As we celebrate the long holiday weekend with friends & family, Acceler8Success Cafe will be “closed” for normal business. However, over the next few days I will share several lists of the Cafe’s popular articles with links so you have an opportunity, as time allows to get in some weekend reading. By the way, I would love to know some of your favorite articles at Acceler8Success Cafe so please, do share!
Make it a safe and joyous weekend. Make it happen. Make it count!
We often hear about entrepreneurs being incessant about working long hours, never taking a day off, missing family functions, and essentially not having lives outside their own minds, and their work. Many have asked me if all of that is true?
Do you have what it takes to start a business, to be an entrepreneur?
Being an entrepreneur requires a combination of vision, creativity, risk-taking, adaptability, resilience, leadership, financial management, networking, and passion. While not every entrepreneur will possess all of these characteristics, having a strong foundation in these areas can greatly increase the chances of success.
Why Reading and Learning Matters for Entrepreneurs
Reading and learning can help entrepreneurs develop their critical thinking skills. By exposing themselves to different ideas and perspectives, entrepreneurs can challenge their own assumptions and beliefs, leading to more informed decision-making.
Maintaining a Healthy Work-Life Balance is Crucial for Entrepreneurs
Maintaining a healthy work-life balance is crucial for entrepreneurs to achieve long-term success and happiness. Setting boundaries, prioritizing family time, scheduling downtime, delegating tasks, and planning ahead can help entrepreneurs stay organized, productive, and present during weekends and family time.
The future may be a bit bumpy for some, more so for others. Knowing who to turn to and when to turn to for guidance and help is important. Having resources at your disposal is also important. So, if you hit a wall, for whatever reason, please feel free to reach out to me for assistance or even if you just need someone to talk to. Please do not hesitate.
You can reach me via a LinkedIn message, by email to Paul@Acceler8Success.com, and by phone or text at (832) 797-9851.
Learn more about Acceler8Success Group at Acceler8Success.com and Entrepreneurship411.com.
Franchising is an excellent way to expand a business while minimizing risk, and it is no wonder why so many companies choose to franchise their brand. However, for franchise sales staff, it is essential to know how to correctly discuss and present the franchise opportunity.
We refer to this as Franchise Sales Due Diligence. It is a process that we believe complements the franchise candidate’s due diligence. Basically, it’s closing the loop on due diligence, the first true step toward developing an interdependent relationship between Franchisor and Franchisee. To that end, here are several key points franchise sales staff must keep in mind when in discussions with interested individuals:
It is imperative to be fully transparent and honest about the initial costs and time requirements involved in starting a franchise. This includes discussing the initial franchise fee, ongoing royalties, and any other fees that may be required. Being transparent about the costs involved from build-out to grand opening marketing to the amount of working capital needed, will help potential franchisees make an informed decision about whether the opportunity is right for them, and if it is, whether a partner may be needed. Also, time requirements through site selection and up to and through grand opening including the time commitment necessary (including time away from work) for training must be fully understood.
It is important to understand the goals and aspirations of potential franchisees. This includes understanding their financial goals, personal goals, and career aspirations. Understanding what the franchisee hopes to achieve by owning a franchise will help the franchise sales staff match the individual with the right opportunity whether as a single-unit or multi-unit franchisee, or area developer. Consideration must also be given to whether the potential franchisee will be able to commit full-time to the endeavor or will have a manager, partner or family member operate the business.
It is necessary to know or learn about the local market where the potential franchisee is interested in opening his or her franchise business. This includes an understanding of the competition, the local economy, population trends, and any local laws or regulations that may affect the business. Knowing all that can be learned about the local market is important in helping the franchise sales staff determine whether the franchise will be successful in that market and whether the development of additional franchise locations will be possible.
It is crucial to explain what the franchisor expects of its franchisees and what franchisees should expect from the franchisor. This includes a frank discussion about responsibilities and obligations, and how working together in an interdependent relationship will be instrumental toward the success of the franchisee’s business and that of the brand. Serious consideration must be given as to whether the relationship is a right fit for all parties to the franchise agreement.
Now that it’s understood what franchise sales staff must keep in mind when working with interested parties and discussing the franchise opportunity, extensive knowledge about the brand is equally important. Listed below are several additional points for franchise development staff:
Franchise sales staff must have a comprehensive understanding of all items within the franchise disclosure document. The FDD is a legal document that contains essential information about the franchise system, including the franchisor’s financial statements, litigation history, and franchisee obligations. Franchise sales staff should be able to explain each item in the FDD in detail and answer any questions that prospective franchisees may have.
Franchise sales staff must fully comprehend Item 19 of the Franchise Disclosure Document (FDD). Item 19 is the financial performance representation section of the FDD, which outlines the financial performance of the franchise system. Prospective franchisees rely on this information to make informed investment decisions. Franchise sales staff should be able to explain the financial performance data in Item 19 in detail, including any assumptions or limitations.
Franchise sales staff must have thorough knowledge of the franchise system’s business model, including how franchisees make money. Prospective franchisees want to know that they are investing in a system that has a proven business model that can generate revenue AND profits. Franchise sales staff should be able to explain the key drivers of revenue and profitability for the franchise system, as well as the potential pitfalls that may hinder profitability.
