Improving Franchise Development with Root Cause Analysis

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In a previous blog, we talked about the importance, based on what the numbers have shown to work, of having repeatable processes. Ideally, this gives you a successful system that is sustainable regardless of specific personnel or other external factors. While this system is built around what we know works, it provides additional benefit for the future. It also creates a controlled environment for new data to to be even more effective at diagnosing the root cause behind the problem areas in your brand.

Root cause analysis can happen on any scale necessary, large or small. For some brands who may be more advanced when it comes to recruiting, a CDO might look at their data and see that they struggle specifically with turning a lead into a prospect. They know everything else works after that point, but there’s a kink in the hose way at the beginning of the process.

For a brand that  hasn’t put as much time into perfecting their recruiting, the analysis would probably show them that getting system in place and tracking the right numbers is their best solution.

When it comes to diagnosing problem areas outside of recruiting, A&W is a perfect example of spurring new growth by following the numbers. After 100 years in business, the classic burger chain is implementing changes to both their franchise development approach and how their units operate.

One of their biggest moves is the shift away from co-branded locations. Why? Because the single-branded stores perform better. It seems so simple, as long as you have the right data. “We developed enough new restaurants and we have enough data over seven years to now know what really works, what works for the operator, and what also works for us in the market,” A&W CEO Kevin Bazner said in an interview with QSR Magazine.

There are so many variables, both internal and external, in the business of franchise recruitment, and it can be nearly impossible to tell which one is causing growth to stall solely with intuition. Making sure your executive team, development directors, and anyone else involved in the recruitment process has access to updated data and information on a weekly basis is crucial to accurate root cause analysis.

If your brand needs assistance in performing a root cause analysis contact CGI Franchise and we will be glad to start a conversation with you.