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How well do you mitigate risk? Learn from those who have been there

Companies face a new set of risks in today's marketplace due to new technology. The need to manage human resources remains as critical as ever.

Photo courtesy of Google.

April 24, 2017 by Elliot Maras — Editor, Kiosk Marketplace & Vending Times

What do you do when the White House press secretary has it in for you on social media?

If you have the right strategy in place, you turn it to your advantage. That's what Dippin' Dots did when Sean Spicer, a long-time social media critic of the company, became President Trump's press secretary. 

Steve Rothenstein explains how Dippin' Dots benefited from Sean Spicer's comments.

CEO Scott Fisher wrote an open letter to Spicer in January saying, "We've seen your tweets and would like to be friends rather than foes. After all, we believe in connecting the dots."

"It was more valuable than five Super Bowl ads for us," said Steve Rothenstein, senior director of franchising at Dippin' Dots during a panel discussion at the recent Restaurant Franchising and Innovation Summit in Dallas.

Dippin' Dots did not focus on anything controversial in its response to the press secretary's comments.

"We stayed happy," he said, as opposed to making the comments negative or in any way political.

Spicer responded with a tweet saying "How about we do something great for those who have served our nation and 1st responders.'

"Based on (Spicer's) sweet response back to us about doing something good for first responders and military, I'd say we are on the same page about using ice cream to bring smiles to the faces of people across the country!," Dippin' Dots' spokeswoman Billie Stuber told QSRweb. "We're a fun, friendly brand. It's in our DNA, really!  We wanted to respond to Mr. Spicer, and our fans, in a transparent and authentic way.  So we did that, and our position on the matter has been well received."

The incident was one example of the need for companies to be able to address today's market realities discussed during a panel discussion on "how to mitigate risk when scaling your franchise." 

Using technology to mitigate risk and stay ahead of competitors

Tom Gordon, CEO and founder of Slim Chickens, said it's important to respond quickly to social media comments to make them positive. He said the company has software that allows them to respond quickly to social media comments.  The company has an internal software that feeds all social media comments to their marketing team.

"They tackle every social media comment they see," Gordon said.

Gordon said getting left behind when it comes to innovation and technology is another risk that he and other brands can't afford to take. Companies need to be aware of mobile ordering and third-party delivery options, for example.

"We have to be amenable to the consumers of today," Gordon said, or competitors will gain the advantage of these technologies at our expense.

The human factor

While technology changes, the need to manage people remains as critical as ever.

A personality type known as "a dreamer," a person with a strong independent streak, is often challenging for companies looking to grow. Dippin' Dots' Rothenstein said it is important to manage this type of person carefully. Such individuals, he said, may not be right for a franchise organization looking to expand.

Messaging the organization's operating processes properly was also cited as an important issue. Jim Thompson, vice president of operations at Chicken Salad Chick, said "try and make it as simple as you can." The simpler the concept, the easier it is to replicate.

Asked about "hidden challenges," James Vitrano, general counsel and vice president of global franchise development operations at Ruby Tuesday, said it is important to stay focused on financial metrics like margins and liquidity. He said organizations need to have 18-month, 36-month and 5-year plans.

Moderating growth was another topic of discussion. The panelists agreed that a company can grow too fast.

"We cannot forget to take care of the franchise space and not set them up to scale," Vitrano said.

"I don't want to open restaurants just to open restaurants," Gordon said. It is important to have trainers, marketing and food safety resources in place before expanding the organization.

"You really need to look at the human capital and the support systems you have in place," he said.

If you're interested in learning about topics like those covered in Dallas, please register here for the Restaurant Franchising & Innovation Summit in London, July 18-20, or join us April 9-11, 2018, in Louisville for the 2018 Restaurant Franchising & Innovation Summit. Register here.

About Elliot Maras

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Elliot Maras is the editor of Kiosk Marketplace and Vending Times. He brings three decades covering unattended retail and commercial foodservice.