As the whole world went into full shutdown because of the malevolent coronavirus last year, the fate of many businesses hung in the balance. Now, our society has adjusted to the new normal along with the franchise industry. However, certain protocols must still be followed. The COVID-19 free future is still far from our hands.
In a recession, an entrepreneur can only go two ways: settle for less, or take a risk. Depending on how you handle the obstacles you go through, taking a risk is the best choice between the two. One might think that building a business amidst the pandemic is a wrong move to do, especially if the business in mind is a restaurant or diner. Indeed, it is difficult to start a business from scratch, especially in the abnormal state of the economic sector right now. But, considering owning a diner franchise would be more ideal and safer to invest in than startup businesses.
Why so?
1. Owning a franchise will already provide you with the necessary resources.
When you consider franchising, aside from building a business on your own, you will already have a corporate team at your disposal. You would not worry about marketing strategies, developing your business, and legal matters at hand. Franchise ownership does not necessarily need you to have a business experience. Franchisors can provide you with support and training.
2. It already has a given reputation.
Franchises are already pretty well known and established so that customers will have no doubts about your services. They often have proven reliable work and management ethics, so you would not have difficulty attracting customers. You will also have access to national advertising. That way, your national recognition will also be already established. People still rely on popular franchises due to their consistency and quality, even if it is amidst an economic recession.
3. Franchise ownership is mostly recession-proof.
Having a franchise comes along with a reliable team. So franchises survive the recession due to creative strategies and best practices. Societal and economic changes hardly affect franchises at all, as they can still bounce back up. Maintaining a franchise amidst a pandemic is less probable to problems. This is ideal compared to independent businesses.
Deciding for a diner franchise ownership is not only a smart move during a recession. It could also help you thrive further once the pandemic subsides. Most restaurants now allow dining inside as long as customers will follow protocols and precautions. Your franchisor may be doing their part to keep your brand name up the pedestal, so you should do yours as a franchisee, too.
Keeping your workforce in high spirits
The pandemic limits the number of employees in a single workplace, so you might have to cut off some work time for them. A good environment to work in produces great work ethics for your employees. As a franchisee or manager, you must be able to hear out their concerns. Communicate with them in such a way that potential problems can be solved with proper solutions. Do not also forget to recognize your employees’ efforts amidst abnormal circumstances.
You must empathize and still focus on physical and mental well-being above all. Create incentives. Create mini-programs. Keep communication accessible between you and your employees. Having a support system in the workplace will help them enjoy their work even under the new normal. When your crew is happy, your customers will also be a lot more satisfied with your service.
Managing your cash flow
In a pandemic, economic ups and downs are inevitable. Once you take a record of your cash flow weekly, monthly, and even yearly, you will be able to generate a pattern that could help you come up with a strategy. When you lay out your cash flow projections, you can see which ones are fixed costs and which are critical costs. That way, you can determine which aspect you are spending most of your money on. This includes rent, taxes, loans, payrolls, and inventory, among other things.
In cases wherein you will eventually run out of money, having a record of your cash flow projections will help you find financial help. This will help you and your franchise business stay afloat.
Assess potential strategies
Keeping a business alive without a strategy is one way to a dead end. Conducting strategic assessments will help you identify your operational and financial risks. When you pinpoint the factors that affect your business during the pandemic, it will be a lot easier for you to plan how to tackle them. Be sure to plan out your ideas carefully and properly, as one wrong move could lead to your business’s downfall. Do not hesitate to conduct regular assessments, so you would be wary of potential risks as early as possible. That way, you can mitigate them without risking more damage to your business.
You must also remember that you are not alone in the brand. You may approach your franchisor and fellow franchisees to seek help and guidance. Communication and compassion are important to keep your business thriving amidst a pandemic. Remember that if you want your franchise to survive, you must take charge and tackle the team’s problems from within.
