate. In light of the significant uncertainties inherent in these forward-looking statements, the inclusion of such information should not be regarded as a representation that the objectives and plans of RAVE Restaurant Group, Inc. will be achieved.

    Source: RAVE Restaurant Group, Inc.

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  • Unleashing the Power of Trade Show Video Marketing | Entrepreneur

    Unleashing the Power of Trade Show Video Marketing | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    I’ll never forget the first time I attended a franchise-related trade show. In 2019, I maxed out another credit card to register for the International Franchise Association’s annual convention. I had landed a couple of project videos for some franchise brands and knew I needed to learn more about the industry if I was to create quality video content on their behalf.

    The trade show floor at the annual IFA Convention was overwhelming – even bigger in person than I’d expected. I was determined to see all of it over the next three days, to pick as many brains as I could because I clearly needed an education. But it didn’t take me long to notice that I wasn’t the only one who could use some pointers. Even though I’ve been in the video marketing business since my early teens, I grew increasingly surprised as I passed through one section of the floor to another. The exhibitors, which range from everything from emerging brands to funders, consultants, vendors, and suppliers all appeared to have one thing in common. There was no high-resolution imagery displayed. In fact, by my count, roughly five percent of them were utilizing any form of video content in their trade show booths.

    It was right then and there that I realized that I had a value proposition to offer the franchising industry.

    Related: Considering franchise ownership? Get started now and take this quiz to find your personalized list of franchises that match your lifestyle, interests and budget.

    The fundamental aspect of a trade show booth

    Companies – franchisors in particular – spend a good deal of money to exhibit at the industry’s wide variety of trade shows. Floor space doesn’t come cheap, and brands typically set out with the best of intentions when it comes to recouping their investment. These reserved spaces only offer a minimal amount of space to captivate the thousands and thousands of trade show attendees – and you’ve got to make the most of every inch. Once you get beyond staffing the booth with your most gregarious sales representatives, there’s the requisite table, banners, signage, and brand collateral to think about. This is a golden opportunity to showcase who you are, what your brand represents, and how you have something of value to offer to an extremely captivated audience. Months of planning often go into the design, layout, and execution of exactly how you’ll present yourself to the masses. But to forego any type of video content in the trade show booth? That makes no sense at all. Seven-eighths of our knowledge comes from visual cues. So, it stands to reason that video is the best possible way to showcase your brand’s value proposition, key differentiators, and provide your target audience with the social proof you need to communicate a compelling story.

    Related: 5 Tips for First-Time IFA Convention Attendees

    Know before you go

    Long before the trade show kicks off, and you’re still in the planning stages of creating your video content, there are a few hard and fast truths you need to understand. The most important factor to consider is the short amount of time you’ll have to make an impression with video — perhaps as little as five seconds for attendees casually strolling by. And you can forget about audio, music, or voiceover narration. Most trade show floors are crowded, noisy, and crammed with endless branding and messaging collateral, easily capable of causing sensory overload.

    To get the attention of your prospective target audience, videos must be brief, eye-catching, impactful, and branded. Any caption layovers must be short, clear, and easily digestible to the naked eye. Everything you shoot must be edited down to a concise clip that differentiates your brand’s value proposition amidst an endless sea of options.

    Related: Why Franchise Brands Need to Start Utilizing Video Marketing

    Creating a sensory experience through video

    Whether it’s a trade show, convention, or expo, the floor is typically packed with exhibitors, each vying for the attention of the passing attendees. How do you create a sensory experience that draws people in and makes them want to learn more about your brand? To borrow a quote from Admiral William F. “Bull” Halsey, a top naval commander in the Pacific Theatre in World War II: “Hit Hard! Hit Fast! And Hit Often!”

    Initially, you’ve got to grab their attention before you can showcase your product or service in a way that piques curiosity and is capable of spurring an interaction. The first few seconds of your video content must present strong, clear graphics, as well as high-energy clips and edits that can excite, attract, and engage – before following up with a call to action. Carefully crafted videos – no more than one to three minutes in length – that play on an endless loop are highly recommended. And it’s also advisable to have more than one video display, in an elevated position to draw attention from multiple directions.

    Selling a product? Develop videos that go beyond product placement and show it in action. Demonstrate its’ capabilities, while using clear captions to explain its value proposition in writing. Selling a service? Create a brief – but impactful – montage that demonstrates the process of the service you’re selling. Use storytelling and visual cues to highlight the customer’s journey in patronizing the service you provide.

    Shoot onsite

    A well-crafted video for your booth, designed with the trade show audience in mind, can give you a decided edge against the competition. But your dedication to utilizing video shouldn’t end before the trade show kicks off. It can be a wise investment to consider shooting raw video and scenes right there on the convention floor. Any footage captured during the event can pay untold dividends on the back end. Brands with plenty of onsite content can distill these videos into a montage or “sizzle reel,” which can then be repurposed for follow-up opportunities, via email, your website, future blogs, or even social media posts, because nothing tells a brand story like your sales efforts in action.

    Related: How to Effectively Utilize Video in Your Franchise Brand’s Marketing Strategy

    About the author

    Trevor Rappleye has been an entrepreneur since 2003 – beginning his first company at age 13, converting VHS to DVD and filming family events. As the president and CEO of FranchiseFilming.com, he’s obsessed with storytelling, leadership, video marketing and filming social proof for brands and franchisors. The company includes A-list clients such as Neighborly, CVS, Home Depot, ADP, and FASTSIGNS. For more information on FranchiseFilming’s VIP Subscription Model with no travel fees, no scripts and videos in just 10 days, visit www.franchisefilming.com.

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    Trevor Rappleye

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  • Burger King's Owner Buys Biggest Franchisee For $1B | Entrepreneur

    Burger King's Owner Buys Biggest Franchisee For $1B | Entrepreneur

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    Restaurant Brands International (RBI), which owns the iconic fast food chain, Burger King, is purchasing the burger shop’s largest franchisee in the U.S. for a whopping $1 billion in cash.

    RBI’s purchase of Carrols Restaurant Group is expected to be completed by the end of Q2 2024 and will also include an additional $500 million in investments to update and remodel more than 1,000 Carrols-owned locations.

    Carrols Restaurant Groups generated approximately $1.8 billion of system sales during the one-year period that ended on September 30, 202, Restaurant Brands said in a release. The restaurant group operates in 23 U.S. states including North Carolina, New York, Ohio and Tennessee.

    Related: Burger King Is Spending Millions on Renos, Whopper Revamps

    The new deal is part of RBI’s attempt to revitalize the Burger King brand and accelerate sales growth in a plan called “Reclaim the Flame,” which, per the release, will double down on new and existing technology, invest in digital, and improve operations and marketing in an attempt to turn business around for the fast-food chain.

