Dr. Sarah Sun Liew’s Tips for Growing a Restaurant Franchise

California Gazette Staff

Scaling a restaurant franchise involves more than just opening new locations. It requires a well-thought-out strategy that leverages market insights, customer feedback, and operational efficiency. Dr. Sarah Sun Liew’s Chapter 16, Building a Scalable Business, provides a comprehensive framework for achieving this growth. This article distills her insights into practical strategies for successfully expanding a restaurant franchise.

Understanding Your Market

Look Beyond the Data

Successful scaling begins with a deep understanding of your market. While sales figures and demographics are crucial, they don’t tell the whole story. Engage with trends and patterns behind the numbers. For instance, if data shows increasing demand for healthier options, consider introducing new menu items that cater to this trend.

Example: A franchise with strong sales in traditional fare might spot a rising trend for plant-based diets. By adding plant-based options, the franchise can tap into a growing market segment, attracting new customers while retaining existing ones.

Customer Interactions

Direct feedback from customers can be a goldmine for growth. Use surveys, focus groups, and direct conversations to understand customer needs and desires. This feedback can help you identify gaps in your offerings and areas for improvement.

Example: A franchisee might discover that customers want more local or seasonal ingredients. Implementing this feedback can lead to a refreshed menu that resonates better with the community and drives increased foot traffic.

Competitor Analysis

Keep a close watch on your competitors, not to imitate but to differentiate. Identify gaps in their offerings or underserved market segments that your franchise can fill.

Example: If competitors lack a kid-friendly menu, incorporating child-friendly options can attract families looking for dining solutions that cater to all age groups.

Innovating Your Offerings

Assess Your Product Portfolio

Regularly review your menu and offerings. Determine which items are performing well and which need revitalization. Innovation doesn’t always mean creating something new; sometimes, it’s about refreshing existing offerings.

Example: A popular dish might need a modern twist to keep it relevant. Introducing new flavors or presentation styles can breathe new life into classic items.

Research and Development (R&D)

Invest in R&D to stay ahead. Encourage your team to think creatively and challenge the status quo. This mindset can lead to new menu items, operational improvements, and enhanced customer experiences.

Example: Developing a new signature dish through team brainstorming sessions or experimenting with different cooking techniques can set your franchise apart.

Leverage Technology

Technology can streamline operations and enhance customer experiences. Stay updated with the latest tech advancements and explore how they can benefit your franchise.

Example: Implementing a robust point-of-sale (POS) system with integrated loyalty programs can improve customer retention and operational efficiency.

Expanding Your Reach

New Markets

Expanding to new geographic or demographic markets requires thorough research. Understand the cultural and consumer preferences of the new area to tailor your approach effectively.

Example: Before opening a new location, conduct market research to gauge local dining preferences and adjust your menu accordingly. A franchise expanding into a region with a strong preference for spicy foods might introduce a spicy dish unique to that location.

Partnerships and Collaborations

Form strategic partnerships to co-create value. Collaborate with local businesses or influencers to expand your reach and enhance your brand’s visibility.

Example: Partnering with local events or festivals can increase brand exposure and attract new customers who might not have visited otherwise.

Channels of Distribution

Explore new distribution channels, such as e-commerce platforms or delivery services, to reach a broader audience. Consider offering online ordering and delivery to cater to customers who prefer convenience.

Example: Implementing a delivery service through a popular app can attract customers who prefer dining at home, expanding your customer base beyond the physical restaurant.

Dr. Sarah Sun Liew's Tips for Growing a Restaurant Franchise (2) — Photo Courtesy: Dr. Sarah Sun Liew / Meridian Beverly Hills Investment and Legal Group

Optimizing Operations

Efficiency Audit

Regularly audit your operations to identify areas for improvement. Streamlining processes can reduce costs and increase capacity, allowing you to invest more in growth.

Example: Simplifying kitchen workflows or reducing waste through better inventory management can lead to cost savings and improved operational efficiency.

Employee Development

Invest in your team’s growth. Training and career development opportunities can lead to innovative ideas and improvements that drive the franchise forward.

Example: Offering leadership training programs can prepare your staff for managerial roles, ensuring that each location maintains high standards of service and operations.

Feedback Systems

Encourage internal feedback to identify opportunities for growth. Front-line employees often have valuable insights into operational challenges and customer preferences.

Example: Regularly hold team meetings where employees can share their observations and suggestions. This feedback can lead to actionable improvements that enhance the overall franchise experience.

Measuring and Adjusting

Key Performance Indicators (KPIs)

Establish KPIs to measure growth beyond revenue. Include metrics such as customer satisfaction, market share, and innovation. Regularly review these KPIs to track progress and make informed decisions.

Example: Tracking customer satisfaction scores and monitoring social media reviews can help you gauge customer sentiment and identify areas for improvement.

Agility

Be prepared to pivot when necessary. Not every growth opportunity will succeed, and it’s important to learn from missteps and adjust your strategy accordingly.

Example: If a new menu item doesn’t perform as expected, analyze customer feedback and sales data to make necessary adjustments or remove it from the menu.

Conclusion

Building a scalable restaurant franchise requires a multifaceted approach, from understanding your market and innovating your offerings to expanding your reach and optimizing operations. By following the strategic blueprint outlined in Dr. Sarah Sun Liew’s Chapter 16, you can position your franchise for sustainable growth and long-term success.