Here is a quick repost (original article here) of a real guru in Philippine franchising. I have read his book- Is Franchising for you? and can honestly say that the man knows his stuff. He is the one responsible for the success of "Mang Inasal". Being an Entrepreneur can be viable nowadays, here is an article that can help you decide. Whether the conventional way or the franchising way, this site can encourage and help you out.
By: BUTCH BARTOLOME
I WAS pleased to know the response of readers to the best practices of franchisees whom I mentioned in my column last week. Some of the readers said that they felt inspired to follow, innovate and begin breathing new life to their own business.
By: BUTCH BARTOLOME
I WAS pleased to know the response of readers to the best practices of franchisees whom I mentioned in my column last week. Some of the readers said that they felt inspired to follow, innovate and begin breathing new life to their own business.
Here are some more who could inspire some more who might want to be franchisees:
Guillermo Perales, Burger King franchisee who operates 90 branches:
He believes that when
you have the whole market, you can do what you think is right. Owning
the market allows you to close, move and build stores and set uniform
pricing and promotions without ruffling the feathers of customers who
notice different deals at different locations, or have disagreements
with other franchisees. “It’s only one price, one promotion, one
message.”
Guillermo has long felt that a business cannot truly thrive without taking an active hand in cultivating strong communities.
To support education
and provide incentives for Latino students to stay in school, he created
a Certificate of Achievement Award program. Through the company, almost
4 million free meal certificates are distributed every year to local
students through the program. A small effort to support education since
he believes that improving education among Latinos is crucial.
His advice for smaller
franchisees is to be open-minded. Listen to the opinions of the brand
managers and other franchisees and don’t assume you know everything
right away. Find lenders to help you grow, he says, and sooner or later
you’ll own the whole market.
Rapid growth has been a
crucial part of the strategy. “With one, you can fail easily, but with
several, you can support the network.”
Guillermo does not
just operate franchises; he owns much of the property as well. That’s a
cornerstone of his growth initiatives.
He delegates to his
directors and rely on their expertise to keep the outlets operating
effectively. If there’s a problem, that’s the time he steps in.
Guillermo is very close to the operations. He sees the numbers every week. He has an eye on the cash flow and visits the stores.
Employee retention is paramount. It seems, he says, that he is constantly looking for ways to lower turnover.
Finally, according to
Guillermo, he is not afraid to make a change when it comes to a poor
performing store or manager. The quicker you get to the problem, he
says, the better off you’ll be.
Vkram Bakshi, McDonald’s franchisee in India who operates 210 branches:
He suggested to
McDonald’s to be sensitive to Indian culture when introducing products.
Thus, their menu has neither beef nor pork.
Vkram sources 90 percent of the products being used in the stores from within India.
He introduced his
Indian suppliers to its global buyers. As a result, not a single
supplier has left Big
Mac since the very beginning of his business
journey in India.
Vkram has an efficient
supply-chain system that has helped McDonald’s reduce the raw material
cost and eventually become an affordable brand.
He believes that the best opportunity to make comprehensive models for business growth is during economic slowdown.
Vkram does not believe
in forcing his people to do something; instead, he inculcates in them a
practice where they deliver the work on natural trust and team spirit.
He believes in
following collaborative leadership where every member feels like a part
of the team rather than as an individual subordinate.
Vkram also introduced
the “Litter Patrols” consisting of McDonald’s employees who virtually
comb the garbage spilled in immediate vicinity of the restaurant for a
cleaner neighborhood.
In the store, they use
only heavy-duty garbage bags to collect garbage and given only to an
authorized garbage collector for proper disposal.
Vkram pioneered the concept of “Grease Traps” for zero oil contamination in residual wastewater.
He formed a menu
development team right from the beginning, which basically carries out
consumer surveys on changing food habits and comes out with a menu for
that purpose.
The menu reflects changing consumer behavior, and that’s what the brand is all about fresh, peppy and contemporary.
The growth is by
cluster. The franchise tends to consolidate area-wise. It makes sure
that it has a strong base before it goes to another place.
In building stores,
Vkram’s principle is that the stores must be convenient to customers. He
makes a priority locations across highways, airports and stations.
These inspirations
people are ordinary folk. Yet, one thing for sure is that they are
passionate and treat the franchise business more than their own. There
is also a synergistic relationship established with their franchisers.
This is the true meaning of what franchising ought to be: “To be in
business for yourself but not by yourself.” The
key most franchisers are in search of when expanding their business is
not location but more discovering, cultivating and getting into the
groove of the partnership with the franchiser.
(My recent book, Franchise Wisdom From The Masters, is not yet available in bookstores. If any reader in the Philippines is interested in purchasing a copy, e-mail me at
philfranchiseguru@gmail.com.)
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