Franchise sales staff must have a deep understanding of the particulars of the franchise system. This includes the supply chain, marketing, social media, and training and support. These are all critical components of the franchise system that can impact the success of its franchisees. Franchise sales staff should be able to explain how each of these components works and how they support the success of each franchisee individually, as a group within a local market or region, and all together as a brand.
It is essential for franchise sales staff to have full understanding, comprehension, and knowledge of all details and aspects of the franchise system. Whether about the business model or financial performance representation or any particulars of the franchise disclosure document, franchise sales staff must also possess the ability to explain and answer any questions about the brand and the franchise opportunity, and with full transparency.
At the end of the day, franchise sales staff play a critical role in the success of the franchisee and ultimately, the franchise system. By committing to the various points listed above, franchise sales staff can set the stage for stronger franchise relationships while contributing to the likelihood of success for the brand.
Make it a great day. Make it happen. Make it count!
Resources & Support
The future may be a bit bumpy for some franchise brands, more so for others. Knowing who to turn to and when to turn to for guidance and help is important for franchise leaders and key team members alike. Having resources at their disposal is also important.
So, if challenges are apparent or if trouble is on the horizon, or for whatever the situation, please feel free to reach out to us for assistance or even if you just need someone to talk to. Please do not hesitate. You can reach us via a LinkedIn message, by email to Paul@Acceler8Success.com, and by phone or text at (832) 797-9851.
Individuals may explore franchise opportunities as transitioning executives or when seeking a way to achieve their wishes, hopes, and dreams for many reasons. Mostly, franchising is explored because of a perceived sense of security and confidence that a proven brand is expected to provide.
There is a plethora of information online about franchising and what should be expected when exploring and moving forward under a franchise agreement. But do franchisors and individuals at various levels of leadership truly understand the franchise relationship and what franchisees expect AND need to succeed?
Assuming nothing, let’s simply define the franchise relationship as a guide for the many individuals responsible for ensuring franchise success from the day the franchise agreement is executed and the franchise fee is remitted. This is something brand leadership should ensure everyone in the organization fully understands to effectively support the franchise relationship.
Simply defined, the franchise relationship is a business model that involves a franchisor (the parent company) granting the rights to use its trademark, brand name, proven business model, and support systems to a franchisee (the business owner) in exchange for an initial fee and ongoing royalties.
Franchising is meant to provide a mutually beneficial relationship between the franchisor and the franchisee. The franchisor benefits by expanding its business without incurring the capital costs, and the franchisee benefits by starting a business that already has a proven track record.
Before moving forward I’d like to pose the following question for senior franchise leaders to ponder: If each support member in your organization were given a test on the following, how many would fail? And one question for the same franchise leaders, would you pass this test, and with a perfect score?
Legal Agreement
The franchise relationship is governed by a legal agreement between the franchisor and franchisee. This agreement outlines the terms and conditions of the relationship, including the rights and obligations of both parties.
The legal agreement should be reviewed carefully by both parties, including all providing support to franchisees to ensure that they understand their obligations under the agreement. The franchisee should engage with a business attorney to help them understand the agreement and especially the repercussions and obligations should the agreement be in default or terminated.
Franchise support staff should also understand the agreement and specifically how their roles and responsibilities align with the agreement. All should be done to manage expectations with mutual understanding of what should be done and what can be done to move the relationship along for mutual benefit.
Interdependency between Franchisor and Franchisee
The franchisor and franchisee have a symbiotic relationship. The franchisor provides the franchisee with a proven business model, training, marketing materials, and ongoing support, while the franchisee operates the business under the franchisor’s established brand name.
Franchisees rely on the franchisor for the ongoing support necessary to maintain and grow their businesses. For example, the franchisor may help with site selection, training, operations, and marketing. Franchisees are also expected to follow the franchisor’s guidelines for quality control, branding, and operations.
Proven Model
The franchisor has already established a successful business model, which provides the franchisee with a proven track record. This track record can help to reduce the risk associated with starting a new business.
The franchisor should provide the franchisee with access to data and information that demonstrates the success of the business model. This information can help the franchisee to make informed decisions about the business and to develop a business plan that is tailored to the local market.
Trademark and Brand Recognition
The franchisee is granted the right to use the franchisor’s trademark and brand name, which provides the franchisee with immediate recognition in the market. This recognition can help the franchisee to attract customers and build a loyal customer base.
The franchisor maintains control over the use of its trademark and brand name to ensure that the franchisee is using them in accordance with the franchisor’s guidelines. This control helps to protect the franchisor’s brand reputation and ensures that the franchisee is operating the business in a manner that is consistent with the franchisor’s standards.
Support and Training
The franchisor provides support and training to the franchisee to ensure that the franchisee understands and can operate the business effectively. The support provided can include everything from marketing assistance to ongoing training to access to proprietary technology.
Training is an essential aspect of the franchise relationship. It ensures that the franchisee understands the franchisor’s business model and how to operate the business effectively. The franchisor should provide initial and ongoing training to the franchisee to ensure that the franchisee is up to date on the latest developments in the industry.
Technology
Technology plays an essential role in franchising. The franchisor provides the franchisee with access to proprietary technology that has been developed and refined over time. This technology can include everything from point of sale systems to inventory management systems.
The franchisor should also provide ongoing updates to the technology to ensure that franchisees are using the latest and most efficient systems available.
Marketing
The franchisor is responsible for developing and implementing marketing strategies that support the brand and drive traffic to the franchisee’s business. The franchisor should provide the franchisee with marketing materials and support that can help the franchisee to promote the business in the local market.
