organisational configuration within multi-unit franchising
TRANSCRIPT
Organisational Configuration within Multi-Unit Franchising
Organisational Structure, Knowledge Sharing, Standardisation and Centralisation/Decentralisation as
Characterization of the Choice of Organisational Configuration within Multi-Unit Franchising
Master Thesis
Dual Masters Award in Advanced International Business Management
Newcastle University Business School
and
University of Groningen Faculty of Economics and Business
Maren Sabrina Overmann
Student Number: S2438569 / B2037957
Supervisors: Henk Ritsema (Groningen)
Dr. Markus Blut (Newcastle)
Date of Submission: 10 December 2013
Organisational Configuration within Multi-Unit Franchising Abstract
ii
ABSTRACT
Today, multi-unit franchising is no longer an exception but very common. It appears to even be the
dominant of franchising in some industries (Grünhagen and Mittelstaedt, 2005). However, despite its
prevalence, in most franchising research scholars do not address the possibility of multi-unit
franchising and assume single-unit franchising as the basis (Dant et al., 2011). To respond to this
recent statement this master thesis aims to enhance the knowledge about multi-unit franchising and its
management in practice from a franchisee perspective. It represents a first step to reveal the specific
management issues inherent in the multi-unit franchise business.
To achieve this aim the organisational configuration of the multi-unit franchise business is analyzed by
considering the four factors organisational structure, knowledge sharing across units, level of
standardisation and level of centralisation/decentralisation. Ten multi-unit franchisees from five
different franchise systems within the system catering industry owning between three and 17 units on
the German market were interviewed.
Looking at the organisational structure of a multi-unit franchise business, it was disclosed that most
multi-unit franchisees make use of unit managers and from a certain size of the business on also
employ operations managers. The motivations for a chosen organisational structure are diverse,
reaching from a rule set by the franchisor, advice from other multi-unit franchisees to the need for a
contact person within the unit. Moreover, it was revealed that all multi-unit franchisees support
knowledge sharing between their units to make use of the increased knowledge of their employees and
the reduced need for involvement by the multi-unit franchisee and the operations manager.
Furthermore, the level of franchisor-independent standardisation is low and does not automatically
increase with a growing number of owned units. Regarding the research conducted in the area of
centralisation/decentralisation, it was found that finance is centrally handled by all multi-unit
franchisees while marketing is mainly centralised. Human resources are handled by a mixture of
centralisation and decentralisation.
To recommend direction for future research based on this study, several propositions are formulated
that should be picked up to further enhance the knowledge in this specific research area.
Organisational Configuration within Multi-Unit Franchising Table of Contents
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TABLE OF CONTENTS
Abstract .................................................................................................................................................. ii
Table of Contents.................................................................................................................................. iii
List of Figures ........................................................................................................................................ v
List of Tables ......................................................................................................................................... vi
List of Abbreviations ........................................................................................................................... vii
1. Introduction ................................................................................................................................... 1
1.1. Definition of Business Format Franchising ............................................................................. 1
1.2. Introduction to Multi-Unit Franchising ................................................................................... 1
1.3. Empirical Evidence of Multi-Unit Franchising ....................................................................... 2
1.4. Research Deficit ...................................................................................................................... 2
2. Literature Review .......................................................................................................................... 6
2.1. Multi-Unit Franchising ............................................................................................................ 6
2.2. Management within Multi-Unit Businesses ............................................................................ 9
2.3. Organisational Configuration ................................................................................................ 11
2.3.1. Organisational Structure ................................................................................................ 11
2.3.2. Knowledge Sharing across Units ................................................................................... 15
2.3.3. Standardisation .............................................................................................................. 16
2.3.4. Centralisation and Decentralisation ............................................................................... 16
2.4. Summary and Introduction of the Sub-Questions ................................................................. 18
3. Methodology ................................................................................................................................. 19
3.1. Measurement ......................................................................................................................... 19
3.2. Empirical Setting ................................................................................................................... 20
3.3. Data Collection ...................................................................................................................... 20
3.4. Data Analysis ........................................................................................................................ 22
4. Results........................................................................................................................................... 24
4.1. Organisational Structure ........................................................................................................ 24
4.2. Knowledge Sharing across Units........................................................................................... 33
4.3. Standardisation ...................................................................................................................... 34
4.4. Centralisation and Decentralisation ....................................................................................... 36
5. Discussion ..................................................................................................................................... 40
5.1. Organisational Structure ........................................................................................................ 40
5.2. Knowledge Sharing Across Units ......................................................................................... 44
Organisational Configuration within Multi-Unit Franchising Table of Contents
iv
5.3. Standardisation ...................................................................................................................... 45
5.4. Centralisation and Decentralisation ....................................................................................... 45
6. Conclusion .................................................................................................................................... 47
6.1. Summary of the Research ...................................................................................................... 47
6.2. Academic and Managerial Implications ................................................................................ 48
6.3. Limitations............................................................................................................................. 49
6.4. Further Research .................................................................................................................... 49
List of References ................................................................................................................................ 51
Appendix 1: Interview Schedule ........................................................................................................ 55
Appendix 2: Information Sheet .......................................................................................................... 58
Appendix 3: Consent Form ................................................................................................................ 60
Appendix 4: Sample Interview Transcript ........................................................................................ 61
Appendix 5: Interview Information ................................................................................................... 73
Organisational Configuration within Multi-Unit Franchising List of Figures
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LIST OF FIGURES
Figure 1: The Four Aspects of the Organisational Configuration ........................................................ 11
Figure 2: Possible Different Parts of the Organisational Structure ...................................................... 12
Figure 3: Motives and Reasons for a Chosen Organisational Structure ............................................... 14
Figure 4: Knowledge Sharing across Units .......................................................................................... 15
Figure 5: Increasing Level of Standardisation ..................................................................................... 16
Figure 6: Decision about Centralisation or Decentralisation ............................................................... 17
Figure 7: Organisational Structure of D3 ............................................................................................. 24
Figure 8: Organisational Structure of D8 ............................................................................................. 24
Figure 9: Organisational Structure of D15 ........................................................................................... 25
Figure 10: Organisational Structure of V3 ........................................................................................... 25
Figure 11: Organisational Structure of J3 ............................................................................................ 25
Figure 12: Organisational Structure of K4 ........................................................................................... 26
Figure 13: Organisational Structure of K17 ......................................................................................... 26
Figure 14: Organisational Structure of S3 ............................................................................................ 27
Figure 15: Organisational Structure of S5 ............................................................................................ 27
Figure 16: Organisational Structure of S11 .......................................................................................... 27
Figure 17: Organisational Structure and its Components ..................................................................... 40
Organisational Configuration within Multi-Unit Franchising List of Tables
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LIST OF TABLES
Table 1: Job Aspects of the Multi-Unit Manager ................................................................................. 10
Table 2: Management Key Success Factors of the Multi-Unit Manager ............................................. 10
Table 3: Annual Net Turnover and Number of Units of the Participating Franchise Systems ............ 20
Table 4: Franchise System, Number of Units and Status of the Participating Franchisees .................. 22
Table 5: Overview of the Organisational Structure of the Multi-Unit Franchise Business .................. 28
Table 6: Overview of the Motives and Reasons for the Chosen Organisational Structure .................. 30
Table 7: Overview of the Ways of Sharing Knowledge ....................................................................... 34
Table 8: Areas of Standardisation ........................................................................................................ 35
Table 9: Centralisation and Decentralisation of Tasks and Responsibilities ........................................ 36
Organisational Configuration within Multi-Unit Franchising List of Abbreviations
vii
LIST OF ABBREVIATIONS
HR Human resources
KFC Kentucky Fried Chicken
USA United States of America
Organisational Configuration within Multi-Unit Franchising Introduction
1
1. INTRODUCTION
The aim of this chapter is to present the background and purpose of this study. It starts by defining
business format franchising and multi-unit franchising as this is the context in which this master thesis
takes place. Chapter 1.3 illustrates the practical relevance of the topic before the research deficit is
addressed in Chapter 1.4.
1.1. Definition of Business Format Franchising
Business format franchising1 has been one of the fastest growing business methods in the last 50 years.
Franchise systems like McDonald’s, Dunkin’ Donuts and Holiday Inn are prominent examples while it
can be found in a lot of sectors today: From fast food, pet care, photography, cleaning, fitness to
recruiting (Ellis and Pekar, 1979; DiPietro et al., 2007; British Franchise Association, 2013; Franchise
Direct, 2013).
In general, business format franchising can be defined as a relationship secured by a contract in which
the franchisor sells to the franchisee the right to build up an independent business by using the
franchisors’ trade name, product specifications and operating systems. Additionally, the franchisor has
to provide ongoing support and training to the franchisee in the phase of implementation and during
the running operation. For these rendered services the franchisee has to follow the regulations and
standards set by the franchisor and has to pay initial and ongoing fees (Kaufmann and Eroglu, 1999;
Combs and Ketchen, 2003; Webber, 2013).
1.2. Introduction to Multi-Unit Franchising
Today most franchisors offer their franchisees the possibility to acquire more than one franchise unit.
If a franchisee owns two or more units of a distinctive franchise chain he2 conducts multi-unit
franchising (Gómez et al., 2010).
Multi-unit franchising supports the franchisor in reducing the risk of moral hazard and adverse
selection. Moral hazard refers to opportunistic behaviour of the franchisee after the contract has been
signed and adverse selection considers the possibility to make a wrong choice with a new franchisee.
When an additional unit is granted to an existing franchisee which the franchisor knows and
appreciates due to his performance so far, this risk can be reduced (Kalnins and Lafontaine, 2004;
Gómez et al., 2010).
From a franchisee perspective, Grünhagen and Mittelstaedt (2002) argue that their engagement in
multi-unit franchising can be related to the exploitation of economies of scale through spreading costs
1 When ‘franchising’ is used in this master thesis, it refers to ‘business format franchising’. Before ‘business format franchising’ came up ‘traditional franchising’ was mainly used which describes a system in which a franchisee works as an authorized dealer who pays a fee to the franchisor on the basis of the gross margins. In comparison to this traditional form of franchising the today prevalent ‘business format franchising’ uses a market-oriented view and the franchisee no longer only works as a distributor of goods but buys a whole business idea from the franchisor. For more information please compare Grünhagen and Mittelstaedt (2000) and Dant et al. (2011). 2 Within this master thesis the franchisee will be addressed as ‘he’. However, the term will equally refer to ‘he’ and ‘she’, meaning male and female franchisees.
Organisational Configuration within Multi-Unit Franchising Introduction
2
in marketing, management and procurement across units. The second reason is the opportunity of the
multi- unit franchisee to influence the decision-making of the franchisor more than a single-unit
franchisee.
1.3. Empirical Evidence of Multi-Unit Franchising
Today, multi-unit franchising is no exception but prevalent in most franchise systems (Kaufmann and
Dant, 1996; Grünhagen and Mittelstaedt, 2005).
Already in 1996, Kaufmann postulated that single-unit franchising is becoming an exemption in
comparison to multi-unit franchising. In the same year, Kaufmann and Dant (1996) found that 88% of
the franchise systems participating in their United States of America (USA) study were making use of
multi-unit franchising.
In 2012, FRANdata conducted research in the food and restaurant industry in the USA and found that
36% of the franchisees own multiple units. Additionally, they state that multi-unit franchising became
increasingly popular since the beginning of the recession due to the reluctance of banks to lend money.
This meant that is was difficult to acquire new franchisees and the emphasis for growth was on the
existing franchisees (Loten, 2012).
In the United Kingdom, more than 20% of the franchisees were multi-unit owners in 2010. This
development is mainly due to the hotel and catering sector where this form of franchising is used
above average (bfa and NatWest, 2011).
No research could be found dealing with the question of how prevalent multi-unit franchising is in
Germany. However, according to Jan Schmelzle3 multi-unit franchising is a well-used concept in
Germany and applied by franchise systems like McDonald’s, Subway, Vapiano, Kentucky Fried
Chicken (KFC), Back Factory or clever fit.
1.4. Research Deficit
The introduction above shows that multi-unit franchising is very common. It appears to even be the
dominant of franchising in some industries (Grünhagen and Mittelstaedt, 2005).
In most franchising research, researchers do not address the possibility of multi-unit franchising and
assume single-unit franchising as the basis (Dant et al., 2011). This is not reflecting reality as a part of
the growth in franchise systems is not based on single-unit franchisees but on multi-unit franchisees.
Nevertheless, even though this possibility of multiple ownership has not been addressed in the
research, some research designed for single-unit franchising could aswell be valid for multi-unit
franchising.
3 Jan Schmelzle is employee at the Deutscher Franchise Verband e.V. (German Franchise Association) in the area of legal coordination and organisation. He was contacted several times during the data gathering phase of this master thesis and supported the researcher with additional information about the German franchise market.
Organisational Configuration within Multi-Unit Franchising Introduction
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However, considering the management challenges multi-unit managers face, those are partly different
from the challenges for single-unit franchisees. Multi-unit franchisees need to deal with different
single businesses at a time in different locations. This means a multi-unit franchisee needs to supervise
units which can differ in their size, local circumstances as well as amount and characteristics of the
employees. Additionally, on a general level he needs to coordinate the activities of these
heterogeneous units, supervise a higher amount of employees and develop an organisational structure
that accounts for all units and that he can supervise effectively. When developing an organisational
structure he needs to consider the question which tasks are centralised or decentralised and if there is a
need for franchisor-independent standardisation.
