Monthly Archives

July 2020

Sample Objectives and Key Results (OKR) for Salon and Spa Franchises

By | Franchise Business Plans, Spa and Salon
Salon and Spa Franchises OKRs

Salon and spa franchises represent well over a million businesses across the US. According to IBISWorld in 2019, there are currently almost 1 million firms operating in the hair and nail salon industry within the U.S., providing direct employment opportunities for almost 1.4 million people.  The health and wellness spa industry has over 22,000 businesses employing over 365,000 people. As the economy changes, salons and spas still employ many people.

OKRs

  1. O: Increase franchisee revenue.
    1. KRs:
      1. Get retail capture rate to 25% (% of people who buy retail items vs. spa guests).
      2. Have 100 customers do injectables (high ticket item).
      3. Increase customers by 20%.
      4. Increase facial treatment sales by 30%.
  1. Initiatives:
    1. Increase prices by 10%.
    2. Get front desk staff engaged in sales training from head office.
    3. Review injectable sales on monthly FranchiseBlast scorecard.
    4. Engage in Instagram for lead generation.
  1. O: Increase profitability through marketing efficiencies.
    1. KRs:
      1. Make cost/lead $25 off Google.
      2. Get repeat guest rate to 50% (% of total guests who are repeat guests).
      3. Increase business from referrals by 25%.
      4. Increase walk-in business by 10%.
  1. Initiatives:
    1. Optimize Google AdWords landing pages.
    2. Run annual referral campaign with current customers.
    3. Give roses to customers for the month of February as a Valentine’s Day promotion.
    4. Add colorful decals outside of clinic.
  1. O: Increase employee satisfaction of frontline staff.
    1. KRs:
      1. Make employee retention rate 20% (employees who left/total employees).
      2. Get eNPS (employee Net Promoter Score) to 30.
      3. Increase employee participation in group events by 50%.
      4. Increase employee participation in learning portal by 25%.
  1. Initiatives:
    1. Launch eNPS program.
    2. Review who has completed training using custom forms in FranchiseBlast.
    3. Have a staff holiday party.
    4. Allow team members to nominate each other weekly for “spirit” awards.

Hopefully these sample objectives and key results have helped you out. Do you want to take it a step further? Learn more about strategy and salon and spa franchises by checking out the following:



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Sample Objectives and Key Results (OKR) for Gym and Fitness Franchises

By | Franchise Business Plans, Health and Fitness
Gym and Fitness Franchise Sample OKRs

According to the 2019 IHRSA Global Report, worldwide, the industry saw membership grow to a “record-high” 183 million users, revenue totaling an estimated $94 billion, and club count exceeding 210,000 facilities in 2018. As the global landscape shifts, we will still see gyms making a meaningful contribution to the economy.

OKRs

  1. O: Increase franchisee revenue.
    1. KRs:
      1. Grow membership by 10%.
      2. Grow inbound leads by 20% from online sources.
      3. Book trial with 40% of inbounds.
      4. Get sales conversion rate to 80%.
  1. Initiatives:
    1. Create Facebook campaign with agency.
    2. Put front desk staff through sales training provided by head office.
    3. Perform monthly review of leads vs. trials on FranchiseBlast scorecard.
    4. Work on lead quality of PPC (pay-per-click) and display campaigns together with agency.
  1. O: Increase profitability through marketing efficiencies.
    1. KRs:
      1. Make cost per lead $50.
      2. Have a member retention rate of 70% (existing clients at the end of the period/existing clients at the beginning of the period).
      3. Increase community marketing leads by 20%.
      4. Increase leads from signage by 10%.
  1. Initiatives:
    1. Work with property management group to have an attention-grabbing sign out front.
    2. Participate in local wellness expo.
    3. Host benchmark workout session with members for ongoing performance improvement.
    4. Place flyers for “first week free” at businesses in the same plaza.
  1. O: Delight our customers.
    1. KRs:
      1. Maintain a Net Promoter Score (NPS) of 50.
      2. Increase member engagement in group fitness by 10%.
      3. Put 90% of members through the outstanding onboarding program released by head office.
      4. Expand social media engagement by 50%.
  1. Initiatives:
    1. Host one customer appreciation event.
    2. Perform quarterly analysis of NPS with team on FranchiseBlast.
    3. Ask staff to post pictures on social media of members reaching milestones on a monthly basis.
    4. Engage in seasonal giveaway campaigns of branded merchandise with social media component.

Hopefully these sample objectives and key results have helped you out. Do you want to take it a step further? Learn more about strategy and gym and fitness franchises by checking out the following:



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Sample Objectives and Key Results (OKR) for Restaurant Franchises

By | Franchise Business Plans
Restaurant OKR Sample

According to the National Restaurant Association (NRA), there are 1 million+ restaurant locations in the U.S. with 15.6 million employees. Even in these changing times, the industry is still a major employer. See some sample Objectives and Key Results (OKRs) for restaurant franchises below.

