Supply chains, or approved suppliers, are suppliers that a franchisor has researched and approved to provide their products or services to the system’s franchisees. A franchise system’s supply chain is an important factor in determining whether or not the system functions effectively and will continue to expand. Through consistency, franchisors are able to ensure that customers have a consistent experience, thus creating a scalable business model. This, in turn, reinforces the brand.
Hungry Howie’s national distribution network supports their franchisees with reliable service and provides all the products needed to operate their business. This offers efficiencies that are directly reflected on the bottom line and the quality of the product as well as franchisee retention and expansion.
Better Profit Margin and Bottom Line
Competition among franchised restaurants is fierce, and many franchisees, as any business would be, are sensitive to their profit margins. Every dollar spent directly impacts the bottom line. A properly functioning franchise supply chain can give franchisees a competitive edge in an already competitive vertical. It is one of the few opportunities for positive impact to a franchise system’s profit margin that does not involve increased sales. A franchise system with a solid supply chain like Hungry Howie’s usually sees a significant return on its investment.
Maintain Quality and Uniformity of Products and Services
A franchise is built on a proven concept and the ability of multiple units to operate under a common system that offers high-quality, uniform products and services. A franchise-provided supply chain helps to ensure that all units meet their quality goals. Most franchisors have stringent standards for supplier approval. In addition, they also provide timely delivery of supplies. A strong supply chain or distribution network is an integral part of the franchise system. It is the key to being able to offer a uniform, high-quality product to consumers.
Franchisee Retention and Franchise Expansion
Franchisors are becoming increasingly aware that a reliable distribution network is an important part of keeping and recruiting the best franchisees and helping them expand into multiple units. The team at Hungry Howie’s has known this for quite some time. We have a well-developed distribution network with 20 years of experience. The supply chain has become an important part of the franchise and franchisee’s success.
Resources:
http://www.frostbrowntodd.com/resources-1543.html
http://www.franchisespecialists.com/articles/330-supply-chain-approved-suppliers
