Keep your franchise relevant

Johannesburg – Franchises need to ensure that their brand remains consistent and relevant so that consumers can still identify the franchise concept,” according to Morne Cronje, head of FNB Franchising.

Managing a franchise requires establishing good relationships with the franchisor owners and top management.

This encourages franchises to have a good general understanding of the restaurant business.

“Customer needs and wants have changed. We need to continually upgrade and offer solutions that not only cater for the new customer, but also for the existing customers, who are brand loyal and often go back due to familiarity of the franchise,” explained Cronje.

Consumers are becoming increasingly demanding from a service perspective, according to Juliana Overbeek, owner of Ocean Basket in Scottburg, KwaZulu Natal.

"They work hard for their money and when they visit a restaurant they demand quality, excellent service and value for money," said Overbeek.

"In a highly competitive environment keeping a franchise concept relevant is crucial to the success and sustainability of the business."

In order to remain relevant franchises need to get the competitive edge with knowledge of the area and existing competitors, in her view.

“Being a successful business translates to hard work just to retain that success," said Overbeek.

"Adopting a successful strategy from your competitors can be successful, but direct competition with a rival is not a good idea for a start- up restaurant."

Value for money

Value for money is very important in the current economy and restaurant owners must recognise and respect that, according to Overbeek.

"Never forget that your customers are the lifeline of any business and it is crucial to keep the satisfied with our products and service,” she explained.
   
The Ocean Basket franchise format gave her confidence to operate and allowed her to build her business into a profitable asset.

“International indicators show that the ‘take away’ concept is more relevant and popular than sit down restaurants," said Overbeek.

"The success and functioning of the restaurant is largely influenced by your market as well as community.”
 
Franchise concepts eventually evolve with time due to global influence and trends.

“While the industry is expanding we find there is an increasing need to keep abreast with the latest trends, while at the same time maintaining brand presence in the market," said Overbeek.

“It has become extremely important when dealing with the suppliers and financial institutions."

In her view new or existing franchises need to ensure that there is at least 50% to 60% unencumbered capital available for the initial setup fees and at least six months of operational capital before engaging in any negotiations.