Ask any quick-serve operator who’s been through a crisis. He will be able to tell you the exact date, time, and day of the week the fate of his concept came under attack.
For years, the two most important words in franchising—for both franchisors and franchisees—have been unit economics. The success or failure of a franchise concept can pivot off of how well unit economics are tracked, managed, and improved.
When Shake Shack went public in January, its shares were priced at $21. The next morning, the stock began trading at $47 per share, and in May, the price peaked at nearly $97.
A few years back, the Trouble Coffee and Coconut Club in San Francisco’s Outer Sunset neighborhood began selling slices of cinnamon toast for $4.
You would be hard pressed to find a quick-service operator who, when asked why they started their own business, answered by saying it was to become the CIO of the company.
There’s a lot of buzz in almost every circle about the Millennial generation—those born between 1978 and 1995—and for good reason. They are spending money in a big way and, if you market to them right, they’ll spend it eating out.The numbers don’t lie.