A Conversation With: Paul Gucciardo and Angelina Perry of SoBol

The coronavirus continues to have dire effects on businesses across the country, and the franchise industry is no exception. Franchisors across segments are strategizing new ways to support their franchisees, keep customers satisfied, help local communities and come out stronger on the other side of this crisis.

To that end, 1851 Franchise publisher Nick Powills and Charles Internicola, founder and partner of the Internicola Law* Firm, are covering the coronavirus and its impact on businesses through our A Conversation With webinar series.

In today’s afternoon webinar, Powills and Internicola spoke with SoBol President Paul Gucciardo and franchisee Angelina Perry about how leaders can learn from the COVID-19 crisis. 

Here are some of the key insights from their discussion.

Restaurants Are Adapting

With rules and regulations changing everyday, it can be difficult to ensure that staff members are fully equipped to adapt quickly. Franchisors need to make sure that all restaurant owners are constantly communicating and supporting management and employees.

Many restaurant brands are finding themselves well positioned for this situation. SoBol, for example was already primarily delivery and take-out driven before the crisis, and it has already minimized the amount of full-size restaurants throughout its network, which positions franchisees for success with lower operations costs, easy menus and streamlined labor procedures. 

As we emerge from this health crisis, the health food segment may be at the top of the list when prospective franchisees look for opportunities and customers look for options. 

Online ordering platforms are growing more than ever. It is essential to have those digital offerings working smoothly to ensure that customers keep coming back. 

Cross-training is also key now. Every team member should have a complete understanding of what the brand does, regardless of what department they are a part of. On the corporate side, teamwork needs to be the guiding principle, whether it be in operations, marketing or anywhere else.

The Value of the Franchise System

For franchisees, right now is the time to lean on the franchise system — not just the franchisor but fellow franchisees as well. Whether it is questions about regulations, SBA loans, rent deferment or staffing, there are so many ways that franchisees can help each other out through the sharing of best practices.

Ultimately, the ability to push through this crisis and stay strong for consumers will be a huge validation factor when the country reopens. 

Constant communication with franchisees is more important than ever, especially as many owners become more involved in the day-to-day operations of stores due to diminished staff. 

Entrepreneurs should choose a franchise that they can stand behind. Whether it be the product offering or the core values, business owners should only invest in a brand that they are proud to be a part of. Coming out of this crisis, candidates should research what franchisors did to stand by franchisees during this difficult time. 

Emerging Brands

Although there may be pressure to fit a certain norm, emerging franchisors will be better positioned in the long run if they stay true to their business model. For example, SoBol stuck to their decision to maintain smaller footprints and prioritize simple models, which has become a major advantage. 

The primary mission right now is simply to make it to the other side. Development might need to take a back seat to prioritize operational efficiencies and store-level success. 

While “pivot” has become a popular term during this crisis, sometimes brands need to dig deeper into what they were already doing right and drive that home. For example, SoBol concentrates on one great bowl instead of expanding its menu. 

From executives to store-level employees, there will be people who shine right now and reveal themselves to be truly valuable assets for the brand. How you behave in the time of crisis is what people remember, both good and bad. 

There are some emerging franchisors that use their size as an excuse, but it doesn’t matter how many units a brand has, it still needs to support franchisees in order to survive. Size is irrelevant, it is all about teams coming together to find ways to make it through this unprecedented event.