STEERING INTO THE FUTURE
How are franchised auto service businesses facing up to today’s, and tomorrow’s, challenges? Two franchisors explain how they are staying in the driving seat.
MIKE STRINGER, FRANCHISOR, CAR CARE
IFB: WHAT ARE THE BIG CHALLENGES IN YOUR PARTICULAR NICHE MARKET?
MS: The biggest challenge we have is communicating the need for our clients to plan as we are not able, in the main, to respond in providing our service on a same-day basis.
IFB: WHAT IS THE STRENGTH OF YOUR BUSINESS IN THE SECTOR?
MS: The fact that we are able to deliver our service at the client’s premises without the need to compromise on quality, as we supply our own power and water. The other strength is the knowledge and skill of our detailers.
IFB: HOW IS DIGITALISATION AFFECTING YOUR DAILY BUSINESS?
MS: It has had little effect in the service delivery but has had major impacts on how we advertise, communicate and manage our
work distribution.
The other effect of digitalisation is the client’s expectations in terms of the immediacy of delivering our service.
We are living in a world where the expectation is you can have what you want whenever you want it.
IFB: HOW DO YOU SEE YOUR BUSINESS ADAPTING TO THE FUTURE WITH SELF-DRIVING, PETROL-FREE, COMPUTERISED CARS?
MS: We see the transition to these new technologies being quite a slow process and from our perspective the likely changes will have limited effect on keeping the vehicles clean.
IFB: WHAT DOES THE FRANCHISEE OF TOMORROW NEED TO BRING TO THE BUSINESS?
MS: We are and will remain a service business, so the franchisee of tomorrow is pretty much the same as they are today.
They will, however, need to bring a greater understanding of the technologies around operating their business both financially and from a client communication point of view.
IFB: CAN YOU HIGHLIGHT ANY SIGNIFICANT RECENT OR UPCOMING CHANGES TO YOUR FRANCHISE MODEL?
MS: We have put more structures in place to assist our franchisees to manage their business in a more organised fashion.
These cover areas of territory management, accounting, time management, etc.
IFB: WHAT ARE THE PLANS FOR 2019–20?
MS: For 2019 our plans are to continue to grow our numbers and look for ways to increase the profitability of our franchisees.
GLENN HAMES, CEO, TOWNCARS NETWORKS AUSTRALIA
IFB: WHAT ARE THE BIG CHALLENGES IN YOUR PARTICULAR NICHE MARKET?
GH: Since the introduction of ridesharing within the industry, we continue to be challenged in these areas: clear direction on government and institutional standards, continued traffic congestion, changing of the future transport landscape, investing in technology and driver education/compliance.
IFB: WHAT IS THE STRENGTH OF YOUR BUSINESS IN THE SECTOR?
MS: Operating nationally, Towncars offers transport solutions to corporate and private customers. Our transparent model is leading best practice in safety in the hire car industry. Prices are fixed and all inclusive, with no running meters.
We focus on providing detailed back end reports, including dashboard analysis.
Towncars’ seven-day call centre provides personalised support and back-up for our customers and drivers. Our exclusive in-house software is equipped with GPS tracking on all our vehicles to communicate service expectations.
IFB: HOW IS DIGITALISATION AFFECTING YOUR DAILY BUSINESS?
MS: Based on customer and driver feedback, Towncars is constantly challenged to improve its software, to meet expectations in the format of reporting and user-friendly platforms.
The following segments are currently being reviewed and upgraded:
• client feedback • risk management and policy • restricted access to protect data and client confidentiality • driver behaviour and ratings • terms and conditions.
IFB: HOW DO YOU SEE YOUR BUSINESS ADAPTING TO THE FUTURE WITH SELF-DRIVING, PETROL-FREE, COMPUTERISED CARS?
MS: It is likely that all operators will need to invest in both electric and fully autonomous vehicles for the future. It is envisaged both electrified and fully autonomous vehicles will be totally operational by 2050. The transport industry will have to reformulate their business models to support this transition.
IFB: WHAT DOES THE FRANCHISEE OF TOMORROW NEED TO BRING TO THE BUSINESS?
MS: Towncars franchisees need to be aware of the industry challenges and be prepared to adapt to changes. As professional drivers, they must be focused on consistent service and customer relationships. We must provide ongoing training and education to maintain professional behaviour.
IFB: CAN YOU HIGHLIGHT ANY SIGNIFICANT RECENT OR UPCOMING CHANGES TO YOUR FRANCHISE MODEL?
MS: Besides technology upgrades, Towncars has updated its fleet to European vehicles due to the demise of Australian manufactured vehicles, such as Holden and Ford.
Ongoing airport challenges have prompted us to relocate 6 kilometres from Sydney Airport, which offers our call centre and drivers quicker solutions to respond to our clients’ needs.
IFB: WHAT ARE THE PLANS FOR 2019–20?
MS: In the next couple of years, we will expand franchise opportunities across Australia. This will be established by national magazine advertising.
Towncars brand awareness will also increase nationally, through fleet livery, social media and digital campaigns.
Reward and loyalty programs will be introduced to attract new users to our services. Future projects include on-demand technology.