Chili's Brings 100 New Jobs to Singapore

Dear Friends,

Chili's® Grill & Bar announced the opening of a new location in Tanglin Mall in Singapore. Marking the 28th country outside the U.S. for Chili's, this new opening is part of a larger agreement with franchisee Grandko Restaurants to open four new restaurants by 2011 in Singapore. The Tanglin opening will bring 100 new jobs to the Singapore community.

"We're excited to work with Grandko to bring the Chili's brand to the thriving and vibrant city of Singapore," said John Reale, president of global business development, Brinker International. "We can't wait to invite guests to 'Pepper in Some Fun' at their local Chili's."

Brinker now owns, operates and franchises 206 restaurants outside the U.S., with locations in 29 countries and two territories. As part of the company's goal to become the globally dominant casual dining portfolio company, Brinker International plans to have 500 restaurants open outside of the United States by 2014.

Business Development from the Franchise Perspective #2

Dear Friends,

Previously, we talked about setting up a company where in the process of getting it up and running, a series of areas were focused on so as to keep in mind of the end result.

We talked about:

a. Automation
b. Branding and Trademarking
c. Equipment Inventory
d. Clean Accounts
e. Being a good pay master
f. Building relationships with your Supplier
g. Knowing your Business

By no means these are the only things you should be focusing on when you start up a company, but these are some of the main areas you should look into if you have a franchising strategy in mind.

So, you have done some background study, you have your company up and running. You have a beautiful outlet / office of which you spend some hard earned savings from your previous employment, or use money from a loan you had from a friend or a relative. Your company peaks and is at its maximum performance. you are happy and so is everybody. Then what's next?

Expansion you say! Franchise you say! OK, so what are the things you should know / think about prior to going into the market looking for a consultant?

1. Staffing. Do you have enough staffs to handle the franchise outlets? what will be the ratio of staff to franchise outlets? I came across recently of a doctor practising homeopathy who projected to open 1000 franchise outlets in a year with 3 staffs. that's 333 franchise outlets per staff!! You need to have a good ratio of staffs to franchise outlets to ensure good support as a franchisor. Training is also essential and will ensure service quality is met each and every time.

2. Supplies. Ensure that suppliers are aware of your expansion plan and is willing to expand their business with you at the same time maintaining the quality of their products. If its possible, have multiple suppliers to ensure a continuous supply if in case your primary supplier failed to deliver.

3. Feasibility. Do a study of your company's performance and know its strength and weakness. Ensure that the weakness are addressed and will not be a hindrance to your progress. This weakness can be your staffs resistance to change for example.

4. Profitability. Is your company making profit? Check you accounts and ensure you have a healthy profit at the end of every month. Remember, if you are not making profits, so will your franchisees. You will also need to take into account, the royalty your franchisees needs to pay and they themselves needs to make a net profit as well. It doesn't work if you profit and your franchisees don't, or your franchisees profits and you don't.

5. Strategy. Have a basic idea of what you want to have. Most of the time, your franchise consultants will be there to help you out, but you have to have some idea of what is best for you too. Example, number of franchise outlets a year, franchise fees and franchise type and internationalization.

6. Teachability. For a concept to be able to replicate for a a measure of success, you must be able to convey the underlying business system to someone else. If for some reason, a system is not replicable, then, franchising may not be suitable.

7. Adaptability. How will your product or services perform national and internationally. Is your business for the local market or can it be used internationally? You should know your business better than anyone else.

8. Marketing. After the franchise have been developed, what will be your strategy of attracting potential franchisees. Know in advance what are the type of franchisee profile you should be targeting.

9. Support. Have an idea on how your franchisees will be supported.

10. Franchise Consultant. This may prove to be the most important point in planning for a franchise. Choosing a Consulting firm is in fact the most crucial part of a franchising project. Although it is difficult to say how its going to be in the first meeting. What you can do however, is to visit them. Ensure that they have a physical office space and are operating as a franchise consulting firm. Meet the consultants that are going to help you with your franchise project. Ask them questions on how they can help you. Find out if your project or part of your project being outsourced to another company? Or do they have in-house staffs that contribute to your project. Do they have a system or a methodology for building successful franchises? Ask yourself do you want to work with a consultant or a consulting firm? Know what are the deliverables that the franchise consulting firm should provide.

On the surface, it may seem easy for one to consider franchising, but successful franchising requires collaborative efforts from a team of experts from a number of vertical disciplines with expertise in these areas.

a. Strategic Planning.
b. Legal.
c. Franchise Operations.
d. Marketing.
e. Franchise Sales.

In my next post, we will discuss in detail of item #10 above.What are the areas to consider when choosing a franchise consulting firm where they will be your partner in your company expansion plan. I will also try to explain as detail as i can on the process of franchising.

Stay tuned..

Business Development from the Franchise Perspective #1

Dear Readers,

Franchising have never had a better time than now. Now is the bast time to expand and take that opportunity to fill up the gaps not serviced by your competitors. Once the air clears, you are in a good position to reap the "fruits of your labour". Anyways this is not what i say, this comes from a "Franchise Expert" I'll provide the link later.

So how do we do this you ask? OK, so in this series of blog post we will cover from end to end on how you can start a business develop it and expand using the franchising technique.

1. Business Start-up.

Start a business with a franchise strategy in mind. I say this is a must if you want to consider franchising in the future. Why? If you don't have an end objective or if you can visualise the end result, i don't think it will be as smooth sailing as you thought it would be.

So what are the points to consider when starting up a business with a franchising option in mind?

#1. Automate where possible. Automating certain processes in your business will help lower you headcount, and as such, running cost. Automation will also allows your business concept to be easily duplicated / replicated, which is an important aspect in franchising.

#2. Branding and trademarking. Do this as early in your business as possible. Do research on what can and cannot be done. Get an honest and knowledgeable marketing personnel / outsource it. You will need a fresh look, a striking color, a professionally created trademark / logo one that is synonymous to your business. Do research on your trade mark, make sure its unique.

#3. Keep track of your equipments. Keep an inventory. Trust me, you can thank me later.

#4. Keep clean and accurate records of your accounts. Get an accounting software, get an accountant if you can afford one. Else at least use a spreadsheet to keep track of your accounts. Keeping track of accounts will tell you in a glance if you are profitable. This is important. If you look at your accounts and you know that the business is not profitable, how could you sell your business concept? Know what's your gross sales, your net profit, cost of sales, percentage of waste, etc.

#5. Be a good pay master. Diligently and promptly pay off your debts. you will want to expect the same from your franchisees on their royalty.

#6. Have good relationships with your supplier. Refer to #5. After sometime, you will know if they are able to support you on your business expansion. You can't expand if you don't have a good supplier that can deliver raw materials and equipments to your franchisees.

#7. Get to know your business. By this i mean, each and every function in your business. Many a times we encounter business owners who don't know what their staffs are doing. :)

These 7 non-exhaustive list will help you in your plan of starting up a business for franchising. Without them, you can still do it, but of course, the path will be alot more winding than you would have thought.


We will discuss these in another post:

2. Planning for Expansion (Franchising)

- Knowing your Strength and Weaknesses.
- Staffing Requirements
- Business Expansion Strategy

3. Execution of Plan

- Selecting a Consulting Company
- What Makes a good Consulting Company.
- Research and Consultation.
- Legal landscape (local / International)

4. Post Implementation

- Reporting
- Support and Relationship Building