Think for a moment about the most popular and successful restaurant chains in operation today. Now, think about your favorite independently-owned “mom & pop” eatery. Compare each with respect to the quality and selection of food, the level of service, pricing, location, etc. In most cases, the entrepreneurial-spirited, independently owned mom & pops win out in every category. So, why then are there so many franchised and large chain restaurants dotting the commercial landscapes of every city, town and burg across America?
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And it’s more than just restaurants. This has been occurring for decades in every business category, from hotels and motels to beauty salons and massage centers. And in recent years, the numbers have been exploding.
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So, does this mean that eventually, every small business, including tanning salons, will be forced to become part of a national franchise or chain in order to succeed? Of course not!
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Let us remember that for every “franchise concept” that succeeds, there are multitudes that have failed or are in the process of failing. However, there is also much to be learned from the franchises and chains that are flourishing. And these lessons should be applied to your business model.
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Here’s the Beef
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Every day, millions of people patronize thousands of burger-based franchised restaurants worldwide. And the simple truth is that these restaurants don’t make the best hamburgers in the world – nor do they make the worst hamburgers in the world. They simply make a good burger.
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In fact, the ingredients needed to prepare a similar meal are readily available at your local supermarket for about 1/3 of the price that they are charging. And if I gave you $10, you could probably whip up a batch of gourmet burgers that are far superior to those on the menus at the fast food joints.
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So, why aren’t we all out there opening our own burger joints and kicking their collective butts?
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Your first argument might be that they have billions of dollars behind them. While this may be true now, in the beginning, they all started with one restaurant, a dream and a mountain of debt. (Watch “The Founder” when you get a chance – highly recommended).
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And regardless of the amount of available capital, the restaurant industry has also witnessed a slew of once well-financed big dogs fail. Anyone eat at a Howard Johnsons, Roy Rogers or Dean Martin’s Spaghetti lately?
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One of the main reasons that the large franchises and chains do succeed and flourish (in every field) is that they offer and deliver something that many individual business owners seem to ignore: CONSISTENCY!
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- Consistency in maintaining a professional demeanor and respectful attitude among all employees
- Consistency in assuring that all employees are well dressed and well groomed
- Consistency in maintaining shelves stocked with popular products
- Consistency in carefully monitoring all financial aspects of the business
- Consistency in meeting the customers’ expectations each and every time they patronize the business
- Consistency in developing advertising & marketing campaigns that continuously stimulate sales and profits
- Consistency in the execution of the “selling and buying” processes
- Consistency in holding employees accountable for achieving sales goals and personally and professionally interacting with customers
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The Sun Business Model
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Now, compare your business head-to-head with a successful tanning salon franchise or larger chain. Examine how they are different from or similar to your business model.
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Here’s what you will probably (hopefully) discover:
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- You both offer quality equipment and a variety of service levels from which to choose.
- You both feature convenient locations and generous hours of operation.
- You both maintain professional, well-trained staffs.
- You both offer the leading brands of lotion and skin care products.
- You both offer competitive pricing.
- You both have to deal with high expenses for rent, labor, utilities, taxes, insurance, etc.
- You both have to deal with employee turnover, economic fluctuations, bad weather, etc.
- You both must continuously market your business and build your brand.
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See the pattern? Every business, big or small, has to contend with the same challenges and obstacles on the path to success. However, it is by consistently providing your customers with that warm feeling of stability and predictability in the areas of customer service and equipment performance that lead you to long-term success.
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There is much to be learned from the franchises and chains that are flourishing, and these lessons should be applied to your business model.
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Happy Endings!
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Several years ago, I wrote an article that examined the unwavering popularity of “TV re-runs.” My observations and conclusions regarding this subject can be applied seamlessly to the topic at hand.
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Case in point: When we watch the same episode of a favorite sit-com over and over, we may believe that we are doing so simply because we find the show and its characters funny and entertaining. However, deep down, our subconscious mind finds comfort in knowing exactly what will happen next – that for the next 30 minutes, no matter how crazy the outside world may be, we are somehow in control and can actually relax.
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I concluded that the real reason people watch the same shows and movies over and over, is due in part to our inner need for control over our circumstances. The same holds true for our daily routines and spending patterns. We patronize the same coffee shop, take the same route to work, listen to the same radio stations, talk to the same friends, etc.
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We are creatures of habit. Once we become accustomed to an expected level of service and performance, we will continue to purchase the same products and patronize the same businesses over and over, as if on auto-pilot (think EFT and membership sales).
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At the same time, we will respond aggressively to “‘negative” surprises. We will quickly change our routines, loyalties and purchasing preferences if a business or product fails to meet our expectations – even once!
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I am not saying that the atmosphere and aura of your business should be boring and blasé. You always need to keep things fresh and stay ahead of the curve by offering new products and services. However, your customers are seeking consistency when it comes to their expectation of receiving the highest levels of customer service and equipment performance every time they visit your salon. They want a guarantee that no matter how stressful their day has been, for the next 10-20 minutes while lying in that tanning bed or using one of your spa services, they are in control and can relax.
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Learn to be consistent in all aspects of your business model – and your franchise will build itself.
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