    In 2020, Wendy’s took over the No. 2 ranking of largest burger chain from Burger King, and in 2023 two major operators filed for bankruptcy. The chain also closed hundreds of stores last year.

    “Carrols has demonstrated strong and improving restaurant operations over the years. This acquisition is an exciting accelerator to our ‘Reclaim the Flame’ plan that is focused on relentlessly pursuing a better experience for our Guests,” Tom Curtis, President of Burger King U.S. and Canada said in a release. “We are going to rapidly remodel these restaurants over the next five years or so and put them back into the hands of motivated, local franchisees to create amazing experiences for our Guests.”

    Burger King announced its plan to improve restaurants in September 2022 by revealing that it would be investing $400 million into updating restaurants and advertising.

    Related: Internet Raises Over $420,000 for Burger King Employee

    However, in Q3 2023, Restaurant Brands reported that U.S. business for Burger King remained flat while same-store sales grew 7.2%.

    “Back in the last few quarters, we had been behind the industry in terms of our same-store traffic, and that’s been progressively getting better every quarter since last year,” Restaurant Brands CEO Josh Kobza told CNBC at the time. “So it was a big milestone for us now to get to flat traffic.”

    Restaurant Brands International was up 14% in a one-year period as of Tuesday afternoon.

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    Emily Rella

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  • Here Comes the Pitch: The Franchise Musical Edition

    Here Comes the Pitch: The Franchise Musical Edition

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    Jomi and Steve are joined by Jessica Clemons for another exciting edition of “Here Comes the Pitch,” but this time around, we’re breaking out our best melodies and lyrics! Listen and be amazed as the three journey through some of their best musical ideas pulling from the endless pool of IP. There may or may not be some singing on the way!

    Host: Jomi Adeniran and Steve Ahlman
    Guest: Jessica Clemons
    Producer: Jonathan Kermah
    Additional Production Support: Arjuna Ramgopal

    Subscribe: Spotify / Apple Podcasts

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    Jomi Adeniran

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  • How Technology Has Made Franchising Easier for Everyone | Entrepreneur

    How Technology Has Made Franchising Easier for Everyone | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    As a business model, franchising has always benefitted from contemporary technological advances. In recent years, franchise ownership has skyrocketed in correlation with the explosion of tech improvements across a wide spectrum of industries and business functions.

    The largest change over the last few years? Technology has leveraged time efficiency, which in turn, allows for scalability of the business and time flexibility for the franchise owner, allowing more business models to be semi-absentee, meaning the franchise owner can be part-time.

    Historically, franchising has been a very owner-operator-centric business, meaning a full-time commitment from the owner. Depending on the business model, this can still be the case, but technology has allowed for a variety of improvements to time-consuming but necessary tasks for most service-based franchises. Now, the franchise owner doesn’t necessarily have to be an expert in every facet of the business because technology has streamlined certain processes that used to be very labor-intensive. Most importantly, a franchise owner is only paying for their small proportionate share of a large, nationally scaled tech stack with which local competitors could not possibly compete.

    Let’s consider several key areas where technology has transformed franchise ownership.

    Related: Why Franchisors Must Embrace Technology to See Growth

    1. Employee management

    Retaining valuable employees is key to ensuring your business is being properly run and represented. In terms of employee management, consider some of the more mundane tasks that historically had to be done by hand: payroll, scheduling, onboarding paperwork, etc. Now, by using software designed for these very processes, the time commitment for each has fallen dramatically as well as the need to learn how to do these tasks manually. This eliminates hiring hourly employees for mundane tasks and frees up the owner’s time while reducing costs. In my franchise, our scheduling software was so good it eliminated dozens of hours of time and empowered employees at a cost of only $30 per month.

    2. Optimizing profitability through efficiencies in routine repeatable services

    As your customer base changes, how do you stay efficient? Let’s look at a tool we all use frequently: the GPS on our phone. Imagine you’re following a route on your GPS when an accident happens 15 miles up the road. What happens? Are you forced to maintain your course and wait it out? No, if a new route becomes more optimal, your phone updates. Technology like this optimizes your time and efficiency with hardly any decision-making on your end. There are many examples of similar technologies helping franchise owners become more efficient. For example, a home cleaning brand has AI for generating the optimal route for their cleaning crews, reducing drive times and increasing profitability for every hour worked.

    Related: This Game-Changing Marketing Solution Will Give Your Franchise a Competitive Edge

    3. Customer acquisition strategies: revenue

    When considering revenue streams, business owners are confronted with how to develop effective marketing. For franchises, marketing is extremely targeted because the franchisor has invested in market research on a national scale. Dollars spent are more efficient because there is less mystery in what will work for your specific franchise customer base.

    Once you’ve captured the customer with effective marketing, automation and optimized CRM software create a positive customer journey. As an example, think about the last time you scheduled a hair appointment. Upon making the appointment, you may have received a confirmation text. A few days before the appointment, you may have gotten a text reminding you of the appointment and asking you to send back “Y” or a simple character to confirm you will be there. Upon your response, you receive an immediate message welcoming you to the studio. Even after the appointment occurs you receive a text thanking you, you are provided a digital receipt, and asked about scheduling a future appointment. Think about how much heavy lifting this automated communication has taken off of the hair salon.

    4. Sales

    In addition to the marketing and customer journey tools mentioned above, additional technology can now be leveraged to meet very specific customer needs. For example, let’s consider “visualizers.” Interested in buying a couch? Getting a new pair of glasses? Possibly renovating a space in your home? Now, there are visualizers that can use a picture or video to produce a rendering of a product in your space.

    Another common example lies in at-home service visits from a professional team (think plumbing, roofing, painting, etc). When a representative comes to your home to provide an estimate, everything from the appointment scheduling to the quote you receive is documented. Consider receiving a sales presentation during this visit from the representative. During the presentation, the software can track how long the salesperson stays on each slide, the speed of progression through the presentation, whether they got the sale or didn’t get the sale and more. This is all reported to the franchisor, which can in turn track this data and make the process more effective for your sales team.

    Related: How You Can Leverage the Power of a Franchise Network

    5. Strategic decision-making

    When you think about making large-scale business decisions, it’s vital to have financial data and historical reporting. In a franchise, dashboards, analytics and general ledgers are standardized. Due to these standardized reports, there are benchmarks and for any given line item that can be compared against other franchisees so you can manage every part of your business.

    Suppose you need to make site selection real estate choices for your storefront, maybe you need to understand customer habits and use psychographic reporting, or maybe you’re expanding and need to understand the detailed logistics of what an expansion process looks like. The level of transparency across multiple franchises allows for real-time data to be collected and used by the franchisees giving them advantages when making business-altering decisions as well as small-scale optimization decisions.

    Ultimately, there’s no question that franchising has been drastically improved due to technological advances. Considering vital business functions like employee management, profitability optimization, customer acquisition strategies, sales processes, strategic decision-making and more, technology has paved the way for individuals to become business owners with fewer and fewer roadblocks in a way that could never be accomplished as a stand-alone business.

