The Employee to Franchisee Pipeline: Why Career Opportunities Could Help Restaurant Franchises Overcome Labor Challenges

In the world of franchising, starting as an employee at the store level and working your way up to become a franchise owner is a common and inspiring story, especially in the restaurant industry. Now, with labor challenges continuing to impact the industry, franchisors are looking for ways to better tell that story to both prospective employees and prospective franchise owners. 

Domino's CEO Russell Weiner, for example, recently brought up a similar point during the company’s Q3 earnings call, Business Insider reports.

"I would like to spend a few seconds just talking about what it means when we refranchise stores in this particular instance because, really, it's what makes Domino's so special," Weiner said. “And maybe there are people who are listening to the call now who are interested in drivers' positions. And let me tell you why you should be interested: Because our drivers become franchisees.”

Weiner pointed out that a whopping 95% of Domino’s franchisees started out as employees making pizza or driving. “Six franchisees purchased the first store they ever worked in,” he said. “And so that's part of the American dream, which is Domino's.”

Domino’s sold 114 company-owned stores to 11 franchisees in Arizona and Utah this past quarter, according to a news release, two of whom were former corporate employees, the company said. 

Today, with talk of The Great Resignation and more and more people looking to leave the uncertainty of their 9-to-5 life, interest in franchising is growing. If franchisors like Domino’s can show both store-level and corporate workers that there are entrepreneurial opportunities within the four walls of the company, they may be able to bolster both their employee retention and their franchise growth.