navigating troubled waters · 2019. 12. 16. · metrics - scorecard rank rest# dma rfd controllable...
TRANSCRIPT
Joe Bourdow President, CFE
Valpak Direct Marketing Systems, Inc
Catherine MonsonPresident & CEO
FASTSIGNS International, Inc.
How To Assist Franchisees Undergoing Financial Stress• The economy is cyclical; this has occurred before• Focus is key• Motivation and inspiration: we all need it
*Franchisees’ enemies are busy-ness, distractions and denial
How to Assist Franchisees Undergoing Financial Stress
Crafting the message to franchisees*A multi-touch, multi-channel communications and
action plan-one-on-one coaching-group coaching (in the field, online or both)-newsletters, intranet, all staff, all messaging and
communication*Help franchisees create a focused, proactive plan to implement; help them adjust the plan as needed*Accountability is key
“What’s Important Now”(WIN)
Manage cash and expenses; get financial house in order
• Step up (or at least maintain) marketing and outside sales
• Customer retention and customer development is critical
• Train and Develop staff
• Inform and involve staff
Manage Cash and Expenses; get financial house in orderCreate a short term cash budget
• Think big and think small in areas of cost control
• Keep in conversation with your banker
• Line up a back-up bank
• Focus on collecting receivables
• Eliminate poor (and average) performing staff; look to upgrade
Step up (or at least maintain) marketing and outside sales
Study after study shows
Companies that maintain their advertising and marketing emerge from a downturn ahead of the competition
When competitors reduce their advertising and marketing, by maintaining yours you get increased exposure; your marketing message has a better opportunity to get through
• Contact past clients
• Consider referral programs and incentives
During tough times, it is even more critical to get new leads and new customers
• What customers and prospects look for during tough times may be different than in good times; modify your offering as appropriate
• Consider money saving coupons, promotions, etc.
Customer Retention and Customer Development is Critical
David DavoudpourChairman/CEO
Shoney’s
Steps a Franchisor Can
Take When Facing Financial
Woes
A Little Background Perspective…My Journey
• Serial Entrepreneur• Operator• Business Developer• Franchisee• Franchisor
Why Shoney’s?• Strong Brand Name• Rich History• Good “Bones”• Experience with Underdogs• Right Time/Right Place/Right Position• Bruised and bleeding, but not broken
Going the Distance• There is no substitute for hard work• There will be casualties along the way• When in the line of fire, stay focused on your goal• Know when to turn it up a notch
CSFs: Commitment Can Make All the Difference
• Get in 100%...99-1/2 just won’t do• Move quickly to do what is required• Make decisions based on the good of the System• Establish which relationships are vital and protect them• Promote bold goals for yourself and your franchise
System• Run a lean corporate office
Takeaways• Determine what must be done and stay focused• Move quickly• Visit your business (or units?)• Make decisions• Accept key casualties• Be bold (but deliberate)• Run a lean operation and surround yourself with
winners
Harvey H.H. Homsey
Vice President
Franchise Systems,
Express Employment Professionals
Rolling Out New CampaignsDuring Recessionary Times
To Roll or Not to Roll…That is Your Question
Product/Service vs. TalkWhat is Your Product/Service?
• Review your current product/service• What do clients/prospects really looking for
during recessionary times?• Needs vs. Wants• The Client’s Needs vs. Your Wants
• Your offering in “good” times may be different than what you offer in recessionary times
What Do Clients NOT Want?• Put yourself in your clients/prospects shoes
• Funds and Budgets• Do you want a gimmick or something you can
“really” use?• Stuff vs. service
• What campaign would you want? • Show me the “money”
The best campaign during recessionary times may be the one you “don’t offer”
What Do We Offer In “Good Times”
• Your product/service• What is it?
• What do you stand behind/guarantee?• 100%
• What is your “support system”?• Are you “there”?
• What is the competition?
Why Would “Service” Ever Change?
• Who do you “buy from”?• Clients do the same
• Who do you trust?• Do your clients trust you?• Are they loyal to you?• Are they loyal to the solution you say you offer?
• What matters to you? • Clients have the same needs
Don’t ever stop servicing!
It’s All About…Selling and Servicing
• Basic, good ole, customer service• Be where you are needed• Be there always• Your competition will stop selling/servicing• You better not ever stop
• What matters to your clients?
Don’t ever stop selling or servicing!
What Do You Offer……In Recessionary Times?
• Selling• Don’t stop
• Servicing• Make it better!
• Being where you are needed• Always!
• Your BEST product/service EVER• YOU!