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    David Busker

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  • 5 Businesses That Are Winter-Focused But Yield All-Year Results | Entrepreneur

    5 Businesses That Are Winter-Focused But Yield All-Year Results | Entrepreneur

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    It’s cold outside. Maybe there is snow on the ground, or decorations on homes and buildings. It’s winter, after all. And while most people may be thinking of their vacation, sitting by a fire sipping cocoa or scraping the ice off their cars, others are thinking of starting a franchise.

    While certain franchises are exclusively tied to winter, such as holiday-themed stores or outdoor sports outlets, we’re highlighting five franchise opportunities uniquely positioned to thrive during the winter months and beyond.

    These franchises offer a diverse range of services and products that cater to year-round needs, ensuring a steady stream of customers and revenue beyond just the winter season. And as a franchisee, this versatility can help minimize the impact of seasonal fluctuations, providing a more stable and sustainable business venture.

    Related: 6 Questions to Ask Before You Begin Your Franchise Search

    Barebones Workwear

    Do you enjoy spending time outdoors in the winter? Barebones WorkWear strives to prepare its customers to take their outdoor job or adventure to the next level with high-quality clothing and gear.

    As a growing brand in northern California, BareBones has been in the franchising world for the last decade. Their commitment to quality ensures that customers are equipped with durable, weather-resistant apparel tailored for rugged environments in all seasons.

    Franchisees not only tap into a thriving market for durable outdoor gear but also benefit from comprehensive support systems, including training, marketing assistance, and a proven business model, paving the way for success in today’s lucrative outdoor industry.

    Shredder

    Enjoy the winter season all year long with a Shredder franchise. Shredder is the first franchisable indoor ski and snowboard facility. So no matter the weather, winter-sport enthusiasts can gear up and shred.

    Shredder offers multiple revenue streams, such as lessons and classes, open ski hours, parties, rentals and retail, so franchisees have several opportunities to diversify their income. With the franchisor’s support, you can work toward proper site selection, training and inventory, bringing winter cheer to all climates.

    Related: Busting Franchising Myths and Choosing the Right Opportunity

    Clintar Commercial Outdoor Services

    Clintar Commerical Outdoor Services is a Canada-based grounds maintenance company that has been operating for 50 years. Their services include landscape installation and maintenance, road maintenance, irrigation and snow and ice control.

    In the winter months, customers especially look to Clintar for their snow and ice removal services. Not in Canada? Clintar is expanding their franchises into the United States and are looking for passionate franchisees to train and deliver quality services in the winter and beyond.

    Midtown Chimney Sweeps

    Millions of households in the United States have at least one fireplace. And given that fireplace usage ramps up during the winter months, it is important to maintain and clean them regularly. This is where Midtown Chimney Sweeps comes in. They offer chimney sweeping services for residential and commercial unites. They also provide installation and repair services to accommodate winter fireplace needs.

    To set their franchisees up for success, Midtown Chimney Sweeps offers protected territories, SEO marketing, access to a scheduling center and guided support with the business model and day-to-day operations.

    Related: Franchise Legalese Defined — A Deep Dive Into Franchising Definitions

    One Hour Heating & Air Conditioning

    Imagine sitting at home in the winter with a broken heating system. One Hour Heating & Air Conditioning is just a call away to provide HVAC services around the clock. Starting a One Hour Heating & Air Conditioning franchise means you join a nationally trusted brand with ongoing support and low startup costs.

    Whether it is to keep your customers warm in the winter or cool in the summer, franchisees can look forward to a wide customer base year-round.

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    Clarissa Buch Zilberman

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  • Pizza Inn and New Franchise Partner Team Up to Bring 50 New Locations to Saudi Arabia

    Pizza Inn and New Franchise Partner Team Up to Bring 50 New Locations to Saudi Arabia

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    Iconic American pizza brand’s growth marks significant milestone in Middle East’s culinary landscape


    DALLAS, January 3, 2024 (Newswire.com)
    –
    Pizza Inn today announced a major franchise agreement with Blessings Basket Company for Serving Food to substantially expand its footprint in the Kingdom of Saudi Arabia. The 50-unit deal will kick off with the opening of the first two locations in January 2024.

    This expansion marks another significant milestone in Pizza Inn’s international growth strategy. With more than 110 restaurants in the United States and 19 in international markets, Pizza Inn is one of the world’s most recognized pizza brands, known for its commitment to bringing a unique blend of flavor, convenience and value to pizza lovers across the globe.

    “We are excited to announce our partnership with Pizza Inn for Saudi Arabia and have full confidence that together we will further establish the brand as a household name across the kingdom,” said Mohammed Al-Rubayan, CEO of Blessings Basket Company. “The team at Pizza Inn have been incredible partners throughout this process, and our shared commitment to excellence, passion for authentic pizza and dedication to creating memorable moments for our customers makes this collaboration special.”

    Following its first two openings, Blessing Basket Company plans to debut five additional locations each year for the next decade in cities across Saudi Arabia. The restaurants will offer Pizza Inn’s signature menu of pizzas, pasta dishes, wings and famous Pizzerts®. 

    “Partnering with Blessings Basket Company to bring Pizza Inn to an even larger audience in Saudi Arabia is a great honor,” said Brandon Solano, CEO of RAVE Restaurant Group. “We are confident Blessings Basket Company will bring our brand to life as we bolster our presence in the kingdom of Saudi Arabia and introduce Pizza Inn to new markets – serving up our something-for-everyone menu with the level of quality that has made us America’s Hometown Pizza Buffet and a family favorite for more than 65 years.”

    To find the Pizza Inn nearest you, or for more information on the entire menu, visit pizzainn.com.

    About Pizza Inn

    Since 1958, Pizza Inn’s popular pizza buffet and friendly service have solidified the brand as America’s Hometown Pizza Buffet. Unlike your typical buffet, Pizza Inn built a reputation for using house-shredded 100% whole milk mozzarella cheese, fresh ingredients and house-made signature sauce. This, combined with its small-town vibe, are the hallmarks of its restaurants that feature signature pan pizzas, chocolate chip Pizzerts®, pasta dishes, salads, and innovative creations that reflect today’s customer cravings. The brand continues to thrive with new menu innovations, including its popular NYXL Pizza. Follow Pizza Inn on Instagram @pizzainn and to learn more about franchising opportunities, visit pizzainn.com/franchise.

    About Blessings Basket Company for Serving Food

    Headquartered in Riyadh, Saudi Arabia, the Blessings Basket Company for Serving Food was established by a team of visionary entrepreneurs from The Najahat Group – which has grown steadily over the years, solidifying The Najahat Group’s position as a leader in the Saudi economy. Led by CEO Mohammed Al-Rubayan and CFO Hassan Othman, Blessings Basket Company is committed to excellence and continuing a track record of success.

