SPECIAL REPORT: Top Food Franchises
Franchisee Satisfaction: Food Sector vs. All Industries All food
All Industries
Training & Support Franchise System Leadership Core Values Franchisee Community Self-Evaluation Financial Opportunity General Satisfaction Overall 0%
10%
20%
30%
40%
50%
60%
70%
80%
Percent of Satisfaction * Satisfaction comparison data above is based on independent surveys of franchisees completed within the previous 12 months. FBR’s Food Sector Benchmark is based on data from 3,359 food industry franchisees. The FBR Benchmark is based on data from 16,995 franchisees across all industries.
Training and Support Programs, Marketing and Promotional Programs, Effective Use of Technology, and System-wide Communication. Food franchisees rated their franchisors’ Effective Use of Technology 8 points less than our benchmark across all industries (this is a big improvement over 2012 when satisfaction was 14 points less than benchmarks). Marketing and Promotional Programs scored 5 points less than benchmark (again, an improvement from 2012 when franchisees rated their franchisors 12 points less than benchmark). Another category where satisfaction among food franchisees lags behind our benchmarks (by 5 points) is in the area of Leadership. The leadership questions focus on corporate’s ability to promote a strong vision for the brand, a team culture, and drive the business forward. It’s important to note that while satisfaction among all food franchisees lags behind other sectors, satisfaction among franchisees at our Top 40 companies actually exceeds the benchmark for every single category of the survey.
Most food franchisors are beginning to understand that satisfied franchisees are more successful, more engaged, and only improve their corporate bottom line. All of the franchisors we spoke with (all from companies with high franchisee satisfaction) said they spend a considerable amount of time focusing on unit-level economics and working with their franchisees. “When we do our franchise operations visits, instead of it being an inspection with a checklist, we are more focused on business support,” said Falciani of Quaker Steak and Lube. “We look at profitability first, then revenue, quality and delivery, standards, and checklists. Our franchisees appreciate that. We want our partners to do well. If they don’t do well, we don’t do well.” SUMMARY
Food franchises offer an exciting, everchanging, never-boring environment to franchisees who don’t mind making a bigger financial investment, working long
hours, and managing a large and diverse workforce. Food operators remain some of the most passionate in all of franchising, and while the investment is higher than in other sectors, so is the potential for return. In the past year, we’ve seen improvements in the lending landscape and in profitability, and franchisee satisfaction has held steady. Potential business owners may be initially attracted to the hype around a particular brand or the overall idea of running a restaurant, but this should come second behind thorough due diligence. Prospective franchisees must do their homework and compare brands side-by-side—looking at both well-known food franchises and some of the smaller, lesser-known opportunities. Every food franchise has its own culture, and franchisees should carefully consider how that culture fits with their own business goals before committing to a brand. For more detailed research on specific food service franchises, please visit us online at www.FranchiseBusinessReview.com.
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