Hard Rock International’s Anibal Fernandez on Franchise Operations

In 1971, Isaac Tigrett and Peter Morton opened the first Hard Rock Cafe in Mayfair, London. The American entrepreneurs’ contribution to the English cultural landscape offered a small return on the previous decade’s British Invasion, to which the brand’s rock-’n’-roll theme was explicitly indebted. Eleven years later, the chain embarked on an international expansion that would soon come to define the brand. Locations in Toronto, Los Angeles, New Delhi, Dublin, Moscow, Tokyo, Milan and dozens of other cities across the globe have become hallmarks of international tourism, each offering shirts emblazoned with the chain’s distinctive logo and the restaurant’s city.

Today, Hard Rock Cafe is just one of many franchise properties operated by Hard Rock International, whose hotels, casinos, venues and restaurants operate in 74 countries. Every Hard Rock property also serves as an exhibitor of Hard Rock’s colossal collection of music memorabilia.

Foodservice, merchandise, gambling, hospitality and memorabilia each have their own operational models, so it’s no small feat that Hard Rock International has developed a comprehensive operations system to ensure consistency among all of its properties around the world.

We talked to Anibal Fernandez, VP of Operations and Development for Hard Rock International, to learn how he approaches franchise operations. Here’s what he had to say.

What does Hard Rock International’s operations team look like?

Fernandez: Our operations team includes a corporate support team and a franchise operations team, which consists of one vice president, three area vice presidents, eight directors and 11 managers. Managers report to directors of operations, directors report to area vice presidents, and area vice presidents report directly to me. This includes the director of retail and director of sales and marketing.

What are some of the key operational concerns for any franchise brand?

Fernandez: The operational concern for any franchise brand is to maintain cohesive branding and ensure the branding aligns across all properties.

What are some operational concerns that are unique to Hard Rock International?

Fernandez: Mixing retail, memorabilia and a restaurant under one roof is not something that is common in the industry; it’s what makes Hard Rock so unique. Along with our motto, “Love all, serve all,” we like to say music is the heart of Hard Rock and philanthropy is its soul. These are the key components we use in our day-to-day routines and it grounds us in any business decisions. We attribute Hard Rock’s success to our ability to stay true to these brand pillars and align with partners who share our approach.

As Vice President of Franchise Operations and Development, I work to maintain the operations and the high standards we value in our franchise cafe locations, which span 74 countries. It’s important to look for investors who share this same vision and franchising professionals must be extremely passionate about the brand they represent. This helps to keep all properties streamlined and running efficiently.

Are you focused more on individual unit operations or on the operations of the system at large?

Fernandez: We look at both. Operations differ depending on market size, franchisees expertise and organizational structure. Several factors need to be taken into consideration when planning any franchise expansion. When exploring growth opportunities overseas, it is crucial to fully understand the market maturity in the country you are targeting. Additionally, having a strong brand awareness and goodwill in that specific area allows for greater positioning in new markets. It is also important to be flexible when entering a new market so that you can provide a brand that is fresh, vibrant and relevant.

If a franchise brand is struggling, where should it look first to improve its operations?

Fernandez: If a brand is struggling, I think focusing on training and re-training staff is important. You must train your team appropriately to manage and protect the brand in their areas of operation. For Hard Rock, we always focus on training our staff because proper training ensures a growing portfolio of world-class cafes in markets throughout the globe.

What drew you to franchise operations?

Fernandez: I've always had an interest in exploring how businesses differ throughout the world, and I wanted to gain an understanding of the operational and developmental skills required to run a franchise department. Prior to my current position, I was the general manager of Hard Rock Cafe Madrid/Barcelona, and I was fortunate enough to serve as Director of Operations in Hard Rock’s Middle East, Europe and Africa regions. I was drawn to operations because it was a different way for me to showcase my skills and expertise to support and grow Hard Rock International’s franchise business.