    Cautionary Statement Regarding Forward-Looking Information

    This release may contain certain forward-looking statements, including, without limitation, our expectations for positive results from entering into this agreement with the Blessing Basket Company and expanding our business in Saudi Arabia. These forward-looking statements speak only as of the date hereof and involve a number of risks and uncertainties. These statements are made under the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, including, the risk that this agreement and its expected expansion of the Pizza Inn Brand internationally may not be successful or may not achieve the intended positive results for the Company, as well as risks that we have detailed in the Company’s most recent reports on Form 10-K and Form 10-Q, particularly under the heading “Risk Factors.”

     # # #

    Source: Pizza Inn

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  • How to See a Higher ROI Using Content Marketing | Entrepreneur

    How to See a Higher ROI Using Content Marketing | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Updated on Dec 13, 2023. Originally published on Jan 13, 2016.

    Without fail, the question I am asked the most from marketers who are struggling to build their business case is, “How do I measure content marketing return on investment (ROI)?” We know that as consumers, we’re all consuming more information online. We are looking to get informed and we are looking to be entertained. But building the business case is often a tricky proposition. It’s important to remember that everyone inside the business creates content. And creators love their content like a mother loves her baby. Although the content may stink, we can’t call anyone’s baby ugly.

    So how do we build the business case for content marketing and answer the content marketing ROI question before we even really get started? It starts by building a strong business case that doesn’t directly attack people, their teams or their budgets.

    Related: 5 Ways to Create Content That’s Actually Helpful

    What is the ROI of content?

    Let’s start with how we answer the ROI question before first. There’s very few benchmarks. Here are a few examples that have been published on content marketing ROI.

    We recently curated these 15 case studies to prove content marketing ROI. But the way I specifically answer the question is to point out that content marketing ROI is higher than the average marketing ROI in every place I’ve looked.

    Julie Fleischer at media-agency OMD, formerly at Kraft Foods, said that content marketing ROI is four-times greater than even Kraft’s most targeted advertising. So the first way to respond to this question is to ask for the baseline: What is your company’s average marketing ROI? If you’re feeling cheeky, ask for the ROI of that logo your company put on a golfer’s hat or on the side of a building.

    Then go about addressing each of these three components of ROI.

    1. Content cost
    2. Content utilization
    3. Content performance

    Content cost

    Content marketing ROI starts with a solid understanding of content costs. How many marketers know the cost of the content produced by their firms? You need to conduct a content audit or at least a sample of the content you produce. Apply some average costs and extrapolate that to gain a real sense for the size of the problem.

    Content utilization

    How many businesses know what percent of their content even gets used? Any content that gets created but never used is 100 percent waste, so you need to not only track content production, but also usage.

    Content performance

    Content marketing ROI needs to define the business value of the outcomes it generates. Most people start by talking about page views and social shares and clicks to something. But it’s important to first tie your content performance back to the business case that got you started in the first place. How many businesses have calculated the business value of any of their marketing outcomes?

    Make marketing accountable

    I have always believed that marketing should be accountable for results. We need to hold marketing accountable for ROI overall. This means that all marketing spent should be tied to quantifiable results that the sales team and executives can understand.

    Generally, our marketing should be focused on generating and then managing demand. But sometimes, the CEO wants to extend the brand, and sometimes sales folks want to work under the cover of a nice, massive awareness blitz.

    Aside from those examples, we need to show hard results and make sure every marketing program has a sound business case or ROI.

    Related: 5 Key Strategies to Boost Your Content Marketing

    Building the business case for content marketing

    OK, you’ve survived long enough to want to learn how to build the business case. There are a few ways to go about building a strong content marketing business case: Reach early stage buyers, engage new buyers, and conversions.

    Reach early stage buyers

    Most marketing is overly promotional (and we tune it out), but it is also just too early. Your business needs to get people to know your brand, like your brand and then trust your brand enough to want to buy from you. That starts with a significant amount of early-stage dating content. It needs to be non-promotional and not overly creepy. You can’t push too hard, because you want to get to a second date. Ask yourself:

    • What percent of the online conversations on your product category are branded?
    • What is the percent of unbranded search traffic on your website?
    • What is banner effectiveness at driving brand visits?
    • What is the cost of advertising/search landing pages with low organic and social traffic?
    • What is the cost of organic and social website traffic versus paid?
    • What is the cost of content that goes unused?

    Engage new buyers with your brand

    If you found that you are not engaging with the top of your funnel, there are a few ways you can quantify the opportunity to reach and convert them. Ask yourself:

    • What is the time spent and bounce rate on content versus advertising landing pages?
    • What is the cost per repeat visits and time engaged with your brand?
    • Identify subscribers and value per subscriber.

    Conversions you would have never reached

    Finally, you need to be able to measure things that have a quantifiable value that you can take to the bank. These include:

    • Cost per lead
    • Pipeline touched
    • Cost per registration
    • Cost per sale
    • ROI versus average marketing ROI

    Solid business plan leads to a good ROI

    In order to answer the content marketing ROI question for your business, you need to be able to build a solid business based on a deep understanding of your business.

    What is your business’ average marketing ROI, and how can content marketing achieve a higher return? The answer comes down to understanding your content costs, usage and performance.

    From there, you have a few paths to building a solid business case that will allow you to reach new customers, engage them with your brand in a meaningful way and then convert them to new sales and long-term relationships that provide real ROI.

    Related: 4 Marketing Budget Hacks That Will Boost Your Business in 2024

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    Michael Brenner

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  • Understanding Cash Flow in Your Business | Entrepreneur

    Understanding Cash Flow in Your Business | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Updated on Dec 13, 2023. Originally published on Aug 9, 2016.

    We once helped a large mechanical contractor turn around its business. And we were successful in taking the company from loss to profit. However, the problem wasn’t solved because, before we arrived, the owners had taken out several business and personal loans to keep the company afloat.

    Related: 5 Mistakes To Avoid in Your Digital Marketing

    As a result, shortly after it started making a profit, the company hit a cash-flow crisis. At first, the owners couldn’t understand why. If they were making money, they had a problem with cash. Further, they wanted to know why they weren’t paying down the principle on the loans they had accumulated. Simply put, they wanted to know why they weren’t making money?

    Profits do not equal positive cash flow

    The answer lies in understanding the differences among profit, cash flow and return on investment (ROI). We explained to the owners that their accountant was correct; the company was profitable. The number on the bottom of their income statement was positive. In short, if the revenue you realize each month exceeds the expenses that generated that revenue, you are profitable.

    And, this is good. However, it does not necessarily mean that you have positive cash flow.

