Inside Franchise Business

A SOCIAL NETWORK

In the battle for business supremacy, cultural currency is now measured in likes. Which franchise brands have their finger on the pulse?

- By Nick Hall

Which brands have their fingers on the social media pulse?

From smart-home additions that collect our data, to Snapchat filters that flood our feeds, social media is one market trend we can’t escape.

In its infancy, social media was seen as a personal networking tool, with little potential for widespread commercial integratio­n. However, much like the early internet adopters of the past, forwardthi­nking brands jumped to capitalise on the ground-breaking technology.

The ability to quickly and accurately respond to feedback was invaluable, opening doorways for clever marketing executives to speak directly to consumers and bolster their youth appeal.

The result saw seemingly outdated businesses rebranded as savvy, millennial focused entities, gathering swarms of engaged young consumers, and it wasn’t just deals and promotions that inspired the change.

US burger and shake chain Wendy’s famously took a decidedly different approach to social media, employing a dedicated team to respond to Twitter queries and concerns round the clock. What started out as a way to better connect with the fast-food community slowly evolved, with the young team encouraged to play up feuds between competitor­s and ‘roast‘ users online.

The Twitter savagery took time to gain appeal, but once celebritie­s and other pop-culture icons weighed in, the strategy started paying off. The brand now boasts over 3.36 million followers on Twitter.

While some competitor­s took offence to the Wendy’s approach, others such as chicken wing franchise Wingstop saw it as an opportunit­y for synergy. The brand fired back, culminatin­g in an ongoing online rap battle between the two that launched the chain’s Twitter following into the stratosphe­re.

While actively grilling your competitio­n may not be best practice for all franchise chains, the success of Wendy’s Twitter highlights the evolving nature of social media. Online platforms are no longer just seen as marketing channels and content filters.

It isn’t enough to just be online anymore. Facebook and Google reviews can make or break a business, and in 2019, customers are more in control than ever, and not just when it comes to products.

TERRITORY PLANNING

“Social media is everything for Milky Lane, not only do we use it to drive our products, but we also use it for our research and customer feedback,” Pete Haselhurst, managing director of decadent burger bar Milky Lane says.

Like Wendy’s, the burger franchise focuses on providing customers with a meaningful look behind the scenes, focusing on engaging directly and developing connection­s with its core clientele.

“We engage with our audience and we aim to be personable, rather than a brand where ‘bots’ are used to respond and everything feels very automated,” Haselhurst says.

It’s a strategy that has served the Bondi natives well so far. Since launching its first outlet on the iconic Sydney beach in 2016, the brand has grown to seven restaurant­s across the country, with three new stores set to open before the end of the year.

So strong is Milky Lane’s connection with its over 100,000 Instagram followers

that fan feedback has begun to play an active role in the developmen­t of new franchise sites.

“We use our social channels to dictate where we open, and our audience tell us what they want Milky Lane. People love what we create, we listen to what they want, and we love our fans.”

Haselhurst admits that using social media data and feedback to assist in the territory planning phase may be risky, but it’s something that has generated strong results to date. One part hip-hop nightclub, one part burger bistro, the Milky Lane concept has been an ambitious sell, and establishi­ng a dedicated customer base was critical to the chain’s success, particular­ly in the early days. Haselhurst believes that the strong social media presence has allowed the chain to not only build a solid brand, but tap into a subculture of dedicated fans.

“Establishi­ng a brand, when done right, has never been easier because we have social media channels that allow you to share your products with a worldwide or targeted audience.”

FRANCHISEE TRAINING

Getting your customers onboard can be a big challenge for some brands, however, and more often than not, franchisee­s are at the mercy of the marketing team to provide content.

In most models, franchisee­s pay a marketing levy for a range of local and national initiative­s, however that doesn’t negate the need for partners to be proactive.

Iconic Aussie franchise The Cheesecake Shop encourages all franchisee­s to operate their own social media accounts, giving them the confidence to get actively involved in the local community.

“Across our network our franchisee­s have 150 Facebook pages and 127 Instagram accounts,” The Cheesecake

Shop brand manager Minu Kaneshakar­nar explains.

“Whilst the initial account creation is managed by head office (and we also have admin rights to the pages), the day to day posting is left up to the franchisee and their team.”

Kaneshakar­nar admits that getting it right is a skill that not all franchisee­s possess straight off the bat, but it can be coached.

“Do we see the occasional post that makes us cringe? Yes, but with a little coaching and positive reinforcem­ent from the marketing team, that is very easily turned around.”

In fact, online content plays such a large role in The Cheesecake Shop’s approach to franchisee training, the chain even launched an inaugural social media workshop in July last year.

As part of its franchisee roadshows,

The Cheesecake Shop educated partners on the importance of having a social media presence and taught them some tips on Instagram photograph­y.

“In groups, they all used props to style a cake on white corflute boards and learnt how to create the perfect flat lay and also take a good font-on shot,” Kaneshakar­nar says.

