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Why is having a competitive edge for your franchise essential?

Chloé Thévenet
February 16, 2024
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Have you ever wondered why some fast food franchises seem to thrive while others struggle to survive in such a dynamic and competitive market? Part of the answer lies in their ability to cultivate a solid competitive advantage. In this article, we take you on a journey into the world of fast food franchising. In addition to a concrete definition of the notion of competitive advantage, you'll find a number of avenues to explore in order to stand out from the competition and leverage your strengths. 

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Understanding and analyzing competitive advantage 

Definition of a competitive advantage

Competitive advantage in the fast-food sector refers to a franchise's ability to franchise to distinguish itself positively from its competitors, attracting more customers who will remain loyal over the long term. This strategic asset is a single element or set of factors that will make consumers realize why it's in their best interest to visit your establishment rather than another.  

In a sector as competitive as fast food, where customers have many options, competitive advantage is often seen as a key success factor .

Examples of competitive advantages

Competitive advantage can take many forms: 

  • Product quality is the first example that springs to mind. A premium food offering is a major differentiating factor. By offering a menu based on seasonal, organic and locally-sourced ingredients, you'll attract a clientele that cares about its diet and its impact on the environment. 
  • The customer service can also be a competitive advantage. By offering consumers exceptional service, you ensure that they have a pleasant experience that they'll want to repeat in the future. Friendly, professional staff, prompt service and relevant answers to your guests' questions all come into play. 
  • You can also differentiate yourself from your competitors through innovation. You can surprise your customers with creative and/or regularly renewed menus. As soon as they leave your establishment, they'll want to come back. And don't hesitate to introduce options in line with current food trends, such as vegetarian or vegan dishes. 
  • Your brand awareness can help position your franchise as a unique establishment in the minds of your customers. What's more, this reputation will instill a sense of trust.
  • Another competitive advantage, and not the least, is price. You can stand out from the crowd by offering competitive prices. For the same quality of food and service, consumers will naturally gravitate towards the least expensive offer.  

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The impact of digital marketing on competitive advantage 

Having a competitive edge is crucial to standing out from the competition and increasing your market share, but your mission doesn't stop there. You also need to communicate it well and make the most of it. In the digital age, digital marketing plays a key role in creating and maintaining this advantage. From social networking campaigns and SEO to website development and optimization, franchises that make effective use of digital marketing can reach a wider audience, personalize their messages and track their performance in real time. As a result, they can strengthen their market position. 

Online reviews and e-reputation have become decisive factors in attracting customers, so pay special attention to them. 

👉 To find out more : 7 tips for collecting good customer reviews for your restaurant

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3 strategies for building competitive advantage

Once you've grasped the concept of competitive advantage, the question arises: how do you develop a competitive edge? 

1. Innovative menus and services 

Offer diversification

Innovation is the best way to keep your customers' curiosity alive. You can do this by regularly introducing new dishes to the menu, offering seasonal menu options, or letting them enjoy an exceptional collaboration with another chef. All these efforts will keep them coming back for something new. 

Customization 

Customers are increasingly interested in personalization options. By offering them the opportunity to create their own meal, you'll provide them with a more engaging experience and encourage their loyalty. They'll come back for more, because they'll be sure to eat exactly what they want. 

Current food trends

Another way to differentiate yourself from competing franchises is to take an interest in current food trends. current food trends and embrace them. Ride the wave of "healthy eating", of the appetite for vegetarian or vegan dishes. This will show consumers that you're listening to their needs and desires. 

Example of a franchise with a competitive edge

2. Use technology to stand out from the crowd

Omnichannel sales 

In an increasingly connected world, the implementation of omnichannel sales, integrating various digital solutions, is becoming an essential strategy for meeting changing consumer expectations. The implementation of fast delivery services with dedicated pick-up points, as well as the facilitation of online ordering and the development of user-friendly mobile applications, are proving both effective in optimizing operations and offering a convenient ordering experience, perfectly in tune with today's lifestyles. 