    A business may be very profitable, but if its inventory, accounts receivable and/or fixed assets are growing rapidly, it may not have a positive cash flow. Growing these three accounts requires cash. In the case of our mechanical contractor, the company was growing for the first time in years. The owners were spending cash to buy inventory, among other things. However, these are all balance-sheet accounts that do not immediately affect the income statement. Therefore, they have no impact on profitability.

    Work with a professional

    It is absolutely possible for a business to be profitable and hemorrhaging cash at the same time. Our contractor, in fact, didn’t have cash. One of the reasons it wasn’t able to pay down the balances on its loans. That’s why we moved to stem the problem by instituting collection procedures and other processes that helped the contractor manage its crisis, come through this short-term struggle and avoid a future disaster.

    If you find that your company is in a similar situation, ask your accountant to analyze your monthly cash flow over the past couple of years. It is possible that your cash is being spent to grow assets. If this isn’t the case, we suggest that you have an independent third party do a thorough check for embezzlement.

    We’ve seen thieves pull amazing stunts to make the books look right on the surface even as they siphon cash out of the business.

    Related: How to Make a Cash Flow Statement

    Understanding return on investment

    It is also possible to have a profitable business, and even a positive cash flow, but not have a good ROI. While our contractor’s actual number was much larger, let’s say the owners initially funded the enterprise with a $150,000 investment. Let’s also assume that they hadn’t put any further cash into the business.

    Now, let’s assume that their annual profit was $1,500 and that this was also the cash flow. ROI is calculated as: profit divided by investment. So, in our company’s case, the ROI would be 1 percent, which is hardly an impressive performance. At this rate, it would take 100 years to earn back the original investment. Depending on the specifics of your own business situation, we suggest that you target at least a 10 percent to 20 percent return on investment.

    How profitable is my business?

    To return to our client’s initial question, they are now making money. The business is profitable. The next question is, how profitable? This is often measured by return on sales (ROS), which is calculated as profit divided by sales. The appropriate ROS target is a function of the specific situation, but for many businesses, a 10 percent ROS is a good target (obviously, more is better).

    The different metrics work together to tell a story

    It is important to understand profitability and to make sure that this translates into an acceptable positive cash flow. As a finance expert told us, “You can’t buy beer with profit; you can only buy beer with cash.” Finally, make sure that your ROI is acceptable. If you are achieving your target ROS, but still not getting the ROI you need, the reason is likely that you need to grow your sales without making an additional investment. In other words, you need to improve your asset utilization (sometimes expressed as “sales divided by assets”).

    Assessing the financial health of your business is not a one-dimensional exercise. However, if your ROS is acceptable, your profit is translating into cash flow and you have a good ROI, you can rest assured that the financial health of your business is good.

    Related: Do You Know Your True Value?

    By the way, our client is on track to be completely debt free in four years. Given the amount of debt he began with, this is a spectacular achievement.

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    Doug and Polly White

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  • Don't Make These 5 Risky Business Ownership Mistakes | Entrepreneur

    Don't Make These 5 Risky Business Ownership Mistakes | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Updated on Dec 19, 2023. Originally published on Jun 15, 2016.

    As a franchise coach, it’s my job to help people find the perfect franchise fit for their needs, and to help them successfully navigate the entire franchise buying and ownership process. Over the years, I have seen it all—the wonderful successes as well as the horrible mistakes. As a coach, it’s my job to give people quality advice based on my experience and their skill set, but I cannot force them to follow it. Below are some of the most common mistakes I see as a franchise coach, and how you can avoid them when exploring franchise opportunities.

    Related: 8 Common Mistakes You Might Be Making as a Leader (and How to Fix Them)

    1. Choosing the wrong franchise for you

    The franchise you choose must truly fit you in order for you to succeed as a franchisee. Your skills, lifestyle and location preferences, financial situation and personality are all things you must consider before buying a franchise. For instance, if you know you will be miserable in a location with cold weather, don’t buy a franchise up north. Or if the business model requires you to work nights and weekends, but you’re looking to spend more time with your family, that’s probably a bad fit. Knowing yourself isn’t always as simple as that, but the better the franchise fit, the more comfortable—and successful—you will be running your business.

    2. Unwilling to commit to due diligence

    Some people don’t like to do the due diligence. They trust their instincts to make decisions for them. While trusting your gut may sound romantic to some, it is not a trait of successful business owners. The key to being a successful business owner lies in making informed decisions backed by research and hard work, not blindly following a “good feeling.” If you want to see success, you need to do your due diligence.

    Related: Why Adaptive Leadership Is the Key to Success During Market Volatility and Times of Uncertainty

    3. Falling in love

    Some people tend to fall in love with an idea or a concept—then they do the due diligence that only supports their preconceived ideas. They are blinded by their bias and their research ends up being one-sided instead of thorough and complete. I once worked with a man who was in love with the concept of solar and LED. It didn’t matter to him if the business model made sense. He was going to get into this area of business regardless. Thus, he only wanted to see the facts that would support his desire to enter this industry, without ever investigating the potential pitfalls. Again, this is not a trait of successful business owners.

    4. Not building a solid P&L

    It is vitally important to know the P&L—profit and loss—related to any business you are contemplating buying. You cannot shortcut this process. Do your research, speak with current and former franchisees, and understand the real income and expense categories before buying your business. You need to know the financials before getting into the business, as well as the cost it will take to achieve the break-even point and generate positive cash flow. In fact, this topic is so important we dedicated all of chapter 12 to this in The Educated Franchisee. Once you know this and your own financial resources, you minimize the risk of financial hardship.

    Related: How to Estimate Benchmarks and Optimize Your Franchise’s Marketing Performance

    5. Having unrealistic expectations

    Some folks think the franchisor will do it all for them—that somehow a franchise is a silver bullet where you can work less and make more with no risk. In reality, the first year in any business is hard, franchise or not. When you buy a franchise, it is almost guaranteed that you will work harder and make less during that first year. The franchisor will do what they can to help you but, in the end, it is about you. You are in charge of building up your business to become profitable. You are responsible for your own success.

    All successful business owners learn from their mistakes, but the very best always do their due diligence and avoid many potentially catastrophic mistakes in the first place. Which kind will you be?

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    Rick Bisio

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  • Wisconsin Fast Food Location Bans Unsupervised Minors | Entrepreneur

    Wisconsin Fast Food Location Bans Unsupervised Minors | Entrepreneur

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    A restaurant in Waukesha, Wisconsin, is not having it when it comes to “unsupervised minors,” so much so that they’re banning them from dining there in the first place.

    Taco John’s is going viral after posting a colorfully worded notice on its door condemning kids for a slew of unruly behavior including “stealing soda, stealing condiments, leaving huge messes” and being rude to staff and in the lobby area.

    Related: ‘It Was Alarming’: Restaurant Charges Family With Children $50 Fee, Lists Reason as ‘Adults Unable to Parent’

    “We now collectively made the decision and have a new policy in place,” the sign from management reads, stating that all children under 18 must be accompanied by an adult to enter the lobby area of the restaurant. “As this is unfortunate for the minors who were [respectful] and well-mannered, this is a decision we made and did not make lightly.”

