Driving Franchise Growth: Effective Strategies for Multi-Location Businesses

August 13, 2024

The International Franchise Association (IFA) reports that global economies will "depend on franchised businesses to boost consumer confidence, steer economic recovery, and improve sentiment among small business owners." Multi-unit franchise ownership is increasing rapidly now that the pandemic's detrimental impact on consumer spending and job security has diminished. Entrepreneurship is once again a prime career catalyst for individuals seeking more than just a nine-to-five experience. Succeeding as a franchise owner begins with learning the fundamentals of maximizing the benefits of a multi-location growth strategy.

Overview of optimizing store operations to propel multi-location growth

Consistency is the fundamental concept supporting the successful management of multi-location franchises. Standardizing processes across all locations is mandatory for streamlining operations efficiently and evenly. Everything from how employees greet customers and what seasonal decorations are displayed in the store to tasks assigned to closers and where employees are allowed to take breaks should be done the same way across all locations.

A multi-location growth strategy regarding standardized operations should also use data analytic tools to quickly identify trends, performance issues, and areas where waste is too high. Developing a scalable infrastructure to implement changes without disrupting daily operations involves re-evaluating supply chains, creating robust training programs, and promoting brand consistency through SEO-optimized websites and other marketing strategies.

Franchise website development: maximizing online presence of multi-location franchises

Multi-location franchise owners spend most of their time managing their businesses' hour-by-hour store operations. While the importance of on-site management cannot be understated, the upkeep of the franchise website is equally important. Moreover, maintaining an online presence containing attractive elements to search engine algorithms is time-consuming and relatively complicated.

To achieve high rankings on search engine results pages (SERP), owners need to:

Claim and verify their Google My Business listing

Publish blog posts related to local news and events on the website and create detailed location pages for each franchise

Comply with Google's SEO rules by incorporating localized and franchise-related keywords in headers and content

Develop a website with responsive design features to optimize mobile searches

Obtain backlinks from other businesses to improve your website's online visibility

Use social media and locally relevant hashtags to reach potential customers

A high-performing website designed to showcase your brand, services, and products contributes significantly to franchise growth and brand awareness.

Using technology to manage inventory and scheduling

Streamlining operations through management software, integrating marketing automation tools to manage multi-location campaigns, and analyzing key performance indicators (KPIs) facilitates standardized operations. Dashboard software such as Google Data Studio is one tool for reviewing general business performance. Inventory management can be nearly automated with software that keeps track of inventory in real-time and alerts management when products need to be reordered.

Scheduling technology automatically adjusts employee schedules based on the number of employees available to work specific days and shifts. It also makes it easier for employees to swap shifts and request time off. Instead of management calling numerous employees to balance out shift attendance, this technology can quickly address scheduling issues via a company's intranet.

Developing efficient communication channels within multi-location franchise networks

In addition to developing standard operating procedures for overseeing multiple franchises, integrating a centralized communication hub (intranet system) to communicate with employees at any time should be part of any multi-location growth strategy. Creating an intranet begins with utilizing a franchise-oriented content management system to launch it. Various web development elements, such as HTML, database management systems, and hosting services, are needed to make an intranet system fully operational.

With an intranet, franchises can quickly upload announcements, establish support services, publish surveys to improve employee satisfaction, and ensure managers and employees learn the latest company developments in real-time.

Leveraging demographics and market research to identify optimal franchise locations

Profiling provides segmented information about the demographic and behavioral features influencing customer preferences. Understanding who will purchase services or products from a specific franchise is important when creating advertising campaigns, publishing website content, and modifying products to meet customer expectations. Customer profiling also lends a competitive advantage to franchises. When used correctly, insights from analyzing demographic data can lead to stores outperforming competitors in nearby areas. Your franchise's website is the starting point for collecting demographic information.

Surveys work well to gather customer preferences when questions are short and multiple choice. Asking survey takers about their age and gender is acceptable, but learning about their education level and income should be done by visiting federal and state census sites.

Attracting and hiring dependable employees: onboarding programs for operational success

Introducing new employees to their jobs with training and orientation programs is called onboarding. Ensuring the onboarding program is comprehensive but not too overwhelming helps improve retention levels and employee performance from day one. Onboarding should always include having the new hire "job shadow" another employee. For example, fast-food franchises hiring drive-thru workers could have new hires follow an experienced drive-thru employee for at least a week to learn what to say to customers, where drive-thru items are located (straws, condiment packs, napkins), and how to conduct themselves when confronting angry customers. Have new hires take a small test made available on the company's intranet to assess the readiness of new hires.

What is private equity franchise marketing?

Similar to the structure of investment management companies but not listed on the public exchange, private equity firms offer funds acquired from limited partners to various companies. Franchisees often obtain funds from private equity firms as a better alternative to bank loans with exorbitant interest rates. Alternately, PE firms actively seek franchise entrepreneurs due to the lucrative nature of franchises.

DevHub is a leading CMS that specializes in accelerating a franchise's multi-location growth strategy. Our bold and proactive approach to CMS has assisted many franchisees in increasing and maintaining profitability. Schedule a demo today to learn more about our services.