America is the franchising nucleus of the world, offering business opportunities to local investors and small business owners in nearly every country. The QSR (Quick Serve Restaurants) segment has brought a vast array of dining opportunities to much of the population: from Arby’s to Zaxbys, from wings to smoothies, from Genghis Grill to Maui Tacos, from poke to cupcakes.
Most Franchises are ‘GLOCAL’ = Global + Local
Because of their omnipresence domestically and their growing footprint globally, franchising companies have a unique opportunity in Corporate Social Responsibility. The business is inherently good for people and for economies –providing affordable food, creating jobs, and growing owners. However, as we have seen in Supersize Me and in Fast Food Nation, as well as recent wage protests in the US,…the QSR industry faces challenges in both public perception and economic sustainability.
What Can Franchisors and Owners Do?
What should these businesses do? Franchise owners must examine their assets and liabilities, both in their P&L and in their strategic plans. Assets include local presence and local employees; there is no telecommuting in these jobs. QSR serves either defined geographies (neighborhoods, shopping centers) or transient travelers (tourists, at highway exits). For restaurants in the former setting, the healthier their area, the better their business. Build relationships with nonprofits serving that community; make your store a destination; bring your food to events that gather people for social and civic opportunities.
Align both your location and your brand with an aura of shared interests and commitment.
Employees Are Often Customers.
How they are treated and what they see and do while at work, can determine their future patronization, as well as that of their friends and family. For restaurants serving travelers, the brand is key; therefore, working cooperatively with the franchisor is critical.
Grass Roots Fundraising Builds Loyalty.
Example: Krispy Kreme is well known for its nonprofit group fundraising program; volunteers sell donuts and keep a percent of the profit. There are local variations based on state-specific regulations, but essentially the process is turnkey and promoted throughout North America by the franchisor.
Franchisors Enable Smooth Operations and Quality Product, but Service is Key.
Franchise companies must also examine their assets and liabilities, both in their P&L and in their strategic plans. Do they need more franchises or do they need to improve the profitability of their franchisees? What do their owners face on a day-to-day basis, in the next year, five years, and ten years? The company’s job, as always, is to make operations and growth turnkey for owners. Product matters, but service is vital. Provide tools and technology that make socially responsible behavior easy and impactful. Find out what successful owners are doing, systematize it, and share it internally and externally. In other words, when considering the role of community engagement in the businesses’ sustainability, do what you do best.
National Civic Partnerships Build Brand Affinity.
Example: Taco Bell is a major supporter of Boys and Girls Clubs of America. “Taco Bell believes in Teens. They are our customers, employees, family members, and friends. They are our future. Their success is our success.” Funds collected locally are deposited into the Taco Bell Foundation for Teens, then are distributed to Clubs in local markets for Mind, Active lifestyle, and Spirit, going along with their Live MAS tagline, and their celebrity partners, like Mark Wahlberg and Reggie Bush.
The most powerful strategy is to connect with other franchisees within or adjacent to your brand, or from completely different cuisines.