How the corporate guys can help franchisees weather the recession.

I want to talk about what franchisors should be doing in these exceedingly tough times to help out their franchisees. I want to be an advocate for the operator and his needs, and, in so doing, get some profit back into the till. If you are company-owned, take these thoughts in terms of your managers.

You are probably tired of hearing about all the opportunity out there when things get like they are today. You don’t see opportunity, you see empty stores. I saw a statistic recently that 30 percent of folks who used to eat out a lot are not eating out because they do not have the money or are scared to spend it on restaurants. You call that opportunity?

Well, everyone has an Uncle Cornie story. My Uncle Cornelius lived during the Great Depression. He didn’t much like kids. He used to make us stay outside until my Aunt Myrtle found out and let us in. But, one thing about him was that he knew opportunity when he saw it, and he could grow a rose out of a granite rock. He bought a bunch of oil stock for a quarter a share. Mortgaged his house, sold his car, tried to sell a couple of us kids, but again Aunt Myrtle found out. Sold the stock. Made a fortune. After that, he gave us a quarter to stay out of the house.

So let’s take a look at that opportunity out there. The first thing is to renew the wedding vows. The ones between the company and the operator. Remember why you loved each other in the first place and rededicate those promises. The operator is the front line, the life blood of the company. We have to do everything we can to help him succeed.

Our only priority is sales and profits. Everything else gets put on the shelf. If it doesn’t increase sales and profits, we don’t do it, no matter how nice it seems.

Let’s start with operations and then get to marketing later.

We need to get every store to at least a B grade. If the restaurant isn’t operating competitively, we are wasting our time bringing in more customers. There are lots of things the company can do to help. (By the way, much of what I discuss here was done by McDonald’s back in the ’70s and ’80s when the economy got really bad.)

First, indentify the stores that need help and can be helped. Location is something that usually can’t be corrected. Every store in the system should be given a brief field visit—a total operations blitz. A good field consultant can hit two stores a day. Heck, use everyone in the office.

We are all customers and know what we want. Close the office and get everyone into the stores. McDonald’s used to do Store Day. Everyone, including suppliers and agencies, worked in the stores. It gave you a real quick look at how tough it is to run a restaurant.

Next is a business meeting with the operators to set up a plan to operationally help those stores. No travel cost. Just by phone, computer, or smoke signals. Get ’er done.

More experienced operators should help newer ones. After all, what each restaurant does reflects on every other in the system. The company should set up teams of operators and staff to visit and help down stores.

Get back in the business of secret shoppers. For the food and a small contribution, church groups, service clubs, and schools will visit the store and fill out a short survey on the experience.

McDonald’s had an executive who was empowered to write a check to a good operator who was in trouble. Right there on the spot when he needed it. Consider that for your company.

No one gets laid off unless his job is not needed or it is totally inefficient. Top guys take pay cuts, then the rest of the staff if needed. Obviously, no bonuses. But, consider a raise to your really good people. Need to hang on to them.

And the company should review all its contracts. Anything that does not contribute to sales and profit gets shelved. All prices are the best and most efficient.

On to marketing. National and regional plans should be reviewed and aligned with the one objective. There should be a balance to sales and profits in the plans. Both are important to long-term development. Individual store plans are written by the marketing staff and local agencies with implementation help. Marketing and operations work together. No one is afraid to get into the store and help. No one is too important.

Take a page from Coca-Cola. Logos everywhere. Be proud of your company and wear shirts and hats with logos. Put a sign on your car. Get your name everywhere.

A couple of things not to do. Don’t put ketchup on your competitors’ door knobs, and don’t send a scout troop into a competitor’s store around noon with 20 different sandwich orders. You know, “Have It Your Way.”

Companies, get out there and help your operators. Get out of the office and serve some customers. Whatever is necessary.

Operators, understand what the company is trying to do to help you and implement your little heart out. You can do it.

This is the month of love. Remember those vows. Show your customers what you can do and have a great Valentine’s Day.

A Peaceful Life and Happy Trails.