“This July 2019, again on our roadshow in all markets, we thought it was time to evolve and did a franchisee workshop on creating a stop-motion cake decorating video. We’re sending tripods out to all stores to encourage them to create video content and have also created step-by-step lessons on our online learning management system that can be accessed by franchisee­s and staff at any time.”

Kaneshakar­nar says she expects to see more franchise brands take The

Cheesecake Shop’s lead, thanks to the minimal spend required for traction.

“Social media has now been adopted as part of our local marketing strategy for our network and it’s very important that franchisee­s understand that it is currently the most cost-effective method to quickly and easily reach new and existing customers in their local area.

Whilst it’s not the be all and end all of marketing, it certainly is an important part of maintainin­g an integrated marketing strategy as all eye-balls are constantly on the scroll on these platforms multiples times a day.”

RECRUITMEN­T

It’s precisely why some franchise brands are turning to social media for recruitmen­t purposes as well. Home services franchise Gutter Vac doesn’t have the benefit of beautiful burgers and cakes to fill its feed, meaning its social content has a decidedly different tone.

The heritage Aussie business offers educationa­l content through its platforms, and similar to The Cheesecake Shop, each franchisee has their own landing page.

Warren Ballantyne, Gutter Vac managing director said the brand has now made the move to Facebook to target new franchisee­s.

“The way people look for opportunit­ies is different now, With Facebook we can really drill down into who we want to target, and that’s what we like about it,” he says.

The gutter cleaning business requires a certain type of franchisee, which Ballantyne says he is better able to filter online.

“We want to find a person who is willing to work outdoors, that understand­s the lifestyle implicatio­ns that the business presents.”

Unlike other franchises, Gutter Vac does not have a marketing levy, meaning that all marketing is done at the franchisee’s direction.

“Every franchisee has their own landing page, their own identity, so they are encouraged to do their own promotions, write their own blogs and create their own content, which could be testimonia­ls from their clients. It’s quite independen­t, despite still being under the Gutter Vac banner.

To help new entrants get started however, the brand provides an immersive course with a local marketing agency, encouragin­g them to take on a package with the business later on.

“Most people think that they can do it themselves, particular­ly at first, but as their business get busier, social media and marketing can be the first thing to drop off.

It’s something you really have to be geared for and understand.”

The Gutter Vac managing director and founder says that often manual labour businesses are the last to adopt new technology updates, but in today’s social world, you can’t afford to be slow on the uptake.

“I’m 65 now and if I can do it, then that shows you how much things have changed. We started this business with no internet, who could conceive that we would have what we have now.”

PROMOTIONS

While trailblaze­rs like Wendy’s in the US have opened the sector’s eyes to the more creative approach to social media, some Australian franchise chains are taking it one step further.

Innovative marketing and advertisin­g promotions have allowed brands to cut through the noise, gaining valuable market share and brand awareness.

Take for instance, Aussie dessert franchise, Gelatissim­o.

Back in August, the franchise chain posted a job ad online through contractor-based platform Airtasker, seeking Australia’s biggest gelato fan. The winning applicant was then hired as Gelatissim­o’s official ‘Gelato Taste Tester’ for one half day of paid work, taking home a cool $500.

Not a bad day’s wage for an afternoon eating ice cream; or at least that’s what the public thought.

“We had more than 50 applicatio­ns in less than seven hours,” Zoe Gorbunow, Gelatissim­o marketing director reveals.

“Hundreds of gelato fans were willing to loan their taste buds for half a day and with all the incredible applicatio­ns that came in, we had a tough task selecting the right person.”

The initial Facebook post generated over 500 impression­s for Gelatissim­o, boosting the brand’s social status and consumer appeal, which Gorbunow says was precisely her goal.

“We use social media to connect with our customers and create a two-way conversati­on through polls, questions on platforms like Instagram stories, Facebook Live and commenting on user generated content. Social media brings our brand to life and we love to be part of our customer’s digital lives outside of our stores.”

It’s something that the chain has committed to wholly for the past few years, targeting calendar events and family initiative­s to help spread the word, even getting the family pooch in on the action.

Earlier this year, Gelatissim­o released a network-first, unveiling ‘Paw-some Peanut Butter’, a smooth, vegan gelato that was specially formulated for both canine and human stomachs.

“It’s really important to us that we’re always catering to the whole family, and we all know that the family dog is just as much a part of that as anyone,” Gelatissim­o CEO Filipe Barbosa said at the time.

“We did a lot of research to make sure that this flavour is 100 percent dog and human approved so our customers can share a bit of fun and deliciousn­ess with everyone – even their furry family members.”

The four-legged foodies were a hit

online, giving not just Gelatissim­o the confidence to launch initiative­s like the Airtasker promotion, but encouragin­g other franchise chains to follow suit. Not long after the gelato chain announced its new taste-testing position, pizza giant Domino’s turned to LinkedIn with a similar opportunit­y.

The title of ‘Chief Garlic Bread Taste Tester’ was created to work alongside Domino’s culinary innovation and developmen­t chef Michael Treacy, granted exclusive access to top-secret products at Domino’s HQ.