Let’s Recap
The franchise relationship provides a mutually beneficial business model for both the franchisor AND the franchisee. The franchisor benefits from the expansion of its business without incurring capital costs, while the franchisee benefits from starting a business that has a proven track record and ongoing support from the franchisor.
The interdependency between the franchisor and franchisee is critical to the success of the franchise relationship. The franchisor provides the franchisee with support and training, access to proprietary technology, trademark and brand recognition, a proven business model, marketing support, and a legal agreement that governs the relationship.
The franchise relationship can be an excellent opportunity for entrepreneurs to start their own businesses while minimizing the risk associated with starting a new business from scratch. As well, it is an equally excellent opportunity for franchisors to expand their franchise system faster and wider than its financial resources may afford.
However, as important as it is for franchise candidates to thoroughly research the franchisor and the industry before investing in a franchise to ensure that it is the right fit for their skills, goals, and financial resources, it is equally important franchisors know and understand their own franchise system.
Specifically, it must be understood what is expected and what must be provided to ensure franchise success… and that starts with understanding all aspects of the franchise relationship as it is detailed in their own franchise agreement.
Make it a great day. Make it happen. Make it count!
Resources & Support
The future may be a bit bumpy for some, more so for others. Knowing who to turn to and when to turn to for guidance and help is important. Having resources at your disposal is also important. So, if you hit a wall, for whatever reason, please feel free to reach out to us for assistance or even if you just need someone to talk to. Please do not hesitate. You can reach us via a LinkedIn message, by email to Paul@Acceler8Success.com, and by phone or text at (832) 797-9851.
Learn more about resources and support for franchise and restaurant brands at Acceler8Success.com. If you’re interested in coaching for current and aspiring entrepreneurs, please visit Entrepreneurship411.com.
The restaurant industry is a vast and diverse sector that offers a wide range of opportunities for entrepreneurs and investors looking to start their own business. One popular option is becoming a multi-unit franchise restaurant operator, which involves owning and operating multiple franchises of a particular restaurant brand.
Becoming a multi-unit franchise restaurant operator has several pros and cons that potential operators should consider before making the leap. In this article, we will discuss these pros and cons, as well as the importance of having restaurant or hospitality experience.
Pros of Becoming a Multi-Unit Franchise Restaurant Operator
Proven Business Model: One of the main advantages of becoming a multi-unit franchise restaurant operator is that you are buying into a proven business model. Franchisors have already established a successful business model and have a track record of success. This reduces the risk of failure for franchisees and provides a solid foundation for growth.
Brand Recognition: Another benefit of becoming a multi-unit franchise restaurant operator is the brand recognition that comes with the franchise. Franchisees can take advantage of the franchisor’s established brand name, which can lead to increased foot traffic and sales.
Support from Franchisor: Franchisors typically provide training and support to franchisees, including marketing, advertising, and operational support. This can be invaluable for new franchisees who may not have experience in the restaurant industry.
Economies of Scale: Owning multiple franchises can provide economies of scale, which can result in lower costs for supplies, equipment, and advertising. This can improve profitability and help franchisees to reinvest in their businesses.
Diversification: Owning multiple franchises can provide diversification, which can reduce the risk of failure. If one franchise is struggling, the revenue from other franchises can help to offset the losses.
Cons of Becoming a Multi-Unit Franchise Restaurant Operator
High Initial Investment: Becoming a multi-unit franchise restaurant operator requires a significant initial investment. Franchisees must pay for the franchise fee, build-out costs, and equipment, which can be prohibitively expensive for some individuals.
Limited Autonomy: Franchisees must operate their franchises within the franchisor’s guidelines and rules. This can limit the franchisee’s autonomy and creative control over their business.
Royalty Fees: Franchisees must pay ongoing royalty fees to the franchisor, which can cut into profitability. These fees are typically a percentage of gross sales and can vary depending on the franchise.
Dependence on Franchisor: Franchisees are dependent on the franchisor for support, training, and marketing. If the franchisor is not responsive or does not provide adequate support, it can negatively impact the franchisee’s business.
Increased Responsibility: Owning multiple franchises requires a significant amount of responsibility. Franchisees must manage multiple locations, oversee employees, and maintain consistency across all locations. This can be challenging for individuals without restaurant or hospitality experience.
The Importance of Restaurant or Hospitality Experience
Having restaurant or hospitality experience is essential for becoming a successful multi-unit franchise restaurant operator. This experience provides valuable insights into the industry and can help franchisees to navigate the challenges of owning and operating a restaurant.
Restaurant or hospitality experience can also help franchisees to build relationships with customers and employees. Franchisees who have worked in the industry understand the importance of customer service and employee satisfaction, which can translate into higher sales and lower turnover rates.
Additionally, restaurant or hospitality experience can provide valuable insights into the daily operations of a restaurant. This can help franchisees to make informed decisions about staffing, inventory, and marketing.
Conclusion
Becoming a multi-unit franchise restaurant operator has several pros and cons that potential operators should consider before making the leap. While owning multiple franchises can provide several benefits, including a proven business model, brand recognition, and support from the franchisor, there are also significant drawbacks, such as a high initial investment, limited autonomy, and ongoing royalty fees.
Moreover, owning and operating multiple franchises requires a significant amount of responsibility and can be challenging for individuals without restaurant or hospitality experience. Therefore, having restaurant or hospitality experience is essential for becoming a successful multi-unit franchise restaurant operator.
