Top 2 problems faced by new franchisees and how you can deal with them

Top 2 problems faced by new franchisees and how you can deal with them

When it comes to opening your own business, there are plenty of reasons why you might opt to become a franchisee. You get support from the mother brand and getting customers can be easier since you have brand name recognition and their good reputation behind you. That said, operating a franchise comes with its unique challenges. Let’s discuss some common challenges new franchisees face and how you can overcome them and flourish.

1. Employee retention

It is inevitable that employees will change jobs over time but when the employee turnover rate becomes too high, it becomes detrimental to the business. For starters, you will spend a great deal of money recruiting and training new employees. In the restaurant business in particular, changing customer facing staff undermines customer trust in your business. Your regulars will not want to deal with new staff every other day.

The exceedingly high turnover rate in the restaurant industry severely affects franchises. This can be put down to the high demand for restaurant staff and reliance on less specialized workers who are able to shift between jobs with ease.

What you can do about this

Start off by hiring the right staff. Craft a hiring process that allows you to select the right people for the job. It shouldn’t just be a case of hiring whoever walks into the door. Once employees are hired, observe them and identify those who you can nurture for senior roles in the company. We are all familiar with the restaurant manager who has been with a restaurant for 20 years and started out as the dish washer.

Given the high demand for restaurant staff, a franchise can offer better terms of employment, including better wages, to encourage their staff to remain with them for longer. While it is an increased cost in the short run, it will pay off when you realize a reduction in rehiring and training costs.

But workers aren’t only interested in increased pay. To curb turnover show your employees that they have a bright future with the business. Training programs that boost employee skills or teach them whole new competencies, are a good way to show them that they can grow with the business.

2. Navigating the first days

The first days of starting any new business can be very demanding. It is even more intense for a customer facing brand and for one where an owner has to interface regularly with various stakeholders. A new franchise owner has to manage their staff, their customers, various suppliers, governing authorities and the relationship with the franchisor. This can all become a tough balancing act that will leave you feeling drained at the end of the day.

What you can do about this

A new franchise owner needs a lot of support. This entails hiring the right people for the job. Supervisors and managers should be able to relieve the burden in some areas. If it is not possible to have highly skilled staff permanently on the pay roll, consider hiring them as consultants for a brief period. A seasoned chef can help you get off the ground right and train your resident chef.

Support isn’t limited to having the right staff, moral support is just as important. Mohammed Pasha who operates Tahini’s Whitby credits his success to family support. Having people around who can help to keep you going in those first days when things are a little less than

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