As a result, the research findings and recommendations drawn from single-unit franchising are not
entirely applicable to multi-unit franchisees and need to be researched under the prerequisite of multi-
unit ownership. Additionally, the specific management issues inherent in multi-unit franchising need
to be researched and evaluated.
Another research reason can be drawn from the application of the agency perspective. A main reason
to use franchising from a franchisor perspective arises from the application of the principal-agent
theory. This theory describes the relationship in which a principal delegates work to an agent. As the
principal and the agent may have different goals and risk preferences, the agent may take actions that
are not in the interest of the principal. To prevent this, the principal needs to design a contract that is
outcome based and needs to monitor the agent. In a company context, the principal is a company
owner and the agent is a manager. The owner bears the company risk while the manager has only
limited responsibility as he is a salaried worker (Jensen and Meckling, 1976; Eisenhardt, 1989a). To
minimize the arising risk and costs, some companies decide to franchise their business. This concept
creates independent units in which the managers are owners of a business themselves. Consequently,
the compensation of the franchisee is determined by the performance of his franchise unit and he has a
higher incentive to perform successfully than company managers (Dada et al., 2010).
Considering the principal-agent theory and applying it to multi-unit franchising, it could be argued that
multi-unit franchising raises the principal-agent problem again that was minimized by single-unit
franchising. The reasoning is that unit managers appointed by a multi-unit franchisee are expected to
have – like company managers – a lower incentive for a high unit performance. Similarly, if multi-unit
franchisees still manage the several units on their own, the degree of supervision per unit decreases
and this could negatively influence the performance of the employees. Due to this dilemma owning
multiple units could be detrimental to the performance as the multi-unit franchisees cannot be involved
in the day-to-day business as single-unit franchisees (Kalnins and Lafontaine, 2004). However, despite
this theory multi-unit franchising is applied today, so the multi-unit franchisees seem to have found a
way to overcome or at least minimize the above presented dilemma. Therefore, it needs to be
researched how multi-unit franchisees manage their multi-unit franchise business successfully as these
franchisees most-likely found a way to successfully deal with the principal-agent problem. This
Organisational Configuration within Multi-Unit Franchising Introduction
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supports franchisors in advising their multi-unit franchisees and (aspiring) multi-unit franchisees in
possessing knowledge about a successful organisational configuration from a multi-unit franchisee
that could function as a model for their own business.
To sum up, even though multi-unit franchising is often applied today, there is hardly any knowledge
available how the multi-unit franchisees manage their several units. Therefore, this master thesis aims
to enhance the knowledge about multi-unit franchising and its management in practice from a
franchisee perspective. This results in the overall research question:
How is the organisational configuration of the multi-unit franchise business created by the
multi-unit franchisee?
It represents a first step to reveal the specific management challenges inherent in the multi-unit
franchise business and how the principal-agent problem is handled. Thereby an emphasis will be laid
on the organisational configuration of the business. However, even though it constitutes a first
contribution to the knowledge about multi-unit management, it can only represent a starting point in
the area of multi-unit franchise management. To pave the way for future research, propositions will be
introduced.
The organisational configuration examined is characterized by the four aspects organisational
structure, knowledge sharing across units, franchisor-independent standardisation and the level of
centralisation or decentralisation. These topics are chosen due to different considerations. The basis for
the considerations was the research conducted on management within multi-unit businesses presented
in Chapter 2.2. Following this, single-unit and multi-unit franchise businesses were compared about
how they differ in their work and challenges. In this way those four aspects arising as the major fields
of decision-making for a multi-unit franchisee compared to a single-unit franchisee were identified.
These aspects were addressed in the interviews with the multi-unit franchisees and were confirmed as
decisive by the multi-unit franchisees.
Moreover, the motives and reasons are addressed for three out of the four topics. It is important to
understand the motives and reasons that lead to the adoption of a certain organisational configuration
to simplify the choice of an organisational configuration for a future multi-unit franchisee and to give
the franchisor the opportunity to adequately advice their multi-unit franchisees.
One aspect of the organisational configuration is the organisational structure the multi-unit franchisee
applies in his multi-unit business. Different forms of organisational structure are possible, e.g. the
multi-unit franchisee still manages all units himself, employs unit managers and/or operations
managers. Additionally, knowledge will be raised about the reasons and motives for this kind of
organisational structure. This results in the first sub-question addressed in this master thesis:
How is the organisational structure of the multi-unit franchise business and what are the
motives and reasons for this chosen organisational structure?
Organisational Configuration within Multi-Unit Franchising Introduction
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A multi-unit business allows knowledge-sharing across units. To explore this knowledge sharing the
second sub-question asks:
Is knowledge sharing between the different franchise units existent and if yes, how does it take
place, in which areas of the business, and what are the motives and reasons for it?
Additionally, owning multiple units gives the franchisee the opportunity and perhaps also creates the
necessity to standardise different tasks independent from the standardisation imposed by the
franchisor. To raise information about this aspect the third sub-question is:
Which tasks are standardised and does the level of standardisation increase with the growth of
the multi-unit business?
The management tasks and responsibilities faced with when owning multiple businesses makes it
necessary to consider their possible centralisation or decentralisation. To gain a deeper understanding
of the topic the last two sub-questions ask:
Which tasks and responsibilities are centralised and what are the motives and reasons for this
centralisation?
Which tasks and responsibilities are decentralised and what are the motives and reasons for
this decentralisation?
Organisational Configuration within Multi-Unit Franchising Literature Review
6
2. LITERATURE REVIEW
This literature review starts by giving an overview about the conducted research in the area of multi-
unit franchising. It aims to present different areas in which research has been carried out. Thereby it
becomes apparent that the topic covered by this master thesis has so far not been in the focus of
research.
Following this, literature on multi-unit management is presented. As there is only limited literature
available on multi-unit management in general and no literature about multi-unit management in
franchising4, the section is followed by presenting literature from four different areas identified as the
major areas of decision-making in multi-unit franchising and confirmed as crucial by the multi-unit
franchisees participating in the research. At the end, a summary chapter introduces the sub-questions.
2.1. Multi-Unit Franchising
In general, a distinction can be made between sequential multi-unit franchising and master franchising.
In the case of sequential multi-unit franchising, the franchisee opens additional units over time which
is normally administered by a new franchise contract (Kaufmann and Dant, 1996; Grünhagen and
Mittelstaedt, 2005). Master franchising can be divided again into area development franchising and
sub-franchising. Area development franchisees are committed to find a certain number of franchisees
in a region and time agreed on with the franchisor. In the case of sub-franchising, franchisees are given
the right by the franchisor to grant units to other franchisees in a predetermined region (Grünhagen
and Mittelstaedt, 2005; Gómez et al., 2010). This master thesis focuses on sequential multi-unit
franchising as in this form the franchisee buys and operates a new franchise unit and is mainly
responsible for it.
Considering the research conducted in the area of multi-unit franchising, it can be said that it started in
the 1980s. But even though some research has been carried out, the topic is still underresearched
(Hussain and Windsperger, 2010). Research has been done in the following areas5:
(a) Motivation and Reasons to Use Multi-Unit Franchising from a Franchisor Perspective
Kaufmann and Dant (1996) examine the motivation for a franchisor to use multi-unit franchising.
They point out that a higher number of multi-unit franchisees leads to faster system growth.
Additionally, they reveal that a higher number of franchise units per franchisee are negatively related
to the commitment the franchisor has towards maintaining the franchise relationship.
Garg et al. (2005) reveal that franchisors that are aiming for a high growth rate prefer multi-unit
franchising over single-unit franchising. More detailed, sequential franchising is less common than
area development franchising. When aiming for uniformity, franchisors prefer area development
4 According to the author’s best knowledge. 5 The multi-unit franchising literature outlined here represents - to the author’s best knowledge - the most valuable literature conducted in this field and does not claim to present the whole literature undertaken in this research area.
Organisational Configuration within Multi-Unit Franchising Literature Review
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franchising. Conversely, when focussing on local responsiveness, sequential multi-unit franchising is
more popular.
In 2007, Weaven and Frazer (2007a) conduct research to find reasons for the adoption of multi-unit
franchising. The study discloses that there is no ownership redirection strategy, meaning that
franchisors do not intend to buy back profitable units in future. Their proposition concerning agency
cost minimization is supported, showing that multi-unit ownership causes cost savings related to the
management of the franchisor-franchisee relationship. Additionally, they find a positive relationship
between multi-unit franchising and system uniformity, the value of the franchising brand and a close
geographic proximity between existing and additionally granted units. The propositions regarding a
positive relationship between multi-unit franchising and system-wide adaptation of changes initiated
by the franchisor, local market innovation and future franchisee opportunism as perceived by the
franchisor are not supported. As a last point the proposition that multi-unit ownership is used as a
reward strategy by the franchisor to influence the franchisee performance is mainly supported.
In the same year, Weaven and Frazer (2007b) also examine characteristics of a franchise system and
their influence on the willingness of the franchisor to use multi-unit franchising. The researchers
exhibit a positive relationship between multi-unit franchising and the age of the franchise system as
well as the managerial corporatisation. Moreover, there is a positive relationship between multi-unit
franchising and the plurality of distribution within the system, meaning the study supports that in
franchise systems maintaining company-owned units the prevalence of multi-unit ownership is more
likely. A negative relationship exists between multi-unit franchising and intra-firm conflicts as well as
organisational complexity within the system.
In 2009, Weaven (2009) research again the question why franchisors adopt multi-unit franchising.
Surprisingly, the reasons found in 2007 do in part not hold in this research. He reveals – consistent
with his expectations – that the franchise system maturity and the usage of multi-unit franchising had a
positive relationship. Against his expectations he finds that the application of multi-unit franchising
and the degree of franchise system corporatisation, franchise systems using plural forms of
distribution, geographical dispersion of units, importance of reward strategies and system growth do
not have a positive relationship. For the variable dealing with the level of intra-firm conflicts he shows
a positive relationship.
(b) Motivation and Reasons to Use Multi-Unit Franchising from a Franchisee Perspective
Grünhagen and Mittelstaedt (2005) investigate if franchisees differ in their motivation to become a
multi-unit franchisee. They identify that sequential multi-unit franchisees see themselves more as
entrepreneurs than area developers, but both kinds of franchisees do not differ in their investment
motivation.
Organisational Configuration within Multi-Unit Franchising Literature Review
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Weaven and Frazer (2006) compare single-unit and multi-unit franchisees regarding their motivation
to enter franchising. For single-unit franchisees the brand, initial training, freedom on an operational
level and potential family employment are important. For multi-unit franchisees the vision and the
business concept of the franchise system, the continuing support and training, involvement in
decision-making, expansion prospects and the governance structure are decisive.
(c) Motivation to Grant Additional Units to Franchisees
Kalnins and Lafontaine (2004) investigate the basis on which additional units are granted to
franchisees and reveal that franchisees are approved for additional franchise units if those new units
are geographically close to their existing units and if they are contiguous as well as demographically
alike.
(d) Propensity to Use Multi-Unit Franchising
A complementary relationship between the duration of the franchise contract and the propensity to use
multi-unit franchising is found by Vázquez (2008). Therefore, the incentives multi-unit franchising
offers a franchisee are only of importance when the contract concluded is long enough. Moreover, the
researcher demonstrates that the likelihood to use multi-unit franchising is lower if the costs of
monitoring outlet mangers are high. Conversely, if there is a higher risk of free-riding by the
franchisee, the tendency towards multi-unit ownership is higher.
Gómez et al. (2010) study which factors lead to a high usage of multi-unit franchising by connecting it
to agency problems in the relationship between franchisor and franchisee. In detail, they find that there
is a positive relationship between the use of multi-unit franchising and a geographical concentration of
units within the franchising network, network size and franchising within non-repetitive industries.
(e) Influence of Multi-Unit Franchising on the Level of Dependence and Autonomy
Dant and Gundlach (1999) reveal that multi-unit ownership has an influence on the level of
dependence and autonomy. They detect that a higher proportion of multi-unit franchisees leads to a
higher perceived dependence but a lower desire for autonomy vis-à-vis the franchisor from the
franchisee perspective.
(f) Benefits of Multi-Unit Franchising for Franchisees
Kalnins and Mayer (2004) discover that multi-unit owners profit from the local market knowledge and
experience they have. This finding applies to multi-unit owners in general, whether they are franchised
or not.
The section above shows that the multi-unit franchising literature is mainly dealing with the
motivation to start multi-unit franchising and has been primarily conducted from a franchisor
perspective. The following section introduces research in multi-unit management.
Organisational Configuration within Multi-Unit Franchising Literature Review
9
2.2. Management within Multi-Unit Businesses
As the area of multi-unit franchising is still widely underresearched and no literature about the
management of multi-unit franchise businesses is available, general literature about multi-unit
management is presented to give an overview.
Looking at multi-unit management literature, Jones (1999) finds by studying the hospitality industry
that there are differences between small business management and multi-unit management resulting in
different management challenges. The management challenges resulting from multi-unit operations
include:
• No possibility to supervise managers on an operational level directly;
• Control over day-to-day operations is not possible;
• Subordinate employees deal with customers on a frequent basis;
• The setting of the unit is a key success factor;
• Employees from different labour markets with different behaviour and attitudes;
• Shifting of information flow through different units;
• No one organisational culture as business is split into several units.
