For the past few decades franchise companies have been lulled into a false sense of security by failing to innovate, primarily due to a dutiful ‘baby boomer’ clientele. Now that millennials are settling into place, failing to adapt to their interests, habits and beliefs can be fatal, and in franchising, you are putting a network of business owners at risk. Many franchisors are reticent to effect needed changes due to the inherent structure of a franchise network, with an increasing diversity of franchisees, pleasing everyone is not possible. Franchisors have the daunting task of managing change, and they should be calculating and deliberate in doing so, understanding franchisees bear both the costs of change and the impacts. Yet, sometimes significant societal shifts require strategic changes in order to remain or become relevant. The current generational shift represents a virtual tsunami of change opportunities, and some franchise leaders are embracing it, showing their peers the way if they are willing to listen.
Blaze Shareable Pizza
As Matofska and Sheinwald highlight in their timely book Generation Share, failing to accept ‘sharing’ as a fundamental aspect of your concept can have grave consequences. The franchisor of Blaze Pizza is unveiling it’s new large, shareable pizzas— available exclusively online for carryout or delivery to specifically targets millennial and Gen Z diners that are demanding off-premise dining.
“Today, we are here to disrupt the category and give consumers what they deserve – a better pizza,” explains Daniela Simpson, General Manager – Digital Growth Division. Blaze Pizza was recently named #1 ‘Brand of the Year’ in the Fast Casual Top 100 with 330 restaurants in 41 states and 5 countries. The fast-casual pizza sector needs to be making strategic moves to better serve a new generation of customers, and Blaze Pizza hopes this launch will allow them to compete effectively against much larger delivery concepts like Domino’s and Papa Johns.
Cruise Planners App
Cruise Planners, an American Express Travel Representative, is the nation’s largest home-based travel agent franchise network in the travel industry. Cruise Planners operates a network of more than 2,500 franchise owners who independently book vacation and travel experiences for their clients. Last year, the company analyzed its data and learned that more than 400,000 millennials are already in their database. Agents are already booking these younger customers, plus they’re traveling more and they trust travel agents. According to Michelle Fee, founder and CEO ofCruise Planners, “We are constantly monitoring trends to update and optimize our branded applications to remain relevant and provide features exceeding travelers’ expectations while positioning our franchise owners as the best travel service providers”. As part of its millennial marketing campaign, Cruise Planners is revamping its mobile app to enhance this clientele’s user experience. Clients can manage their trips while traveling and search for and even book future travel. And, with enhanced ‘digibility’, they’ll be able to make payments, have credit cards authorized, purchase travel insurance and more.
CD One Price’s Scamper
The team behind CD One Price Cleaners, a Midwest-based dry cleaning franchise with 30-plus units, recently launched a laundry service called Scamper. Think of it as Uber, but for laundry. It’s an app-based program that allows people to schedule a laundry pick up and get it delivered the next day after it has been washed and folded. “It’s imperative that companies consider the lifestyles that millennials and busy families have today,” says Rafiq Karimi Jr., CEO, and co-founder of CD One Price Cleaners and CEO of Scamper Laundry Service. “Younger generations want to spend more time living their lives and being with their loved ones, not spending hours on mundane errands that take up their time.”
The CD One team recognized the change in how people dress for work, buy clothes, etc. and knew that in order to stay relevant they had to modify their services. Scamper is specifically designed with the young millennial family in mind, including the Scamper guarantee that your laundry will be cleaned, folded and delivered the very next day.
Regardless of the industry segment a concept falls into, franchisees are counting on their franchisor to figure out what this increasingly powerful customer base wants from the brand. According to founder Sean Owen from wedü, a digital agency working with franchise companies, “Franchisors must embrace the mounting evidence of data surrounding millennial behavior, habits and traits to make strategic changes in their concepts.” One of the best places to identify opportunities for change lies within the network as franchisees are face-to-face with the customers daily. Franchisors that are not effectively tapping into their franchisee networks will likely miss any low hanging innovations and adjustments that could yield big results, not to mention a potential game-changer. In any case, choosing to maintain the status quo will not likely be a winning strategy in the race for relevancy with the customer of the future.