1851

With companies across the country forced to temporarily close their doors due to the coronavirus pandemic, there’s no shortage of business owners wondering how they’re going to make it out on the other side. One of the major benefits of being a part of a franchise system is that franchisees have a built in support system through the franchisor, and right now, franchisors across the globe are looking for ways to save not just themselves — but their local owners — money.&nbsp;Aaron Stahl, president and CEO of <a href="https://costanalysts.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-franchises-can-cut-costs-during-the-coronavirus-pandemic-2712972" target="_blank" rel="nofollow">P3 Cost Analysts</a>, helps brands optimize their bottom lines regardless of the state of the economy. Now that things are indefinitely stalled, he says that not cutting costs can have dire consequences.&nbsp;“Normally, we’re working with our clients to help them save money so they can reinvest in things like employee benefits, growth or distributing profits,” said Stahl. “Now, in a situation like this, some business owners need cost reduction services to keep their lights on.”&nbsp;One simple thing that brands with brick and mortar locations can do to cut costs is reduce their trash services. This is especially helpful for restaurant groups or service brands that are no longer serving customers in-house.&nbsp;“A lot of people don’t know that businesses can adjust their trash services as needed, but they can,” Stahl said. “If that’s something that you’re looking to do, make sure that you don’t extend your current agreement with your hauler. Most haulers use service changes as a chance to get clients to sign new paperwork that extends their services. That’s what locks people into bad contracts.”Another thing franchisors can do to save money is appeal property taxes. According to Stahl, whether it’s done this year or next, finding an expert who has successfully appealed property taxes can help drive value back to a franchisee’s bottom line.&nbsp;Additionally, franchisors can look into what they’re spending on telecommunications. “It’s a small thing, but it has the potential to add up,” said Stahl. “It’s worth going through every phone line and extension to see what’s really being used. You might be paying for something that isn’t in use.”Utility expenses may also need to be reevaluated. “I’d recommend that franchisors engage with a professional auditing firm to take a look at their fixed cost on the utility side,” Stahl continued. “There are markets around the country where business owners can shop around and get bids from different energy suppliers. Now is also a good time to lock in pricing since natural gas and electric prices are low.”In addition to cutting costs, the current pandemic gives franchisors the opportunity to look at the aspects of their businesses that determine their bottom line. According to Justin Waltz, vice president of operations for <a href="https://www.bigblueswimschool.com/franchising/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-franchises-can-cut-costs-during-the-coronavirus-pandemic-2712972" target="_blank" rel="nofollow">Big Blue Swim School</a>, now is the time to rebuild any aspect of the business that isn’t working in order to save money down the line.“During this down time, we have the opportunity to take our strategic plan, tear it up and make every element of our business fight its way back in,” said Waltz. “Now is the time to look for places where we can make cuts and evaluate areas of the business that aren’t functioning. This is also an opportunity to bring back old customers while taking a look at customers who may not be worthy of our business. The same goes for vendor partners—we have the opportunity to be more efficient. Instead of looking for ways to cut costs, look at the business itself and find ways to get better.”Now, franchisors also have the opportunity to provide resources for franchisees that they may not have had time to prioritize before. While ongoing education or new training courses may not lead to cost savings immediately, over time, the benefits will pay off.“We’re developing core competencies that we never thought about before,” said Waltz. “For example, I’m giving public speaking classes for my team. It’s optional, but people are excited about it. Our executive team is also offering classes on email and time management. As leaders, these are all things that we may not have had the time to do in the past. Now, we have nothing but time on our hands to help franchisees develop their skills, which will ultimately make our business more efficient.”

How Franchises Can Cut Costs During the Coronavirus Pandemic

1851 Franchise

A cost reduction expert and a franchisor weigh in on the ways in which brands can improve efficiencies while keeping their bottom line top of mind.

how-franchises-can-cut-costs-during-the-coronavirus-pandemic

Children's Lighthouse

Why Children’s Lighthouse Is Built To Withstand Uncertainty and Why Now Is the Time To Invest

why-childrens-lighthouse-is-built-to-withstand-uncertainty-and-why-now-is-the-time-to-invest

Keke's Breakfast Cafe

How Keke’s is Evolving Its Growth Model to Thrive in Every Market

how-kekes-is-evolving-its-growth-model-to-thrive-in-every-market

Pet Wants

Pet Wants as a Lifestyle Brand: Building a Franchise Around Pet Health & Wellness

pet-wants-as-a-lifestyle-brand-building-a-franchise-around-pet-health-wellness

BooXkeeping

BooXkeeping Franchise - Scale From Solo to Multi-Client Success - Max Emma - 1851 Franchise

Scale Your BooXkeeping Franchise: From Solo Operation to Multi-Client Success

booxkeeping-franchise-scaling-strategies

Filta Environmental Kitchen Solutions

Photo of Filta brand vehicle driving on road

Clean Start in the Heartland: Meet the Couple Bringing Filta to Kansas Kitchens

filta-franchise-kansas-launch

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

McDonald’s Rolls Out Major Value Push To Win Back Customers Amid Inflation

mcdonalds-rolls-out-major-value-push-to-win-back-customers-amid-inflation

Photo of Paris Baguette pastries and beverages 

Paris Baguette Celebrates 250th Café Opening in Frederick, Maryland, Accelerating Expansion and Reviving the Neighborhood Bakery Café

paris-baguette-250th-north-america-cafe

Restaurant Chains Open Their Wallets To Jump-Start Franchise Growth - 1851 Franchise

Restaurant Chains Open Their Wallets To Jump-Start Franchise Growth

restaurant-franchise-incentives-cash-royalty-holidays-fee-reductions

U.S. Budget Deficit Rises as Tariff Revenues Increase — Potential Considerations for Franchising

us-budget-deficit-rises-as-tariff-revenues-increase-potential-considerations-for-franchising

Dickey's Franchisee Backlash - Lawsuits - Disputes - 1851 Franchise

Texas-Based Dickey’s Barbecue Pit Grapples with Franchisee Backlash

dickeys-barbecue-pit-franchisee-lawsuits

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores - Agg - 1851 Franchise

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores

hooters-franchise-model-company-owned-closures

Rising Jobless Claims Could Signal Challenges — and Opportunities — for Franchising

rising-jobless-claims-affect-franchising

Wendy's CEO Kirk Tanner Steps Down - Breaking News - 1851 Franchise

Wendy’s CEO Kirk Tanner Steps Down Amid Challenges, Leaving Franchisees Facing Uncertainty

wendys-ceo-transition-kirk-tanner-franchisee-uncertainty

1851 Keyword - The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

part-time-franchises-picking-the-right-model

Hely and Hiral Patel Bring Their Longtime Dream to Life With The Brass Tap

brass-tap-franchise-pasadena-maryland-hely-hiral-patel

graphic image of a franchisee spotligh aman kaur of voodoo brewing

How This Trio of Friends Is Brewing Up Community With Voodoo Brewing Co. in Prosper, Texas

How Franchises Can Cut Costs During the Coronavirus Pandemic

MORE STORIES LIKE THIS