Creating Strategic Food & Beverage Plans for Franchises
/For franchise operators, your food and beverage is much more than another revenue stream. In many family entertainment centers (FECs), amusement parks, roller rinks, and other attractions, food and beverage sales can account for as much as 30% of total revenue. That said, we notice that many franchise organizations lack a long-term strategy for managing purchasing and overall consistency across locations.
Herein lies the challenge: operators must balance all of the above – brand standards, supplier relationships, operational efficiency, and profitability, all while navigating fluctuating costs. The good news is that a well-designed food and beverage plan can help protect your margins and improve the customer experience for the long haul.
Consistency is king
One of the greatest strengths of a franchise is delivering a consistent customer experience regardless of location. Guests expect the same quality, menu offerings, and service, just as they would in visiting a chain restaurant on vacation.
Consistency starts with standardized ingredients, approved suppliers, and operating procedures. When locations source products independently from warehouse clubs or local suppliers, availability can fluctuate, which can affect food quality. If you aim to have the same equipment and menu items (from the same source) across the board, there’s no room for any of your locations to deliver an inconsistent experience. Plus, it leaves room for you to easily expand your menu offerings.
Learn to leverage your buying power
One of the most overlooked opportunities for operators is the collective purchasing power created by multiple locations.
While a single location may have limited buying power, a franchise with multiple locations can mean bigger deals for your brand. This applies not only to food products but also to things such as disposable packaging, cleaning supplies, pizza boxes, and so on. And with the added muscle of a group purchasing organization (GPO), you’re able to save even more on everyday purchases that keep your locations running smoothly. There are also revenue streams for multi-location franchisees within GPOs that can help support future growth and budgeting.
Strengthen and prioritize your supplier relationships
Your partnership with your supplier is a lot more than just a transaction; it’s a key part of your overall business strategy. Communicating openly about your business goals and growth opportunities opens the door to a bigger conversation about how they can best support you in the long run, and it can give you some footing to negotiate pricing down the line.
Having a solid foundation with your supplier is also instrumental in navigating challenges you might face. For example, they can assist with troubleshooting, advise on cost-effective alternatives, and help with menu development.
Audit your food and beverage regularly
Customer preferences continue to evolve, and it’s important that operators are prepared to adapt. We’re increasingly seeing families seek healthier options, local/sustainable ingredients, and menu variety. While traditional favorites such as pizza, chicken tenders, burgers, and fries remain popular, operators are finding success by pairing these items with lighter alternatives such as wraps, salads, and grilled proteins. If it makes sense for your clientele and you’re receiving these requests, it may be time to consider a revamp.
However, not every operation requires an extensive menu, and simplicity drives profitability. Some of the most successful foodservice brands have built thriving businesses around a pared-down menu of just a few items.
Speed-scratch solutions can be the perfect middle ground – this combines pre-cooked ingredients with fresh prep techniques, such as adding pre-cooked chicken to a wrap with fresh veggies. As long as you’re careful about adding menu items that aren’t too complex (which can decrease your profits and create more prep time), it’s a great idea to consider amping up your concessions here and there. New technology has fast-tracked the process of preparing these items, especially when it comes to the space provided.
With the right approach, franchise operators can really refine their food and beverage strategy in a way that protects quality and profit margins. Offering guests a consistent experience regardless of which location they spend their money at is crucial for your reputation, and it lends to a scalable future for your business.
