Multi-location franchises have seen significant changes recently, and the evolution probably won't slow down in the near future. According to Brightlocal's Brand Beacon Report, 81% of multi-location businesses are likely to open new locations in 2024.
What do multi-location franchisers need to know about the market changes to stay viable? How can internal refinements keep franchises agile and ready for new trends? Let's talk about these questions and more.
E-commerce and brick-and-mortar
While e-commerce continues to gain power and reach, you still can't completely disregard physical locations. Instead of either/or, the current trend (and one we expect will remain popular in the near future) is the marriage of both.
A multi-location franchisee should aim to blend online and offline experiences to strengthen customer satisfaction and loyalty.
For example:
Offer in-store pickup for online orders.
Create immersive brand experiences at the physical locations.
Accept appointments or reservations for a product or service online that can be redeemed on-site.
Implement a loyalty program where customers can earn and redeem points online and in-store.
Include online and physical customer support options like online chat, social media support, and in-store assistance.
Integrating e-commerce with physical locations is essential for creating a seamless, user-friendly customer experience.
The changing consumer
Today's buyers want what they want when they want it, and how they want to buy it. These new consumers who want to interact with brands on their terms may sound challenging. However, they present an enormous opportunity for the franchisee who takes the time to understand and serve them.
To promote franchise growth, you can delight your customers and increase brand loyalty by making their experience:
Convenient. Today's consumers want to interact with brands quickly and easily, whether online or in person. This means offering numerous ways for customers to access products or services. Mobile apps, online shopping, and in-store pickup can make it a simple process for these consumers to do business with you.
Personalized. Consumers want buying experiences that are specifically tailored to their needs and preferences. Using data to understand customer preferences gives franchise owners valuable insight into how they can create more meaningful interactions. Companies can use targeted marketing, custom product recommendations, and loyalty programs to personalize experiences.
Hassle-free. Buyers don't want to wait, input information multiple times, or deal with irritating glitches. Every multi-location business should prioritize making every touchpoint seamless and straightforward. Moving through the website, filtering choices, making purchases, and contacting customer support should be as smooth as possible.
The future of multi-location staffing
Staffing challenges and strategies constantly evolve in the marketplace. We've seen some big swings in the past half-decade with wider remote working opportunities, the gig economy, and technological advances in staffing have dramatically impacted franchise staffing.
Remote work. While the pandemic accelerated the shift to remote work, it doesn't show signs of slowing down. This opens up the opportunity to hire employees from anywhere. Hiring remote workers can be particularly beneficial for customer support roles, administrative support, marketing, and other positions where a physical presence isn't mandatory.
Gig economy. Freelance and contract workers have introduced a new level of flexibility to staffing franchises. This trend allows businesses to scale their workforce as needed to keep up with demand. They can tap into a pool of contractors during busy peaks, and not have to keep a full staff on payroll during slow periods.
Technological advancements. Technology continues increasing the role it plays in staffing. Artificial intelligence (AI), for example, can help optimize scheduling, predict staffing needs, and help identify the best job candidates. Automation can help track employee performance, assist with employee onboarding, and decrease manual hours required for certain tasks.
Technology and innovation for multi-location businesses
Franchisors with an eye toward the big picture will want to invest in technology that aligns with their business goals. This move can almost immediately improve daily operations, but it will also make it easier to replicate consistent, high-performing processes across all locations.
Innovations like AI, automation, and data analytics can enhance every location's operations efficiency and provide a competitive edge.
AI. Optimize inventory management, predict customer behaviors, and personalize marketing efforts.
Automation. Streamline repetitive tasks (and decrease the chances of human data-entry errors) and free up staff to focus on higher-value tasks.
Data analytics. Use insights gleaned from data to optimize workforce allocations, identify the highest-performing locations, ensure compliance, and guide continuous improvement.
Data-driven decision-making
Looking to the past to guide the future has always been a key part of strategic business planning. However, it's even more accurate and predictive now with the availability of gathering and translating large amounts of data.
Collecting data from each location and then analyzing it for patterns gives owners an unprecedented amount of intelligence that helps guide the company's direction.
Analytics decrease the risk of making the wrong decision, empowering owners to be confident in making their next move.
The legal considerations for multi-location businesses
Franchises must follow guidelines to keep themselves in compliance with state and federal regulations. Staying informed on labor laws, privacy laws, data regulations, and franchise agreements is essential to avoid legal pitfalls that could damage business.
Data privacy. The United States has recently passed legislation imposing strict requirements on how companies can collect, store, and use consumer data.
Labor laws. Contract workers, diversity, equity, and inclusion initiatives, and classifying employees are a few of the elements involved with a franchise's workforce.
Franchise agreements. A franchisor's interest should be protected by a carefully crafted franchise agreement, which should also include the necessary guidance and support to succeed.
Staying ahead of the trends that impact multi-location franchises is essential to keep your company agile and competitive in the long run. By embracing them early, you can strengthen your operations, workplace, and competitive place in the market.
Need a partner who will help you drive growth and revenue? Reach out to DevHub to gain attentive client support and a one-stop solution for your franchise website.