He declares that there is relatively little known about multi-unit management and that there is a need
for further investigation. Likewise, Umbreit (1989) states that the roles of single-unit and multi-unit
managers differ and tries to research the most important job aspects of multi-unit managers. In his
article about multi-unit restaurant management he postulates that the job descriptions of multi-unit
managers do not specify which tasks the managers perform, how much time they spend performing
their tasks or how they pursue their goals. To study this, he asked executives and multi-unit managers
about their different job aspects and how important they weight those and discovers five job aspects of
importance for multi-unit managers. These are illustrated in Table 1 (p. 10). The handling of restaurant
operations is the most important and time-consuming task. However, when looking at the tasks
performed it becomes prevalent that it comprises more the effective functioning of operative tasks than
actually performing them. Human resources (HR) and financial management consume the second and
third highest amount of time, followed by facility and safety and marketing and promotion.
Organisational Configuration within Multi-Unit Franchising Literature Review
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Table 1: Job Aspects of the Multi-Unit Manager
Importance
to multi-unit
manager
% of time
spent on
job aspect
Job aspect Description
No. 1 32.7% Restaurant operations
Enforces consistent company standards, systems, and procedures; evaluates product quality; implements new systems; oversees the delivery of positive customer service, supervises new-product introductions; monitors unit-management activities.
No. 2 23.3% HR management Supervises effective orientation, training and management of employees; teaches unit managers how to manage people; provides quality feedback; provides promotable managers.
No. 3 22.3% Financial management
Maintains profitability by monitoring performance, preparing budgets, developing forecasts, authorizing expenditures, controlling costs, and reviewing results with unit managers.
No. 4 10.6% Facilities and safety
Supervises the overall condition of unit facilities to ensure operational acceptability and competitive readiness and establishes safety-management programs.
No. 5 9.6% Marketing and promotions management
Implements marketing and sales-promotion plans, prepares units for promotional programs, encourages collection of information on customers and the competitive market.
Source: Umbreit (1989)
DiPietro et al. (2007) follow the view of Umbreit (1989) and postulate that there is a lack of research
on multi-unit management in the restaurant industry. They highlight its importance by saying that the
conducted research shows that the characteristics between single-unit managers and multi-unit
managers differ. Therewith they follow the line of research started by Umbreit (1989) and define
attributes that are in relation to the successful performance of the managers of multiple units. Thereby
the factors do not need to be executed necessarily by the multi-unit manager himself but its
consideration needs to be assured. Those factors can be summarized in eight dimensions which are, in
essence, congruent to the tasks presented by Umbreit (1989).
Table 2: Management Key Success Factors of the Multi-Unit Manager
Dimension Attributes
Single-unit operations Cost control; personnel training; maintenance of facilities.
Standard operating procedures Regular information collection and successful marketing strategy to reach maximum productivity.
Multi-unit strategic planning Set targets; implement plans.
Interpersonal and social responsibilities Consider the surrounding environment by developing managers and regarding food safety.
Travel and visiting units Show presence in units.
Human relations Enhance quality; teamwork support; create and live values.
Effective leadership Raise turnover; manage resources.
Unit level finances Decide about product prices and number of employees within a unit.
Source: DiPietro et al. (2007)
To summarize, the above presented literature on multi-unit management gives a first indication on
core topics to be considered by a multi-unit owner. However, it focuses on the tasks and
Organisational Configuration within Multi-Unit Franchising Literature Review
11
responsibilities of the multi-unit manager. It does not address the configurational considerations like
organisational structure, standardisation, knowledge sharing across units and centralisation/
decentralisation. These considerations are essential when building up a multi-unit business.
2.3. Organisational Configuration
As there is no research on multi-unit configuration that could be taken as a reference to study the
configuration of multiple units by franchisees, different aspects are considered to get an insight into
these issues. In detail, those aspects are organisational structure, franchisor-independent
standardisation, knowledge sharing across units and centralisation/decentralisation. These topics are
chosen due to different considerations and illustrated in Figure 1.
Figure 1: The Four Aspects of the Organisational Configuration
The basis for the considerations was the research conducted on management within multi-unit
businesses presented in Chapter 2.2. Following this, single-unit and multi-unit franchise businesses
were compared about how they differ in their work and challenges. Thereby those four aspects arising
as the major fields of decision-making for a multi-unit franchisee compared to a single-unit franchisee
were identified. These aspects were addressed in the interviews with the multi-unit franchisees and
confirmed as decisive. Generally, these topics thematised are meant as those in the control of the
multi-unit franchisee, meaning regardless of the possible rules of the franchisor.
2.3.1. Organisational Structure
The first aspect important for the organisational configuration of the multi-unit franchise business is
the organisational structure. The organisational structure of a business is a critical decision as it should
support the business in reaching its goals and pursuing its strategy. If a structure is chosen that is not
ideal, it can harm the efficiency and effectiveness of the business in the short term and threaten its
viability in the long term (Burton et al., 2006).
Looking at a franchising business, its organisational structure is comparable to a divisional
configuration like presented by Burton et al. (2006) as is therefore compared to it. Like within a
Organisational Configuration within Multi-Unit Franchising Literature Review
12
divisional configuration every franchise unit constitutes an own business which has a certain degree of
independence from each other and from the headquarter, which is in this case represented by the
franchisor. The multi-unit franchisee oversees the units and communicates the policies. From theory
this kind of organisational structure works most successfully when coordination and involvement from
the top are limited ‘and each division is left to run its own business where it has resources and can
coordinate its activities to focus on the market for its products, its customers or in its region’ (Burton
et al., 2006, p. 64). However, within a franchise system there is a certain degree of standardisation
imposed by the franchisor (Kaufmann and Eroglu, 1999) which limits the ability of the unit to adapt its
products and services to the customers and region by definition.
Within a multi-unit franchise business, there is one franchisee responsible for several units.
Consequently, he has to develop an organisational structure which best fits the needs of this special
type of business and ensures its effective functioning. Different theoretical considerations can be made
concerning the organisational structure. Kaufmann and Dant (1996) as well as Kalnins and Lafontaine
(2004) automatically assume that multi-unit franchisees employ unit managers. However, no research
if they actually do could be found. This research aims to shed light on the question if unit managers
are employed by multi-unit franchisees. As another possible form of management, the multi-unit
franchisee could still manage the multiple units on his own by splitting his time and tasks between
them. Nevertheless, some multi-unit franchisees own a high number of units which makes it difficult
to supervise them even when there are unit managers applied. Therefore, there might be several
hierarchies of control arising out of this increased number of units. Likewise Jones (1999) seems to
assume that there are different layers of management within a multi-unit business but he does not
discuss them. Following the idea of different management layers, a multi-unit franchisee could assign
a unit manager who reports to an appointed operations manager. This operations manager could be
responsible for several units and build a hierarchical level between the multi-unit franchisee and the
unit manager. Besides those forms describing the organisational structure there are probably other
additional forms of unit management. These will be revealed during the research. The possible
different parts of the organisational structure are depicted in Figure 2.
Figure 2: Possible Different Parts of the Organisational Structure
The above mentioned organisational structure could have developed due to different motives and
reasons. Five possible motives and reasons will be explained hereafter and are depicted in Figure 3
(p. 14).
Organisational Configuration within Multi-Unit Franchising Literature Review
13
Motives and reasons are researched for three out of the four sub-topics of organisational configuration.
However, possible motives and reasons are only explained in this manner in the literature review for
the sub-topic ‘organisational structure’. This can be explained by the fact that so far there has been no
research at all for this topic. Following this, no motives and reasons could be found in the literature
which makes it necessary to examine possibilities. For the topics ‘knowledge sharing’ and
‘centralisation/decentralisation’ literature from other research areas could be consulted to give at least
a first insight into possible motives and reasons.
(a) Rules of the Franchisor
As a first reason the rules of the franchisor could lead to a certain organisational structure. The
relationship between the franchisor and the franchisee and their rights and obligations is fixed in the
franchise contract (Boulay, 2010). As a part of the contract, the franchisor could prescribe the multi-
unit franchisee how to handle certain tasks within multi-unit management, referring for example to the
organisational structure and employment of unit managers. Thus, in this case, the multi-unit franchisee
has to follow the rules of the franchisor and cannot assess by himself what might be best for his
business.
(b) Costs
The second reflection rests on cost considerations. The employment of people is always bound to costs
(Moderegger, 1996). Therewith, the decision of the multi-unit franchisee to hire a unit manager instead
of himself doing this job is also a decision towards a higher percentage of fixed costs.
However, from a certain number of units on, the multi-unit franchisee should strategically not just be
involved in day-to-day business activities, but also work on the overall management issues with the
goal to enhance the overall performance and profit of his business. The gain of this could be higher
than the costs bound by unit managers.
(c) Leadership Style
Besides rules of the franchisor and cost considerations, the leadership style practiced by the multi-unit
franchisee could be decisive for the composition of an organisational structure. Thereby, leadership
can be understood as ‘an interactive process that provides needed guidance and direction’ (Goodnight,
2004, p. 820). Leaders differ in their way they provide guidance and direction which results in
different leadership styles: Autocratic, democratic and laissez-faire leadership.
The autocratic leader expects unconditional conformity and compliance towards him and his
decisions. Decisions are taken solely by him and the compliance is ensured by the enactment of rules,
policies and goals. This kind of leader does not value the abilities of his employees and therefore has a
high affinity towards close supervision as this ensures obedient behaviour. As a negative result, there
is a low tendency towards innovation and organisational development (Goodnight, 2004).
Organisational Configuration within Multi-Unit Franchising Literature Review
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The democratic leader highly values his employees and designs an open, respectful relationship which
sees equality and trust as its basis. In contrast to the autocratic leader this leader supports open
communication between employees. The leader acknowledges the abilities and capabilities of his
employees and supports their development. Through this he creates a working atmosphere that is
shaped by motivation and teamwork. The democratic leader expects high performance and supports
this by rewards (Goodnight, 2004).
Leader with a laissez-faire attitude do not guide their employees. Based on the assumption that the
employees know best what they have to do, he leaves them alone to take free choices. Information
exchange works on an employee-employee basis. The leader only takes action if he needs to deal with
a crisis or react to a certain event. This leadership style leads to inefficiency and chaos (Goodnight,
2004).
The leadership style could influence the organisational structure of the multi-unit franchise business
with an autocratic leader controlling his employees more than a democratic leader. This could
influence the amount of employees hired to control others. Additionally, the autocratic and democratic
leader will probably have a more distinctive reporting structure than a laissez-faire leader.
(d) Advice from Other Multi-Unit Franchisees
Additionally to the motives and reasons stated above, relationships between franchisees can have an
influence on the behaviour and attitude of franchisees (Dickey, 2003; Lawrence and Kaufmann, 2011).
Multi-unit franchisees might tell other (aspiring) multi-unit franchisees about their organisational
structure and service as an example of good practice. This might influence the organisational structure
applied by a multi-unit franchisee.
(e) Finding an Appropriate Manager
As a last point, it might be decisive if the multi-unit franchisee finds a manger that he views as
appropriate for running his unit. Only if he considers a manager as competent and trustworthy he can
leave management tasks to him.
Figure 3: Motives and Reasons for a Chosen Organisational Structure
Organisational Configuration within Multi-Unit Franchising Literature Review
15
2.3.2. Knowledge Sharing across Units
Besides the organisational structure knowledge sharing across units is examined in the context of
multi-unit franchising as shown in Figure 4. Nowadays, knowledge is a strategic resource and critical
part of the organisational success. Thus, the creation, sharing as well as the leveraging of knowledge is
fostered within organisations (Drucker, 1993; Becerra-Fernandez and Sabherwal, 2001; Ipe, 2003).
In general, knowledge sharing between individuals can be defined as ‘the process by which knowledge
held by an individual is converted into a form that can be understood, absorbed, and used by other
individuals.’ (Ipe, 2003, p. 341) and that leads to a total growth of knowledge (Quinn et al., 1996). In
the context of multi-unit ownership it might give the business the opportunity to share knowledge
across the borders of the single unit. Once the knowledge is shared between units, the sender gives
access to his knowledge and through feedback or modifications by the receiving unit the overall
knowledge grows.
While Sorenson and Sørensen (2001) state that learning benefits can be utilised in the context of multi-
unit companies, they see this advantage critical for single-unit franchisees. To use the knowledge from
other units, a common knowledge base is needed. But franchisees are independent entrepreneurs that
make use of local adaptations which can minimize the value knowledge has for other units (Sorenson
and Sørensen, 2001). However, when a franchisee owns several units he builds a common base for all,
comparable to a multi-unit business. Consequently, the possibility of knowledge sharing could create a
competitive advantage for the multi-unit franchisee that is not possible for a single-unit franchisee.
Therefore, it is aimed to evaluate if multi-unit franchising creates this chance that cannot be exploited
in that intensity within single-unit franchising.
The opportunities to share knowledge can be either formal or informal. A formal way of sharing
knowledge is the composition of structured work teams or the provision of training programs.
Informal occasions are social networks and personal relationships and make up the greater part in this
process. However, the process of sharing knowledge and the willingness of the employees to do so
always depends on the company culture and if it positively influences it (Ipe, 2003).
Figure 4: Knowledge Sharing across Units
Organisational Configuration within Multi-Unit Franchising Literature Review
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2.3.3. Standardisation
Owning several units might give the multi-unit franchisee the opportunity and perhaps also the
necessity to standardise several tasks and procedures. Generally, standardisation describes the
establishment of procedures through routines (Martinez and Jarillo, 1989). It describes the ‘extent to
which activities are subject to standard procedures and rules’ (Child, 1984, p. 164).
According to Aldrich (2008) the size of an organisation as well as its complexity has a positive impact
on the likelihood of standardisation. It leads to higher efficiency and facilitates bureaucratic
operations. As a prerequisite, the situation in which the standardised rules are applied needs to be
relatively steady, recurring and few enough to allow the matching of the situation with the fitting rules
(Thompson et al., 2003).
