The operational balancing act behind every successful franchise brand

As consumers, it’s probably fair to say that most of us don’t give much thought to the operational structure and processes of the typical successful franchise brand. And why should we? In most cases, our expectations are well established, and whether we’re having a coffee or getting some fast food, we just want the experience to be predictable and reliable.

For the brands and their franchisees, standardising the various processes is, to put it mildly, extremely challenging. Shell’s global network of service stations offers a compelling illustration. The brand operates across thousands of locations in dozens of countries, the overwhelming majority of which are run by independent franchise partners rather than Shell directly. While each site must deliver a consistent brand experience (from fuel quality to convenience retail standards), the people responsible for that experience are employed by the franchisee, not the franchisor. There are many moving parts, and maintaining consistency across such a distributed operational model is anything but straightforward.

Indeed, for any enterprise reliant on the franchise model at scale, ensuring an outlet in Aberdeen offers the same experience as another in Brighton, never mind the added complexities of operating internationally, is a huge undertaking that depends on outstanding levels of coordination.

On the frontline

If that wasn’t challenging enough, much of the responsibility for delivering the brand experience falls to frontline workers, who ironically, are least connected to the central communication and operational systems. Similarly, it’s not uncommon for a head office franchise operation to have limited direct visibility into what is happening at the location level.

This creates an important tension within the franchise model itself. Franchisees need flexibility to operate effectively within local markets, but brands also require a high level of alignment to maintain standards and ensure that all important customer experience. It’s at this point where objectives intersect with workforce coordination and frontline execution that it can be make-or-break.

Take employee engagement, for example, where many organisations are prioritising its positive impact on customer satisfaction. Organisations with highly engaged employees outperform their competitors by 147%, while those that invest in employee experience are four times more profitable than those that don’t. The point is that when employees are happy, customers are happy, and when customers are happy, the business profits.

But it’s also an example of where any operational shortcomings can have a serious impact.