Know Before You Roll…
• Review your product/service• Remember what clients “don’t” want• Compare your “good” and “recessionary”
offerings• Don’t change your service• Don’t stop selling
The Best?
The best campaign to “roll” is
YOU
Doug PendergastEVP & Chief Franchise Officer
Church’s Chicken
Navigating Troubled Waters:
Preparing for ‘tough times’ everyday
Key priorities• Build formal & informal communications• Monitor key metrics• Establish expectations• Maintain discipline & urgency
Communications• Frequent dialog with key players (before a crisis)• Habit of open, frank discussion• Relative and absolute performance• Successes and failures
Metrics - marginsHouston DMA - Average Check Vs. Food Cost % Per Customer
y = -0.0099x + 0.3949Coefficient of Correlation = -30.7%
26.0%
29.6%
33.2%
36.8%
40.4%
44.0%
$3.00 $4.50 $6.00 $7.50 $9.00
Average Check
Food
Cos
t % P
er C
usto
mer
Metrics - scorecard
RANK Rest# DMA RFD
Con
trol
labl
e Pr
ofit
%
SCO
RE
Com
p Sa
les
%
SCO
RE
Com
plai
nts/
1000
C
onta
cts
SCO
RE
Cus
tom
er L
oyal
ty
SCO
RE
Cer
tifie
d M
gmt C
ount
SCO
RE
Ass
essm
ent %
SCO
RE P13 YTD
Scorecard1 623 Los Angeles Preston 6.3% 0.50 18.2% 1.00 0.00 1.00 100.0% 1.00 2 0.30 90.0% 0.80 4.601 1523 Tyler Dolen 7.8% 0.50 6.8% 1.00 0.00 1.00 91.1% 1.00 4 0.50 87.8% 0.60 4.601 3710 Shreveport Dolen 3.4% 0.50 19.5% 1.00 0.17 1.00 91.0% 1.00 2 0.30 91.7% 0.80 4.601 4523 Greenwood/Grnvl Dolen 4.1% 0.50 6.6% 1.00 0.27 0.80 92.7% 1.00 4 0.50 90.5% 0.80 4.605 371 Las Vegas Preston 4.0% 0.50 13.0% 1.00 0.11 1.00 84.0% 0.60 2 0.30 95.4% 1.00 4.405 376 Tulsa Gibson 1.6% 0.50 13.1% 1.00 0.15 1.00 86.4% 0.80 2 0.30 92.0% 0.80 4.405 381 Lake Charles Dolen 7.6% 0.50 16.7% 1.00 0.10 1.00 86.5% 0.80 2 0.30 91.8% 0.80 4.405 1262 El Paso Dolen 3.4% 0.50 15.9% 1.00 0.13 1.00 86.8% 0.80 2 0.30 94.5% 0.80 4.405 3011 El Paso Dolen 1.8% 0.50 19.2% 1.00 0.12 1.00 86.1% 0.80 2 0.30 93.1% 0.80 4.405 4543 Atlanta Fukartas 2.2% 0.50 11.0% 1.00 0.00 1.00 82.2% 0.60 4 0.50 92.9% 0.80 4.405 4598 Dallas Gibson 1.8% 0.50 8.6% 1.00 0.17 1.00 90.7% 1.00 2 0.30 87.0% 0.60 4.405 7235 Phoenix Preston 5.7% 0.50 18.4% 1.00 0.14 1.00 89.1% 0.80 2 0.30 90.0% 0.80 4.405 10167 Houston Rodriguez 5.0% 0.50 13.8% 1.00 0.00 1.00 98.6% 1.00 2 0.30 89.4% 0.60 4.4014 596 Shreveport Dolen 4.4% 0.50 21.6% 1.00 0.11 1.00 82.5% 0.60 3 0.40 91.0% 0.80 4.3015 714 Tyler Dolen 5.6% 0.50 11.8% 1.00 0.09 1.00 86.4% 0.80 3 0.40 87.4% 0.60 4.3015 916 Atlanta Fukartas 2.8% 0.50 9.7% 1.00 0.00 1.00 88.4% 0.80 3 0.40 87.4% 0.60 4.3015 1533 Tyler Dolen 7.6% 0.50 11.4% 1.00 0.29 0.80 87.5% 0.80 3 0.40 91.4% 0.80 4.3015 3443 Laurel/Hattiesburg Dolen 2.4% 0.50 9.8% 1.00 0.14 1.00 85.2% 0.80 3 0.40 87.4% 0.60 4.3019 592 Amarillo Gibson 3.1% 0.50 4.9% 0.80 0.20 1.00 100.0% 1.00 2 0.30 87.8% 0.60 4.20
