In Tough Question Requires Equally Tough Answers franchising expert witness Steven Belmonte, President and C.E.O., Hospitality Solutions LLC, asks the questions: “Are product upgrades and renovations really needed during hard economic times?”
I believe most of the major franchise companies have, to a degree (and some more than others), backed off from mandating expensive upgrades until the economy is on a strong upswing. Franchisors are realizing that in today’s economic environment, such a mandate is onerous simply because their franchisees simply can’t afford, or perhaps don’t need, certain upgrades. I applaud this mandate-backoff by the franchise giants-it makes good business sense. However, this backoff policy should be rescinded once it is obvious that the recovery is a sure thing.
It’s hard to crystal-ball such a thing, but now that things may be looking better on Wall Street-if not on Main Street-perhaps it is time to at least begin thinking about upgrades and renovations. The earlier they can be done, the sooner owners and operators will be able to reap the benefit of higher levels of customer satisfaction, repeat business and renewed customer loyalty.