While multi-unit franchisees are already subject to a high level of standardisation imposed by the
franchisor, they might additionally develop best practices to effectively manage their mini-chains and
enhance their overall performance. Thereby, the amount of standardised rules and procedures might be
more for franchisees owning a higher amount of units compared to multi-unit franchisees owning a
lower amount of units. As standardisation issues might have an influence on the successful functioning
of the multi-unit franchise business, its appearance will be examined in this master thesis and is
illustrated in Figure 5.
Figure 5: Increasing Level of Standardisation
2.3.4. Centralisation and Decentralisation
As a fourth part of organisational configuration, the level of centralisation and decentralisation is
reviewed and illustrated in Figure 6 (p. 17). Thereby centralised is defined as being executed by the
multi-unit franchisee while decentralisation refers to the allocation of decision rights to other levels,
meaning for example unit managers or operations managers. Generally, the decision about the
centralisation or decentralisation of tasks and responsibilities is interdependent with the choice of
organisational structure (Gibson et al., 2012). Therefore, this topic is addressed in this master thesis.
Organisational Configuration within Multi-Unit Franchising Literature Review
17
There is a tendency towards centralisation within an organisation if the decision-making is more likely
taken over by the top while in the case of decentralisation units or employees are allowed to take
decisions which would be taken on a higher level in comparable organisations (Brooke, 1984). There
are different levels of centralisation or decentralisation observable in organisations. As a small owner-
managed company grows, the manger needs to evaluate how to effectively manage his business and
perform the different tasks (Carnall, 2007).
As Brooke (1984), Child (1984) and Carnall (2007) describe, the level of centralisation or
decentralisation depends on the circumstances, taking into consideration the strategic importance of
the decision that has to be taken and the organisation and its context in relation to its capabilities and
contingencies.
Centralisation allows the manager to have a broader overview about the company and to ensure the
pursuance of policies. It allows fast decision-making and helps to rationalize as different tasks are only
performed once (Brooke, 1984; Child, 1984; Carnall, 2007). To interpret this in the sense of multi-unit
franchising, centralisation might allow the formation of departments that work for all units. Examples
might be the central handling of HR, finance or marketing. Thereby duplications can be avoided and
efficiency increases. Additionally, if all important decisions are still taken by the multi-unit franchisee,
he can ensure that these decisions are taken in his interest.
Decentralisation alternatively allows the manager to delegate certain tasks and responsibilities to
employees which gives him the possibility to focus on management tasks like long-term planning.
Additionally, the responsibilities that will be assigned to the employees increase their motivation and
therewith positively influence their performance and job satisfaction (Brooke, 1984; Child, 1984;
Carnall, 2007). It also allows greater flexibility and can be seen in a faster response to change and also
could take into consideration local conditions in a greater amount (Child, 1984). Thus, decentralisation
has advantages for the multi-unit franchisee as the organisation grows. It gives him the possibility to
focus on important planning and management tasks. Supportive and operational6 tasks can be
performed by employees.
Figure 6: Decision about Centralisation or Decentralisation
The level of centralisation and decentralisation raises the principal-agent problem again. In their
article, Nohria and Ghoshal (1994) apply principal-agent theory to headquarter-subsidiary
6 In this master thesis the term ‘operational tasks’ refers to the day-to-day business accomplished within the unit.
Organisational Configuration within Multi-Unit Franchising Literature Review
18
relationships. Likewise, this theory can be applied to the relationship between the multi-unit manager
and his employees. The multi-unit manager cannot be responsible for and take all decisions in all his
units, so he has to assign decision rights to employees. However, he cannot assign all decision rights to
his employees, as he has to secure that decisions will be taken in his interest. The interests he pursues
as a multi-unit manager may not always be the as the interests of his employees.
2.4. Summary and Introduction of the Sub-Questions
After a critical assessment of the literature on multi-unit franchising and multi-business management
in general, it can be said that it does not address the configurational considerations that a multi-unit
manager has to make. As a result, a gap in the literature concerning the organisational configuration of
the multi-unit franchise business could be identified which this master thesis aims to address. This
organisational configuration is essential to regard when building up a multi-unit franchise business and
leads to the following sub-questions helping to answer the overall research question:
(a) Organisational Structure
How is the organisational structure of the multi-unit franchise business and what are the
motives and reasons for this chosen organisational structure?
(b) Knowledge Sharing across Units
Is knowledge sharing between the different franchise units existent and if yes, how does it take
place, in which areas of the business, and what are the motives and reasons for it?
(c) Standardisation
Which tasks are standardised and does the level of standardisation increase with the growth of
the multi-unit business?
(d) Centralisation/Decentralisation
Which tasks and responsibilities are centralised and what are the motives and reasons for this
centralisation?
Which tasks and responsibilities are decentralised and what are the motives and reasons for
this decentralisation?
Organisational Configuration within Multi-Unit Franchising Methodology
19
3. METHODOLOGY
This chapter introduces the methodology applied. It is divided into the sections ‘Measurement’,
‘Empirical Setting’, ‘Data Collection’ and ‘Data Analysis’.
3.1. Measurement
To reveal the organisational configuration of multi-unit franchise businesses and the corresponding
motives, ten franchisees7 were interviewed. The goal to build theory and to shed light on an interesting
phenomenon about which little or even nothing is known so far justifies this qualitative research
method using case studies. Thereby a sample size between four to ten cases is appropriate and
facilitates the first insight into a topic under investigation as well as the comparison between the
different cases (Eisenhardt, 1989b; Thomas, 2004).
The interviews were semi-structured. In this exploratory study it is an effective way of gathering
information as it allows for the examination of answers by seeking for explanations or building the
forthcoming questions on given answers (Saunders et al., 2009).
Therewith, the chosen research method ensures validity as it answers adequately the research question
(internal validity). Nevertheless, as it is only a first step in the research regarding the organisational
configuration within multi-unit franchise units and only ten franchisees are considered, the degree of
generalisability is restricted (external validity). Therefore, the results need to be confirmed by further
studies.
The franchisee is the only person that can be asked about the configuration of his business and his
corresponding motives and was consequently chosen as the focus of the research. Thereby it might be
possible that the interviewee is not completely honest about his motives as he may try to hide certain
reasons or state reasons of which he thinks they are most likely the case, expected by the researcher or
known from others. However, the researcher tried to prevent this by informing the franchisee that it is
an explorative research where there are no right or wrong answers.
An interview schedule (Appendix 1) was prepared to guide the researcher through the interview and
ensure that all the aspired topics are covered. They were derived from the main research question and
its sub-questions. However the interview schedule only served as a guideline and the interview
developed based on the given answers.
To ensure the alignment with the ethical principles in the conduct of research outlined by the
Newcastle University, the interviewees received an information sheet (Appendix 2) and were asked to
sign a consent form (Appendix 3) prior to the interview. The interviewee and the researcher went
through both documents together to solve possible questions.
7 In the chapters 3 to 5 the term ‘franchisee’ instead of ‘multi-unit franchisee’ will be used to describe the interviewed multi-unit franchisees. This is due to the fact that from chapter 3 to chapter 5 the researcher only talks about multi-unit franchisees which makes a distinction between multi-unit franchisees and single-unit franchisees unnecessary.
Organisational Configuration within Multi-Unit Franchising Methodology
20
3.2. Empirical Setting
According to bfa and NatWest (2011) multi-unit franchising can be mainly found in the hotel and
catering sector. Jan Schmelzle confirmed that in Germany multi-unit franchising is mainly prevalent in
the food industry. As there is a comparably high amount of possible interviewees and multi-unit
franchising is well-known in this industry, this industry was chosen as the focus of research. More
detailed, the system catering industry was chosen. A system caterer can be defined as somebody who
sells beverages and/or dishes that can be consumed on site and works with a standardised and
multiplied concept that is controlled centrally (DEHOGA, 2013).
The top 60 system caterers in Germany were able to raise their annual net turnover in the last years
which increased to 9,008 m Euro in 2012. The industry is dominated by McDonald’s with an annual
net turnover of 3,247 m Euro in Germany (BdS, 2012).
3.3. Data Collection
Ten franchisees from five different franchise systems were interviewed in German. The franchisees
were contacted in different ways:
• Possible interviewees identified through internet research were contacted directly via e-mail or
via the German business platform XING;
• A contacted franchisee acted as contact person for other franchisees within his franchise
system;
• Jan Schmelzle from the German Franchise Association established the contact between the
researcher and either the franchise system or the franchisee directly;
• The franchise system was contacted and acted as a connector to franchisees.
The franchise systems participating in this research are among the top 13 of the most successful
system caterers in Germany in 2012 as measured by their annual net turnover (BdS, 2012c). Their
annual net turnover as well as the number of owned units in Germany are presented in Table 3.
Table 3: Annual Net Turnover and Number of Units of the Participating Franchise Systems
Annual net turnover in
Germany (in m Euro)
Number of units in
Germany
Franchise system 2012 2011 2010 2012 2011 2010 McDonald’s 3,247 3,195 3,017 1440 1415 1386 Subway 185 175 203 600 612 703 Vapiano 144.8 128.8 103.5 53 45 41 KFC 137 122 103 92 76 72 Joey’s Pizza Service 120 109.5 94.2 203 192 173
Source: BdS (2012c)
As this is an exploratory study with the aim to reveal the possible organisational configurations within
multi-unit franchising, franchisees from five different franchise systems owning a different number of
franchise units were selected. This takes into consideration two main reasons that might account for
Organisational Configuration within Multi-Unit Franchising Methodology
21
differences, the size of the business and the franchise system. However, to enable comparisons
between the franchisees, one industry, the system catering industry, was chosen. As a result, the sold
products are relatively comparable and it ensures that an organisational configuration was not only
chosen because of the differences in the product offering. The researched franchise systems can be
summarized as follows8:
The first unit of McDonald’s was opened in 1940 by Richard und Maurice McDonald in San
Bernardino, California and the first German McDonald’s unit was opened in 1971 in Munich. Today,
McDonald’s is the most successful system catering company in Germany as measured by its annual
net turnover. On average 2.7 m guests were served by 64,265 employees in 1,440 German restaurants
in 2012. While 20% of their units are still operated by McDonald’s Deutschland Inc., 80% were
franchised to 243 franchisees. Therewith a franchisee owns on average 4.85 units (McDonald's, 2013).
The first Subway restaurant was opened in 1965 in Bridgeport, Connecticut, by Fred deLuca.
Compared to McDonald’s that mainly sells burgers and fries, Subway builds its concept on fresh
sandwiches. It entered the German market in 1999 in Berlin. Today 6,000 employees serve guests in
600 restaurants. All German Subway restaurants are owned by 350 franchisees (Subway, 2013) which
means that statistically nearly half of the franchisees own more than one restaurant.
Vapiano is a German franchise concept that started with its first restaurant in Hamburg in 2002. Today
there are 130 Vapianos in 28 countries. In Germany there are 53 restaurants employing about 3,500
people. The concept is described by Vapiano as ‘Fresh Casual Dining’. The guest can order pasta,
pizza, antipasti or salads directly from a chef who cooks the dish fresh in front of him (BdS, 2012d;
Vapiano, n.d.). The restaurants are partly owned by joint ventures and partly owned by franchisees
(Franchise PORTAL, 2011).
KFC was founded by Harland Sanders in 1930 in Corbin, Kentucky. In 1952 he sold his first franchise
for a restaurant serving fresh handmade chicken meals. Today there are about 18,000 restaurants in
120 countries (BdS, 2012b; KFC, 2013b; Colonel Sanders, n.d.). There are 92 restaurants in Germany
employing about 3,600 people. 70% of the restaurants are franchised (BdS, 2012b; KFC, 2013a).
Joey’s Pizza Service was founded in Germany and opened its first shop in 1988 in Hamburg. Today
Joey’s is the most successful pizza delivery company in Germany. In 2012, there were 203 franchise
businesses nationwide owned by 130 franchisees employing around 5,000 employees (BdS, 2012a;
Joey's, 2012).
All of the interviewed franchisees own franchise units in Germany. This ensures a common legislative
basis and increases the homogeneity of cultural values that would differ more in cross-country studies
and could possibly influence the research results.
8 It was the aim of the researcher to present the same information for the five franchise systems. Unfortunately not all desired information was available for each franchise system.
Organisational Configuration within Multi-Unit Franchising Methodology
22
On the consent form the franchisees were able to choose if they want their name to be used in the
master thesis. As three franchisees only provided their consent for their data to be used anonymised,
this will be done for all to ensure consistency. As a result, the franchisees will be named with a
synonym consisting of a letter marking the franchise chain and a number showing the amount of
owned units. Both aspects might be of importance when presenting the interview results.
Table 4 summarises the participating ten franchisees, their franchise system, number of units and
status9:
Table 4: Franchise System, Number of Units and Status of the Participating Franchisees
Franchisee Franchise system No. of units Status
D3 McDonald‘s 3 Deputy general manager and son of a franchisee
D8 McDonald‘s 8 Franchisee D15 McDonald‘s 15 Franchisee V3 Vapiano 3 Franchisee J3 Joey’s Pizza 3 Franchisee K4 KFC 4 Franchisee
K17 KFC, Pizza Hut & Coffee Corner
17 Franchisee
S3 Subway 3 Franchisee S5 Subway 5 Franchisee S11 Subway 11 Franchisee
Source: Interview statements
This sample gives the opportunity to explore different organisational configurations in different
franchise systems and for franchisees owning a different number of units. But it also opens up the
possibility to compare organisational configurations of franchisees owning a different number of units
within one franchise chain and to compare organisational configurations of franchisees owning the
same number of units across different franchise systems.
