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The do's and don'ts of a franchise store remodel

When introducing a remodel, franchise organizations need to have a plan that includes soliciting input from franchisees as well as keeping employees informed about the goal of the associated store rebranding.

Sharing ideas on store remodels are Sam Brewer, Chick-fil-A; Doug Willmarth, Mongolian Concepts; Jason Valentine, Zoup! Eatery; Larry Jones, Captain D’s; and Bob Bafundo, Rave Restaurant Group. Photo by Willie Lawless.

May 21, 2019 by Elliot Maras — Editor, Kiosk Marketplace & Vending Times

For a franchise organization, brand equity is everything, which means refreshing it is a little risky. Updating the look and feel of a restaurant in order to stay relevant is important, but the efforts are in vain if they fail to carry the company's identity.

The recent Restaurant Franchising & Innovation Summit in Louisville tackled this heavy issue when a panel of franchise executives shared their remodeling experiences. Issues included the importance of defining goals, communication and enlisting franchisee and employee support.

Where to begin

When launching a remodel, the first order of business is to understand the project's goal, said Doug Willmarth, chief marketing officer, Mongolian Concepts.

"Make sure your remodel is consistent with the brand and the brand strategy," added Bob Bafundo, president of Rave Restaurant Group and formerly president of Rave's Pizza Inn.

But just as important, "Involve your franchisees," the veteran observed. And while this might sound like obvious advice, Bafundo readily admitted he was involved in a remodel that began before franchisees had a chance to give feedback. There were numerous issues relating to things like design elements — such as the logo's color — that franchisees did not think fit the brand's heritage. As a result, adjustments were needed.

Franchisors have to keep in mind that designers are not franchise operators, said Larry Jones, vice president of construction for Captain D's.

"You have to coalesce around what your brand standard is," Jones said. "Remodels are a rationalization every time of what your true brand standard is. Understand what your ultimate look is going to be, and then understand what you're willing to rationalize." As in any collective project, he said, the remodel plan must be flexible and compromises will most likely be needed.

Another important consideration when remodeling is making sure employees are kept in the loop. The employees will notice the investment in the facility, Jones said, and it's important that they feel invested.

Jones further noted it's important not to try to accomplish to much too fast.

A communication plan

Jason Valentine, president and chief operating officer at Zoup Eatery, agreed that communication is critical during a rebranding, which in his company's case was driven by menu changes. Company leadership must communicate the company's direction, he said. Otherwise, employees might make incorrect assumptions about the rebranding's purpose.

Valentine suggested having a formal communication plan, for both employees and franchisees. His company has a franchisee webinar every four to six weeks that is well attended. Franchisees are invited to ask questions, and many of them do. He believes this dialog prevents big surprises.

Mongolian Concepts, a restaurant where customers build their own bowls, kept franchisees in the loop during a rebranding that was intended to deliver the company message that "every bowl has a story," said Doug Willmarth, the company's chief marketing officer. "We brought them (the franchisees) along the whole way," he said.

Supporting franchisee motivation wasn't the only purpose for keeping them informed about the rebranding, Willmarth said. Franchisees, who often have years of experience, have good input to offer.

Mongolian Concepts didn't forget the employees either, Willmarth said. During the week that the company closed for the remodel, a training team instructed the employees about the rebranding.

Franchisees as brand allies

Franchise organizations that operate their own stores have an opportunity to introduce the remodel to their own stores first, said Sam Brewer, Chick-fil-A project lead of restaurant design for the company.

Once the company stores were remodeled, Chick-fil-A sought input from its franchise advisory council executive committee, whose members became early adopters, Brewer said. The support of the committee members encouraged the other franchisees to follow suit.

Captain D's similarly found it helpful to discuss its remodel plans with its franchisee advisory group, said Jones. The group suggested using paint instead of wallpaper, which Jones said worked out well.

"Get those important voices in the franchise community first, then they become the apostles for you," Jones said.

Franchisors need to recognize costs that franchisees incur, Bafundo said. The cost of a remodel will vary based on the condition of the facility, and it could exceed the benefit to a franchisee.

Franchisors also need to be clear what their expectations are from their franchisees, Valentine added.

When asked their ideas about what restaurant company shines as a remodeler, the answer some panelists gave was a bit surprising since the company — Cracker Barrel — has never changed its store model.

"That early Americana really stuck," Jones said.