Franchising: how do you successfully break through the 100-restaurant barrier?

Franchise expansion is a challenging and rewarding entrepreneurial journey, but one that can be fraught with pitfalls. Reaching the milestone of 100 franchised restaurants is more than just a number. It's a significant milestone, testifying to the success of your restaurant chain, the confidence your investors have in you, and the quality of your concept. In this article, we'll look at the benefits of expansion, the challenges you're likely to face, and some of the keys to success that will help you reach the milestone of 100 franchised restaurants. 

‍

The advantages of reaching the threshold of 100 franchised restaurants 

Before we look at the challenges you'll face when you reach the milestone of 100 franchised restaurants, let's first consider the 3 main benefits you'll enjoy as you grow your chain. 

Accelerated growth and minimized risks 

Franchise expansion offers you the opportunity to achieve rapid growth while minimizing risk. What does it mean? By allowing local entrepreneurs to invest in your concept and brand, you can expand your geographical presence without having to raise large sums of money on your own, and while reducing the risks associated with opening new establishments. 

Capitalizing on local expertise and adapting to regional markets 

Briefly mentioned in the previous paragraph, local expertise is a real asset for any franchise manager. It's a key factor in your ability to adapt to regional markets and appeal to a broad public with different needs and expectations. Franchisees are often entrepreneurs rooted in their local communities, with in-depth knowledge of consumer preferences, market trends and local regulations. 

By giving them some leeway to adapt the brand concept to their specific market, you reinforce your chain's relevance and competitiveness on a local scale. This ability to personalize the offer can translate into greater customer loyalty and brand acceptance in different regions.

Economies of scale and operational benefits 

It's impossible to talk about franchise expansion without mentioning the economies of scale and operational advantages you'll enjoy. By grouping several establishments under a single banner, you can negotiate more advantageous agreements with suppliers, reduce marketing and advertising costs, and streamline operational processes. The greater the number of franchisees in your network, the greater your bargaining power. 

What's more, standardizing operations optimizes efficiency and consistency across the franchise network. What does this mean in concrete terms? Better quality of service, increased productivity and enhanced customer experience, all of which will have an impact on your profitability. 

‍

The challenges of franchise expansion beyond 100 restaurants

Reaching the milestone of 100 restaurants in franchising is synonymous with challenges. What challenges will you have to overcome to reach and surpass this symbolic threshold? 

Maintaining brand consistency and customer experience

Maintain brand consistency and quality of customer experience across all locations is a major challenge. Each franchised restaurant may be located in different geographical areas, marked by distinct cultures and culinary preferences. It is therefore essential for the franchise manager to ensure that hygiene and safety standards, product quality, customer service and ambience remain consistent from one establishment to the next. This requires constant monitoring, regular audits and ongoing support to ensure that each restaurant meets the brand's standards.

👉 To find out more : How to develop your restaurant franchise concept?

A "glocal" management system to reach the threshold of 100 franchised restaurants

Managing a franchise network, a fortiori one with over 100 locations, involves a delicate balance between standardization of operations and the need to adapt to local needs. While standardization helps to ensure consistency and operational efficiency within the chain, it is also crucial to recognize that each local market may have its own particularities and requirements. Franchise managers must therefore be flexible and open to adapting their strategies to meet the specific needs of each region. This means, for example, making adjustments to the menu, promotions or even the layout of the restaurant to better match local expectations.

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

Effective communication 

A network of over 100 franchisees must be based on effective communication between franchisor and franchisees. This is essential if problems are to be resolved quickly and the risk of conflict avoided. While franchisees are an integral part of the brand's network, they are also independent entrepreneurs. Open, transparent upward and downward communication builds trust and fosters collaboration between the various stakeholders. 

A solid infrastructure to help franchisees pass the 100-restaurant mark 

To guarantee the success of your expansion, you'll need to back it up with a solid infrastructure, without which the growth of your network won't take place. Increased business volume is only possible if you have developed scalable logistics. 

For your expansion strategy to go smoothly, you'll need to invest in efficient, innovative and scalable supply chain management systems, capable of managing growing demand while maintaining high levels of quality. Suppliers must be carefully selected, and procurement processes designed to reduce delivery times and minimize costs.

👉 Also read : Creating a restaurant chain: 9 things you need to know

‍

5 keys to reaching the 100-restaurant milestone in franchising

Here's an overview of the benefits and challenges of such an expansion project. What about key success factors? 

1. An effective marketing plan 

Developing targeted marketing that can be adapted to each local market is essential to establishing a solid brand presence and attracting loyal customers. Customized communication strategies can boost guest engagement and brand awareness in every community. 

2. Optimized franchisee management and training

A robust training program ensures that each new franchisee and their employees fully understand the brand's operations, service standards and culture. By investing in developing the skills and knowledge of your franchisees, you can ensure operational consistency and high service quality across the network. 

3. A good choice of location and franchisees 

Careful selection of franchisees is crucial to successful expansion. There's nothing like partners aligned with the brand's vision and values to maintain a consistent customer experience , and to guarantee efficient management of each establishment. By choosing strategic locations and committed employees, you'll maximize your chances of success in new markets.

4. Solid financing strategies 

Identifying financial risks and managing resources prudently are key to sustainable franchise expansion. Rapid expansion can sometimes lead to excessive indebtedness or dilution of resources. Rigorous financial analysis and a scalable business model are essential to maintain financial stability and ensure long-term network growth.

5. State-of-the-art technology

Digitizing operations is often synonymous with significant competitive advantage in a franchise network. By using technology for cash management, order taking and customer relations, you can dramatically improve operational efficiency, reduce costs and deliver an optimized customer experience. 

By using Innovorder digital solutions(order kiosks, production screens, cash registers, etc.), franchisors can stay at the forefront of the industry and boost their growth. In fact, this topic is so crucial that we've devoted several articles to it. 

👉 Going further: Digitization: 7 examples of restaurant franchises

Reaching the milestone of 100 franchised restaurants is a remarkable feat, and a testament to strategic vision, optimal management and the ability to overcome the challenges inherent in this expansion. By adopting the strategies that can help you meet the challenges of this great adventure, and some of the keys to success mentioned above, you'll not only reach this milestone, but also lay the foundations for lasting success.

-

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