FESmag

Amelia Levin

Mindful Expansion
August 5, 2008

So, I wrote about operators expanding day parts and how this can be a good way to improve sales, but I also examined some ways in which it can be a negative endeavor. Both consultants Mark Godward and Karen Malody, who I interviewed for the article, agreed that operators need to “do their homework,” meaning conduct thorough research and analysis to ensure expanding day parts and/or menus will boost profits, not take away from them in the form of increased costs associated with added labor, food purchases, energy/water usage and other expenses. 

Apparently, Burger King expanding their hours until 2 a.m. has negatively affected franchisees in this way. According to published reports, operators of 57 Burger King restaurants in South Florida have sued the company over this requirement to extend their hours, citing increased costs and “severe economic hardship.”

Now, I’m not going to get in the middle of this battle and start pointing fingers. Over time it will become clear as to whether the suit has merit or if it’s another case of franchisees quarreling with the parent company.

But Godward and Malody were right. What the Burger King situation underscores is the absolute need to carefully research and analyze the impact an expansion of day parts will have on a concept across the board. These are not decisions operators should make lightly and when they do decide to take the plunge, clear and concise communication to all relevant parties is critical. And, if you have a large network of franchisees, it’s not a bad idea to get their buy-in before moving ahead.

Posted by Amelia Levin on August 5, 2008 | Comments (0)