Do you ever wonder what happens to old franchises? No, this is not the beginning of a bad joke. Though, as a lawyer, I will admit that telling and hearing lots of good and bad lawyers jokes are part of the job description.
In an article entitled "Back from the Brink" in Entreprenuer Magazine, Jason Daley details how chains like Ground Round and Sizzler have bounced back from the bankruptcies of their parent franchisors in order to become vibrant, growing chains again. The key in these cases has been franchisees’ commitment to brands with strong equity. With respect to Ground Round, franchisees formed an owner’s cooperative after the corporate owned restaurants in the chain closed. The co-op stabilized the remaining franchisee-owned restaurants and has launched a new franchising initiative. Comparative same-restaurant sales are up 75% year-over-year. At Sizzler, it meant returning to basics like emphasizing fresh preparation and modern remodeling of the restaurants. Sizzler has also focused on the history of the brand, trimming the menu by 25% overall and, at the same time, resurrecting classic menu items like the original steak seasoning and cheese toasts.
Or maybe you wonder how 7-Eleven keeps up its torrid pace of growth? In New York Magazine, Willy Staley details how the convenience store chain is using technology and fresh, quick-service food options to mount an assault on urban areas like Manhattan. The technology allows it to assist franchisees discover what generates the most sales and to optimize inventory so as to maximize profit–which is good for both the franchisor and franchisee’s bottom lines. And, with its Business Conversion Program, 7-Eleven is hoping it can covert literally dozens of corner bodegas into new 7-Elevens.