    The restaurant manager said that the incidents in question involved middle school-aged kids from Les Paul Middle School, which is located just across the street, per local outlet FOX 6.

    The manager also said that police have not had to be called in light of the incidents.

    The restaurant isn’t the first to stand against minors disturbing the peace.

    Related: ‘These Fees Are Getting Out of Hand’: Diner Claims She Was Charged 5% Fee At Restaurant to Support Employee Health Care

    Just two months ago, Toccoa Riverside Restaurant in Blue Ridge, Georgia, sparked outrage when a photo of its menu made its rounds on Reddit, which noted that customers would be hit with a surcharge for “adults unable to parent” if children at the restaurant misbehaved.

    Taco John’s did not immediately respond to Entrepreneur’s request for comment.

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    Emily Rella

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  • AI Drive-Thru Tech Is Secretly Powered by Humans | Entrepreneur

    AI Drive-Thru Tech Is Secretly Powered by Humans | Entrepreneur

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    Artificial intelligence has been hailed as a game changer for many sectors, including the restaurant industry, which has dealt with soaring labor costs over the past decade.

    The promise of using AI to lower labor costs is particularly appealing for fast-food restaurants with drive-thrus, where up to 14% of orders were placed inaccurately in 2023, according to a study from Intouch Insight. Fast-food chains, including Wendy’s, have started using in-house or outsourced AI tech to take drive-thru orders.

    RELATED: How the NLRB’s New Joint-Employer Rule Will Affect Franchisees and Franchisors and Redefine Franchise Relations

    But according to new SEC filings from Presto Automation Inc., a major player in the AI-ordering game, “off-site agents” actually help ensure order accuracy in more than 70% of customer interactions, Bloomberg reported.

    Presto’s sales pitch to its clients, which include Del Taco, Carl’s Jr. and Checkers, is that utilizing its tech to take drive-thru orders will free up workers to prepare food. It claims its “friendly, human-like AI voice assistant is available 24/7, always operates at peak efficiency, and never forgets to upsell.”

    But it turns out the company is using a critical tool to ensure order accuracy — humans. It employs off-site employees in countries including the Phillippines to double-check orders in more than 70% of cases, according to Bloomberg. The company told the outlet in an email that this process “helps train its system and should reduce human intervention over time.”

    “It highlights the importance of investors really understanding what an AI company can and cannot do,” Brian Dobson, an analyst for Chardan Capital Markets, told Bloomberg.

    Presto, which was founded in 2008, went public in September 2022. Its tech is used in more than 400 restaurants. The company’s stock fell more than 10% as of Friday afternoon.

    Related: Can Presto Automation Bring AI to the Drive-Thru?

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    Entrepreneur Staff

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  • Franchise vs. Independent Business? 12 Experts Weigh the Options | Entrepreneur

    Franchise vs. Independent Business? 12 Experts Weigh the Options | Entrepreneur

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    When it comes to venturing into the world of entrepreneurship, aspiring business owners often find themselves at a crossroads: Should they embark on the journey of establishing an independent business from scratch or consider the path of franchising an existing brand instead?

    Each option has its unique advantages and disadvantages, making the decision a pivotal one for any business owner. Franchising offers the allure of a proven business model, while independent businesses grant autonomy and creative control.

    To shed light on this decision-making process, let’s hear from industry experts and successful entrepreneurs who highlight why franchising may just be the right decision for you.

    Related: Franchise Legalese Defined — A Deep Dive Into Franchising Definitions

    Startup and ongoing support are paramount

    “I believe the greatest resources we offer are the initial training and the continuing education opportunities to keep learning and growing. With a franchise, you’re never starting from scratch. There’s a business model with processes and procedures to follow,” explains Jimmie Meece, Brand President at America’s Swimming Pool Company.

    Screenmobile’s Brand President and Co-Founder, Scott Walker, agrees: “Franchises with a national footprint provide products, services and education to franchisees that an individual operator wouldn’t have the expertise to offer. At Screenmobile, we teach franchisees about screening products and how to purchase, sell and install them. We don’t expect new franchisees to have a ton of experience day one, which is why our ‘Screen School’ continues to be one of the biggest reasons entrepreneurs invest in us.”

    As the Chief Experience Officer of Hand & Stone Massage and Facial Spa and the President of the National Association of Spa Franchises, Cindy Meiskin believes internal support is a key to success. “Whether you are a first-time operator or a seasoned business owner, franchising with a spa allows you to receive the internal support to thrive.”

    Accelerated path to growth

    “When joining our system, our franchisees not only reap the benefits of experienced marketers and leaders within each individual company, but they also gain the resources of the entire portfolio should they want to grow their business and diversify down the line. Being able to grow your business offerings within a portfolio is a huge benefit that entrepreneurs sometimes overlook,” explains Chief Growth Officer of Authority Brands Heather McLeod.

    Access to a proven business model

    “While operating an independent business does allow business owners to have their own creative license, they will have to start from the ground up when it comes to building their brand’s identity and credibility to consumers,” says Katie Dills, Brand President of The Cleaning Authority.

    Todd Houghton, President of Homewatch CareGivers, adds, “When choosing a franchise model, an entrepreneur should look for companies that offer advantages like established brand recognition, proven business models and continuous support.”

    Related: Your Ultimate Research Guide to the Crucial Steps Before Buying a Franchise

    “The old saying about franchising is true,” says Steve Jackson, the President and CEO of Hungry Howie’s. “Be in business for yourself, not by yourself. You’re able to buy into a proven concept with a system and follow a team of experts in the industry. This includes development support for all aspects of opening your location, including site selection, architecture plans and store layout and equipment selection.”

    Access to experts

    “When you join a franchise, you have access to a variety of industry experts who are dedicated to continuously evaluating and enhancing the brand’s systems and processes to ensure continued growth and achievement,” says The Cleaning Authority’s Katie Dills. “After all, the success of a franchise owner will always be the franchisor’s number one priority.”

    Site selection assistance

    “In today’s competitive real estate environment, franchise owners benefit from having the support of a brand team that helps them make good site selection decisions. Smart franchisors are offering quality analytic tools, a high level of real estate resources and real estate executives that are knowledgeable about their brand and the industry in general,” says Phil Russo, Vice President of Real Estate at Captain D’s.

    Invaluable tools and software

    “A major benefit of franchising is the wealth of tools available from the franchisor to help run the business,” says Larry Amos, President of DoodyCalls. “For instance, our DoodyCalls team created PoopNet, a proprietary system that integrates all aspects of the business, from customer interactions to billing and payments. It’s more than just a web portal for our franchisees. It’s a comprehensive platform that helps propel their growth in a more accessible way and makes their life — and the customer experience — much easier. An independent business owner who may not have access to this type of software can spend valuable time and money researching resources, trialing software and cobbling together different, expensive programs to meet every need.”

