Technology Upgrades Benefits Franchises

Technology Upgrades Benefits Franchises
To an outsider, a busy franchise location might appear to be a gold mine generating fantastic profits, but most franchise owners know better.
While sales numbers are strong, margins are still tight, competition is high, and new challenges emerge daily.
In addition, franchisers often expect franchisees to invest profits in technology upgrades.But do technology upgrades benefit franchises?

Investing in Technology as a Franchise Owner

Cash-strapped franchise owners are often reluctant to invest in upgraded technology. This is often due to the costs or added complications. But there can be significant advantages in taking the time to understand what new technology can add to the bottom line.

Advantages of Technology Upgrades

  • Improve profitability
  • Drive down operating costs
  • Streamline processes
  • Accurately forecast with business intelligence tools
  • Improve customer experience
  • Advance competitiveness

Return on Investment

Everyone wants a return on any investment they make. But when adding or upgrading new technology, you should also consider the impact it will have on other aspects of your daily operations.
-Can it improve efficiency or potentially decrease headcount?
-Will it give you a competitive edge by making it easier to do business?
-Does it mitigate risk or liability?
-Will it save you time and/or money in the long run?
-Does it improve your customer’s experience?

A Case for Mobile

Let’s look at an example. It make seem like a luxury to allow customers to place their orders and interact with your brand with their mobile device. But consider how important smartphones and tablets are to your customer’s lives. Adding mobile access can allow you to engage your customers, boost sales, increase the speed of service, and even increase order accuracy.

Frequent Technology Upgrades

Technology Upgrades Benefits Franchises

Technology upgrades benefits franchises, include:
  • Security and loss prevention
  • Software as a Service (SaaS)
  • Compliance and data security
  • Mobile payments
  • Cloud computing and storage
  • Customer relationship management (CRM)
  • Website upgrades
  • Mobile apps & customer reward programs

A Case for Loss Prevention

Most experienced franchisees know that the majority of loss or shrink in their business is the result of dishonest or poorly trained employees. The results of even one dishonest employee can be devastating to your profitability. A few common loss areas are:
  • Cash theft at the register or in the office
  • Improper discounting
  • “Sweethearting” of product
  • Fraudulent returns
A high definition video surveillance system integrated with your point-of-sale (POS) system can quickly pinpoint suspicious situations. It can also provide evidence needed to proceed with termination or prosecution. This is what DIGIOP ELEMENTS software accomplishes.

Technology Upgrades Benefits Franchises

Whatever the technology you’re considering for your business, approach the decision by looking beyond the initial investment to the long term strategic benefits it can provide. It may initially look like a tremendous cost, but it could be the key to unlock a new level of business success.