Can franchise customer experience be both uniform and customized at the same time?
Franchise systems seeking to incorporate customer experience into their operational models face a unique set of challenges.
The very nature of a franchise breeds conformity: franchisees are expected to follow consistent rules and polices on everything from branding to restaurant menu items.
Ideally, then, the franchise customer experience for every Chipotle or Jiffy Lube customer is supposed to be the same – and uniformly great.
Yet large franchises with multiple locations operate in local communities or foreign nations with varying customs, tastes, and expectations. The challenge for franchisors: set specific policies and guidelines while allowing for regional creativity to customize the experience.
“Franchisees need to have some degree of flexibility and creativity to adapt to their customers’ needs and preferences, and to differentiate themselves from the competition,” according to an online platform that assists business start-ups. “However, they also need to follow the franchise brand’s standards and policies, and to maintain a consistent and coherent image and message across all locations. To overcome this challenge, franchisors need to communicate and collaborate with franchisees, and to establish a mutual trust and respect between them.”
Indeed, franchisors are trying to balance these imperatives through communication, clear policies, and consistent franchisee training combined with investments in emerging technologies such as artificial intelligence to simplify operations – and create a great customer experience.
Franchises Big and Small Focus on Experience
Among the large franchisors known for successfully navigating these issues is Starbucks. While the chain is famous for its standardized beverage menu, it also excels at incorporating regional preferences.
In Japan, for example, stores offer locally popular drinks such as a Matcha & Crushed Pistachio Milk Tea Latte, while new locations – such as a New Mexico store dedicated to the Navajo Nation – reflect “the communities where we live, work and grow.”
On the smaller end of the spectrum, the chief executive officer of Lightbridge Academy – an early education and child care chain – focuses on “fostering strong franchisee relationships” through communications, comprehensive training programs, and “ongoing operational guidance.”
“Building collaborative partnerships with operators creates a culture of mutual support and accountability, ultimately enhancing the overall customer experience,” CEO Gigi Schweikert told Forbes.
The Franchise Customer Experience Dates Back To A Founding Father
Historians of franchises say it all began with Benjamin Franklin, whose 1731 partnership for a South Carolina printing business marked America’s first franchise-like agreement.
Franchising became more prominent during the Industrial Revolution with the need for more efficient distribution networks and boomed in the 1960s with chains such as Holiday Inn, Budget Rent A Car, and Dairy Queen. It then started going global in the 1980s with the more interconnected world – and underwent transformation in the 1990s with the rise of online marketing and sales.
Today, experts say there are more than 800,000 franchise establishments in the United States, with nearly nine million employees. Quick service restaurants are the largest franchise business line, with retail food, products and services the second most lucrative.
Franchise Customer Experience Examples
As Subway has explosively grown since its founding as a Connecticut sandwich shop in 1965, the chain has managed to blend generally consistent menu offerings and design with a flair for local tastes.
In Japan, for example, Subway introduced sushi sandwiches while bringing a range of vegetarian options to its locations in India. The willingness to localize its menu “helped Subway gain acceptance in various international markets.”
Subway also been a leader in investing in new technology to make customer experience more consistent across stores, such as mobile apps and self-service kiosks in restaurants.
Hilton Hotels and Resorts have also focused on digital innovations such as a modernized central reservation system that made it the first major hotel company to run its entire reservation system in the cloud. The goal: “delivering a frictionless travel experience.”
The chain, where nearly 90 percent of the properties are franchised, combines its digital consistency with a distinctly local focus when it opens new properties Among the recent examples: its first Nepal hotel featuring “a harmonious blend of Nepal’s rich heritage and modern design,” and an Osaka, Japan hotel that advertises “thoughtfully local design,” and restaurants “with menus inspired by Osaka culture.”
Tax preparation firm H&R Block combines its standardized tax software with comprehensive, year-round tax and business training to help franchisees navigate state and local tax laws that vary by region.
Marketing Can Help Connect The “Dots”
Dippin’ Dots, dubbed the “Ice Cream of the Future,” created a Shareable, word-of-mouth marketing opportunity for customers when it leaned into a unique aspect of its product.
Dippin’ Dots are stored in subzero freezers, so the very first bite often sticks to your tongue. Some people like that feeling; others maybe not. But the Taste The Fun campaign simply suggested people post photos of themselves with the product stuck to their tongue.
The response was overwhelming, as people posted images ranging from authentic to artistic. Individual franchises got into the game as well, with one in London, Ontario, Canada even posting one of a dog with Dippin’ Dots on its nose.
Expert Tips for Franchise Customer Experience
Here are some steps that experts suggest for franchisors that want to focus on customer experience in their operational models:
- Set and clearly communicate the franchise’s overall policies and procedures, along with a related customer experience vision and goals.
- Comprehensively train staff to accomplish these goals, while allowing franchisees some freedom to innovate. Training can include everything from online workshops, webinars and courses to more individualized coaching.
- Set and quantitatively track customer experience metrics across franchisees.
- Include franchisees in decision-making whenever possible.
- Invest in new and emerging technologies to help franchisees enhance experience at their local stores.
Above all, allow franchises to be creative, within reason.
For example, Jiffy Lube launched an internal campaign called “Seize The Bay” that encouraged franchisees to own the experience of every car and every customer in its oil change bays. The signage was part of their annual franchise meeting, demonstrating both franchise empowerment and a healthy dose of being Witty.
When franchisors and franchisees work together with a consistent focus on customer-centricity, then the customer always wins.
Dan Gingiss is a franchise keynote speaker focusing on customer experience. This article is part of a series of industry articles featuring customer experience examples that any company can use. Images in this article were AI-generated using DALL·E.