3 Things You Should Know About Small Business: Nov. 13
3. How to turn a struggling franchise unit into a profitable one. Smoothie King's Rose Kuhnau shares her experience with taking over a struggling unit in New Orleans and how she turned it into one of the brand's best. According to QSR Magazine , Kuhnau says there are four key points to getting a unit profitable.
Franchisees must recognize their role in the overall mission of the brand. That means continually reinvesting in the business as well as maintenance upkeep and offering strong customer service.
If you're going to make fixes, do it all at once, whether that's a new marketing strategy, new hires or renovations.
Be sure to understand the experience from the other side of the counter. "The reason units get this way is because some franchisees don't reinvest in the business. They come into work through the back door and go straight into their office. Continually experience your business from your customer's perspective," Kuhnau says.
Get operations in check. Try holding weekly meetings with managers, where staff is accountable for weekly cost of goods and labor. Look for other ways to save money and operate efficiently. "Can you lower your phone bill? What are other landscaping businesses charging? What's my retention rate? There are so many factors that can assist you in running sound operations and saving money as a result," she says.
-- Written by Laurie Kulikowski in New York.
To contact Laurie Kulikowski, send an email to: Laurie.Kulikowski@thestreet.com.
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