Franchise Optimization


Franchise businesses are common to Australia. You find franchise operations by the dozen in every shopping mall across the country. Yet, performance differs vastly, though most franchise companies take great care to streamline and standardize operations among their franchisees.

The image on the left depicts the annual turnover of a typical franchise company. Some of the outlets operate around the mean turnover, others do significantly better while some lag unpleasantly behind.

Obviously, there is room for improvement. But why are some outlets doing better and others perform below par? A whole range of factors and variables are at work and responsible for this incoherent picture. In fact, the number of variables playing a role can easily be in the hundreds. Still, by merely looking at the distribution of annual turnover the reasons cannot be found.

This is only possible by a simultaneous analysis of ALL variables that come to play a role. To do so, it is imperative to use causal modelling - no standard financial analysis will fulfill the complicated mathematical and statistical requirements set in such context.

The franchise owner may well be happy about the rise in annual turnover compared to the year or years ago. The franchise company may even have increased its market share vis-a-vis other contenders. However, it is a statistical fact that the franchise company is likely to perform even better. As a rule of thumb you can say that the more the disparities between each outlet, the more there is room for improvement. But even fairly homogeneous performance of outlets, often, can be substantially increased.

Based on your data obtained from your data warehouse, Causal Impact can identify and quantify (yes, in dollars and cents!!!) the factors and variables responsible for outlet turnover. In fact, we are the world's first international consulting company capable of doing these complex statistical analyses.

The results for your franchise company are stunning: you will obtain a very concise image never possible with traditional means of which factors operate in which way to foster - or inhibit - outlet performance.

We will not only provide you with a concise statistical report and in-depth recommendations for your management. We also provide your franchisees - individualized for each franchise! - with detailed suggestions why their performance lags behind and how this may be remedied best.

If you like to learn more about the benefits of this innovative consulting approach 'made in Germany', please contact us.