What advice would you give to emerging multi-unit operators about building resilience in turbulent times?

As the country goes through a challenging economic time, many consumers are re-evaluating their discretionary income. For some people, that may mean cutting down on the number of times they go out to eat, which negatively impacts the restaurant business.

We asked members of the Mult-Unit Franchisee Advisory Board for advice they would give emerging multi-unit operators about how to build resilience during this period. This collection of franchisees brings years of experience and a tremendous amount of success in the restaurant industry. We felt their suggestions would be very helpful for other operators navigating through this difficult time.

Many board members recommended taking greater oversight of operations in this situation. That may mean more closely monitoring and analyzing goals and financial numbers, even on a daily basis. That includes not only the present situation but forecasting revenues and expenses for the future. Franchisees should also understand circumstances that are beyond their control while also looking to maximize the efficiency of their operation.

In Multi-Unit Franchisee magazine, we asked other restaurant franchisees what they wanted to be when they grew up. It is a fun look into how some of the top franchisees in the country envisioned their future career. While some had thoughts of being a business owner, others considered being a professional athlete, an astronaut, or a train engineer. See the Franchisee Bytes section below to read more about their early career dreams.

Tamra Kennedy

Company: Twin City T.J.’s

Brands: 6 TacoJohn’s

Years in Franchising: 41

Stay on top of your data. Have a written plan with specific goals and accountability. Check progress against those goals often, and don’t wait for monthly financials. Track results daily, maximize the talents of your store leaders to monitor, and adjust performance at the unit level. Non-unit-based costs, like general/administrative expenses, should be monitored closely as well. Review all service contracts and renegotiate where you can.

John Hotchkiss

Company: DHC of San Antonio

Brands: 45 Little Caesars, 4 Dave's Hot Chicken, 2 Firehouse Subs

Years in Franchising: 25

It is essential for new multi-unit operators to understand that not all brands and the same economic resilience. Operators must first clearly analyze the expected future economic situation to forecast how their units will be impacted. The most critical step is evaluating the relationship with the franchisor. Do you have faith they will adjust to protect your bottom line, or are they solely focused on the top line? Finally, clearly define what is in your control (local labor, execution) and what is out of your control (tariffs, macro-economy) to manage risk effectively.

David Ostrowe

Company: 180 Business Solutions and O&M Restaurant Group

Brands: 28Taco Bell

Years in Franchising: 30

Protect your balance sheet, build a leadership bench early, and stay brutally honest about unit performance. Don’t fall in love with underperformers. Fix them fast or move on. The operators who stay disciplined, with cash, people, process, and performance, not only survive turbulence but grow through it.

Robert Branca

Company: Brand Management Group

Brands: 39 Dunkin’, 7 Interstate Batter

Years in Franchising: 22

As I say all the time, the math never changes despite proclamations that, “It is different this time!” It never is. Tools, mostly technological, change, but the numbers always show the path.

While the hunger for growth is ever-present, make prudent financial decisions and anticipate growth before you do it. Be especially prudent with leverage. All bad economic outcomes in our society always started with and were exacerbated by excessive leverage. You have no cushion for bounce-back, either, as an individual business or a society.

Franchisee Bytes

What did you want to be when you grew up?

I always knew I wanted to be an entrepreneur. I wasn’t sure what industry it would be in, but I was always drawn to building something of my own.
-Lawrence Kourie, Multi-Unit Owner-Operator,22 Dave’s Hot Chicken

A professional football player
-Tom Lovelace, Owner/President, Tom Lovelace Group,96 PapaMurphy’s

I wanted to be an astronaut, but the most I got off the ground was getting my pilot’s license and flying an airplane.
-Phong Huynh, Co-Owner, Fuego Investment Inc., 30 El Pollo Loco

A businessman. I grew up in a middle-class family, and we always had more than sufficient means for what we needed. But I saw others who were in business and had more money, and I was drawn to that possibility.
-Amol Kohli, Managing Partner, Legacy Brands International,63 Orange Leaf,61 Friendly’s (franchisor),60 Clean Juice, 36 Red Mango, 6 Humble Donut Co., 3 Souper Salad, 1 Smoothie Factory + Kitchen

I wanted to be a train engineer and drive trains.
-David Weeks,CEO, The Bean Team,9Barberitos, 8 Dunkin’, 4Newk’sEatery, 1 Dunkin’/Newk’s co-brand

I always knew I wanted to go into business. I would play a video game called Aerobiz, where you are the CEO of an airline.
-Chris Aslam, CEO & Principal, Rock Strategies and various entities,59 Jack in the Box, 5 Golden Chick, 5 Hawaiian Bros Island Grill

An oceanographer.
-Chad Given, Brand President, Sizzling Platter,361 Little Caesars, 107 Little Caesars Mexico, 185 Wingstop, 92 Jamba, 33 Jersey Mike’s Subs, 31 Dunkin’, 7 Sizzler, 5 Red Robin, 1 Cinnabon

I thought I would be a salesman when I grew up. I loved going door to door and selling popcorn when I was in the Boy Scouts.
-Jerome Johnson, Multi-Unit Franchisee, John Cove Management and Jbar Inc.,4 Sonic Drive-In, 10 Dunkin', 4 Baskin-Robbins, 1 Jersey Mike's Subs

A businessman or a defense attorney.
-Nick Crouch, Co-CEO, Dyne Hospitality Group,118 Tropical Smoothie Cafe

A lawyer. Thank goodness that didn’t work out! 
-Mike Kulp, CEO, KBP Brands,828 KFC, 119 Arby’s, 85 Sonic, 56 Taco Bell