It is also clear that franchisor-driven technology rollouts can be contentious topics for franchisees. The vast majority of franchisees are small business owners, owning only a handful of stores (and often only one). They are entrepreneurial in nature, as evidenced by their desire to own and run their own business. And they can sometimes bristle at franchisor decisions made without their involvement, particularly when those decisions require investment of franchisee dollars
To put it plainly, franchisees want to have a voice in the entire technology acquisition process from selection to implementation.
Top Brands in the Survey
| Arby’s | Domino’s Pizza | Papa John’s Pizza |
| Baskin-Robbins | Dunkin’ Donuts | Papa Murphy’s Pizza |
| Blimpie Subs | Fazoli’s | Pizza Hut |
| Burger King | Hardee’s | Popeyes Chicken and Biscuits |
| Carl’s Jr. | KFC | Quiznos Classic Subs |
| Checkers Drive-In/Rally’s | Krystal | Sonic Drive-In |
| Church’s Chicken | Little Caesars Pizza | Subway |
| Cold Stone Creamery | Long John Silver’s | Taco Bell |
| Dairy Queen | McDonald’s | Wendy’s |
Technology Spending
The retail industry’s average technology spend rate is in the 1.5 percent to 1.7 percent of revenue range. The average spend rate from our survey is a bit higher than that—an average of about 2.5 percent, slightly more than 40 percent spending 3 percent or more of revenue on technology. This higher spending could be attributed to the quick-service environment where small efficiency gains can mean big bottom-line savings. The 20 percent spending less than 1 percent will find it challenging to keep up with the competition as well as their franchisor technology recommendations.
What percent of revenue do you spend on technology?
Mandate Compliance
Approximately half of the franchisees surveyed are 100 percent compliant with their franchisors’ technology recommendations. And nearly 80 percent are in compliance with 75 percent or more. It is possible that some franchisees lag in compliance due to the robust rate at which new technology is being introduced. One explanation could be the lack of franchisor requirements and mandates in certain areas (e.g., broadband, video surveillance) that are not yet considered critical.
On average, how well do your restaurants comply with your franchisor’s recommendations and mandates regarding technology?
