Tuesday, March 9, 2010

Chain Restaurant growth and brand momentum can be stifled by unhappy non compliant Franchisee’s.

When sales are flat and profits are down chain restaurants with franchisee’s are at risk of franchisee discontent and random menu, service and staffing self adjustments. At present, Burger King’s successful historic rebound momentum could be corralled if franchisee discontent were to grow Inherent in this transition is a state of uneasiness among certain franchisees. Most vulnerable to feelings of trepidation will be small to medium sized franchisee who may feel overlooked. Outside eye’s can provided top line insights and bottom line guidance for long term success.

The ready-to-eat prepared fresh food niche is booming and new avenues of distribution are opening all the time for consumers. Chain restaurant operators must be aware of new competition. Walgreens is positioning to open up 15, 000 new remodeled units with prepared fresh food outlets within the next several years. Safeway continues to remodel units into ‘lifestyle” stores bundled with fresh prepared food. Whole Foods, Central Market and Wegmans are packed from 4:30 -6:30 in the prepared food sections. 7 Eleven is testing new coffee and fresh prepared breakfast items currently.

Yum brands US based franchise are beginning to grumble and Wendy’s may be next. To build value in the franchise it is important to build strength within the organization by edifying the franchise community and its relationship with corporate

Since 1991 Foodservice Solutions of Tacoma, WA has been the global leader in the Grocerant niche for more on Steven A. Johnson and Foodservice Solutions visit http://www.linkedin.com/in/grocerant. For a fresh food program review or Ombudsman call 253-759-7869 Or visit my blog at:www.grocerants.blogspot.com.

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