Ultimately, the decision to become a multi-unit franchise restaurant operator should be made after careful consideration of the pros and cons, as well as an assessment of one’s own skills and experience. If the benefits outweigh the drawbacks and one has the necessary experience and skills, owning and operating multiple franchises can be a lucrative and rewarding business opportunity.
Make it a great day. Make it happen. Make it count!
Resources & Support
The future may be a bit bumpy for some, more so for others. Knowing who to turn to and when to turn to for guidance and help is important. Having resources at your disposal is also important. So, if you hit a wall, for whatever reason, please feel free to reach out to us for assistance or even if you just need someone to talk to. Please do not hesitate. You can reach us via a LinkedIn message, by email to Paul@Acceler8Success.com, and by phone or text at (832) 797-9851.
Learn more about resources and support for franchise and restaurant brands at Acceler8Success.com. If you’re interested in coaching for current and aspiring entrepreneurs please visit Entrepreneurship411.com.
Franchising and the restaurant industry have faced significant challenges in recent years, particularly due to the COVID-19 pandemic. However, there are reasons to be optimistic about their future outlooks.
Franchising
Franchising is a popular model for small business growth in the U.S., and the outlook for franchising over the next five years is positive. Franchising provides entrepreneurs with a proven business model, access to marketing and operational support, and a recognizable brand. The pandemic has highlighted the importance of diversification, and franchising allows small business owners to spread their risk across multiple locations and industries. The rise of digital technology has also made it easier for franchisors to provide training, support, and marketing resources to franchisees.
The 2023 Franchising Economic Outlook is the annual study by the International Franchise Association in partnership with FRANdata detailing the franchise sector’s performance for the past year and projected economic outlook for the year ahead, as well as an in-depth state outlook for all 50 states and Washington, D.C. The report highlights sector growth across eight key franchising business lines and details regional trends, including the top states for franchise growth. It also provides key insights into the state of the U.S. economy, trends in business, and challenges facing small business owners.
Key highlights from the report include:
The overall number of franchise establishments will increase by almost 15,000 units in 2023, or 1.9%, to 805,000 units in the U.S.
Franchising will add approximately 254,000 jobs in 2023. Growing at 3.0%, total franchise employment is forecasted to reach 8.7 million.
The total output of franchised businesses — the measure of total economic activity in nominal dollars — will increase by 4.2% to $860.1 billion in 2023, up from $825.4 billion in 2022.
Franchises’ GDP share of the overall economy will remain stable at 3%. Compared with 2022, franchises’ GDP — the monetary value of all the finished goods and services produced within U.S. borders — will grow at a slightly slower pace of 4.2% to $521.3 billion.
Service-based industries and quick-service restaurants will witness higher growth than other industries.
The restaurant industry in the U.S. has been hit hard by the pandemic, and the outlook for the next five years is uncertain. Restaurants will need to adapt to changing consumer preferences, embrace technology, and focus on providing excellent customer service. The shift to delivery and takeout orders will continue, and restaurants will need to invest in technology to improve efficiency and customer experience. The rise of ghost kitchens and virtual restaurants will also present new opportunities for entrepreneurs looking to enter the restaurant industry.
The National Restaurant Association released its 2023 State of the Restaurant Industry report, which examines key factors impacting the industry including the current state of the economy, operations, workforce, and food and menu trends to forecast sales and market trends for the year ahead. The report is an authoritative look at the industry and its opportunities based on a range of national surveys of restaurant owners, operators, chefs, and consumers.
Key findings illustrating the industry’s economic conditions include:
Growth will continue: The foodservice industry is forecast to reach $997 billion in sales in 2023, driven in part by higher menu prices.
Industry help wanted: The foodservice industry workforce is projected to grow by 500,000 jobs, for total industry employment of 15.5 million by the end of 2023.
Building on a Solid Foundation: For 70% of operators, business conditions have settled into or are on the path to their new version of normal.
Consumers want restaurant experiences: 84% of consumers say going out to a restaurant with family and friends is a better use of their leisure time than cooking and cleaning up.
Rising costs create challenges: 92% of operators say the cost of food is a significant issue for their restaurant.
Competition is heating up: In 2023, 47% of operators expect competition to be more intense than last year.
“The restaurant and foodservice industry are fueling the American economy. Our hiring rate and wage increases are outpacing the overall private sector, and this year our industry will contribute nearly $1 trillion to the economy,” said Michelle Korsmo, president & CEO of the National Restaurant Association. “The 2023 State of the Restaurant Industry report offers an in-depth analysis of what’s driving this growth and the tremendous opportunities for restaurant owners, operators, and team members who want to grow their businesses and expand their careers.”
Overall, the outlook for franchising and the restaurant industry is dependent on a range of factors and can vary over time. While there are challenges, there are also opportunities for growth and success in these industries as outlined in the reports referenced above.
Make it a great day. Make it happen. Make it count!
Resources & Support
The future may be a bit bumpy for some, more so for others. Knowing who to turn to and when to turn to for guidance and help is important. Having resources at your disposal is also important. So, if you hit a wall, for whatever reason, please feel free to reach out to us for assistance or even if you just need someone to talk to. Please do not hesitate. You can reach us via a LinkedIn message, by email to Paul@Acceler8Success.com, and by phone or text at (832) 797-9851.
