Franchising is one of the most powerful commercial models developed, resulting in billions of dollars generated and millions of small-business owners in operation, yet it may reaching a diverse and growing group of people in need and global challenges to address.
The global stage is set for increased “meaning” in all aspects of life. A study by public relations and social responsibility is now a 90 percent of shoppers worldwide likely to switch to brands that support a good beginning to recognize this trend and and commitments to good causes.
The Move Toward Meaning
As consumers and buyers across the global spectrum summarily conduct research before making purchase a trait inherent with millennials and the effect on
purchasing decisions is diminishing as it becomes more an in-depth integration into the organizational culture that engages is already being felt as witnessed by the amazing work of the awardees at approach resulting in the “purposeful franchise organization.”
The Purposeful Franchise
As buyers for goods and services become increasingly cognizant of what’s behind the brand, franchising should step forward with a deliberate, intentional message that resonates with customers to convey local ownership and social conscious. An even higher calling would be to purposefully develop a strategy that creates social impact, and some are paving the way, like Malawi’s “Pizza with a Purpose”. Every pizza sold provides a nutritious meal for a child in the African country of Malawi, the same impoverished country where entertainer Madonna recently opened a children’s hospital. Surely, this is the “franchising for good,” and if harnessed effectively and deployed efficiently, it can be compelling to consumers.
Malawi’s Pizza was designed, dedicated and developed with “good in mind” from the beginning. Businessman Blake Roney from Provo, Utah does mission work in Malawi and was moved by the plight of the people. From his own resources, he began programs to provide supplemental meals for those in needs. Back in Provo, he partnered with local chef Kent Andersen to create the concept and launch the flagship location. Using little in the way of traditional marketing, patrons shared their Malawi’s Pizza experience “socially,” and the business excelled to achieve attractive results, even being closed on Sunday and not offering any alcohol.
Now with four franchised locations and dozens more in the pipeline, chef-inspired, trend-on concept that does good with every meal served, yet all out of the franchisors side of the scales. Several franchised locations are open on Sunday and offering craft beers and wines, and so far, are experiencing strong interest. This
purposeful franchise gives up nothing by way of quality and value, but at its core, is making a difference with each meal served. As Chef Andersen says, “By fully weaving the philanthropic aim of our restaurant into our operating and business philosophy, we are able to provide a fantastic dining experience and nurture those around us at the same time.”
Malawi’s most recent franchise opened in Fredericksburg, Va., and the millennial couple that own it could not agree more. “My dad offered to help me open my own business, and when I found Malawi’s Pizza, I stopped looking,” says Patrick Church, owner of Church Restaurant Group. “I knew I wanted a great food concept, which Malawi’s is, but it’s so much more. Customers love what we are doing, and I am attracting a great staff because they see the difference we are making”.
Considering the Purposeful Franchise Model
My dad offered to help me open my own business, and when I found Malawi’s Pizza, I stopped looking. – Patrick Church, owner of Church Restaurant
Group
It is clear from the Malawi’s Pizza approach that concepts do not need meaningful difference in the world, yet there are considerations to be made.
- First, the role franchisees will play in the mission and the messaging is critical. Franchisees are independent business owners, and as such, have the latitude to choose those companies and concepts that they want to be associated with, so the purposeful franchise may draw from a limited population of prospects. Likewise, franchisees personal interests today may change over time, either closer aligned to the franchise concept or possibly farther way. And, the business practices at thefranchisee level can vary with respect to treatment of employees, cleanliness of the premises and attention to customer issues, any or all of which could have an impact on the perception of the brand “doing good.” Franchisee selection is a critical part of any franchise, and it is certainly heightened with the purposeful franchise.
- Second, the level of transparency consumers expect with a purposeful franchise will be understandably higher to ensure it is not a marketing ploy, but that the good purported is actually being accomplished. Malawi’s Pizza provides customers with an infographic that explains “how” the company is getting their meal- for-meal program done, as well as the customers’ own contribution. Digging a little deeper reveals the company is partnered with program to make sure “963,765” meals are actually being delivered.
- Finally, purposeful franchise organizations must realize that what is meaningful today may change in the future, so keeping the messaging fresh and relevant is critical. Social fatigue can set in and impact the interest of socially-driven endeavors. Purposeful franchisors will have to closely monitor consumer engagement to navigate changes in interest, social norms and cultural changes, and franchisees will have need to recognize that changes are likely to occur
The Road Ahead
Franchising is one of the most powerful commercial models developed, resulting in billions of dollars generated and millions of small-business owners in operation, as a model for sustainability reaching a diverse and growing group of people in need and global challenges to address. It will require stewardship at the franchisor level and amongst the franchisee networks, strong partners in the supply chain and relevance with the customers the concepts seek to attract and maintain. The growing number of young social entrepreneurs, as evidenced by the IFA NextGEN program, provide us great hope that more purposeful franchises will be conceived, developed and scaled resulting in a new era for franchising. Now, head out to a Malawi’s Pizza and start making a difference!
Dr. Ben Litalien, CFE, is the founder and principal of Franchise Well, a specialized consulting practice supporting franchise
companies, prospective franchisees and nonprofit organizations interested in
the franchise sector. A frequent author and speaker, he serves on the Board of Governors for IFA’s Institute of Certified Franchise Executives, and teaches the Franchise Management Certification Program at Georgetown University in Washington, D.C. For more information, visit www.franchisewell.com.