How to ‘McMafia’ your business: the key to a successful franchise
Happy New Year to you all! You might have spent the first day of the year nursing a hangover and watching the new BBC One crime series entitled ‘McMafia’. The show’s name was coined in respect of a criminal organisation who managed to, very successfully, extend their network across the world through incredibly engaging a franchise model that was very similar to that of the world’s most preeminent franchise - McDonalds.
Whilst we do not advocate the use of any such criminal activities in your franchise, we thought it may be useful to start the year with providing some helpful tips that assisted McDonalds to become the franchise behemoth it is now.
Be Consistently Consistent!
A key business ethos of McDonald’s from its origins is that no matter if you walk into one of their restaurants in Moscow to Mumbai you will have the same experience in terms of menu choices, customer service and restaurant layout and design.
If your franchise is in the food retail sector this is particularly key as it puts an onus on the customer knowing that they can expect the same high quality experience in whichever of your franchise businesses they walk into. We would recommend that you ensure that you review and constantly update your Operations Manual as this is the essential ‘bible’ to how to successfully and consistently run your franchise from top to bottom for franchisees.
Make changes to your business to adapt to consumers ever changing tastes
McDonald’s has been much derided through its existence for being very unhealthy option in the fast food market which did lead to a decline in modern customers who are ever more health conscious. As a result McDonald introduced healthier options onto their menus and also being more of an ‘ethical’ retailer.
Keep your finger on the pulse as to the current consumer trends in your sector and stay ahead of the curve by taking risks and innovating to keep your franchise fresh. Also listen to your customers and how they can assist you in improving your business.
Retention of good staff
It is a well-known fact that many of the top executives at McDonald’s started out serving customers or in the kitchens. It is essential for a franchise to grow that you surround yourself with staff that have a strong work ethic and understand the business and what you are trying to achieve. The most difficult aspect of franchising your business is trying to find a franchisee that shares your business principles so why not look to recruit staff with one eye on them being the potential franchisees of the future?
Word to the wise
Whilst you might not have illusions of being the next McDonalds it’s always best practice to see how a supremely business model has worked and grown expeditiously over such a long period and take some of those principles to apply to your own franchise.
The Fraser Brown Franchise Team is able to assist whether you are a franchisor or franchisee through the entire franchise process from reviewing the franchise agreements, drafting and negotiating side letters, dealing with disputes that can arise, exiting a franchise agreement, signature guidance, agreement storage and also key date reminders for when the agreement is up for renewal.
If you are interested in any of the topics raised, or for further information, please contact Ketan. Alternatively, you can call to speak to one of the team on 0115 9888 777.