Metrics – watch list
Rank Franchise # of Stores
C P
% Q
tr 1
C P
% Q
tr 2
Con
trol
labl
e Pr
ofit
%
Y-T-
D
SCO
RE
Com
p Sa
les
%
SCO
RE
Com
plai
nts/
1000
C
onta
cts
SCO
RE
DSO
SCO
RE
Insp
ectio
n D
efau
lt
Insu
ranc
e D
efau
lt
Paym
ent D
efau
lt
P&L
Def
ault
Tot
al S
core
d D
efau
lts
SCO
RE
Tota
l Sco
re
202 Panjwani, Kabir 5 15.9% 15.9% 15.9% 0.40 -5.1% 0.20 0.38 0.10 25.82 0.50 4 5 6 5 15 0.00 1.20200 Hubbard, Paul 1 24.5% 24.5% 0.60 -1.9% 0.20 0.41 0.10 23.88 0.50 1 1 1 1 3 0.00 1.40200 Mohammed, Zohra 2 25.6% 25.6% 0.60 -16.6% 0.20 0.67 0.10 23.70 0.50 - - 6 - 6 0.00 1.40199 Reihani, Ford 15 N/A 0.20 -22.8% 0.20 0.85 0.10 70.51 0.25 - - 21 - 21 0.67 1.42198 Loretta Traynum 2 N/A 0.20 -4.9% 0.20 0.50 0.10 15.13 0.75 - 1 4 - 5 0.21 1.46197 Tahir Masood 1 39.0% 39.0% 1.00 -9.0% 0.20 0.76 0.10 39.15 0.25 - 1 2 - 3 0.00 1.55196 Blackstock, John 2 19.0% 19.0% 0.60 -20.0% 0.20 0.51 0.10 80.54 0.25 - - 4 2 4 0.42 1.57195 Patel, Anil 1 N/A 0.20 -22.6% 0.20 0.72 0.10 32.80 0.25 - - 1 1 1 0.83 1.58194 Sarwar, Ghulam 1 28.5% 28.5% 0.80 -12.3% 0.20 0.65 0.10 14.81 0.75 - 1 2 - 3 0.00 1.85193 Mirakhori, Hassan 1 N/A 0.20 -2.5% 0.20 0.47 0.10 9.06 1.00 1 - 1 - 2 0.42 1.92192 Green, Burton 1 -9.7% -9.7% 0.20 -23.1% 0.20 0.20 0.50 19.45 0.75 - 1 1 - 2 0.42 2.07191 Chukwudebe 1 N/A 0.20 -30.2% 0.20 0.70 0.10 16.06 0.75 - 1 - - 1 0.83 2.08190 Kirk, Larry 1 6.7% 24.7% 16.0% 0.40 -3.6% 0.20 - 0.50 29.36 0.25 - - 1 - 1 0.83 2.18189 Jackson, Charles 1 8.2% 8.2% 0.40 -9.1% 0.20 0.98 0.10 190.78 0.25 - - - - - 1.25 2.20188 Kai, Karrie 3 26.1% 26.1% 0.60 -12.2% 0.20 0.69 0.10 58.23 0.25 1 - - - 1 1.11 2.26186 Kim, Myong Ja 1 6.2% 6.2% 0.40 -18.3% 0.20 0.14 0.50 15.66 0.75 1 1 - - 2 0.42 2.27186 Singh, Sawinder 1 32.5% 22.6% 28.5% 0.80 -7.9% 0.20 0.41 0.10 16.48 0.75 1 - 1 - 2 0.42 2.27185 Copeland, Al Jr./Duhon, A 2 18.1% 18.1% 0.60 16.2% 1.00 0.68 0.10 33.31 0.25 - 2 2 - 4 0.42 2.37184 Moosa, Rafiq & Irfan 3 37.4% 16.0% 22.2% 0.60 2.3% 0.60 0.55 0.10 28.85 0.25 - 2 1 - 3 0.83 2.38182 Richard Gomez 1 24.0% 24.0% 0.60 -11.8% 0.20 0.39 0.10 28.66 0.25 - - - - - 1.25 2.40182 Schmidt, Steve 1 N/A 0.20 -13.6% 0.20 0.17 0.50 39.35 0.25 - - - - - 1.25 2.40
Establish expectations• Create & follow issue resolution process
• Clear• Consistent• Transparent
• Set & explain boundaries• Clarify hierarchy• Manage investor expectations
Discipline & urgency• Don’t relax standards• Build balance sheets• Relentlessly improve unit FCF, ROIC• Hope for best, prepare for worst