In this episode, we tackle the hot topic of inflating labor costs in the franchise market. Aspiring business owners will find this episode particularly enlightening as we break down the complexities of labor costs and provide actionable insights for managing them effectively.
Key Insights from the Episode
We emphasize that understanding and managing labor costs is crucial for anyone considering owning a franchise. Here are the main points discussed:
–Minimum Wage Impact: The discussion opens with the impact of California's $20/hour minimum wage and its potential influence on other states and businesses.
–Labor Market Trends: They highlight current trends, including higher pay demands, the desire for remote work, and the aging workforce that still wants to stay active without necessarily owning a business.
–Franchise Models: Not all franchises are affected equally by rising labor costs. Different models may require varying levels of external labor, affecting overall costs.
–Assessment Strategies: The importance of evaluating labor costs, understanding the local economic trends, and knowing the types of labor required (unskilled, semi-skilled, skilled) is underscored.
–Economic Data: Leveraging economic data and insights from other franchisees (via FDD Item 19) can provide a clearer picture of expected labor costs.
–Pricing Flexibility: Some franchises offer flexibility in pricing, allowing franchisees to adjust prices in response to local labor market conditions.
–Technological Solutions: AI and robotics are increasingly being used to reduce labor costs and increase efficiency. Examples include automated attendants and robotic systems like McDonald's "Flippy."
–Franchise Support: Many franchises offer recruitment support, technological tools for scheduling and routing, and even call center services to help manage labor more efficiently.
–Employee Retention: Retaining good employees is vital. Incentivizing and empowering employees through bonus schedules can foster loyalty and reduce turnover.
–Employment Models: Evaluating the pros and cons of using W2 employees versus 1099 contractors or offshoring work can provide cost-effective labor solutions.
This podcast provides tips, emphasizing the importance of keeping good employees through effective retention strategies. She highlights the flexibility some franchises offer regarding employment models, allowing franchisees to choose between W2 employees, 1099 contractors, or even offshoring.
📚 [Resources]
📝 QUIZ: WHAT FRANCHISE CONCEPT IS RIGHT FOR YOU?
https://www.nextlevelfranchisegroup.com/whats-your-perfect-franchise-quiz
💰 FREE FRANCHISE INVESTMENT CALCULATOR
https://www.nextlevelfranchisegroup.com/franchise-investment-calculator
📖 FREE E-BOOK: THE ROADMAP TO BUYING A FRANCHISE - IN 9 EASY STEPS
https://www.nextlevelfranchisegroup.com/files/the-roadmap-to-buying-a-franchise-in-9-easy-steps.pdf
📰 TONS OF ADDITIONAL RESOURCES AND CONTENT
https://www.nextlevelfranchisegroup.com
CONTACT US
👍https://www.NextLevelFranchiseGroup.com/contact
📰https://www.linkedin.com/company/next-level-franchise-group/
In this episode, we tackle the hot topic of inflating labor costs in the franchise market. Aspiring business owners will find this episode particularly enlightening as we break down the complexities of labor costs and provide actionable insights for managing them effectively.
Key Insights from the Episode
We emphasize that understanding and managing labor costs is crucial for anyone considering owning a franchise. Here are the main points discussed:
–Minimum Wage Impact: The discussion opens with the impact of California's $20/hour minimum wage and its potential influence on other states and businesses.
–Labor Market Trends: They highlight current trends, including higher pay demands, the desire for remote work, and the aging workforce that still wants to stay active without necessarily owning a business.
–Franchise Models: Not all franchises are affected equally by rising labor costs. Different models may require varying levels of external labor, affecting overall costs.
–Assessment Strategies: The importance of evaluating labor costs, understanding the local economic trends, and knowing the types of labor required (unskilled, semi-skilled, skilled) is underscored.
–Economic Data: Leveraging economic data and insights from other franchisees (via FDD Item 19) can provide a clearer picture of expected labor costs.
–Pricing Flexibility: Some franchises offer flexibility in pricing, allowing franchisees to adjust prices in response to local labor market conditions.
–Technological Solutions: AI and robotics are increasingly being used to reduce labor costs and increase efficiency. Examples include automated attendants and robotic systems like McDonald's "Flippy."
–Franchise Support: Many franchises offer recruitment support, technological tools for scheduling and routing, and even call center services to help manage labor more efficiently.
–Employee Retention: Retaining good employees is vital. Incentivizing and empowering employees through bonus schedules can foster loyalty and reduce turnover.
–Employment Models: Evaluating the pros and cons of using W2 employees versus 1099 contractors or offshoring work can provide cost-effective labor solutions.
This podcast provides tips, emphasizing the importance of keeping good employees through effective retention strategies. She highlights the flexibility some franchises offer regarding employment models, allowing franchisees to choose between W2 employees, 1099 contractors, or even offshoring.
📚 [Resources]
📝 QUIZ: WHAT FRANCHISE CONCEPT IS RIGHT FOR YOU?
https://www.nextlevelfranchisegroup.com/whats-your-perfect-franchise-quiz
💰 FREE FRANCHISE INVESTMENT CALCULATOR
https://www.nextlevelfranchisegroup.com/franchise-investment-calculator
📖 FREE E-BOOK: THE ROADMAP TO BUYING A FRANCHISE - IN 9 EASY STEPS
https://www.nextlevelfranchisegroup.com/files/the-roadmap-to-buying-a-franchise-in-9-easy-steps.pdf
📰 TONS OF ADDITIONAL RESOURCES AND CONTENT
https://www.nextlevelfranchisegroup.com
CONTACT US
👍https://www.NextLevelFranchiseGroup.com/contact
📰https://www.linkedin.com/company/next-level-franchise-group/