    Related: What Franchises Need From an Accountant

    “[With a franchise], you’re equipped with supply chain, legal, accounting and most imperatively, technology support,” says Steve Jackson of Hungry Howie’s.

    Improved and tested marketing

    “Franchise owners enjoy the best of both worlds when it comes to marketing benefits,” says Sean Hart, Vice President of Franchise Development at Always Best Care. “They operate a small, local business yet can capitalize on the brand presence of a much larger company.”

    Economies of scale and negotiating power

    Lance Sinclair, President of Benjamin Franklin Plumbing, One Hour Heating & Air Conditioning and Mister Sparky Electric, agrees. “Converting a business into a franchise is often driven by enhancing buying power. Buying in larger quantities allows us to negotiate better deals, establish relationships with reputable suppliers and offer competitive pricing. Not only does buying power impact equipment and material costs, but it extends into administrative areas like office supplies and health insurance. At the end of the day, lower costs and competitive pricing lead to healthier profit margins, contributing to the overall success and sustainability of the franchise.”

    Related: 23 Questions to Ask a Franchisor When You Meet Face to Face

    Utilize a franchise network

    Carlos Hesano, CEO and Co-Founder of DRYmedic Restoration Services, shares, “Working with a franchise allows franchisees to utilize a bigger network and team. The more locations and team members available, the greater the ability is to meet demand. Being part of a franchise with a broader network will help business owners reach a larger customer base, resulting in quickened response times and more potential revenue opportunities.”

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    Clarissa Buch Zilberman

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  • McDonald's Is Completely Changing Its Burgers in 2024 | Entrepreneur

    McDonald's Is Completely Changing Its Burgers in 2024 | Entrepreneur

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    McDonald’s is making major changes to its beef.

    A spokesperson for the fast-food chain told the Wall Street Journal the new burgers have over 50 modifications to its current patties.

    The new burgers were first tested in Australia and began rolling out to McDonald’s West Coast and Midwest markets earlier this year. The new burgers ar expected to be available nationwide by 2024.

    Related: Burgers Were Once 15 Cents at this Oldest Operating McDonald’s

    The new burger patty has been in the works at McDonald’s HQ in Chicago for over seven years. Chef Chad Schafer said the chain’s current patties are “kind of dry.”

    “We can do it quick, fast, and safe, but it doesn’t necessarily taste great. So, we want to incorporate quality into where we’re at,” said Chris Young, McDonald’s senior director of global menu strategy, per the outlet.

    In addition to the patty, other changes are on the way for the chain’s beloved signature burger, the Big Mac.

    The Big Mac’s classic sesame seed bun is being swapped for “buttery brioche,” and the burger will get more special sauce for a “meltier” culinary experience, according to the chain.

    Related: A McDonald’s Menu Item Is a Billion Dollar Brand—On Its Own

    McDonald’s is coming off of a strong Q3 2023 after revenue increased an impressive 14% quarterly, with same-store sales in the U.S. increasing 8.1%.

    The fast-food chain was up just over 4.59% year over year as of Friday afternoon.

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    Emily Rella

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  • 5 Pawsitive Side Hustles to Fetch Extra Income | Entrepreneur

    5 Pawsitive Side Hustles to Fetch Extra Income | Entrepreneur

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    For many pet lovers, turning their passion for animals into a profitable side hustle is a dream come true. It helps that the pet industry continues to flourish, with Americans spending over $136 billion on their pets in 2022, according to the American Pet Products Association.

    If you’re considering diving into the world of entrepreneurship with a side hustle, franchising in the pet industry could be a “paw-some” choice.

    But with every business-related decision, make sure to do your due diligence in franchise research and reflect on what may be the best possible business opportunity for you. To get started, here are five pet-related franchises to consider, ideal for combining your entrepreneurial initiative with your love for animals.

    Related: This Founder Launched a Kickboxing Gym Staffed by All Women During The Pandemic — Now It’s Been Acquired by Mayweather Boxing

    1. DoodyCalls

    We don’t always think about the stinky side of pet ownership—but believe it or not: it’s a side in which you can use your entrepreneurial spirit. DoodyCalls is a mobile pet-waste management company that offers a low overhead, passive income opportunity that can be managed at any time of the day.

    This allows franchisees to cater to a wide range of clients, providing a much-needed solution for pet owners who love their dogs but dislike or are not able to clean up after them. Aided by Authority Brands, DoodyCalls has the resources needed to own a business, including training to not only prepare franchise owners but also support franchise owners year-round.

    2. Aussie Pet Mobile

    If you have a knack for making pets look their best and you want to be an entrepreneur on the go, then a mobile pet grooming franchise like Aussie Pet Mobile may be the perfect fit.

    Aussie Pet Mobile prides itself on providing flexible, quality and expert grooming care services to their clients—and as a franchisee you will be joining the largest brand in mobile pet grooming. Franchisees are equipped with a protected territory, ample training and support, the grooming van and all you need to scale your business.

    Related: 10 Tips to Go From Employee to Boss, From Franchisees Who Did It

    3. Zoom Room

    Trying to stay away from costly boarding or doggy day care facilities? Then Zoom Room could be a good fit. Zoom Room is an elite indoor dog training franchise that focuses on expert training, socialization and selective pet product sales.

    What sets Zoom Room apart as a franchise, however, is its focus on low startup and ongoing overhead costs, making it ideal as a side hustle.

    Zoom Room requires a smaller facility footprint than other pet-related franchises, and since owners accompany their dogs at all times (at the end of the day, you are training people, not just dogs), there may be less liability associated with your venture.

    4. Pet Supplies Plus

    You may not initially associate a pet supplies store with being a side hustle. In fact, pet supplies stores will probably involve a heavier initial investment than a mobile grooming business would. But once you get a Pet Supplies Plus franchise off the ground, you will reap the benefits as if it were a side hustle. Combine your passion for animals with a full service supply store with proprietary products, a streamlined shopping experience and a grooming facility to build out your franchising aspirations. Pet Supplies Plus is a proven, award-winning brand that wants to set its franchisees up for success from the get-go.

    5. Woof Gang Bakery & Grooming

    Are you a foodie and an animal lover? You can combine those two passions with a Woof Gang Bakery & Grooming franchise. At Woof Gang Bakery & Grooming, a simple pet grooming experience is transformed with a large selection of treatments accompanied by high-end tasty treats.

    Woof Gange Bakery & Grooming will set you up for success with local and national marketing support, pre-opening support (like creating a business plan) and on-the-job training.