As Table 4 shows, there is one participant that is no franchisee directly. However, the participant grew
up with a father owning multiple McDonald’s units and joined the business later on. As there was the
initial plan to continue the business in second generation, he had wide-reaching powers and was
involved in every area of the business. For these reasons he is an appropriate participant for the
research and confirmed that he is able to answer the questions adequately.
3.4. Data Analysis
To systemize the interview information, thematic analysis was used. This widely used method helps
with ‘identifying, analysing and reporting patterns (themes) within data’ (Braun and Clarke, 2006, p.
79).
According to Braun and Clarke (2006) the analysis process consists of six steps. The first step aims to
get familiar with the data. This includes the full transcription of the audio-taped semi-structured
9 Additional information about the conducted interviews can be found in Appendix 5 ‘Interview Information’
Organisational Configuration within Multi-Unit Franchising Methodology
23
interviews10 and gives the researcher the possibility to review and reread the data in detail several
times. The second step comprises the coding. ‘Codes identify a feature of the data (…) that appears
interesting to the analyst’ (Braun and Clarke, 2006, p. 88). As a result, the qualitative data was
manually systematized into meaningful groups, taking into consideration the whole data set. The aim
of the next step is to study the codes and assess what potential overarching themes can be developed
due to these codes. In this research, codes were developed taking into consideration each sub-question.
After this, the themes were reviewed to check whether they shape a logical pattern and represent the
codes. Following this, the themes decided on are checked back to see if they are of relevance in
relation to the whole dataset. Then the chosen themes were further specified. This step helps to ensure
that there is a clear understanding of what a theme comprises, how the relation to other themes is and
if there are potential overlaps. Following this the results were written down, thereby using examples
that support the findings, relating back to the research question and sub-questions as well as to the
literature reviewed (Braun and Clarke, 2006).
10 One sample transcript is attached as Appendix 4. The other transcripts are provided by the author on request.
Organisational Configuration within Multi-Unit Franchising Results
24
4. RESULTS
In the following sections the interview results are addressed, divided into the four sub-topics of the
organisational configuration.
4.1. Organisational Structure
To address the first part of the first sub-question regarding the organisational structure of the multi-
unit business, the organisational charts of the interviewed franchisees are depicted. Following this,
comparisons between the organisational structures will be made.
D3 makes use of an operations manager, unit managers for each unit and a deputy general manager.
Figure 7: Organisational Structure of D3
Source: Interview statements of D3
D8 works with unit managers, an operations manager and three supportive employees.
Figure 8: Organisational Structure of D8
Source: Interview statements of D8
He distinguishes between two types of restaurants, ‘traditionals’ and ‘satellites’. The difference lies in
the size of the restaurant with ‘satellites’ being very small units and geographically close to a
‘traditional’. Therefore, those ‘satellites’ do not have an own management but are connected to a
‘traditional’.
Organisational Configuration within Multi-Unit Franchising Results
25
D15 works with unit managers for each unit, operations managers, a deputy general manager and four
supportive employees.
Figure 9: Organisational Structure of D15
Source: Interview statements of D15
V3 works with unit managers for each of his units.
Figure 10: Organisational Structure of V3
Source: Interview statements of V3
J3 uses nearly the same structure as V3, he is only supported by an additional clerk.
Figure 11: Organisational Structure of J3
Source: Interview statements of J3
Organisational Configuration within Multi-Unit Franchising Results
26
K4 employs three unit managers for four units. One of his units is shared with another multi-unit
franchisee.
Figure 12: Organisational Structure of K4
Source: Interview statements of K4
K17 owns units from three franchise systems, KFC, Pizza Hut and Coffee Corner with unit managers
for each unit, three operations managers and three supportive employees.
Figure 13: Organisational Structure of K17
Source: Interview statements of K17
Organisational Configuration within Multi-Unit Franchising Results
27
S3 owns three franchise units while two are run by a unit manager and one is run by himself.
Figure 14: Organisational Structure of S3
Source: Interview Statements of S3
S5 employs unit managers and a supportive clerk.
Figure 15: Organisational Structure of S5
Source: Interview statements of S5
Comparable to D8, he owns one ‘satellite’.
S11 runs his units together with a business partner.
Figure 16: Organisational Structure of S11
Source: Interview statements of S11
They work with operations managers that operate three or five units each without employing unit
managers.
Table 5 summarises the results of the interviews concerning the organisational structure.
Organisational Configuration within Multi-Unit Franchising Results
28
Table 5: Overview of the Organisational Structure of the Multi-Unit Franchise Business
Franchi-
see
Average
employees
per unit
Franchi-
see leads
units
himself?
Franchisee
works
with a
partner?
Make use
of unit
manager?
Unit manager
responsible for
how many units?
Make use of
operations
manager?
Operations
manager leads
unit without
unit manager?
Operations
manager
supervises
how many
units?
Make use
of deputy
general
manager?
How many
supportive
employees
(clerk,
technician)
D3 40 No No Yes 1 Yes No 3 Yes 0
D8 40 No No Yes 1 traditional unit / 1 traditional unit + 1 satellite unit
Yes No 6 traditional units + 2 satellite units
No 3
D15 40 No No Yes 1 Yes No 5 Yes 4 V3 110 No No Yes 1 No - - No 0 J3 35 No No Yes 1 No - - No 1
K4 25 No Yes, for 1 unit
Yes 1 or 2 No - - No 0
K17
- KFC: 25 - Pizza Hut: 20 - Pizza Hut Express: 8 - Coffee Corner: 3
No No Yes 1 Yes No 3 or 4 No 3
S3 10 Yes, 1 unit No Yes 1 No - - No 0
S5 10 No No Yes 1 traditional unit / 1 traditional unit + 1 satellite unit
No - - No 1
S11 10 No Yes No - Yes Yes 3 or 5 No 3
Source: Interview statements
Organisational Configuration within Multi-Unit Franchising Results
29
Table 5 shows that nearly all franchisees do not lead units themselves but make use of unit managers
(except for S3 and S11). K17 is the only one who employs operations managers and still supervises
unit managers himself. As an explanation he stated that it is important to stay close to the operational
business. This helps him to monitor changes, problems and to spot trends.
The unit managers are responsible for one unit in most cases (except for D8, K4 and S5). To explain
why not more units are assigned to one unit manager, one franchisee explained:
‘Leading a unit is a full-time job’ (K4).11
Another franchisee stated:
‘To have two restaurants as unit manager does not work, according to my opinion. Either the
unit manager will be totally overchallenged or the task in hand will not be performed
reasonably’ (D8).
The main deviation from this finding are D8 and S5 that own ‘satellite’ and ‘traditional’ units with the
‘satellite’ being connected to the management of a ‘traditional’.
K4 has only one unit manager for two units. He always promotes internal staff but for his last unit he
was not able to find an appropriate employee. Therefore, one manager is now responsible for two units
but simultaneously one employee is trained and it is aspired that he takes over the position as unit
manager for the second unit as fast as possible.
Half of the franchisees employ operations managers (D3, D8, D15, K17 and S11) to supervise the unit
managers and the operational business. This gives the franchisees more time to focus on the
administrative tasks in the backoffice.
The operations managers supervise between three and eight units. D8 assigned most units to his
operations manager. When asked if he thinks his one operations manager can handle the workload he
answered:
‘Two operations managers (…) is exaggerated in my point of view, not necessary, they just get
in each other’s way’ (D8).
Supportive employees are mainly used from the franchisees owning a comparable high amount of
units (D8, D15, J3, K17, S5 and S11).
Table 6 is designed to answer the second part of the sub-question referring to the motives and reasons
to apply a certain organisational structure.
11 As the interviews were originally conducted in German, the interview quotes presented here were translated into English. The original quotes are provided by the researcher on request.
Organisational Configuration within Multi-Unit Franchising Results
30
Table 6: Overview of the Motives and Reasons for the Chosen Organisational Structure
Franchisee Reasons to employ unit
manager
Reasons to not
employ unit manager
Reasons to employ operations
manager
Reasons to not employ
operations manager
Reasons to employ
deputy general
manager
D3 Rule from franchisor. -
Advice from other multi-unit franchisee; Administrative tasks increased consi-derably with third unit � contact person for unit managers needed so that the franchisee can focus on administrative tasks.
-
The deputy general manager is the son of the franchisee and it was initially planned that he will take over the units once.
D8 Rule from franchisor. -
Advice from other multi-unit franchisees; Availability of a suitable employee to fulfil this position; Support needed for high amount of operational and administrative tasks.
- -
D15 Rule from franchisor. -
Took this model over from McDonald’s who supervised 5 company-owned units with one operations manager in the 80s and 90s; Unit managers need close supervision that the franchisee alone cannot perform for 15 units.
-
To have support with tasks on the level of the managing director; To have somebody who can take over the business in case something happens to the franchisee.
V3
A business should not be built solely on one person. There need to be other people who take responsibility also in case the franchisee is not available for some time.
- -
Workload still manageable for the franchisee so he does not see a need to employ an operations manager yet.
-
J3
The franchisee needs to focus on administrative tasks and cannot be in the unit that often anymore. Therefore, he needs one responsible person per unit to take on responsibility. As a result, he only has one contact person per unit.
- -
The franchisee is currently considering employing an operations manager. As he wants to take a current employee he is waiting for a unit manager who offers to do the job.
-
Organisational Configuration within Multi-Unit Franchising Results
31
Franchisee Reasons to employ unit
manager
Reasons to not
employ unit manager
Reasons to employ operations
manager
Reasons to not employ
operations manager
Reasons to employ
deputy general
manager
K4
To have a contact person for the employees on site and to have somebody who can control the employees.
- - The franchisee wants to maintain close contact to the units.
-
K17 Employees need to have a contact person on site.
-
The franchisee wants to expand and to be able to fulfil his expansion plans he needs operations managers that support him to supervise the unit managers.
- -
S3
It is too time-consuming for the franchisee to do the job alone. Moreover, a lot of tasks like the inventory taking or training for campaigns have to be done at the same time in different locations which is not possible for one manager.
The performance of the unit improved with the intervention of the franchisee and he saves costs for a manager salary.
-
The franchisee can still handle it alone. However, in the past he owned 4 units and realised that it was very work-intensive and lead to a lower dedication to several tasks so that from this company size on an operational manager is needed.
-
S5
To have a contact person for the employees on site and to have somebody who can coordinate the daily business; Manager gives unit a face with which employees and customers can identify.
- -
The franchisee had an operations manager but removed this position as 1. the franchisee wants to preserve close contact to units. 2. the operations manager did not work in accordance with the wishes of the franchisee.
-
S11 -
Leading one unit is not a job that would justify paying a management salary.
The franchisees see themselves as entrepreneurs that want to further expand and need somebody to take over the supervision of the operational tasks.
- -
Source: Interview statements
Organisational Configuration within Multi-Unit Franchising Results
32
Half of the franchisees (J3, K4, K17, S5 and partly S3) say that a unit needs a contact person that is
responsible for the whole unit and its employees. Therefore the employment of a unit manager is
necessary so that the franchisee has only one person in charge left. The unit manager facilitates the
communication towards the unit for the franchisee and can filter which tasks and decisions can be
taken care of by himself and what needs to be passed on to the franchisee. This reduces the time the
franchisee has to spend on operational tasks and he can focus on administrative tasks.
‘You have to reorganize yourself, leave the daily business and use the time for the important
administrative tasks’ (J3).
McDonald’s is the only franchisor that prescribes its franchisees to apply unit managers. Other reasons
for the employment of unit managers comprised:
• The guarantee to have a successor in case something happens to the franchisee (V3);
• To have somebody who can control the employees (K4);
• To ensure that tasks that have to be done in several units at the same time will be executed as
scheduled (S3);
• The unit manager acts as the representative for customers and employees with whom they can
identify (S5).
For the McDonald’s franchisees D3 and D8 the employment of operations managers was based on the
advice of another franchisee. The third McDonald’s franchisee was influenced by the structure of the
company-owned units of McDonald’s. For K17 and S11 the employment of operations managers is
obligatory to fulfil their goal of further expansion. To be able to do this, the operations managers take
pressure from the franchisees in operational tasks so that the franchisees can focus on the
administrative tasks connected to the expansion plans. Additionally, the need for supervision and a
contact person for the unit manager (D3 and D15) and the need for support (D8) were mentioned.
The two franchisees D3 and D15 that make use of deputy general managers do this with a focus on
their succession planning. Moreover, it was mentioned that this employee functions as a relief from
administrative tasks (D15).
The two Subway franchisees S3 and S11 are the only interviewees not employing one unit manager
for each unit.
‘The background is that if I employ a good manager, I have to pay a reasonable management
salary and one unit does in my opinion not justify the payment of a management salary’ (S11).
However, it has to be considered that one Subway unit has around ten employees while the other
franchise units within this research mainly have around multiple times the employees. The second
Subway franchisee thinks that due to his intervention by leading the unit as unit manager the
performance of the unit increased and it helps him to save costs.
Organisational Configuration within Multi-Unit Franchising Results
33
‘It works out great right now and I save costs, altogether this is very good’ (S3).
Among the reasons to not employ operations managers V3 and S3 mentioned that they are still able to
handle the workload themselves. K4 and S5 want to preserve their close contact to their units and
therefore be the direct contact person. S5 stated that he was not satisfied with the operations manager
and therefore removed this position. On the other hand, J3 wants to hire an operations manager but is
missing a suitable candidate.
