by Sandwich Baron founder and CEO Sally J’Arlette-Joy
Sandwich Baron franchisees can earn a comfortable living, and in some cases an exceptional living, if they adhere to 10 basic rules which have been gleaned from my 20 years’ experience running outlets. Abiding by these tips has seen many franchisees earn reliable livings through good economic times and bad, while not following them has resulted in some franchisees failing.
- Run the shop yourself
There are not many, if any, instances of successful manager-run Sandwich Baron outlets. You are unlikely to make it unless you are personally running the business on the shop floor. There are examples where franchisees think the business is doing well, only to find once their bookkeeper completes the books that their stock is being stolen to fund somebody else’s business.
- Take personal responsibility for the performance of the store
‘Do you plan to run the shop yourself?’ This is always my first question to any prospective franchisee. Unfortunately, some people do not believe me when I say they must run the store personally. Once it’s up and running, some leave their business under the control of a manager and when it begins to lose money (as it will) they blame the manager and staff. The real reason for the loss is their own absence. You cannot expect a store to run itself or be run by the staff. Take personal responsibility for the performance of your store.
- Sign up for some financial training
Stock theft is but one example of what can happen if you are not constantly tracking your business. While Sandwich Baron has a wonderful system to help you build a successful store, you need to supplement that with basic business skills of your own. If you don’t know accounting basics, or how to interpret financial documents, or for that matter how to hire and fire employees, you had better learn. Otherwise, you’re going to encounter trouble. It is especially important to track your food costs as a percentage of revenue.
- Computer literacy training
Sandwich Baron franchisees have a slightly older age profile than other franchise systems, often having no idea about the digital age and the marketing tools available via social media. After their financial training, a computer literacy course should be next on the list. With technology advancing at an accelerated pace you must learn how to keep abreast, unless you want to become a dinosaur. Occasionally attend thought-provoking seminars, short courses at business schools and read voraciously.
- Customer service
If you don’t like people, don’t be in the food business. Communication skills are vital in this industry. It is not unusual for some franchisees to back-off on dealing with customers through previous unpleasant experiences, but realise you are going to have to overcome that resistance. Business is not about what the competition is doing or even the prices you charge, it’s all about your customers.
- Don’t buy a franchise just for money
You can make a good living from running a Sandwich Baron franchise, but if making a lot of money is your primary motivation you are unlikely to have the necessary passion for this industry.
- Take control
To make money, you must have controls in place, without these you will most likely fail, as people take advantage of you. Part of the reason you chose Sandwich Baron is because it has a successful system. You purchased a tried-and-tested system, now to be successful you need to learn and understand it. Take full advantage of Sandwich Baron’s training and the tools you will receive to build a business. But remember the ultimate success or failure of your store is largely your responsibility, it’s part of the appeal of entrepreneurship.
- Always have a positive frame of mind
It is important to have the right mental attitude, always, to achieve your goals. Your attitude impacts on your performance, relationships and staff.
- Never stop marketing
Above all else, the sales and marketing is also your responsibility. You have nutritious, fresh and tasty products that are proven in the marketplace. Put a plan in place and market your product continuously analyse the effectiveness and share your ideas with management and your fellow franchisees. Remember that word-of-mouth recommendation based on customer service is the most effective marketing tool you have.
- Financial expectations
Sandwich Baron charges a 6% royalty, in exchange for which franchisees get various discounts that repays the royalty, but also give a higher turnover due to group marketing and consumer awareness. The average turnover per store is R222,000 per month a level which should provide franchisees with an average income of R30,000 to R35,000 per m. Some franchisees can earn double that – by closely following these tips.