    Related: Find Out Which Brands Have Ranked on the Franchise 500 for Longest, Earning a Spot In our New ‘Hall of Fame’

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    Clarissa Buch Zilberman

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  • Black Friday Sale | The Best Business Books Are 50% Off | Entrepreneur

    Black Friday Sale | The Best Business Books Are 50% Off | Entrepreneur

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    Our Entrepreneur Bookstore Black Friday Sale is happening now for a limited time! Get anything in our bookstore for 50% off – you will find books for as low as $4.99. There isn’t a better deal anywhere else.

    Use code BFSALE23 at checkout to save big on Books that will help you:

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    Entrepreneur Staff

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  • Woman Accidentally Tips $7K on Subway Sandwich | Entrepreneur

    Woman Accidentally Tips $7K on Subway Sandwich | Entrepreneur

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    Automatic tipping prompts have been wildly unpopular with customers at popular chain restaurants, but sometimes, human error can mean leaving an even bigger tip than the machine prompts.

    This was precisely the case for Subway customer Vera Conner, who accidentally left a $7,105.44 tip on a $7.54 sandwich at a Georgia location of the chain.

    Conner, who paid using a Bank of America credit card, accidentally input the last six digits of her cell phone number, thinking she was earning Subway loyalty points. But the screen had in fact asked her to enter the amount she wanted to leave for a tip.

    Related: Starbucks Customers Are Furious Over New Digital Tipping System

    “When I looked at my receipt, I was like, ‘Oh, my God!’” Conner told NBC News. “Who would leave a tip like that?”

    The charge, which Conner made on October 23, took nearly a month to reverse, which only happened after she made trips to the Subway store and bank and disputed the charge with Bank of America, which was initially denied.

    “You hear all the time that you should use your credit card instead of your debit card so that these things don’t happen,” she told the outlet. “I’m even getting mad at the bank, because I’m like, ‘How did they not think $7,000 was suspicious at Subway?’”

    On Monday, the bank issued a temporary credit for the charge, but Conner noted that she will no longer be using the loyalty rewards app.

    A spokesperson for Bank of America told the New York Post that the company “asked Subway to refund the money to the client and we’re please[d] they have agreed to do so.”

    Subway did not immediately respond to Entrepreneur‘s request for comment.

    Related: Oklahoma Man Charged $4,500 at Starbucks After Tipping Error

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    Emily Rella

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  • Mastering Franchise Growth Through Savvy Marketing | Entrepreneur

    Mastering Franchise Growth Through Savvy Marketing | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Growing a franchise can be hard work. You have to think about corporate sales and marketing, as well as providing for the franchisees. Marketing strategies typically land in one of the following categories:

    1. Corporate marketing programs
    2. Corporate marketing programs for franchisees
    3. Additional marketing programs offered through corporate for the franchises

    Each category above takes a lot of work, and you should not focus on just one because they all work together.

    Related: 20 Ways to Master Your Personal Brand on LinkedIn in 2024 and Beyond

    Corporate marketing programs

    When I say corporate marketing, I mean marketing just from the business-to-business perspective. Basically, we are trying to attract more franchisees to the franchise. One of the main draws to any franchise is that there will be demand for business due to the brand credibility in the consumers’ eyes. Here are some of the things to consider when developing your marketing strategy:

    • Have a location-based strategy. Almost all franchises have some kind of location element. That means all of your marketing strategy should be tied to location. On the corporate level, you’ll want to focus your efforts on the regions that you are trying to build out first. For example, you may start in Southern California, expand to Northern California and then to Arizona.
    • Use online and offline marketing methods. When you do this, you need a good mix of online and offline marketing to build the brand and take the location by storm. For example, consider SEO, yellow pages, social media ads, billboards and sponsorships.
    • Get on lists. Large business sites, such as Entrepreneur, have lists of franchise opportunities. Many of these lists are industry-specific, and will often state the best franchises to own at any given time. As part of the franchise-marketing strategy, it is a great idea to get on these lists.
    • Get them into a funnel. People research franchise options heavily before purchasing one. One of the most important things you can do is get them into a funnel. Now, this can be some type of drip campaign using a tool like Infusionsoft or just a basic MailChimp email newsletter. Either way, you need to stay on their radar after you have captured their email and other actionable information.
    • Make your brand glow. Not all of the marketing needs to be direct response. Keep in mind that people need to really like the brand. They need to feel as though the franchise is greater than their current business. Invest in great creative, a nice website and plenty of positive marketing to make people proud to invest in a franchise.
    • Have a strategy to target similar businesses. This is different for every type of franchise, but one of the main ways some franchises acquire new franchisees is by going into a non-franchise’s business and doing a presentation about why they should switch over. This demands a great deck, plenty of supplementary marketing materials and a sales team.

    Related: 11 Marketing Trends That We Think Will Not Go Away Anytime Soon

    Corporate marketing programs for franchisees

    Outside of doing marketing to acquire franchisees and build the brand, it is also a good idea to have marketing services on the franchise level. This will need to be budgested as an expense per franchise (and the cost all depends on the franchise and the needs), and it will be highly targeted to the individual location. If possible, there should be one standard package and other larger packages which franchisees can contract directly for.

    • You will need a baseline program. The baseline program should be provided by the franchise, but it can come out of a franchise fund. Generally, franchises will vote on a marketing program and budget at annual meetings. This would then get allocated to these programs.
    • The program should be location specific. The baseline program needs to be very location specific. Online is a given, but if there are offline elements, such as billboard, direct mail or radio advertisements, then those need to be very targeted.
    • You should have options to upgrade. When creating the options to upgrade, you want to make sure they are all somewhat affordable for the franchisees. Options should then be priced in a general range that makes sense across the board versus pricing differently per region.
    • Work with an experienced agency. To build out this type of system internally is very tough. Especially if you are a new franchise with a small team. You need expert and experienced personnel. In most cases, it is a good idea to bring on an agency with heavy local advertising experience and, of course, franchise experience.

    Related: 8 Ways Social Media Use Can Backfire on Your Personal Branding

    Additional marketing programs

    Some franchisees will only own one or two franchises, but others will own five, ten or more. When this is the case, the franchisee will most likely consider their franchises as their own business. A franchise needs to have an agency they can trust to provide custom solutions to these type of owners. Make sure you have a solution for them that is dependable and can get them the results they are looking for.

    Issues to be aware of

    Two of the largest issues in marketing are communication and reporting. It is critical to be able to create a lot of reports, send them to franchises and have them be able to interpret it correctly. It is also important to have an open line of communication and excellent customer service. Without it, the value might not be fully understood. Marketing can get pretty complicated, especially digital marketing, so things like webinars and presentations are key to ensure there is ample understanding across all parties.

    Mix it up

    Smart marketing strategies will be a mix of attracting potential franchisees, assisting your franchisees in their day-to-day marketing efforts and helping your franchisees feel independent when needed. Regardless of your exact marketing strategy, your goal should be to attract franchisees and boost corporate credibility.

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    John Lincoln

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