West Coast Franchise Law - September 2024

“Imagine this situation. You are new to franchising. You are presented with a unique deal on terms that are good for both sides, but you only have four days (including Saturday and Sunday) to lock it down. Oh ... and you’ve just come off a bad experience with an attorney who prioritized billable hours over all else. What do you think happens next? “That was my situation last year. What happened next felt like divine intervention. A friend introduced me to Nate Riordan. Nate stepped in and I picked up the keys from the seller that Monday. In the intervening four days, Nate had connected with the seller’s counsel, negotiated the finer deal points, navigated personalities and strained relationships, making it all look easy. Since then, I have reached for Nate on every legal question related to the business, and he never fails to give wise and calming counsel. In short, Nate is a rock solid superhero!”

The heat is on. Squeezed by weak customer traffic and rising costs, successful fast-food operators have no choice but to learn to track and interpret their key performance numbers in real time. Too much helpful technology is available to fall behind, John Hamburger, president of Franchise Times Corp., told members of a franchise organization in a recent speech. More than 60% of restaurant operators intend to invest in new technology in the coming year, according to a survey of 550 restaurant operators by Nation’s Restaurant News and Restaurant Business. The survey reflects growing confidence in tech platforms’ ability to capture and analyze customer, transaction, and operational data. Tech platforms were a central focus of attendees at a recent National Restaurant Association trade show. Here is a sampling of exhibitors: • Olo: This platform uses machine learning to predict when orders will be ready, improving accuracy by 20% and increasing digital sales. The tool also integrates orders with a payment platform and aggregates customer data to deliver targeted marketing messages. Customers include Denny’s, which nearly doubled off-premises sales by using the platform to send online orders directly to the kitchen. Tech-Savvy Tools Restaurants Boost Performance With Data Tools

ARATHA (RAY) JOHNSON — Pet Evolution Franchisee

• Flybuy: This product uses mobile location sharing and customer data to speed drive-through and pick-up service and deliver special promotions and loyalty rewards. The results include reduced customer wait time and increased sales. One customer, Taco John’s, credits the platform with a 20% increase in mobile orders and a decrease in delivery wait times. • Toast: This restaurant management platform integrates orders from online and third-party systems with kitchen operations, and also provides payment processing, drive-through and display technology, loyalty program promotion, and data analysis. One user, Velvet Taco, reports a 20% increase in order-fulfillment capacity. • Curbit: This capacity-management system serves as a throttle during busy periods on incoming orders from delivery services, online takeout, kiosks, and phone customers. The platform keeps staff workloads manageable, ensuring quality. Curbit also keeps customers and delivery drivers informed about delivery timing and provides data to analyze order flow and staffing. Customers include Smashburger, where a controlled test at 61 stores showed increased repeat customers and improved online reviews. Visit our blog for helpful franchise law insights & industry trends: westcoastfanchiselaw.com/insights

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