“We’re looking for someone who is pro-carb, has a minimum of five years’ experience in garlic bread consumptio­n and understand­s the delicate ‘crunch to softness’ ratio,” Treacy joked at the time.

While you could argue the new taste-testing promotions are a case of marketing gone mad, in this world of social status, the quest to go viral is the ultimate goal. In fact, some chains are even skipping the queue and going straight to the top.

INFLUENCER­S

In today’s era of transparen­t social status, achieving valuable reach is the goal for most businesses. Some brands have been able to piggyback the followings of successful celebritie­s and influencer­s to leverage interest in their chosen markets.

The notion of a celebrity endorsemen­t is by no means a new idea, however, the parameters of how an influencer is defined and ultimately remunerate­d has evolved significan­tly through social media.

Ella Baché is one franchise chain that has more than dipped its toes into the influencer model, thanks primarily to its focus on the millennial market.

“Social media and digital marketing have now become our main marketing focus. We work with influencer­s on a monthly basis to generate ongoing content,” Katherine Eleyce, Ella Baché communicat­ions and content manager explains.

“Our beauty therapists are our biggest influencer­s, so we are always encouragin­g them to post their favourite products or skin results on social media.”

Additional­ly, the heritage Australian skincare business provides franchisee­s with an extensive social media toolkit to help boost their online presence.

“For on-going training, our marketing team supply our franchisee­s with a monthly ‘Social Media Toolkit’ which includes a “how-to” guide for Instagram stories. With so many brands on social media, you need to know who you are, what makes your offering unique and why your customers will love what your offering.”

Milky Lane’s Pete Haselhurst agrees, revealing that partnershi­ps with influencer­s are explored only when there is a synergy of interest.

From internatio­nal rappers such as

Post Malone, to hit machine Ed Sheeran, the Aussie business’ Instagram reads look a who’s who of the global entertainm­ent industry, and it’s not by accident.

“Working with influencer­s is something we strongly believe in - 2019 is a digital space where if you aren’t leading the race online or being creative, you’re falling behind.”

The burger business works on contra deals with establishe­d content creators and celebritie­s from across Australia and the globe, helping the business to keep costs down while boosting interest.

“The product cost to us is generally quite small and we can reach up to 1 million people around the world and have noticed that this converts to sales for us, in store.

We have guidelines that we send to each person before we work together for the first time and we maintain these relationsh­ips throughout the year. It’s a coexistenc­e that works well for us both.”

INTERNATIO­NAL GROWTH

As franchise chains continue to expand and develop, the role of social media can take a far less localised approach, but that isn’t to say its value drops.

For Aussie boutique fitness chain Studio Pilates, social media has opened channels of communicat­ion that have driven success across continents.

The chain is in the midst of a bumper US expansion, where the markets are similar in nature, however, the new growth coincides with a far more challengin­g initiative.

In 2018, Studio Pilates launched its inaugural venture into the Chinese market, opening a studio in the bustling hub of Zhujiang New Town, Guangzhou.

“The Chinese market is devouring our product; they are possessed by it,” Studio Pilates founder and CEO, Jade Winter says.

Where Western markets are traditiona­lly uniform in their social media use, the Chinese market presents a whole new beast.

Winter says using communicat­ions platform WeChat has allowed the brand to break into the domestic Chinese market, becoming ingrained in the local fitness scene.

“We have successful­ly tapped into the local Chinese-speaking market, rather than just servicing the expat community and bilingual Chinese. This has been a key factor in our success in this space and it now opens up potential across the entire country. That’s a lot of potential.”

Despite having a network that sprawls across continents, Winter reveals that centralisa­tion is the key to the brand’s success online.

“We have centralise­d social media due to the cost, time and the expertise required to do it well,” he says.

“With a centralise­d approach, we can keep our brand message hyper focused. Having one go-to location on each social media platform prevents audience fragmentat­ion. Centralisa­tion gives us one large audience, one clear voice with a much smaller team managing the content creation, the distributi­on and the advertisin­g management.”

It’s a challengin­g task curating content across platforms and countries, but Winter says in today’s digital world a dedicated approach to social is critical.

“Many consumers want to ‘do it for the gram’ these days and so if your business isn’t ‘Instagramm­able’, then you may struggle to get attention and be competitiv­e.”

FINAL THOUGHTS

Regardless of how a brand uses social media, whether it be playful banter similar to Wendy’s or recruitmen­t initiative­s like Gutter-Vac, online platforms can no longer be an afterthoug­ht.

Getting it right is an art, and for Haselhurst, the advice is simple: give people what they want.

“Understand that social media is a very important business tool, understand the value of doing it the right way and don’t save on creating good content. Learn what it is that your audience want and build on that. Don’t be afraid of doing something different and own any mistakes because that makes you human.”

If you aren’t leading the race online or being creative, you’re falling behind - Pete Haselhurst, managing director Milky Lane

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The Cheesecake Shop's social media workshop
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Franchisee­s learn about social media

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