Learn more about resources and support for franchise and restaurant brands at Acceler8Success.com. If you’re interested in coaching for current and aspiring entrepreneurs please visit Entrepreneurship411.com.
Entrepreneurship can be a rewarding and fulfilling journey, but it can also be incredibly demanding and stressful. Entrepreneurs are often working long hours, making difficult decisions, and facing a range of challenges. While it’s important to work hard and stay focused, it’s also crucial to take time for rest, relaxation, and self-care. Here are 7 “Sunday Suggestions” for entrepreneurs to prioritize mental health, well-being, and work-life balance.
Rest and relaxation are essential for maintaining good mental and physical health. Entrepreneurs who are constantly working and pushing themselves can easily become burned out, leading to fatigue, irritability, and decreased productivity. Sundays can be a great day to take a break and recharge. Whether it’s sleeping in, taking a long walk, or practicing meditation or yoga, entrepreneurs can use Sundays to prioritize self-care and rejuvenation.
Entrepreneurs are often busy with work-related tasks, leaving little time for personal reading. However, reading is a great way to gain new insights, learn about industry trends, and promote cognitive function. Sundays can be a great day to catch up on reading, whether it’s business books, industry journals, or personal interests.
The CBS Sunday Morning TV show is a favorite of many entrepreneurs. The show covers a variety of topics, including culture, art, science, and politics. It’s a great way to start the day with a dose of inspiration and positivity. The show can provide entrepreneurs with fresh ideas and perspectives that they can apply to their businesses.
Family time is crucial for maintaining work-life balance and promoting mental health. Entrepreneurs often have demanding schedules that can make it challenging to spend time with their loved ones. However, Sundays can be a great day to prioritize family time. Whether it’s a family outing, game night, or family dinner, entrepreneurs can use Sundays to connect with their loved ones and create lasting memories.
Rejuvenation is essential for promoting mental health and well-being. Taking time to rest, recharge, and engage in activities that promote self-care can help entrepreneurs approach their work with renewed energy and creativity. Sundays can be a great day to engage in activities that promote rejuvenation, whether it’s practicing yoga, getting a massage, or spending time in nature.
Work-life balance is essential for maintaining good mental health and avoiding burnout. Entrepreneurs who are constantly working and pushing themselves can easily become exhausted and overwhelmed. Sundays can be a great day to reflect on work-life balance and make any necessary adjustments. By prioritizing self-care, family time, and activities that promote rejuvenation, entrepreneurs can achieve their goals while maintaining mental and physical health.
Sundays can also be a great day to plan the week ahead. By setting priorities and goals, entrepreneurs can approach the week with a clear sense of direction and purpose. Whether it’s creating a to-do list, scheduling appointments, or setting deadlines, entrepreneurs can use Sundays to optimize their productivity and achieve their goals.
In conclusion, Sundays can be a valuable day for entrepreneurs to prioritize mental health, well-being, and work-life balance. By taking time for rest, relaxation, family time, and rejuvenation, entrepreneurs can avoid burnout and maintain good mental and physical health. By planning the week ahead and setting priorities and goals, entrepreneurs can approach their work with a clear sense of direction and purpose.
Assistance & Resources
The future may be a bit bumpy for some, more so for others. Knowing who to turn to and when to turn to for guidance and help is important. Having resources at your disposal is also important. So, if you hit a wall, for whatever reason, please feel free to reach out to us for assistance or even if you just need someone to talk to. Please do not hesitate.
You can reach us via a LinkedIn message, by email to Paul@Acceler8Success.com, and by phone or text at (832) 797-9851. Learn more about Acceler8Success Group at Acceler8Success.com.
The importance of being adaptable is to change to survive and thrive in any industry or situation. For restaurant operators (and entrepreneurs, business owners, franchisees), the ability to quickly adapt to new technologies, changing consumer behavior, and market trends is essential for both short-term survival AND long-term success.
It is important for them to embrace change and view it as an opportunity for growth and innovation. They need to be proactive in identifying potential threats and opportunities and develop strategies to mitigate risks and capitalize on emerging trends.
One key approach is to adopt an agile mindset, where they can quickly pivot and adjust their strategies based on changing market conditions. This means constantly testing and experimenting with innovative ideas and being willing to fail fast and learn from mistakes.
Restaurants, as well as businesses and organizations of all sizes need to foster a culture of continuous learning and improvement, where employees are encouraged to acquire new skills and knowledge and embrace change as a catalyst for personal and professional growth. This will enable them to stay competitive and adapt to new challenges and opportunities in the future.
So, as a restaurant operator (or entrepreneur, business owner, franchisee), how are you currently handling change? How do you plan on handling it moving forward?
In the past, business leaders predicted threats and planned responses with a risk-management strategy. Today, however, the nature of risk itself is different… It continues to be right upon us, day after day!
The changes you are implementing today to survive will continue to be necessary through recovery from a period of economic uncertainty, challenging times, inflation, and from the grasp of a [potential or possible] recession. Changes will be key to survival and to future success. Customers and clients will become accustomed to the changes and expect them to continue even if it means the changes may have been implemented in the short term. Change will be a juggling act to manage expectations.
For example, think about the laser-focus on take-out & delivery during the pandemic. Although it might have initially been viewed as a temporary solution, customers have come to expect this to continue as part of regular operations. Anticipating change, implementing change, and adapting to change will help restaurants, and any business to recover faster and stronger – provided processes continue to be perfected and improvements continue to be made along the way.
