Top Four Tips When Investing With Multiple Brands
Key things to consider when diversifying your franchise portfolio.
By Chris Birkinshaw, CEO, Aloha Poke Co.
For nearly two decades, Chris Birkinshaw has worked with fast-casual brands in the restaurant industry. From store-level operations at Starbucks to senior management positions across several departments at Potbelly, Chris’s career has had a heavy emphasis on franchising with regional, national and international development.
As the CEO of Aloha Poke Co., the growing fast-casual concept inspired by the popular Hawaiian diced, marinated seafood dish, Chris currently oversees 18 locations with more in development. His focus is on driving operational excellence and franchise growth as well as helping to foster high levels of engagement with corporate and store teams to create an exceptional experience for consumers.
So, what happens when you want to diversify your portfolio? Diversification of a business portfolio is a recommended strategy behind becoming a multi-brand franchisor or franchisee. No matter how impressive the ROI might be from a single-unit investment, it’s not wise to put all your eggs in one basket. Adding another concept to your franchise portfolio allows the opportunity to apply business acumen, market knowledge and creative energy to another concept.
When considering an investment in an additional franchise concept, here are a few things you might want to consider:
1. Know what you’re good at.
When looking to add another investment to your portfolio, the first thing you should do is reflect internally; recognize what you excel in and stay within those boundaries.
2. Choose a complementary brand.
Franchisees and franchisors should consider investing in a complementary brand: one that will not compete with their other concepts, but will not require duplication of overhead or infrastructure. Check with your franchisor, franchise agreement and franchise attorney before you add to your investment portfolio.
3. Synergy.
All franchise brands have an individual proprietary operating system. While operating systems differ and must remain separate, often learnings from one — like personnel, customer acquisition, and real estate — can be applied to the other.
4. Employee benefits.
Delegating is essential for success. With each brand you add to your portfolio, your primary focus should be on developing top-notch managers that can act in your place when needed. With multiple brands, a franchisee can offer wonderful employee benefits, including: cross-training, flexibility, promotions and a growth path to help further develop an employee’s professional skill set. This will help to attract and retain top talent, which is often a challenge in any business.
Overall, there are several advantages to adding another concept to your franchise portfolio. Once you examine your strengths and find a brand that fits your personal and professional lifestyle, start putting in the work and you’ll see your business portfolio become stronger.
Chris Birkinshaw joined Aloha Poke Co. as CEO in May 2018. His passion for poke, coupled with expertise growing fast casual restaurants, made the perfect fit for an emerging, innovative, healthy concept like Aloha Poke.