[Opinion Piece] Incentives Unlock Great Potential for Franchisees
Taste Holdings has recognised the significant potential of incentives to achieve a variety of positive outcomes within its franchisees’ businesses, both in terms of increasing brand visibility and sales, and strengthening, retaining and motivating the employee body. Lindy Taoushiani, Divisional Marketing Executive at Taste Holdings, says incentives can also reward customers for their loyalty to the brand.
What is an incentive?
- An incentive is something that motivates or encourages one to take action
- Incentives are positive vehicles that can raise the tone of the business in different ways
- They are just one tool in the arsenal of the franchise industry and must be kept in perspective
Positive outcomes achieved with incentives include:
- Increasing brand visibility and sales
- Strengthening, retaining and motivating the employee body
- Rewarding customers for their loyalty to the brand
Key objectives for franchise owners:
- Retaining trained staff and
- encouraging their loyalty
The cost and inconvenience of continuously replacing staff members pushes up direct costs because of the recruitment process, and it can occupy valuable time management and lower productivity in the store while the new employee is shown the ropes, as other employees as well as supervisors, need to invest time into this process to ensure everyone is up to speed.
It can take weeks before a new recruit is able to perform at the level of an experienced employee.
Taste Holdings’ have put a lot of thought and energy into creating the kind of environment in their franchises that encourages employees to remain with their stores for the long haul. Human nature is such that the promise of a reward tends to motivate us to perform better. Staff incentives definitely work for Taste Holdings’ brands.
Employees at any level will put in extra effort if they believe it will:
- advance their careers,
- attract recognition,
- help them retain their jobs,
- or allow them to obtain some kind of monetary reward.
These types of incentives have been recognised as a main source of satisfying people’s needs and they include:
- performance bonuses
- or the opportunity to win prizes,
Non-monetary incentives include:
- personal praise,
- recognition for good performance,
- job enrichment by being given an important job designation
- or increased responsibility and
- opportunities for promotion in the franchise environment.
There is no substitute for fostering a mutually respectful employer/employee relationship
Franchise owners need to respect their employees as individuals who have a life outside of work and ensure that they feel that what they’re doing today is something they can handle years into the future with our support.
Incentives are also useful instruments to attract and retain customer loyalty
Taste Holdings’ brand regularly:
- run promotions offering value for money meals beyond their basic value for money offering.
- run competitions from time to time which offer our customers the opportunity to win prizes of various value.
- customers can win generators and
- cashiers in these stores are also eligible to win a generator for themselves by up-selling the most meals offered under this time-sensitive promotion.
Incentives like competitions:
- Help to raise the visibility of the franchise brand
- Establish positive connections in the minds of our customers
- Access to customer contact details allows them to create a valuable database to keep communication channels open with these customers.