Despite seemingly being in a continuous mode of survival, restaurant operators (and entrepreneurs, business owners, franchisees) must be thinking about the next steps. They must be looking ahead to the next phases leading toward full recovery lest they fall short and lose the war despite winning [numerous] battles along the way. In a world of continuous change, adapting to change is a necessity.
“Action and adaptability create opportunity.” – Garrison Wynn
It is the start of a new month, a new quarter, and new beginnings. Sure, the past few years have been challenging, but you’re still here working through it, handling whatever was thrown at you, developing and honing survival skills to keep moving forward. Not everyone has been able to accomplish what you have, and for that you should be proud. Now build upon it. You can do it. Yes, you can!
Make it a great month. Make it a great quarter. Make it a great new beginning. Make it happen. Make it count!
Assistance & Resources
The future may be a bit bumpy for some, more so for others. Knowing who to turn to and when to turn to for guidance and help is important. Having resources at your disposal is also important. So, if you hit a wall, for whatever reason, please feel free to reach out to us for assistance or even if you just need someone to talk to. Please do not hesitate.
You can reach us via a LinkedIn message, by email to Paul@Acceler8Success.com, and by phone or text at (832) 797-9851. Learn more about Acceler8Success Group at Acceler8Success.com.
The first quarter of 2023 is coming to an end and many restaurants are reporting a significant dip in sales for the quarter. Seemingly starting to gain momentum in the last two quarters of 2022, what has changed? Isn’t a dip in sales during Q1 somewhat normal? Is it time to panic, or should focus remain on the basics of successful restaurant management?
Surviving as a restaurant during times of economic uncertainty can be a challenging task, but there are several basic strategies that restaurants can use to improve their chances of success. Here are tips to consider:
Focus on improving the customer experience: In today’s competitive market, it’s important to offer more than just delicious food. Restaurants need to focus on providing excellent customer service and creating a welcoming environment. This can include elements such as attentive staff, personalized service, a spotless clean restaurant, and inviting decor.
Develop the right culture: Creating a positive work culture is essential for retaining staff and maintaining high levels of performance. It is imperative restaurant owners strive to foster a culture of teamwork, mutual respect, and a shared commitment to excellence.
Empower staff: Empowering staff members to take ownership of their work and contribute to decision-making can lead to increased job satisfaction and better overall performance. This can be achieved through training, ongoing support, and providing opportunities for growth and advancement.
Engage in community outreach: Establishing strong ties with the local community can help restaurants build a loyal customer base and generate positive word-of-mouth advertising. This can be accomplished through sponsorships, charitable events, or participation in local festivals and celebrations.
Offer high-quality food: At the end of the day, the quality of the food is what will keep customers coming back. Restaurants should prioritize the use of fresh, high-quality ingredients and invest in the training and development of their chefs and kitchen staff.
By following these strategies, restaurants can position themselves for success during times of economic uncertainty. However, it is important to remain adaptable and willing to pivot as circumstances change. By staying focused on the customer experience, developing a positive culture, empowering staff, engaging in community outreach, and providing high-quality food, restaurants can navigate challenging economic times and thrive in the long run.
But is it enough? Well, assuming it may not be enough, what else could or should be done to help ensure success?
Revisiting ‘The New Normal’ for Restaurants
Three years ago, mandated lockdowns pushed restaurants (and other businesses) to shift, pivot or whatever you prefer to call it – just to survive. Sales plummeted almost overnight as dining rooms shut down, forcing restaurant operators to either think outside the box or close temporarily, if not permanently.
At that time, based upon consulting with a number of restaurants facing very desperate situations, I wrote an article, The New Normal that I’m proud to say was picked up by several restaurant and franchise industry publications. The New Normal was the foundation of an aggressive strategic plan we had developed to help restaurants quickly and cost-effectively.
Today, as restaurants (and other businesses) are again facing challenging times, I’ve been revisiting the strategy. We’ve reintroduced it to several of our clients who are quickly seeing positive results. The question that I’m being asked by these operators is, why didn’t we continue with these good practices all along – why did we stop?
The answer points to the fact that as business started to return to normal, operators quickly returned to what they knew as standard operating procedures and pushed the new normal items to the backburner.
However, one of our clients stayed the course and I’m proud to say their revenues are higher than pre-pandemic numbers. Interestingly, this restaurant is experiencing significantly less issues recruiting and retaining personnel than many other establishments. The culture within the restaurant is phenomenal.
Mind you, this restaurant was facing a severe challenge as prior to the pandemic, takeout sales were less than 2% of total revenue with delivery essentially non-existent. Today, takeout and delivery accounts for 16% of its business.
The owner recently told me he’s seeing new customers coming to the restaurant for dinner that had mostly been delivery customers, and ones that hadn’t known about the restaurant pre-pandemic. He further indicated he felt like this was the first new profit center he has realized in many years.
Reverting to the old without integration of new ideas and methods, is essentially putting square pegs into round holes. To think that business should run as it did 2-3 years ago without adjusting to the times is ridiculous. There is no going back, just adapting to the here and now.
Think about it from the standpoint of starting the business today. What would it cost to start the business today? What would your labor costs be if you were starting today? What would your menu prices be if you didn’t know about what they were yesterday or last year? What would your menu look like if you started today? Would you have as many selections as 2-3 years ago? How about the addition of more profitable items and removal of less profitable ones?
