Expansion Strategies

Developing a realistic and updated growth plan covering each area of the company is the first step! It is extremely important to have a growth plan with a strong, solid, and sustainable base.

The growth of a franchise-based company is not only to open a new "franchise tab" on the corporate website and start offering and granting franchises. Many honest companies offer franchises, and that know they offer a business concept that has proven to be successful during a certain period of "years". These companies know how to deal with a different internal and external crisis and especially have the technical and operational experience, financial resources, and humans to support, help and offer real and constant assistance to their franchisees. Many good brands grant their concept to a franchisee, but they have and implement rigorous selection and training standards for their new franchisees and that also have a realistic expansion program, thus ensuring that they will have good and better franchisees.

The overly aggressive expansion has killed many good chains, this is particularly true for the concepts of fast-casual dining.

  • Do you have a strategic & expansion development plan?

  • Is there a demand to justify such an optimistic and aggressive expansion?

  • Is your system ready to grow?

  • Do you have the financial and human elements to grow?

It is daunting to see how companies with one or two stores offer franchises without really any experience in franchising and infrastructure. Unfortunately, this is not the worst part, but seeing people fall into this deception and realizing after having invested all their capital that the franchisor only makes excuses, is never available, declares bankruptcy and leaves the country, another just hit and run. Most of these cases see people completely decapitalized long before they even open their new business, and sadly they never even ask to see a strategic plan from the franchisor, apart from other information that we talked about before entering a franchise system. It’s necessary and something to insist on for any possible buyer looking to invest in a brand’s franchise to conduct a thorough investigation before putting any hard earn money into a franchise concept, especially given the total lack of protection. Unfortunately, Burgerim's recent and well-known case is NOT an isolated case, many companies work under a low profile that offers franchises without having a sustainable base and experience.

Recently I have attended several meetings where the franchisor request franchise managers, finding that such companies are only focused and only interest is to sell franchises without having a solid base, experience, and staff that can sustain a sustainable growth of franchises, it is not surprising that produce a domino effect and where franchisees only survive for a while.

Do not let them surprise you, it is never too much to do a thorough investigation of the franchise that interests you and consult specialized people such as a good lawyer, a franchise consultant, they can save you hundreds of thousands of dollars and tears!

Customer satisfaction means being close to them, knowing about their needs and preferences. Evaluate customer service is and products and constant improvement. All employees must commit to their responsibilities; constant training, generate new ideas and innovation, develop positive competitive behavior.

Everything that happens in restaurants affects the financial results, so it is necessary to measure each element to obtain positive financial results. The internal operation has to do with all processes and everything must be measured, evaluated, documented, and aligned to meet all customer expectations with quality and efficiency.

Evaluating the quality of service that your restaurant provides is the first step to obtain results, it is a golden rule, if you do not evaluate your service first, the customer will do it! There is nothing more unpleasant than entering an establishment and seeing a “very busy employee” checking his cell phone and greeting you with a “hi” this is pathetic, the customer is the reason of the business

Providing more and better service to your franchisees will not only give you more added value to your brand but also your franchisees will have the assistance of experts, this is a peace of mind!

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