4.2. Knowledge Sharing across Units
After regarding the organisational structure of the multi-unit franchise business, the knowledge
sharing across these units is addressed. Thereby the second sub-question considering the appearance of
knowledge sharing across units, how it does take place in which areas of the business and for which
reasons is observed.
Knowledge sharing between the franchise units is supported by all franchisees. They see more value in
fostering knowledge sharing than to stir up the performance competition. For the franchisees it is only
advantageous if the unit managers cooperate as it gives them the chance to learn from each other and
to increase the performance of their units. Because of this the overall knowledge of the units and its
employees increases and represents the major reason why the knowledge sharing between the units is
promoted by the franchisee.
‘The experiences that are made and shared are better for me than the ones that are kept to
oneself, because in the end they should all benefit from each other’ (V3).
Moreover, as K17 explained while referring to the direct communication between the units instead of
communication via the operations managers or the franchisee:
‘If you can reach more with this shorter way, you should do it. (…) The advantage is for me
that I have to invest less time and additionally my operations managers have to intervene less’
(K17).
J3 fosters this exchange by sending the unit manager to a different unit for some days and D15 even
switches the unit managers between the units. Therewith they want to facilitate the sharing of practices
that might differ between units. For J3 this also means that in case a unit manager leaves, he can give
the responsibility to one of his other unit managers.
K4 supports the knowledge sharing unequivocally due to the franchise business structure. He as a
franchisee has the advantage that nobody can undermine his position. So all knowledge his employees
have can only be advantageous.
Almost all franchisees (except for S3) hold regular meetings with the unit managers and operations
managers and the deputy general manager if existent to discuss business-wide topics. These meetings
are considered as formal knowledge sharing compared to informal knowledge sharing described
Organisational Configuration within Multi-Unit Franchising Results
34
below. The frequency of those meetings differs between every week and every three month. However,
most franchisees hold a meeting at least once a month. Only S3 reports that he does not hold meetings
due to time constraints. He used to do it and intends to introduce it again.
In these formal meetings all current issues are discussed. One important topic is the review of the
business assessment to see if the goals set for the single unit in terms of turnover, costs and the
compliance with operating numbers were achieved. Additionally, upcoming problems are discussed.
The franchisee uses it for example to inform about new marketing campaigns carried out by the
franchisor.
Moreover, there is informal contact between the unit managers which is supported by the franchisee.
The franchisees do not know in detail the content of the discussions between the unit managers but
they know that they contact each other to discuss current problems they encounter with their staff or
with a guest, to compare the turnover or to organize an exchange of goods which is necessary when
one unit sells more food than calculated.
Table 7 summarises which franchisees make use of formal knowledge sharing in which frequency by
incorporating which managers and if they support the informal knowledge sharing between the units.
Table 7: Overview of the Ways of Sharing Knowledge
Franchisee Formal
meetings How many formal meetings? Participants
Informal
contact?
D3 Yes Every two weeks Franchisee, deputy general manager, operations manager, unit managers
Yes
D8 Yes Twice a month + strategy meeting once a year
Franchisee, operations manager, unit managers
Yes
D15 Yes Every three month + budget meeting once a year
Franchisee, deputy general manager, operations managers, unit managers, clerks (on request)
Yes
V3 Yes Once a month Franchisee, unit managers Yes J3 Yes Once a week Franchisee, unit managers Yes K4 Yes Once a month Franchisee, unit managers Yes
K17 Yes Every two weeks Franchisee, operations managers, unit managers
Yes
S3 No - - Yes S5 Yes Once a month Franchisee, unit managers Yes S11 Yes Once a month Franchisee, operations managers Yes
Source: Interview statements
4.3. Standardisation
This chapter addresses the sub-question asking which tasks are standardised independently from the
rules imposed by the franchisor.
When asked about standardisation, all franchisees explained that there is a high level of
standardisation already imposed by the franchisor, especially within the day-to-day operational
business.
Organisational Configuration within Multi-Unit Franchising Results
35
‘In the operational business there is nothing really we can change’ (D15).
These regulations mainly cover the operational part of the business, meaning the area of food
preparation, safety, hygiene and physical appearance of the unit and its employees. For this reason the
level of standardisation additionally created by the franchisee for the multi-unit business is low.
Nevertheless, it is considered as an important aspect as the additional standardisation by the franchisee
closes gaps that arise due to the size of the business and cannot be addressed by the franchisor. Table 8
shows aspects which were reported as being additionally standardised by the franchisee:
Table 8: Areas of Standardisation
Area of standardisation
Franchi-
see
Benefit
Scheme
Regular
team
meetings
for the unit
Regular team
meeting between
franchisee,
operations manager,
unit manager
Inven-
tory
holding
Inven-
tory
taking
Office
organi-
sation
Calculation
of employee
food
Way to
commu-
nicate
with the
guest
D3 x x D8 x x x D15 x x x x x V3 x x x J3 x x K4 x x x K17 x S3 S5 x x S11 x x
Source: Interview statements
It can be seen that most of the standardisation refers to regular meetings. Half of the interviewed
franchisees (D3, D8, D15, V3 and K4) prescribe their unit managers to do regular team meetings
within their unit. On the other side, some franchisees (J3, K17, S3, S5 and S11) do not set it as a rule
because they do not want to restrict the field of responsibility of the unit manager. However, regular
meetings with all unit managers and operations managers to analyse the development of the units and
to enable the communication between the different management layers are standardised by all but S3.
Looking at other areas of franchisor-independent standardisation, the two McDonald’s franchisees D8
and D15 developed bonus systems for their unit and operations managers. S11 developed a bonus
system for his operation managers. Besides this he purposely did not develop any further standards as
he wants to leave this to the operations manager.
V3 developed a system about how to fill and organize the stock to simplify the handling. D15
designed a system to organize the monthly inventory taking to minimize the intervention in the daily
business.
K4 came up with a filing system for all units to facilitate the handling for the employees in case they
are relocated. J3 designed a system to collect documents he is supposed to get from his employees by
determining a common place to store them.
Organisational Configuration within Multi-Unit Franchising Results
36
To simplify the calculation of employee food in terms of tax considerations, meaning the food every
employee gets for free during his shift, D15 developed a system together with his tax accountant that
became well-known within McDonald’s Deutschland Inc. and is used by other franchisees aswell.
To improve the customer service S5 developed a standard way of how to communicate with the guest.
Analyzing the degree of standardisation done per franchisee, it can be said that the level of
standardisation is not automatically higher for businesses with more franchise units.
4.4. Centralisation and Decentralisation
The sub-questions for the fourth analysis topic ask which tasks and responsibilities are
centralised/decentralised and what could be identified as motives and reasons.
Table 9 shows that the areas where centralisation or decentralisation mainly take place are finance,
marketing and HR.
Table 9: Centralisation and Decentralisation of Tasks and Responsibilities
Centralised Decentralised
Franchisee Finance Marketing HR Finance Marketing HR
D3 x x x x D8 x x x x D15 x x x x V3 x x x x J3 x x x x x K4 x x x x x K17 x x x x S3 x x x x S5 x x x x S11 x x x x
Source: Interview statements
When asked for their motives and reasons to centralise or decentralise a task, most franchisees
mentioned more than one explanation. Therefore, the statements are summarized.
Finance is centrally handled by all franchisees. An administrative team consisting of clerks employed
with the company and/or external tax consultants and accountants support the franchisee. The reasons
for the centralisation are:
• Finance is a decisive part of the business and needs to be handled by the decision makers.
• The unit managers should focus on their job in operations and not have additional backoffice
tasks which occupy their time.
• This area of the business contains information which should only be known by the franchisee
and his assistants.
Organisational Configuration within Multi-Unit Franchising Results
37
‘But I want to handle certain things myself, because some things don’t have anything to do
with anybody apart from me. (…) They should take care of the operational business and
accounting is something I do myself’ (K4).
• Only the franchisee has the knowledge regarding all units and the business as a whole to
evaluate the business assessment and to interpret the implications.
• The unit managers do not have the educational background to elaborate the figures.
• In finance it is important that certain aspects are treated and analysed in the same way so that
there is comparability across units. In case of a decentralised handling different unit managers
would charge expenses and returns differently which would hinder this comparability.
The marketing that can be made independently from the franchisor is mainly in the hands of the
franchisees. The following reasons are stated for this centralisation:
• Marketing is an administrative task which should therefore be handled by the administrative
team and not by the unit manager who fulfils operative tasks in the unit.
‘The unit manager should work on-site in the restaurant with the guest and should focus on
it (…). The money is made in the unit and the main responsibility of the unit manager is the
operative management, so we decided to do the marketing tasks in the backoffice
completely’ (D3).
• It is a task the franchisee is interested in and does with pleasure.
• The franchisee has more background knowledge about the franchise system and can handle
marketing tasks better than his unit managers.
• The franchisee works with an advertising agency and giving that agency different contact
persons in case of a decentralisation would lead to irritations.
However, some franchisees (J3, K4 and S11) decentralised the local store marketing, meaning the
marketing every store can do on his own, due to the following reasons:
• The local managers know their clientele better and know how to ideally communicate with
them.
• The local managers are better informed about the events in their city and how to participate as
sponsor.
S11 decentralised the whole franchisor-independent marketing to his operations managers due to the
mentioned reasons. J3 and K4 use a mixture of centralisation and decentralisation. J3 centralised one
part of his marketing as he is part of a city-wide advertising community with other Joey’s franchisees.
Together they do advertising that they would not be able to finance on their own. For the local sphere
of influence the franchisee leaves the marketing to his unit managers as they are better informed and
know their district and clientele better. K4 centralised the part of marketing he considers as general for
all units like the renting of billboards as he is the contact person for the supplying marketing company
Organisational Configuration within Multi-Unit Franchising Results
38
and does a plan for the whole area. But he also decentralised a part of his marketing activities by
handing the flyer delivery or local company visits to his unit managers.
Regarding HR all franchisees practise a mix of centralisation and decentralisation. Thereby the
franchisees differ in the freedom they give their managers in hiring employees. Some franchisees
allow their unit managers to employ marginal employees, while others also give them the task to hire
part-time and full-time employees. This differentiation is made because part-time and full-time
employees spend more time in the unit and represent the company more. Therefore, the franchisees
often want to decide if those employees fulfil their requirements. Additionally, S5 stated that it has
higher labour law-related implications to fire a part-time or full-time worker than to fire marginal
employees. Thus, he has a high interest in finding the right employee and lowering the labour
turnover.
Other franchisees make a distinction between shift leaders that are employed by the franchisee while
the other employees are hired by the unit manager. This differentiation is due to the fact that shift
leaders have a higher degree of responsibility and as a result the franchisee wants to decide if he can
give this level of responsibility to an applicant and if he has the needed education. K17 sees the future
leaders for the business in the employees from shift leader onward and therefore wants to evaluate
himself if they are appropriate.
‘I don’t employ anybody who wants to work as shift leader or assistant manager his whole
life. I employ somebody for the position of shift leader or assistant manager if I think he can
maybe take over the operations manager position’ (K17).
Nine out of ten franchisees (except for S11 who does not employ unit managers) allow their unit
managers to employ marginal employees respectively employees below the shift leader. As reasons for
this decentralisation the franchisees mentioned:
• There is a high labour turnover in the food service industry. Hiring every employee would
consume too much time of the franchisee.
• To motivate the unit manager, the franchisee wants to give him some responsibility by
allowing him to form his own team.
• Every unit manager is different in terms of his characteristics and leadership style. As a result,
the unit manager should choose the employees himself to ensure a good team work.
• In the food service industry, a lot of applicants just walk into the unit and ask for a job. If they
were told that they have to meet somewhere else with the franchisee they might not turn up.
So if there is a contact person that can decide right away if he needs employees and if the
applicant might fit to the company, then there is a higher likelihood to bind those applicants.
• The unit managers have to reach certain performance results within their unit regarding
turnover or employee productivity. To reach their goals, the employees are a decisive ‘tool’,
so they need to be able to choose them.
Organisational Configuration within Multi-Unit Franchising Results
39
‘It doesn’t help if I take their tools and tell them: I expect good key figures but I don’t give
you any tools or choose your tools’ (J3).
D15 additionally allows his unit managers to employ shift leaders as he sees his unit manager as the
most important person within the business.
‘This task belongs to the area of responsibility of the unit managers as they are our talent
scouts’ (D15).
In the case of S11 the whole responsibility regarding employment is assigned to the operations
managers. This is due to the fact that the franchisee practices the leadership model called ‘Harzburger
Modell’ which says, among other things, that an employee identifies more with a decision if he thinks
it is his idea. So they leave this decision-making power to them.
K17 allows his unit managers to hire employees but not to fire them. He explained this by saying that
he wants to find out why the unit manager wants the employee to leave and to ensure that there is no
possibility to keep him.
‘In my career, in my experience and in my job I learned one thing. (…) There is no one person
on earth that does a bad job on purpose. (…) somebody worked well the last six month and
suddenly he does a bad job…. There has to be a story behind it’ (K17).
Besides the hiring and firing of employees the unit managers in all franchise businesses are
responsible for the training, supervision and motivation of all employees.
Another task that was decentralised by all franchisees – besides the operative business within the unit
which makes up the core of the work of the unit manager – is the ordering of goods by means of the
standardised franchisor supply chain.
Besides those aspects there were only minor other points centralised. K4 for example rented an
external office for his unit managers as a quiet workplace. Additionally, he has a central agent that
visits the restaurants and picks up the revenues to bring them to the bank. J3 centralised the cleaning
of his units by using an external company. S11 centralised the contracts with suppliers in areas like
repair, pest control or mobile phones to exploit cost savings due to economies of scale.