The list of questions is long, but the bottom line is they must be asked… AND answered honestly and without prejudice. Operators must be flexible, willing to shift, pivot and adapt quickly, and yes, often – as often as necessary.
To that end, I’ve revisited The New Normal article and strongly believe that the recommendations made back then work well today. Below are those 25 recommendations for restaurants to implement to successfully shift to the here and now.
As they did almost three years ago, these recommendations focus on take-out and delivery. As I’m a firm believer that driving business beyond the walls of the restaurant is key to future success, so some of the items also apply to catering, and yes, even when delivering free meals to businesses, schools, and organizations within the community.
One more word of advice: Don’t pick and choose. Implement as many of them as possible… ASAP!
Reevaluate your menu. Look to highlight items that travel and heat up well and those that look and taste as good upon delivery as they do when served in-store.
Include reheating instructions with all orders.
Create value-added specials for families, like a dinner for four specials with an appetizer, salad, entrée, and dessert.
Add bottled soda to your drink offerings for delivery and take-out.
Stock your restaurant with proper take-out and delivery packaging, including utensils, napkins, and condiments. Do not skimp on bags and boxes.
Create a Thank You item (or items) for customers who support you during the slowest weeks, such as a low-amount gift card for a future take-out/delivery order, a higher-amount gift card for to be used for dining in the restaurant, a hand-written note expressing thanks for their business, or small freebies. Be creative, but remember, a little goes a long way!
Include a business card from the owner or general manager with a note outlining steps customers can take if they are not satisfied. If, and when contacted, act promptly and courteously.
Pay special attention to order taking and checking to ensure accuracy.
Ask about special food preparation requirements.
Add a personal touch by letting customers know the name of the person taking their order.
Phone calls must be answered as promptly as possible and in a professional manner.
Pay attention to how menu items are placed in containers to ensure they look attractive when customers receive them.
Include extra containers of sauces and dressings. When reheated, certain menu items tend to dry out, and customers appreciate the extra items.
Be sure to track all orders and hold delivery drivers accountable.
Follow up with customers after they receive their order — later that day or at the latest, the next morning.
A good rule of thumb for managing expectations is to under-promise and overdeliver.
Include with each delivery a list of future specials and of course, the take-out and delivery menu.
Utilize the restaurant’s loyalty program to communicate with and market to your database of loyal customers.
Create a simple frequent patron program. For example, every fourth order receives $10 off or a 10-percent discount.
Build order tickets by offering a multi-meal discount. For example, place a second or third order at the same time and receive 5 percent or 10 percent off, respectively.
Offer an additional entrée with orders over a certain amount. For example, spend $50 and receive an order of spaghetti & meatballs at no additional charge.
Market on social media with pictures of menu items and specials. Quality of the images matters!
Market on social media with videos of the owner showing cleanliness of the kitchen, food preparation or just offering a personal message of care and thanks. Make it personal!
Document all processes and methods regarding take-out and delivery to incorporate into restaurant operations to enhance business when restaurant is open for dine-in customers.
Communicate, communicate, communicate with staff on changes and progress. Celebrate small wins!
Assistance & Resources
The future may be a bit bumpy for some, more so for others. Knowing who to turn to and when to turn to for guidance and help is important. Having resources at your disposal is also important. So, if you hit a wall, for whatever reason, please feel free to reach out to us for assistance or even if you just need someone to talk to. Please do not hesitate.
You can reach us via a LinkedIn message, by email to Paul@Acceler8Success.com, and by phone or text at (832) 797-9851. Learn more about Acceler8Success Group at Acceler8Success.com.
Make it a great day. Make it happen. Make it count!
Finding the right location for a restaurant can be a significant factor in its success. It is essential to consider various factors such as target audience, competition, visibility, accessibility, and cost before choosing a location.
Target audience: A restaurant’s location should be in an area where the target audience is easily accessible. If the restaurant caters to business executives, then it should be in a business district or near offices. If it caters to families, then the location should be in a residential area with easy access and ample parking.
Competition: The location of the restaurant can determine its competition. Located in an area with several similar restaurants, it may be difficult to attract customers. However, if located in an area with few or no similar restaurants, it may attract more customers.
Visibility: A restaurant should be easily visible from the street or from a busy area. This increases the chances of attracting customers who may not be familiar with the restaurant.
Accessibility: The location should be easily accessible by public transport, car, or foot. Customers should be able to reach the restaurant without difficulty, regardless of their mode of transport.
Cost: The cost of the location should be taken into consideration. The rent or lease should be reasonable and within the budget of the restaurant.
As announced over the past few days, Acceler8Success has partnered with RESOLUT RE to connect its clients to RESOLUT RE’s exceptional market analytics and commercial real estate services teams. Also, the RESOLUT RE team will be providing valuable insight and perspective on real estate related items at Acceler8Success Café, especially as may be related to small business and the franchising, restaurants, and retail industries and industry segments.
So, for today’s topic of site selection for restaurants, I’ve asked David Simmonds, RESOLUT RE president and principal for a list of points to be discussed and questions to be asked of restaurant developers as the search for a location begins. Here is what David had to share:
Most important questions: What is the budget for Rent/Triple-net? Are client expectations realistic about what can be achieved in the market?
How much space is [really] needed? How has this been calculated? Is outdoor seating a preference or requirement? Storage space?
