Why It’s Beneficial for Your Franchisor to Have Skin in the Game
East Coast Wings + Grill is planning to expand corporate-owned as well as franchisee-owned restaurants in the future.
What this means for franchisees is the brand has experience operating the restaurants it is selling to franchisees. It also has the capital and resources to provide support for franchisees if the brand is operating multiple company-owned restaurant locations.
A brand with skin in the game is beneficial for franchisees for several reasons. Here are some of the most significant reasons why:
They’re Model Locations
The franchisor’s restaurants have to be the model restaurants of the brand. Initially, that’s where all the training, development and brand education takes place. The corporate-owned locations are the ideal places for franchisees and their managers to learn about brand culture, standards and any folklore that enriches the brand. This is where they get a feel for what their franchise locations should be.
The Franchisor can Relate
Company-owned and operated restaurants allow the franchisor to experience the successes and challenges that a franchisee would experience. Those experiences allow the franchisor to relate to the franchisee and speak the same language. The franchisor and franchisee can understand each other on issues such as food cost, labor, lease costs and intrusion into the market by competitors to name just a few. There’s a better understanding of the franchisee’s day-to-day obligations by the franchisor.
They’re Proof Systems Work
The company is entrusted with contracting on the supply chain, training and development, marketing initiatives, technology platforms, and rewards and loyalty programs. If these systems work for the franchisor-owned and operated restaurants, franchisees can trust those systems are proven and functioning properly with thoroughly vetted vendors.
Research and development also takes place at corporate-owned locations first. When a menu enhancement or limited-time offer has been developed, the first stop is a trial run at the franchisor’s locations before it’s shared with franchisee locations. A franchisor will not pass along to franchisees a menu item that does not do well.
They Raise Brand Awareness and Barriers to Entry
One of the oft-touted benefits of investing in a franchise is the brand awareness that comes with it. An essential part of awareness is identity. Company-owned restaurants have already blazed the path and laid the foundation for brand identity. Brand identity is the image conveyed to consumers through logo, colors, other visual components, customer service, products, advertisements, promotions and other elements. The more consumers see or experience these identifying elements, the greater their awareness of and affinity for the brand grows.
Greater brand awareness is an important part of establishing barriers to entry, which are used to keep competitors at bay while the brand dominates the segment or market.
They Lower Costs
The brand establishes greater buying power, from which franchisees benefit. Company-owned locations expand the franchise’s network, which lowers costs for goods for the entire system – including franchisees.
They Instill Confidence
When a franchisor has skin in the game, it provides franchisees with confidence about their investment in the brand and the ongoing support that comes with it. East Coast Wings + Grill’s franchise partners know that what’s good for the company-owned stores is also good for their restaurants as well.
East Coast Wings + Grill works tirelessly to ensure the financial success of each franchisee, and our top-notch, in-demand product helps propel us toward that goal. To learn more about franchise opportunities with East Coast Wings + Grill, get started here.