Owner-run franchises are more likely to succeed than those run by managers

Being a hands-on franchise owner is preferable to hiring an in-store manager to handle the day-to-day operating of the business, especially for cash-based franchise operations such as Sandwich Baron, writes Sally J’Arlette-Joy, founder and CEO of Sandwich Baron.

Notably, in the 21 years Sandwich Baron has been in operation, a worrying trend has emerged: never has a manager run store succeeded. The cash nature of the business seems to be too much of a temptation.

Owner-managed franchise operations are better owner-managed, more profitable and more likely to succeed than manager-managed operations.

In the food delivery business, multiple factors need to be considered: delivery vehicles need to be maintained and constantly refuelled; food needs to be fresh and well prepared; menus need to be adapted to allow for new food trends; employees need to maintain high levels of hygiene and service; and food preparation needs to adhere to strict franchise standards.

There has been a notable trend amongst manager-run franchises not to adhere to various standards and take a more lackadaisical approach to almost every aspect of the business.

While hiring a manager may seem like an effective way to reduce the work load, the repercussion for owners could be a loss of money, mismanagement of products and the inability to handle staff and customers

The main reason for the failure of manager-run franchises is a lack of commitment from managers who do not have a stake in the business. Without a vested interest in the business, there is a tendency by managers to not pay enough attention to administrative and staff details.

This has proved to be the case repeatedly, even in instances where the manager has been given a percentage of the profits. The inclination to sweep problems under the carpet seems to be widespread. Owner-managers may make mistakes, but they will never make the same mistake twice.

Producing food is labour intensive work and each Sandwich Baron has a minimum of 14 employees. Keeping on top of human resource issues is critical to a smooth-running operation.

Owner-managers are far more likely to identify human resource problems as quickly as possible. They are less likely to be complacent about staff issues such as late arrivals, careless work or poor customer service.

Customer service levels at manager-run stores are lower than at owner-run operations. Owners understand the necessity of building lasting relationships with their customers and going the extra mile to ensure all parties are happy.

With two decades of experience and 49 franchises around the country, Sandwich Baron understands the type of management model works best for food delivery operations. This is why the company’s strategy is to attract investors who are interested in running their businesses and who buy into the culture of the business.