f o o d fr a n c h i s i n g fe at u r e
EXPERT ADVICE: Bob Ray | Chief Operating Officer | Margaritas Mexican Restaurants
Navigating the Labor & Supply Chain Shortage: How to Rethink Your Restaurant Franchise Operation Use the pause to align the “ team, and build around your strongest staff leaders. Be a place for people to develop and become managers, and promote from within to show investment in staff development.
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Focus on your profitable daypart and own it Restaurant leaders should have an honest look the franchise business model to scrub the profit and loss statement to determine which dayparts are driving revenue, and which are not. Be bold in a decision to eliminate poor-performing dayparts.
During the pandemic, restaurants did the proverbial “pivot” out of necessity to survive, from navigating lockdowns to implementing new health and safety protocols to following mask mandates. The constant disruption and current
societal landscape has been difficult for restaurant leaders. Staff recruiting and
retention challenges, coupled with supply
chain issues that have made it problematic to receive materials and ingredients
made restaurant operations even more challenging.
40 Franchising MAGAZINE USA
Before franchise restaurants race to change their brands to meet these growing needs, leaders should take pause to look at the franchise inside out, rethink all aspects of the model and make the necessary decisions to address labor and supply chain shortages – and, in doing so, improve efficiencies and simplify operations to strengthen unit economics. Below are ways leaders can rethink the restaurant franchise model to help employees stay engaged, happy and thriving, and the front and back-end operations efficient for delivering the brand experience to customers without disruption – all with the goal of reflecting positive sales impact.
While this may seem drastic, having staff sitting around waiting for customers to walk through the doors is wasted overheard that can ultimately hurt the bottom line. It also creates an unattractive environment to potential employees seeking a thriving atmosphere full of energy that would make them feel happy and fulfilled. For example, if breakfast is the most profitable daypart, ask yourself, “Is dinner moving the needle? Is it causing more stress on staff and operational costs than it’s worth?” After thinking that through, you might want to consider eliminating the evening daypart. Then, go all-in on breakfast and lunch with increased focus of menu and drink offerings, atmosphere and ambiance, staffing experience and profitability and ease of operations – make it an even more profitable daypart.