Organisational Configuration within Multi-Unit Franchising Discussion
40
5. DISCUSSION
The aim of this chapter is to discuss the topics raised in the literature review and the findings presented
in Chapter 4. When findings are substantial, propositions as directions for further research are
introduced.
5.1. Organisational Structure
The first sub-question is related to the organisational structure within the multi-unit business. The
depiction and comparison of the different organisational structures of the interviewed franchisees
shows that most of the franchisees make use of unit managers and mainly appoint one unit manager
per unit.
From a certain amount of units on the franchisees make use of operations managers. They function as
supervisor and first contact person. With the appointment of the operations manager the franchisee
mainly leaves the operational supervision of the business and focuses on the rising administrative
aspects of the business.
To summarise, the organisational structure outlined in the literature review with different layers
consisting of unit managers and operations managers is supported with only minor exceptions. Hence,
the assumption of Jones (1999) that there are different management layers and the statements of
Kaufmann and Dant (1996) and Kalnins and Lafontaine (2004) referring to the appointment of unit
managers can be confirmed.
However, there are no franchisees still managing all units on their own. So this suggestion the
researcher made in the literature review cannot be verified. The franchisees in this sample had at least
three units. Consequently, it could be concluded that this form of management might be prevalent if
the franchisee only owns two units. However, all franchisees reported that they appointed at least one
unit manager when they bought the second unit. Therefore, the possible parts of an organisational
structure within multi-unit franchising are:
Figure 17: Organisational Structure and its Components
Organisational Configuration within Multi-Unit Franchising Discussion
41
There is no clear pattern observable from when on an operations manager is needed. Looking at the
franchisees owning a smaller amount of units, one franchisee employs an operations manager while
the other franchisees with a comparable number of units do not. The amount of employees per unit can
only partly explain this. Some franchisees have a lower amount of total employees to supervise than
the franchisee employing an operations manager, however, one franchisee has more employees and
does not employ an operations manager. Therefore, for this franchisee another reason must play a role.
An additional explanation for this franchisee might be that he considers his unit managers more as
executive staff than the other franchisees owning a comparable amount of units. He articulated during
the interview that he gives his unit managers a high amount of freedom for operational decisions. Due
to this higher level of responsibility the unit managers in this franchise business take over tasks that
belong to the area of responsibility of the operations manager in comparable organisations. Therefore,
the franchisee does not need to employ an operations manager. As a result, a combination of the
number of units, the employees in total and the latitude the unit managers have could indicate when
operations managers are employed.
Proposition 1: The higher the number of owned units as well as employees per unit and the
lower the responsibility of the unit managers, the more likely is the appointment of operations
managers.
Supportive employees are more prevalent in businesses with more franchise units. Here the number of
owned units seems to be more decisive than the number of employees in total. However, one
franchisee owning only three units employs a clerk. A possible explanation could be how many
external service companies contract with the franchisee. It might be possible that some of the
franchisees owning a lower amount of units outsource their book keeping, tax affairs or personnel
administration while this franchisee employs a clerk to take over a part of these tasks.
Proposition 2: The higher the amount of franchise units within a multi-unit franchise business
and the lower the amount of service companies performing supportive tasks, the more likely is
the appointment of clerks.
In the literature review it was suggested that the organisational structure is comparable to the
divisional configuration like explained by Burton et al. (2006). This can be confirmed as every
franchise unit constitutes an own business which can to a certain degree perform independently from
the other units. Burton et al. (2006) state that the divisional structure functions best if there is limited
involvement from the top which gives the unit the opportunity to focus on the market regarding
products, customers or region. It is controversial if this limited involvement is decisive and needed in
the case of franchising as there is limited customisation possible to better serve local conditions due to
the high degree of standardisation imposed by the franchisor. Additionally, the units are usually in
close geographic distance so that there are no significant differences in markets or customer
preferences that could justify a customisation.
Organisational Configuration within Multi-Unit Franchising Discussion
42
The research shows that the organisational structure follows the single-line system, meaning that an
employee can only receive instructions from his direct supervisor. According to Nicolai (2009) this
has the advantage that is shows clearly for everybody with whom to communicate and from whom to
get instructions. Nevertheless, even though the franchisees explain their structure in this way, they do
not always follow it and talk to their unit managers directly. This can weaken the authority of the
operations manager. Additionally, it is revealed that the employees on one organisational level
frequently talk to each other. Following the argumentation of Fayol and Reineke (1929) this is
possible within the single-line system as long as the superiors know about this communication and are
informed about the outcome. In the current sample the franchisees knew and supported the
communication within one level. However, they were only informed about the outcome sporadically.
Proposition 3: Multi-unit franchisees apply the single-line system within their organisational
structure.
The organisational structure seems to influence the behaviour and tasks of the franchisee which is in
turn connected to the principal-agent problem. The franchisees without an operations manager see a
necessity to supervise their units. However, from the moment on when they employ an operations
manager this task mainly rests with him. To ensure that the operations manager acts in the interest of
the franchisee, the franchisees work with a bonus system.
Proposition 4: Multi-unit franchisees with a comparably low amount of owned units try to
ensure that the actions of their managers are in their interest by supervising the unit directly
themselves.
Proposition 5: When there is an operations manager employed, multi-unit franchisees try to
ensure that the actions of their managers are in their interest by granting performance-related
bonuses to their operations managers.
Interestingly, when the franchisees were asked if they think that the unit managers act in their interest,
nearly all franchisees confirmed it. Nevertheless, all franchisees also admitted that they see a necessity
to control their unit managers either by themselves or through operations managers.
Comparing the given answers about motives and reasons to apply a certain organisational structure
with the motives and reasons presented in the literature review in Chapter 2.3.1, it can be said that all
of these were mentioned during the research.
McDonald’s prescribes their franchisees to employ unit managers. However, from five franchise
systems that were interviewed this appeared only in one system. This could be due to the fact that
multi-unit ownership is highly prevalent in this franchise system so that the franchisor sees a necessity
to set special rules.
Proposition 6: The higher the amount of multi-unit franchisees within a franchise system, the
more likely the franchisor sets rules specifically for these multi-unit franchise businesses.
Organisational Configuration within Multi-Unit Franchising Discussion
43
The motive of costs plays a role only for one franchisee. On the opposite some other franchisees
emphasised that not having to pay a management salary, for example by appointing one unit manager
for two units or by not appointing an operations manager, would save money in the short term but in
the long term the performance of the team would decrease. This would be even more expensive than
hiring a manager. Even more, some franchisees think that hiring a manager increases the performance
more than the costs that are bound to it. Therewith this motive appears to be not of high relevance in
practice.
Looking at the leadership style of the interviewed franchisees it seems to be democratic in most
situations. The franchisees aspire an exchange with their employees. However, in certain situations,
the franchisees expect that rules are just followed. This is especially demanded in the case of the
standards imposed by the franchisor. In this case the leadership style appears autocratic. Nevertheless,
there are also situations in which franchisees could be classified as laissez-faire leaders, e.g. in
situations in which the franchisee gives his managers wide-reaching responsibilities. Therefore, a
franchisee seems not to have just one leadership style but the leadership style seems to be dependent
on the faced situation. Hersey et al. (2001) support that there are different leadership styles inherent in
one person and call it situational leadership style. Measured with the above definition, all interviewed
franchisees seem to have a comparable leadership style. As a result, it cannot be assessed if the
leadership style influences the organisational structure.
Advice from other multi-unit franchisees also plays a role for some franchisees. Therewith the view of
Lawrence & Kaufmann (2011) and Dickey (2003) saying that the relationship between the franchisees
influences their attitude and behaviour can be supported.
Proposition 7: The organisational structure of a multi-unit franchise business is influenced by
the organisational structure of other multi-unit franchisees within the same franchise system.
As a last point, it was proposed by the researcher that the availability of appropriate personnel to fill
the management positions as unit or operations managers influences the organisational structure. The
results here are ambiguous as two franchisees supported it but one franchisee contradicted this reason
during the interviews.
There are also other reasons to employ unit managers and operations managers mentioned by the
franchisees. The franchisees especially mentioned that there is a need for a contact person within the
unit so that the franchisee always has one responsible person and the employees do not contact the
franchisee for every problem. Moreover, the unit manager organizes the work within a unit and can
control the employees.
Proposition 8: The organisational structure of a multi-unit franchise business is influenced by the
need for a contact person within a unit to supervise and control the employees and to take
pressure off the multi-unit franchisee.
Organisational Configuration within Multi-Unit Franchising Discussion
44
5.2. Knowledge Sharing Across Units
Knowledge sharing was researched as second indicator of the organisational configuration.
Comparing the results with the literature, it can be said that the argument of Quinn et al. (1996) saying
that the knowledge sharing leads to a growth of the knowledge in total can be clearly supported.
Therefore it is promoted by all franchisees.
Proposition 9: Knowledge sharing across units leads to a growth of the total knowledge
inherent within the multi-unit franchise business.
Referring to the article of Sorenson and Sørensen (2001) it can be said that multi-unit franchising
seems to be able to use the knowledge generated within other units of the multi-unit franchise
business. So there appears to be a common knowledge base created by the franchisee. Due to this the
multi-unit franchisee seems to have the opportunity to learn from knowledge sharing more than the
single-unit franchisee trying to exchange his knowledge with other single-unit franchisees.
Moreover, the research revealed a second reason why the franchisees support the knowledge sharing
across units: It reduces the workload of the franchisee and the operations managers. Through
knowledge sharing the unit managers are able to solve problems that would otherwise have to be
handled either by the operations manager or the franchisee.
Proposition 10: Knowledge sharing across units facilitates to solve problems between unit
managers and reduces the workload for operations managers and the franchisee.
All interviewed franchisees see no advantage in stirring up the competition between the units instead
of fostering cooperation. They want their employees to help each other. However, when asked what is
discussed during formal meetings it turned out that the comparison of the performance across the units
is an important aspect. So there is competition inherent in their relationship. Therefore, the
relationship could possibly be characterized more as coopetition than cooperation. According to Tsai
(2002) and Luo (2005) coopetition can be described as an inter-unit relationship that has components
of cooperation and competition. This implies that the units must have a reason for competition. There
is competition in being the best-performing unit. But this might not be enough to classify the
relationship as coopetition. Tsai (2002) states that the competition implies rivalry for limited resources
of the company or the attempt to outperform other units offering comparable products. In the case of
multi-unit franchising the relationship might turn into coopetition when the bonus system is
interdependent, meaning a higher bonus for one manager implies a lower bonus for another manager.
Additionally, if there is close proximity between the units, they might vie for customers.
Consequently, it has to be assessed situation-specific if the relationship is cooperative including
unrestricted knowledge-sharing or if there is a reason to retain knowledge. If there are reasons for
inter-unit competition, this might negatively influence the willingness to share knowledge.
Organisational Configuration within Multi-Unit Franchising Discussion
45
The interviews did not allow a judgement if the formal or the informal knowledge sharing is more
expedient. It appears that both are of the same importance for the business but they seem to have
different goals. While the formal meetings seem to discuss problems on a company level the informal
knowledge sharing solves individual problems within the unit.
5.3. Standardisation
The degree of franchisor-independent standardisation is described as low by all franchisees. This can
be explained by the high degree of standardisation already imposed by the franchisor. These binding
regulations seem to lead to an efficient functioning and simplify bureaucratic operations so that there
is a limited need for more standardisation. Nevertheless, the franchisees see a necessity for some
standardisation within their business.
According to Aldrich (2008) the size and the complexity of an organisation encourages the
standardisation of procedures. However, in the specific case of multi-unit franchising the results from
the interviews do not unequivocally support this. The level of standardisation is not automatically
higher for businesses with more units.
Proposition 11: A growing number of units in the multi-unit franchise business does not lead
to a higher degree of franchisor-independent standardisation.
Nevertheless, it seems that the likelihood to develop a bonus system is higher for franchisees owning a
higher amount of units.
Proposition 12: A growing number of units in the multi-unit franchise business leads to a
higher likelihood to develop a bonus system.
5.4. Centralisation and Decentralisation
In the literature review it was predicted that tasks like finance, marketing and HR will be handled in a
centralised manner. The research partly supports this.
Finance is handled centrally by all franchisees. Supporting the argumentation of Brooke (1984), Child
(1984) and Carnall (2007) this is mainly due to the fact that it is a task of high strategic importance.
Proposition 13: Finance is an area of the multi-unit franchise business that is handled by the
multi-unit franchisee in a centralised manner.
Nine out of ten franchisees centralised the marketing tasks that can be made independently from the
franchisor. But different to finance where mainly the strategic importance for the business seems to be
decisive, the local knowledge of the unit seems to play a role here aswell. As a result, three franchisees
decentralised the marketing partly. This decision was lead by considerations taking into account the
local conditions. Child (1984) presents this as a reason for decentralisation. However, it is
Organisational Configuration within Multi-Unit Franchising Discussion
46
questionable how wide-reaching the freedom of decision of the employees in this area is. As there is
involvement by the franchisee the contribution of the manager might only lie in the execution of
already designed marketing tools. This decentralisation of supportive tasks then is in line with the
suggestions made in the literature review. Hence, there is no clear pattern observable regarding the
centralisation or decentralisation of marketing tasks.
Moreover, when asked for the motives and reasons for the centralisation of HR and marketing, it was
mentioned by the interviewees that a broad overview about the company is needed to perform the
tasks adequately like suggested by Brooke (1984), Child (1984) and Carnall (2007).