OKRs

  1. O: Increase franchisee revenue.
    1. KRs:
      1. Increase sales by 3%.
      2. Have 150 people buy the holiday promo.
      3. Increase average check size by 5% to $6.25.
      4. Increase catering sales by 10%.
    1. Initiatives:
      1. Put crew through upsell training.
      2. Increase coffee prices by 10%.
      3. Execute one holiday social media campaign.
      4. Cold call 100 local businesses to discuss catering.
  1. O: Adapt to changing operating environment.
    1. KRs:
      1. Make online orders 30% of total sales.
      2. 0 days shut down for sanitization due to an infection.
      3. Average cleanliness audit/self-assessment compliance exceeds 85%.
      4. Maintain 12 months of financial runway.
    1. Initiatives:
      1. Install plexiglass around all cash registers.
      2. Set up new employee temperature check processes before every shift.
      3. Perform daily cleanliness self-assessments in FranchiseBlast.
      4. Secure a $100,000 bank loan.
  1. Increase franchisee profitability.
    1. KRs:
      1. Make the seasonal beverage category 20% of total sales (or another strategic, high margin category).
      2. Keeps COGS (cost of goods sold) under 33% of sales.
      3. Keep labor costs under 33% of sales.
      4. Obtain an average online rating above 4 stars on Google.
    1. Initiatives:
      1. Reduce evening staff by two people.
      2. Engage in an online Facebook campaign about seasonal beverages.
      3. Perform weekly theoretical versus actual food cost reviews.
      4. Perform daily reviews of Google review feedback.

Hopefully these sample objectives and key results have helped you out. Do you want to take it a step further? Learn more about strategy and restaurants by checking out the following:



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Franchise Business Plans and Other Artifacts

By | Franchise Business Plans, Franchise Coaching
Franchise Business Plans Artifacts

According to Franchising Thought Leader, Greg Nathan, “It doesn’t matter where business plans are held, as long as they are used and reviewed.” Unfortunately, business plans can sometimes live in isolation on an FBC’s hard drive or with a “set it and forget it” mentality of building it once, and never review it again. Integrating the business plans with other aspects of the franchise is a way to make them a “living document” that stays fresh and meaningful throughout the year. You can do this by connecting business plans to:

  • Scorecards
  • Field Audits
  • Self-Assessments

Keeping these pieces of the puzzle working together can make an integrated system to support your franchisees.

Scorecards

A franchisee scorecard is a limited set of about 15 key metrics defined by the franchisor. A business plan then selects a subset of these metrics for one of the following reasons:

  1. It is targeted for improvement for strategic reasons
  2. The franchisee that you are working with is weaker than others in the network.

Business plans expand on these metrics by adding more granular Key Results (KRs) that test the ideas, or hypothesis, you outline to drive up the main KR that the franchisee is targeting.

Metrics in the scorecard can also be a way to track business plan progress. For example, if you have a goal around check size, you can check those numbers together on the scorecard with the franchisee.

Field Audits

Imagine that you want to track the number of people who buy an energy bar with their coffee as a KR. Maybe you think that this will increase the average check size and you know that part of the strategy will be upselling.

You could track if the franchisee staff have done upselling training courses. But nothing beats observing ‘in the wild’ if the actions that they have been trained on are truly being performed. This is best done by listening to each transaction to see if suggestive selling techniques are used.

You can do this with a field audit performed by the Franchise Business Coach (FBC) or the district manager. That is someone external to the franchisee that comes into the unit and observes, marking things off a digital checklist. This helps evaluate if the franchisee is actually executing the strategy properly. Whether or not the strategy will work or not is still unknown, but you can at least measure the execution.  The final analysis is done during the postmortem.

Sometimes the KRs that you want to drive are related to your audit scores directly, such as increasing online review scores by improving unit cleanliness.

However, at times your audit questionnaire does not include any questions to evaluate if suggestive selling is applied.  If that is the case, and the need is common across all units, you can advocate improving the questionnaire by adding this new standard. This relates to the questionnaire continuous improvement process. It is a good practice to churn out old standards that never fail and add new ones, aligned with strategic initiatives.

Self-Assessments

In some cases, field audits are not a good complement to business plans. This happens in the following scenarios:

  • The problem is not widespread and really is localized to this individual franchisee.
  • You need to pay closer attention to this process, instead of just one or two spot checks during the period.

In these two cases, self-assessments are a better fit.  Sometimes these are designed as audits on the franchisee themselves, and some of them are simply asking front-line workers to record a number (such as the number of energy bars sold during the shift). By doing this, that number and goal remain top of mind and they can course-correct on the next shift.

Conclusion

Overall, the scorecard guides the key KR of the business plan. The business plan expands on that with a different set of KR representing theories to test. And you ensure you properly execute those theories/initiatives by doing audits or self-assessments.  During your postmortem, if you didn’t reach your goal, you’ll have a better idea if you need new theories or if you need to focus on buttoning up your execution.



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