Now you’ve secured your subway franchise financing and opened your business, what next?
One of the best things about running a franchise is that all your marketing is taken care of for you. Heck. You don’t even have to worry about décor or menu items. However, management, (good or bad), and retaining employees is an essential part of running any franchise restaurant.
“Management is doing things right; leadership is doing the right things.” Peter Drucker
Unfortunately, the fast food restaurant industry has a distinct reputation for high employee turnover. People often joke about their days slinging pizzas, burgers and ice cream as their first job. Overall, most people don’t believe their run in fast food will last very long. Some are interested in management from the start. However, most don’t enter the industry with that goal.
In many ways, this is unfortunate. Advancing in a management career in any industry is a worthwhile endeavor for anyone to pursue. In addition, hanging onto an employee is much more beneficial and cost effective for business owners, than to continue to hire and re-train new people every few months.
According to TheBalance.Com Contributor F. John Reh, the cost of high employee turnover is substantial. Though high fast food restaurant turnover won’t cost business owners as much as high Fortune 500 executive turnover, every time you have to hire and train a new employee, you must also factor in:
• The cost of training materials,
• The time you spend checking credentials and references,
• The time you spend interviewing and testing prospective workers,
• The cost of drug screens, and
• The toll on your business when morale is depleted because current staff has to work longer and harder until you find someone new
The best way to avoid high employee turnover is to manage your staff effectively if you are managing your own franchise. If you’ve hired a manager, you should only work with one who strives to retain employees.
Good Managers are Likeable, Approachable and Compassionate
Managers like this inspire better customer service, boosted employee morale and greater productivity.
Traditionally, people with:
• A genuine desire to help others,
• A strong work ethic, and
• The genuine desire to find solutions to problems quickly and amicably
… make the best managers.
Most fast food employees and ex employees will tell you that they’ve often felt unmotivated to work and underappreciated by the franchise they worked for. However, if a manager can gain an employee’s trust, he can retain that employee longer. Managers can only gain that trust if they:
• Treat employees with respect,
• Have patience,
• Offer guidance,
• Show fairness and unbiased behavior, and
• Foster open communication
Only behavior like this can put employees at ease. Employees feel they can talk to you without getting shot down. They feel inspired to work instead of intimidated.
Even though for some, fast food will inevitably be just a stop along the way no matter what; think about retaining employees for all 4 years of college? Why not inspire someone to go to management school? Why not keep them longer and make working for you an experience they never forget?
Contact us at IRH Capital today for financing and open your Subway Franchise the right way!