Inside Franchise Business

STEERING INTO THE FUTURE

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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.

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