Will Big Data Change The Future Of Franchises Forever?
The future of franchises is being shaped by the power of big data. As technology changes, will your favorite franchise ever be the same?
Big data is having a profound impact on business models that have been around for decades. Franchises are no exception. Corey O’Donnell, the vice president of Yodle, addressed this in a column at Franchise Magazine. O’Donnell astutely points out that big data has given franchises the opportunity to optimize their business models much more effectively.
“Using data to determine the best way forward is the difference between making a well-informed decision and taking a leap of faith. This applies to a franchise network as much as any other business. Armed with data, we have the information needed to understand the past, interpret the present and predict the future. If data-informed decisions are better decisions, and bigger is better, then logic says that “Big Data” enables us to make the best possible choices.”
Big Data is Overcoming Bureaucratic Gridlock in Franchises
Large organizations tend to be less adaptive. Getting them to buy into using big data can be hard. In theory, franchises are small businesses. They should be able to invest in big data to increase their ROI. However, franchise owners must follow corporate business policies, even if they are technically the owner of the franchise. This means that it takes a lot of bureaucratic decision-making, but they are finally starting to appreciate the benefits of big data. Franchises look to have big teams and a lot of people but in reality, they have small team which knew all about HQ. Franchise profile is very important and if a company is franchising, they will locate the whole area where you are opening their franchise and companies also look into passion of that persons in their company and in their franchises. Investing for a franchise is long term plan and business, basically it’s your own business so you to be very careful about everything. Open network and communication is a key to success in franchising, if a company is not opening or communicating then you should never work for them and start looking somewhere else. Many companies have direct contact with their franchises and that is why they are very successful. Albert Singer is considered modern day franchise father, especially in United States. He was the first one to create franchising contact in mid 1800s and that help these UK franchises to develop a lot. United State has currently 750000 franchise establishment and it employs 8 million people combined, approximately 50% jobs are of restaurants. The most interesting fact was five guys burger, we can order their burger from 250000 possible ways, actually they are 5 brothers but 2 of them started this business. Pinkberry rotates is one of the best yogurts and they offer many flavors but their flavor offering is seasonal but there one flavor is always available which is Frozen yogurt Original it is available in summer, winter any month, whole year. Another fact about franchising is Dunkin Donuts. Dunkin Donuts is one of the best and well-known companies all over the world; they sell over three million customers per day. Dunkin Donuts have regular customers and they even deliver tomes and offices that’s why they have three million customers a day. Another fact is Baskin Robbins which is well known for its 31 flavors slogan, since 1945 they have introduced more than 1000 ice cream flavors, their top five selling Flavors of ice creams are Mint chocolate, chocolate chip, Pralines and cream, Vanilla and Chocolate.
Big Data is the Future of Franchise Management
Franchises around the world are starting to recognize the benefits of big data. They are developing new business models that utilize it to its full effectiveness, which is helping organizations deliver better results for their franchise owners. The ROI should be massive.
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