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Originally Posted by Sly
I always find it entertaining when people say "I'll open up a shop and have someone else run it while I do nothing but collect the checks." Ha!
Yes, it is possible, but there are several key ingredients you need that are pretty rare. The main ingredient being: someone to run it! Where do people think they're going to find somebody that will pour their soul into a company they don't own? Nobody is going to do that. Now if you were to offer the right person a chunk of the profits you may find some good results, only problem is it would cut into your income. I think its a pretty fair trade though. Setup enough locations with enough of the right people and you just may be on to something.
Its everything BUT easy though.
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That is so well put and you are exactly right. For instance, the old saw that if you want something done right, you have to do it yourself is no better understood than by a franchisee that just poured $500K into a venture and walks in to his shop and the product is off a bit and the customers aren't being serviced properly. I was willing to pay lots of money to find good managers but this never happened in over 5 years and I was no stranger to training management or the food industry. Good help is hard to find and a hands-off management style is the kiss of death for your business.
Couple all that with a business that is manufacturing intensive with a volitile product like Dunkin Donuts (you could not possibly imagine how easy it is to mess up a batch of yeast dough or muffins...), that must be produced 24/7 by different employees that require lots of training and don't show up for their shifts often (if the baker doesn't show up for his midnight shift - there will be no donuts in the morning - it takes several hours to make a batch - and you are a donut store so you HAVE TO HAVE DONUTS TO SELL - so after you just worked 15 hours at the shop you are woken out of bed to come in to bake the donuts all night because the baker decided he wanted to go to a friends party and called in sick and you couldn't find another trained baker to take the shift).