The Rise of Artificial Intelligence for Franchising

Sponsored Content by Qubo Technologies and Systems, LLC

Franchising is at an inflection point when it comes to adopting the latest advancements in technology. While some franchises have embraced the worldwide digital movement to incorporate complex data analytics and artificial intelligence (AI) into business operations, others are slow to respond. The separation between early and late adopters of AI is starting to show up in quarterly results across various industries — both inside and outside of franchising — as companies that embrace big data grow faster and reap higher profits, while companies without a plan suffer, with some going to the wayside.

Franchise businesses find themselves in a position where the clear winners and losers will be defined in large part by understanding the needs of the consumer and individual customers. AI represents a chance to gain a competitive advantage over the late adopters, while keeping pace with companies that have figured it out. AI also represents a chance for your competitors to pull ahead, if you decide to do nothing. Data holds the key to faster growth, higher profits and more efficient operations, as well as franchise owners and employees that make more informed choices.

The applications of AI, cognitive computing and machine learning continue to spread rapidly. A few areas where these technologies can help your franchise immediately include predictive analytics, more efficient operations and communications, and positioning your franchise as a global brand.

Predictive Analytics

Contrary to the science-fiction perception of AI as a destroyer of worlds, machine learning will only lead to smarter, more productive business practices and better data analytics. AI has quickly become an indispensable business tool for data analysis, cognitive computing, automation, the cloud and other emerging technologies. You make key decisions based on past and present data. What if you could look into the future of your business? With artificial intelligence, it’s possible. See profit and loss statements, revenue projections, the potential impact of various spending decisions and other key metrics, simply by asking the right questions. The bottom line is AI allows you, and your team, to make better decisions.

Operations and Communications

The franchise business model is designed to function as a well-structured playbook, with clear objectives laid out in the Franchise Disclosure Document (FDD), operations manuals, branding materials and other documents. Open and clear communications represent the key to your franchise system functioning at peak level. If your team members aren’t all speaking the same language, your customers will notice. The same is true with your data systems. AI can assist you by bringing together all your data points and giving owners across your network insights that could take weeks or months to collect otherwise. Adding an AI solution into your network will give your franchise owners new tools to understand where to invest, and where to target resources.

Global Branding

Because of the structure of franchising, each individual franchise owner is a representative of the brand, on a global scale. Through social media, instant-review sites and the potential of going viral, anything captured on video can impact your brand’s reputation — positively and negatively — in a major way. AI helps solve this problem by giving individual franchise owners easy-to-understand data on the local level, along with access to more system-wide data across the franchise network. Give your franchise owners the data tools they need, so they can help the hardworking people carrying out the daily operations of your brand. AI can help improve your responsiveness, and your reputation.

Artificial intelligence is here to stay, and the applications are growing for this invaluable business tool. Embrace it and position your business, and your franchise owners, for the long haul.