6 Vital Reasons a Franchise System Needs the Same Supplier
A franchise system is one of the best ways to operate multiple outlets of the same business. Franchisees can enjoy a degree of autonomy while still enjoying the benefits of being part of a chain. However, while they are free to choose many aspects of their business, all stores in the franchise should use the same supplier. Let’s look at a few reasons why.
1- Consistency
Giving customers a consistent experience is one of the most important duties of a franchisee. If a customer enjoys the french fries at one restaurant location, for example, then goes to another that uses a different product that they hate, they might think the recipe has changed and might stop visiting altogether.
2- Ensures Quality
On a similar note, having the same supplier for each store will discourage franchisee owners from cutting costs by purchasing products of a lesser quality to save money. This is especially useful for newer outlets, whose owners might be desperate to turn a profit as quickly as possible.
3- Supply Sharing
If two franchisees are located relatively close to one another and one runs out of a particular supply that the other can spare, they can trade as needed without having to make a costly special order or buy an inferior product from a local supply store until the next shipment arrives.
4- Bulk Purchase Price
A higher number of franchisees means a larger amount of the same items will be needed. Because of this, the company can negotiate a lower price when buying in bulk, which will save every franchisee money and increase their profits, which ensures they’ll be able to carry on the franchise name for years to come.
5- Saves Time
One of the pitfalls that many small business owners often fall into is buying each product separately from a different supplier, which can be very annoying when they have to reach out to 20 different vendors. With a single supplier, they’ll have a much easier time and a better relationship with the representative in charge of their account.
6- Better Integration
It can be incredibly frustrating when two pieces of technology or equipment simply don’t work together. Whether it’s two computer programs that aren’t compatible with each other or a receipt printer that has issues connecting to the POS software, it can cost a business a lot of time and money to fix. By using one supplier, franchisees can be almost guaranteed that everything will work together in one ecosystem.
These are just a few of the many reasons why a franchise system should use the same supplier throughout the system. It saves time, money, energy, and results in better relationships between the company and its vendors, as well as the company and its clientele. Customers will no longer have to hope that the good french fries are in or that their receipts won’t be able to print, making them more likely to stop in which will help to increase sales at all of your franchise locations. So, whether you’re considering digital menus, automated ordering systems, or loyalty programs, remember that technology can boost sales and help you thrive in the competitive franchise industry.
