Cloud technology can help multi-unit franchise businesses achieve greater visibility across locations in consolidating and processing data, leading to higher revenue and boosting system-wide efficiency.

By Chris Poelma

Making the leap from operating a single location to multiple sites without the right resources can be a lot like diving into a murky ocean when you’re not a swimmer. You try to stay afloat, but sometimes you end up over your head. Fortunately, technology is stepping in and acting as a life preserver for franchisees trying to meet the demands of growing a business. 

In recent years, merging technology into everyday operations has transitioned from a nice-to-have to a must-have for franchise operators, especially in the restaurant industry. Historically much slower to adopt new tools, when compared to other industries, restaurant franchises are beginning to utilize technology to work more efficiently.

Look at Waffle House, for example. Even the famously anti-technology franchise establishment recently adopted a cloud-based point-of-sale (POS) solution to reduce transaction times and offer mobile payment options to customers at all locations.

Waffle House isn’t the only example of a technology shift. In fact, according to a past survey commissioned by NCR Small Business, 87 percent of restaurant franchise owners and managers said keeping up with technology is important for their businesses. Moreover, 67 percent said technology has increased their revenues. 

From providing greater visibility across locations to consolidating and analyzing data, technology plays a vital role in any franchise’s success. 

Technology that Paints the Full Picture 

By far, one of the most challenging aspects of scaling to multi-unit is the added responsibilities. You’re responsible for additional staff members, inventory, store décor, sales, marketing, customer service — the list feels like it will never end. This is where technology comes into play. The best types of solutions to help are cloud-based, which provide remote visibility into all aspects of operations at every location. As a store owner, you can manage store A, B and C from location D, or while traveling anywhere around the globe. It’s the ultimate equalizer in defense of retaining sales when competing against the big guys.

Mobile POS solutions, in particular, are gaining traction with restaurant franchisees for the capabilities they offer aside from ringing up sales. According to the aforementioned NCR survey, 78 percent of restaurant owners and managers attribute mobile POS solutions with boosting productivity for their businesses. 

Most mobile POS platforms provide the visibility franchisees crave. As a result of all data being stored in the cloud, franchisees can access information in real-time, such as sales performance for each location, inventory availability and labor hours, to better staff locations.

Information Hubs Lead to Better Communication 

In the past, multi-site operators used separate systems to manage the day-to-day operations and gain visibility into business operations across locations, but with the advent of cloud-based solutions, franchises can have a unified and simpler approach to management. 

Having a consolidated view of any and all activity comes especially handy when problems arise. For example, if there was a recall of a particular ingredient which your business utilizes across sites. Without quick and easy access to information regarding what recipes call for the ingredient and what suppliers are providing it, the outcome could be detrimental. 

Franchises also need to control costs across the board. Without a consolidated view of information such as low-performing menu items or overstaffed locations, you’ll spend excess time and money trying to pinpoint issues that are easily identifiable with the right technology in place.

All in all, the more information you have at your fingertips, the better you can communicate with key stakeholders like employees, suppliers and even customers. Today’s omni-channel consumer is difficult to keep up with, but by having greater and easier access to information like purchase behavior and who your top customers are, for example, franchises can deliver a much more personalized experience. 

Being More Agile and Versatile for Consumers

For a franchise to be competitive today, it has to be nimble. Every interaction your franchise has with a customer — from a meal order to engagement with your social media posts — provides your franchise with valuable information on what customers want from your business. With these insights, your franchise can make strategic decisions about things like whether to localize menu items or décor at certain sites and how best to develop a loyalty program that grabs the attention of patrons at all locations. 

Facing the Facts 

The decision to move from managing one site to multiple can’t happen smoothly without technology. With the right tools in place, franchises can seamlessly make the transition. 

Today’s cloud-based solutions provide enhanced visibility into all aspects of operations in a comprehensive and actionable manner. Franchise operators can access performance information in real-time, making adjustments across stores on the fly and delivering more of what customers want. That’s what drives brand loyalty and keeps franchises on the right road to multi-site management success.

Chris Poelma is president and general manager of NCR Small Business. Find him at fransocial.franchise.org.