In August 2006 Frantz Group conducted a survey of quick-service restaurant franchisors on the topic of technology. The intent of the survey was to better understand the relationships between franchisor and franchisees with regard to new technology selection and rollout.
Overwhelmingly, though, franchisees want more control and more choices in the technology rollout process than currently allowed by franchisors.
In that survey, the Frantz Group found franchisors’ No. 1 criterion when rolling out new technology to franchisees is franchisee satisfaction. Top challenges regarding rolling out technology to franchisees were keeping costs low and making adoption faster and broader among franchisees.
Mandates were the No. 1 tactic used by franchisors to drive technology adoptions, but participants realized that strategy had its flaws, namely that mandates are not always successfully adopted and often alienate franchisees instead.
In 2006, the top technologies as measured by ‘looking to replace’ plus ‘looking to add’ were POS, broadband service, video surveillance, and back-office tools. Franchisors cited revenue growth, employee training, and quick response to market changes as challenges they anticipated facing well into 2007. Interestingly, few planned to turn to kiosks as a solution for any of those issues.