Taco John’s, a “West-Mex” fusion fast food restaurant, held voluntary workshops in most of its territories for franchisees to learn ways to reduce their food and labor costs with a goal of 1% reduction. They were in the form of interactive round tables and discussion about how to streamline operations, and there was lots of networking between unit manager. Also discussed were ways to better advertise locally.
It sounds like a great way to reach out to franchisees. Hopefully it will help.
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Ryan is an attorney and valuation specialist residing in Chicago. He chronicles his thoughts and research on FranchisePundit.com. You may reach him by email ryanknoll@gmail.com or mobile telephone 312-715-8115.
I can’t believe franchisees are willing to pay to attend these events hoping for only a 1% reduction in costs. Maybe I’d go for 4-5% or more.
If your food costs are 30% of gross sales, and your gross sales are hypothetically $450,000, that 1% savings is $4500! That’s a substantial savings.
I suppose that might be worth it. But I bet they only see half of that after paying employee training time, adding additional training visuals, etc.
Taco Johns is awfal.
~Dahvie Juedes