Is the preference for a 2nd generation restaurant space or would new construction or retrofit of retail space be considered? Is there an understanding of the cost for new construction or to retrofit a space?
Are referrals needed for a general contractor/architect/etc.? Has a prototype been developed for a basic layout of the restaurant?
Have equipment specifications been secured, especially to initially understand requirements for electrical and gas services? Vent hood requirements? Grease trap requirements?
Have estimated costs been compiled for furniture, fixtures, and equipment? What about for unique build-out requirements?
Is end-cap space required or will an in-line space suffice? Has a free-standing location been considered? Will a drive-thru be required? What about pick-up accessibility for customers and third-party delivery drivers? Is natural light or direct sunlight a consideration? Are there specific signage requirements?
Will alcohol be offered at the restaurant? If so, have zoning requirements been considered?
What kind of tenant mix is preferred? How much parking will be required during peak restaurant hours and especially in relation to closest tenants with similar hours of operation and peak periods? Will parking options such as valet service or parking nearby be needed?
Have competitors been identified? Is there a preferred distance from competitors? Is there a preferred side of the street for optimum customer access?
Is data available detailing preferred customer demographics? Will the local customer base support the restaurant? Has an ideal drive-time to the restaurant been determined for customers? How about for staff?
As rent is always a function of sales, have sales projections been calculated to ensure rent and associated costs are at acceptable percentage levels?
Has a menu been developed specifically for the location to be shared with property management firm and landlord?
What kind of credit will be provided to secure the lease? Are principals willing to personally guarantee the lease? If so, for how long?
Has a source of funding been secured for the new restaurant? If so, from what source? If not, what is the plan?
Are other restaurants currently being operated by the principals? If so, for how long? For how long have principals been personally involved in the restaurant business?
If you’d like to learn how a strategic partnership with Acceler8Success Group would benefit your organization and the clients it serves, please reach out to us on LinkedIn, by email to Paul@Acceler8Success.com, or, by phone or text at (832) 797-9851.
It’s been said that one plus one often equals more than two if the right partners are joined together. Such a relationship is created to bring out the best in both partners, to enable each partner to focus on its core competencies, and to complement each other… for the benefit of clients being served.
I’m proud to say that such a relationship has been established between David J. Simmonds and myself as we’ve brought together our growing organizations.
I am very excited to partner with David and RESOLUT RE for site selection and most anything related to commercial real estate, especially for restaurant and retail locations. I’m also excited to see our partnership extend to Acceler8Success Cafe as we expand this resource & support platform, of which this daily newsletter is a cornerstone.
Below is the article published yesterday as “Breaking News” announcing the partnership between RESOLUT RE and Acceler8Success Group.
RESOLUT RE and Acceler8Success Group Partner to Revolutionize Franchise Site Selection
Are you a franchisee looking to expand your business or a startup seeking new opportunities for your franchise site selection? If so, you’ll be excited to hear about RESOLUT RE’s latest partnership with Acceler8Success Group, a Texas-based franchise consulting firm.
Acceler8Success Group is comprised of leading franchise and business development professionals who provide guidance in business franchise and restaurant acquisitions and resales as well as new business and franchise development opportunities. The company is under the leadership of CEO and Founder, Paul Segreto, who has over 40 years of franchise executive expertise. Acceler8Success offers a range of core services, including franchise sales and development, startups/emerging brands, franchise systems development, U.S. and international expansion, and brokerage, capital, and funding. Acceler8Success has partnered with RESOLUT RE to connect their clients to RESOLUT RE’s exceptional market analytics and commercial real estate services teams.
“We strongly believe in strategic partnerships in order to provide our domestic and international clients with expertise at all levels, and by certified professionals across multiple disciplines.
These partnerships have allowed us to cultivate a community that benefits all parties involved in a transaction, further exemplifying our goal to connect the right people, brands and opportunities. I’m proud of the relationships we have developed with each of our partners. I’m especially excited about the possibilities ahead!”
This strategic partnership will give Acceler8Success Group clients access to RESOLUT RE’s Market Analytics & Research team with their innovative, data-driven market analysis and site selection process. It is well-known that location decisions can directly impact the success of a franchise business. RESOLUT RE’s proprietary National Platform leads with analytics to ensure the most successful path to growth, with in-depth market insight and understanding to help franchisees make informed decisions about their next move. We use a holistic approach that includes analysis of detailed geo-demographic data, customers, and competitors to produce a cohesive vision to keep your network the correct size, in the right locations, and targeting the right people at the right price points.
Our staff of dedicated market research analysts and executives are armed with proprietary and best-in-class technology and data research tools to provide customized solutions that can easily be applied to a single-site analysis, a national roll-out strategy, or even support real estate expansion plans across international boundaries.
With RESOLUT RE’s expertise in commercial real estate markets nationally and across the globe, and Acceler8Success Group’s extensive knowledge in franchise development, this partnership is set to be a game-changer for franchisees, business owners, and entrepreneurs whether they’re just getting started or seeking to expand their footprint. Find out more by exploring RESOLUT RE’s Market Research Portal and the franchise services of Acceler8Success.
For More Information
If you’d like to learn how a strategic partnership with Acceler8Success Group would benefit your organization and the clients it serves, please reach out to me on LinkedIn, by email to Paul@Acceler8Success.com, or, by phone or text at (832) 797-9851.
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