ABOUT THE AUTHOR
Ken Otto has a successful track record of developing strong brands in Canada leveraging his 30 plus years experience in the hospitality industry. Prior to joining Redberry, Ken led some of Canada’s largest restaurant Brands as President of Recipe’s Family Dining Division. Before Recipe Unlimited Corp., he was COO for Boston Pizza International, and was a consultant to Canada’s hospitality industry with Price Waterhouse and Panel Kerr Forster. He holds a Bachelor of Commerce in Hoteland Food Administration from the University of Guelph.

My 98% Rule in Running a Franchise Businesss

In these unprecedented times, when business is beyond tough, there is sometimes a “pull” to reinvent your core business model and abandon the operating DNA that made a business, brand, or franchisee successful. Undoubtedly, everyone has had to change some parts of their business model out of both necessity and to help their communities, guests, and staff fight COVID-19.  But during these times, I am also reminded of my 98% rule.

The rule is simple: I am convinced that a successful franchise business does things 98% right. So, it’s important to spend 98% of your time focussing on the 98% that is right. It seems logical, but, I have seen time and time again when things get tough, like now, people will spend 98% of their time on the 2% that is wrong. They obsess about the small things and spend way too much time trying to change or fight the system to get different results.

Even during the COVID-19 pandemic, with all the appropriate operating and safety protocols, a franchise business’s DNA and proposition remains the same.  In a restaurant environment, like my Burger King’s and Pizza Huts, we have invested in Personal Protective Equipment (PPE), signage, plexiglass screens, contactless delivery, local store marketing, and as you all know, the list goes on and on.  But, despite all of that, my people still want to work in an engaging and fun environment.  My guests still demand the best food, served fast, and with a smile (behind the mask).  My facilities need to be spotless and every part of my brand promise must be right – 100% of the time.

It would be easy for me and the team to get stuck in a rut.  When this attitude prevails, little pain points of the franchise business model get amplified.  It’s kind of human nature I suppose.  We all have had bad days and during these days, even the smallest of irritants can set you off and make your day worse.

In any franchise model, there are always things to improve. Nothing is perfect. But is this the time to spend 98% of your time on the 2% that needs fixing?  No way. It’s time to double down and spend 98% of your time on the 98% that is right. Focus on all the minute but essential parts of your brand promise to your customers, guests, staff, and stakeholders. Obsess over the audits, the quality KPI’s, the brand’s satisfaction numbers, and individual rankings within the system.  This is exactly the time you want to win every award, be the best in class operator, and an ambassador for your brand.

You can still spend 2% of your time on the 2% that might not be right. That’s okay. But 2% of your time isn’t much. Any more then 2%, and you might be distracted from doing what your guests and customers expect. Especially now!

I have been lucky to work on both sides of the table, as a franchisor and franchisee. I know firsthand that a great Franchise model does not happen by chance.  An awesome franchise model is the sum of thousands of defined and engineered actions and systems coming together in harmony.  Like a well-oiled machine, 98% (if not more) of that system must be executed flawlessly. This is where your time should be spent right now. If something is bugging you about your franchisor, write it down and attend to it later. Your business needs 98% of your time right now to win and thrive.

Have fun making it happen.