👉 Find out more in our webinar How to boost productivity in fast food?

Digital solutions 

At the heart of this digital transformation are integrated solutions such as order kiosks, online ordering, production screens and touch-sensitive checkouts. These tools create a seamless customer journey, reducing waits and minimizing errors. By adopting these digital solutions, you not only improve the customer experience, but also increase the average basket. 

Centralized management

Centralized management, facilitated by a customized ecosystem such as that offered by Innovorder, is a key element in this digital revolution. Synchronizable with the best solutions on the market, Innovorder centralizes scheduling, home delivery and loyalty management. 

With the Innovorder backoffice, you can manage several restaurants remotely, enabling you to multiply your points of sale without difficulty. Updating menus, adjusting prices and monitoring the performance of each establishment is just a few clicks away, giving you total visibility and control over your multi-site business. If you have any questions, please don't hesitate to contact one of our experts. 

👉 To go further: Franchises: how to accelerate your growth with digital? 

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3. Opt for a unique concept

A unique dining experience 

Many customers are looking for more than just a tasty meal. So it's up to you to transcend your guests' expectations by offering them a unique experience. A bold architectural design, a creative interior layout or even a specific theme will immerse them in a singular and memorable atmosphere. For example, a fast-food franchise inspired by vintage 1950s décor can attract nostalgic customers looking for a temporal escape while enjoying delicious food. 

Strategic partnerships 

Forging partnerships is a powerful strategy for building brand awareness. Working with popular brands can result in special product offers, while organizing local events or collaborating with influencers can increase franchise visibility. For example, have you ever considered partnering with a local culinary festival to present exclusive dishes during the event in question? 

Social and environmental responsibility 

Integrating responsible initiatives can not only generate a positive perception, but also attract a clientele concerned about the social and environmental impact of what they consume. Adopting sustainable packaging, supporting local charities or favoring responsible sourcing strategies for ingredients are all techniques that can reinforce your franchise's image as a socially responsible player. This approach can help you create a strong emotional bond with diners who value sustainable practices, increasing their loyalty and, consequently, your sales. 

‍👉 Going further : How to become a committed and responsible restaurateur?

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Examples of franchises with a strong competitive advantage

McDonald's recipe for success

Continuous innovation and adaptability

‍McDonald's never rests on its laurels. The company is constantly looking for new ways to satisfy the changing tastes of its customers, whether through the launch of new products or by adapting its services, such as drive-through, mobile ordering, and home delivery. This ability to evolve rapidly in response to market demands is a key driver of its competitive advantage.

Standardization and efficiency

‍TheMcDonald's brand promise is based on consistent quality and fast service, no matter where in the world you place your order. This standardization ensures a reliable customer experience, reinforcing brand loyalty and trust.

Location strategy

‍McDonald's also excels in the art of localizing its menus to suit cultural preferences, a crucial aspect of its global success. By incorporating market-specific options, such as the McSpicy Paneer in India or the Teriyaki Burger in Japan, McDonald's demonstrates its commitment to culinary diversity and inclusivity.

Burger King's winning strategy

Bold marketing

‍BurgerKing isn't afraid to take risks in its advertising campaigns, often with a provocative, humorous tone. This marketing boldness has strengthened its brand image with a young, connected target audience, creating strong customer engagement.

Customization and choice

‍Contraryto McDonald's standardization strategy, Burger King focuses on personalizing its burgers, under the slogan "Have it your way". This approach offers customers a sense of control and individuality, strengthening their attachment to the brand.

Sustainable development and social responsibility

‍BurgerKing has also made sustainability part of its competitive edge, committing to initiatives such as using responsibly sourced products and reducing its environmental footprint. These efforts respond to growing consumer expectations for ethical and sustainable business practices.

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Would you like to open a franchise and are looking for a partner to help you digitalize your business? Innovorder is the only player in France to offer a complete ecosystem: order-taking, collection, preparation, delivery and management!

👉 Discover our offer for franchises

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