“We prepare pastries, but we sell happiness,” says Pino Di Ioia, CEO of BeaverTails, a foodservice brand that has been serving up traditional-style Canadian pastries since the late 1970s. “Operations is important to us, site selection is important to us, but our branding is ultimately the key to all that we do.”
Di Ioia worked his way up the company ladder starting as a 17-year-old associate, moving up to assistant manager, then manager, and eventually buying the rights to the operation in Quebec before being tapped to revive the brand’s operations in the weakening Ottawa market. He distills his story into one line: “I liked the company so much that I bought it.”
There’s something to be said about having a leader who’s seen and worked at all levels of the operation. On a recent Franchise Your Business webinar, Di Ioia revealed that he’s owned more than 15 restaurants (not exclusively BeaverTails) in his career, but the only one he’s closed due to underperformance is a single BeaverTails location, so he’s seen the business at all levels, in good times and bad. “Whatever struggles franchisees are having, I’ve been there,” says Di Ioia.
So, how does one drive franchisees to sell joy through sweet baked treats? With these four core values.
- Commitment to excellence
This core value is about maintaining an intrinsic drive toward improving their own skills and sharing ideas to enhance the brand when possible. “It’s basically the commitment to do things better, to fix things that are not being done right, or to improve things that could be done better,” says Di Ioia. He adds that he gets suggestions from franchisees and employees all the time regarding new flavours and procedures. “We embrace that—we’ve been known to give stipends to franchisees who’ve contributed good ideas. We share success on multiple levels with them.” - Resourcefulness
BeaverTails’ mobile franchisees have to deal with challenges like inclement weather and seasonal downturns, requiring immense ingenuity when trying to run a profitable business. Just ask the franchisee who runs the mobile shop at the tourist-friendly Lake Louise in Banff, Alberta, who Di Ioia cites as an example of the resourcefulness that all BeaverTails franchisees should carry. When the tourists disappear during off-peak seasons, the franchisee, like any small business owner, must work extra hard to appeal to the remaining clientele. They must transform BeaverTails from a vacation treat to an essential part of their customers’ journey, perhaps by convincing their audience to swap out their traditional coffee pairing (that is, doughnuts) with another kind of doughy delight, or by introducing limited-time flavours that entice people to come in. “We expect everyone to be equally resourceful, because that’s how innovation happens,” says Di Ioia. - Curiosity
Curiosity starts with questions, which Di Ioia acknowledges may not be how many franchisors approach their relationship with franchisees. “We can always find a better flavour, a better way to build stores, a better way to deliver our product in unique environments,” he explains. “That starts with questions.” - Respectfulness
This starts by looking at the morality of the franchise. The relationship between a franchisee and franchisor is based on trust and an understanding that decisions from head office impact the livelihood of its franchisees. “The moral high ground really gives us a basis on which to talk to the franchisees one-on-one and say, “We’re not doing this to be a pain, we’re doing this because it’s the right thing for our brand.’” Having a sense of morality gives the franchisor the basis to make decisions for the collective.
These four core values guide the reality of working with BeaverTails as a franchisee or as a member of the head office. Di Ioia recommends that entrepreneurs looking to franchise their own businesses determine their personal working values. “Your franchisees will not understand your expectations, unless you seriously and transparently share the core values that you have,” he adds.
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