Home' The Franchise Review : June 2015 Contents 46
2. Cross-promotional opportunities
The recently announced deal between sumosalad and red
rooster (see page 6) is an example of brands exploring
strategic and innovative partnerships that widen sales channels
and diversify product offerings.
in a partnership strategy based on healthy eating, sumosalad
is able to ‘expand its influence and help australians eat
healthier food’, and for red rooster, this is a step forward in
their ‘real Food Journey’.
Partnerships don’t just have to occur between two businesses
within the same sector. Many businesses have been creative in
finding synergies across different sectors and industries. some
of the best examples of this are salons and spas that serve
barista-made coffees to patrons, or, as in the case of nutrition
station, having stores selling healthy drinks and protein
smoothies located within gyms.
again, understanding your customers’ preferences will help to
determine which partnerships are a good fit, and will provide
value to your customers.
3. Omni-channel retailing
The ubiquity of internet and mobile usage presents an
opportunity for retailers to increase sales via a new channel.
custom-made apps and aggregator mobile apps like Beat The Q
let retailers sell beyond their bricks-and-mortar footprint. This
functionality is particularly relevant for coffee retailers, where
purchasing behaviours are often regular and habitual, and for
made-to-order food operators that can offer more convenience
and better speed of service.
established franchisor Ferguson Plarre Bakehouse is proactive
in taking advantage of technological changes, providing click-
and-collect services for a range of baked goods and custom
cakes. chief executive Officer steve Plarre says, ‘Our strong
commitment to online channels started in the mid-1990s, and
the pace of change is escalating. selling bakery items doesn’t
make us less immune to the changes in the online world than
now with a significant social media and online shopping
presence, Ferguson Plarre is driving 20 per cent of all
celebration cakes sales directly from their online channels.
For these click-and-mortar operations, the channel through
which customers make their purchases is irrelevant from
their perspective. customers will expect a consistent brand
experience, whether online or in stores. a recent infosys study
shows that brand consistency across channels plays a role for
63 per cent of shoppers surveyed on their tendency to spend.
For retailers, this means transactions from mobiles, online or
in stores is integrated, with a single back-end management
system that serves as a single source of truth.
4. Encouraging healthy competition
harnessing natural competitive instincts has long been an
effective sales growth tactic. a lot of franchisees do this
themselves by running staff incentive programs to foster a
healthy competitive culture, and at the same time to create a
sense of fun and camaraderie within the team.
replicating this within a franchise network can be more
challenging. One way to generate the same impact across
a network of disparate businesses is with cloud reporting
solutions that can rank stores according to sales, growth
simple ranking tools that are available in real time allow
franchisees access to the basic performance results of the rest
of the network, without disclosure of sensitive and detailed
sales data. Benchmarking tools go a step further by showing
franchisees where they sit in the network. They can then focus
on areas of the business in which they need to improve, and
understand how much improvement is needed.
sales growth not only ensures the long-term ability of the
franchisor to support the network, particularly for royalty
model systems, but it is also imperative for the franchisees’
capacity to keep up with market increases in occupancy,
stock and labour costs.
Partnerships don’t just have to occur
between two businesses within the same
sector. Many businesses have been
creative in finding synergies across
different sectors and industries.
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