HR is handled by a mixture of centralisation and decentralisation. The personnel with a higher degree
of responsibility and/or more presence within the unit is of higher strategic importance for the unit due
to the higher responsibilities and therefore their hiring is centralised. Nearly all franchisees explained
during the interview that they prefer to fill vacant management positions internally, meaning that they
find their future leaders within the company. This is a common strategy (De Souza, 2002; Rothwell,
2010) and could be another argument for the centralisation. The franchisees want to keep promising
candidates for management positions under review and decide when and if they should be promoted
On the other hand, marginal employee handling is deliberately decentralised which is mainly a result
of time considerations by the franchisee and shall increase the motivation of the manager.
Additionally, it takes into considerations the opportunity for the unit manager to form a well-
functioning team with which he can reach his prescribed performance goals. Moreover, the training,
motivation and supervision of employees are decentralized as it is regarded as a part of the operational
business. Therewith the reasons for decentralisation described in the literature review by Brooke
(1984), Child (1984) and Carnall (2007) are confirmed in practice.
Proposition 14: Within HR management, the personnel with a higher degree of responsibility
and/or more presence within the unit is managed in a centralised manner while the marginal
employee handling is decentralised.
Organisational Configuration within Multi-Unit Franchising Conclusion
47
6. CONCLUSION
This chapter starts by summarizing the conducted research in the first section followed by presenting
the academic and managerial implications. Afterwards the limitations are presented. It ends with
constituting areas for further research.
6.1. Summary of the Research
This exploratory research aimed to shed some light on the so far underresearched topic of the
organisational configuration of the multi-unit franchise business by investigating the four factors
organisational structure, knowledge sharing across units, level of standardisation and level of
centralisation/decentralisation from a franchisee perspective. To achieve this aim ten multi-unit
franchisees from five different franchise systems within the system catering industry owning between
three and 17 units on the German market were interviewed.
It can be said that there are patterns identifiable across different franchising systems and multi-unit
franchisees owning a different number of units. However, there are still differences in the handling of
the mentioned points within one franchise system and between multi-unit franchisees with the same
amount of units belonging to different franchise systems. Different motives and reasons play a role
and were investigated for three out of the four sub-topics.
Looking at the organisational structure, it was disclosed that most multi-unit franchisees make use of
unit managers and from a certain size of the business on also employ operations managers. Deputy
general managers and clerks are used aswell. The motivations for a chosen organisational structure are
diverse, reaching from a rule set by the franchisor, advice from other multi-unit franchisees to the need
for a contact person within the unit. Considering the second indicator describing the organisational
configuration, it was revealed that all multi-unit franchisees support the formal and informal
knowledge sharing between their units to make use of the increased knowledge of their employees and
the reduced need for involvement by the multi-unit franchisee and the operations manager. The level
of franchisor-independent standardisation is low and the level of standardisation does not
automatically increase with a growing number of owned units. Regarding the research made in the
area of centralisation and decentralisation, it was found out that finance is centrally handled by the
multi-unit franchisees due to its high strategic importance. Marketing is mainly standardised. The
multi-unit franchisees that decentralised a part of their marketing make use the local knowledge of
their unit managers. HR is handled by a mixture of centralisation and decentralisation. The personnel
with a higher degree of responsibility and/or more presence within the unit is of higher strategic
importance for the unit and therefore their hiring is centralised. Marginal employee handling is
deliberately decentralised which is mainly a result of time consideration by the multi-unit franchisee
and shall increase the motivation of the manager.
Organisational Configuration within Multi-Unit Franchising Conclusion
48
By taking into consideration the four aspects presented above defined as the indicators of the
organisational configuration, the main research question was answered.
When picking up the principal-agent problem inherent in multi-unit franchising that was explained in
the introduction, it can be said that the multi-unit franchisees are aware of this problem. While multi-
unit franchisees with a comparably low amount of units try to manage the employee supervision
themselves, multi-unit franchisees with more franchise units align the actions of their managers to
their interests by introducing a bonus system.
6.2. Academic and Managerial Implications
Franchising is a topic that is of increasing importance in business management and that is today more
often the focus of research (Dada et al., 2010). Therefore, this master thesis aims to contribute on two
levels, theory and practice:
Firstly, it theoretically enhances the knowledge about the management of multi-unit franchise
businesses. These considerations fit in seamlessly with the current state of the literature and help to
specifically enrich the knowledge about multi-unit franchising as well as the franchisee’s perspective
on franchising. Therewith this research aims to enrich the knowledge about a topic which is already
common in today’s business world. In detail, this master thesis contributes by extending the
knowledge about multi-unit management in general and about the organisational configuration of
multi-unit franchise businesses specifically. Thereby it represents the first paper to study this area
within multi-unit franchising. It shows first findings, however, there is still a wide array of topics for
future research. Thus it presents several propositions as directions for further research that should be
picked up by other researchers to explore this field of franchising more in depth.
Secondly, the gained knowledge can support (aspiring) multi-unit franchisees in their decision if to
conduct multi-unit franchising by giving them a first indication about what to expect in terms of
organisational configuration. If they decide to become multi-unit franchisees, this research shows them
a first starting point about how to organize their business and which questions they need to consider
deciding on the most targeting configuration for them. Additionally, it helps franchisors in developing
the right support and training for their multi-unit franchisees. Moreover, it assists the franchisor in
understanding his multi-unit franchisees in a better way and the tasks and challenges they face. This
facilitates the communication between the franchisor and the multi-unit franchisee and is especially
important for franchisors that do not maintain company-owned units themselves but function as mere
administrators of the franchise brand and are therefore not that experienced with the maintenance of
several units.
Organisational Configuration within Multi-Unit Franchising Conclusion
49
6.3. Limitations
This master thesis is not without limitations. Firstly, even though ten multi-unit franchisees gave a first
insight into different forms of organisational configuration within multi-unit franchising, it does
certainly not reflect the German market in general. Therefore, further research should be conducted by
investigating the topic with a sample representative for the whole German market. Additionally, this
study addresses a specific industry, the system catering industry. The results for other industries like
fitness service or retail may vary considerably.
Furthermore, this study focuses on a specific group of multi-unit franchisees, namely franchisees that
pursue sequential multi-unit franchising by starting with one unit and gradually adding units to their
business. There may lay a difference in the organisational configuration if – like in the case of master
franchising – the task of the franchisee mainly lies in finding sub-franchisees to expand the business.
In the case of master franchising the organisational structure of the business is most-likely less
influenced by the principal-agent-problem as the franchisee contracts with sub-franchisees that are in
turn responsible for their units so that the franchisee acts more like a franchisor below the main
franchisor.
Another limitation concerns the results of the study which rely on data gathered during interviews. No
other data sources were used. This is due to the fact that there are no secondary sources holding the
information required. Only the multi-unit franchisee can answer the questions, especially when it
comes to the revelation of motives. As a result, the statements of the multi-unit franchisees could not
be verified.
Moreover, the basis of the research are in-depth interviews conducted by the researcher herself. This
might lead to the overinterpretation or misinterpretation of answers. However, as this study was
exploratory in nature, semi-structured interviews were the best way to gather a wide array of data to
identify first patterns. Additionally, the researcher tried to prevent investigator bias by reading and
rereading the transcripts several times.
6.4. Further Research
As indicated above, the chosen sample is not representative for the whole German market and was
conducted in a specific industry. Therefore, the researcher advises to conduct the research again by
selecting different industries and testing it on a larger scale with a more representative sample to
increase the generalisability.
During the discussion different propositions were introduced as a result of the research. To enhance
the knowledge about the organisational configuration of multi-unit franchise businesses, researchers
should use these propositions as a starting point for future research. Moreover, the research showed
ambiguous results for certain subjects. To shed more light on these subjects, researchers should pick
them up again and investigate them more in detail.
Organisational Configuration within Multi-Unit Franchising Conclusion
50
During the interviews it was noticeable that the multi-unit franchisees from McDonald’s and KFC, the
two franchise systems that operate company-owned units, often had a comparable point of view about
a topic. Even though these topics were not in the direct sphere of influence of the franchisor, it seems
that the franchisor does indirectly influence the multi-unit franchisees and their point of view and
behaviour. Therefore, it would contribute to the knowledge about multi-unit franchising to examine in
which way the culture lived by the franchisor influences the organisational configuration the multi-
unit franchisee chooses and which role the company-owned units play in this process.
In the literature review it was stated that there is no research conducted on the difference in
management challenges between single-unit and multi-unit franchisees. As a recommendation for
research this topic should be addressed to reveal what differences exist in which intensity. The
conducted interviews already show that there is a difference between the management challenges of
those two kinds of franchisees. Additionally, the interviews indicate that there are differences in the
question which tasks belong to the responsibility of which manager within the multi-unit business and
therefore it deserves more attention.
During the interviews the multi-unit franchisees revealed different reasons for becoming multi-unit
franchisees. These reasons range from seeing the multi-unit business as personal pension insurance to
the insight from a single-unit franchisee that he is unchallenged and could achieve more. Therefore,
further research should be conducted in this area. This might be an enhancement to the research of
Grünhagen and Mittelstaedt (2002) who justify the existence of multi-unit franchising from a
franchisee perspective with the existence of economies of scale and increased influence upon the
franchisor.
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51
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Organisational Configuration within Multi-Unit Franchising Appendix 1
55
APPENDICES
APPENDIX 1: INTERVIEW SCHEDULE
Interview Schedule for semi-structured interviews regarding the research topic
‘Organisational Configuration within Multi-Unit Franchising’
1. Introduction
• How many units do you own from which franchise system?
• In which sequence and when did you acquire them?
• Did you intent to become a multi-unit franchisee from the beginning?
• Did you have previous experience in franchising?
• Are your units located close to each other?
• In which aspects do your units differ (location, employees, customers etc.)?
2. Main Interview
2.1. Organisational Configuration
• How is the company structure/organisational chart? What are your different management
layers?
• Why did you design your company structure like this (motives & reasons)?
• Why do you employ unit managers/area managers etc. (motives & reasons for every
management layer)?
• Did anybody advice you on how to best manage multiple units?
• How are the reporting structures within the company?
• Is there a clear structure who reports to whom within your business?
• How do you ensure that managers act in your interest (principal-agent problem)?
• How much are you still involved in the day-to-day business?
• How would you describe your management style and did it change with the growth of the
business or over time?
(a) In case of multi-unit management alone
• Why did you decide to manage the business on your own?
• What are your main tasks and responsibilities?
• How do you decide how much time you spend on which tasks?
• Do your employees have more tasks and responsibilities with a growth of the multi-unit
business?
• How did your tasks and responsibilities change with a growth of the multi-unit business?
Organisational Configuration within Multi-Unit Franchising Appendix 1
56
(b) In case of multi-unit management with the help of unit managers
• Was it a deliberate decision to manage the several units with the help of unit managers?/ Why
did you employ unit managers?
• When did you first employ unit managers (how many units owned)?
• How many units are the unit managers responsible for and why?
• Why did you choose these unit managers?
• What are the main tasks and responsibilities of the unit managers?
• How high is the autonomy of the unit managers and why?
• How do you/the unit managers decide how much time they spend on which tasks?
• Do you think the organisational structure you chose is the right one?
(c) In case of multi-unit management with the help of operations managers
• Was it a deliberate decision to manage the several units with the help of operations managers?/
Why did you employ operations managers?
• When did you first employ operations managers (how many units owned)?
• How many units are the operations managers responsible for and why?
• Why did you choose these operations managers?
• What are the main tasks and responsibilities of the operations managers?
• How high is the autonomy of the operations managers and why?
• How do you/the operations managers decide how much time they spend on which tasks?
• Do you think the organisational structure you chose is the right one?
(d) Other management layers
• Which other managers do you employ and why (motives & reasons)?
• Why did you choose these managers?
• What are the main tasks and responsibilities of the managers?
• How high is the autonomy of the managers and why?
2.2. Knowledge Sharing
• Is there knowledge sharing between the different franchise units?
• Do the unit managers talk to each other on a regular basis?
• Do the operations managers talk to each other on a regular basis?
• In which forms is knowledge shared?
• Is there knowledge sharing on a formal level and why?
• Do your employees communicate informally without your involvement and why?
• What topics do your employees discuss when talking to each other informally?
Organisational Configuration within Multi-Unit Franchising Appendix 1
57
2.3. Standardisation
• How high would you describe the level of standardisation imposed by the franchisor?
• What did you standardize within your business independent from the already imposed
standardisation of the franchisor?
2.4. Centralisation/Decentralisation
• Which tasks did you centralise within your multi-unit business (meaning performed by the
franchisee)
• What is the reason for the centralisation of these tasks?
• Which tasks did you decentralise within your multi-unit business (meaning performed by, for
example, unit managers, operations managers)?
• What is the reason for the decentralisation of these tasks?
Organisational Configuration within Multi-Unit Franchising Appendix 2
58
APPENDIX 2: INFORMATION SHEET
Organizational and operational management
and its motives and reasons within multi-unit franchising
Participant Information Sheet
INVITATION
You are invited to take part in a research study which is conducted as part of a master thesis project
by a postgraduate student from Newcastle University Business School and Rijksuniversiteit
Groningen. Before you decide to participate in this research study it is important for you to
understand why this study is being done and what it will involve. Please take your time to read the
following information carefully. Please ask the researcher if there is anything that is not clear or if
you would like more information. Thank you for reading this.
PURPOSE OF THE STUDY
This research study attempts to investigate how multi‐unit franchisees manage and organize their
multiple units and what the motives for this kind of management are.
RESEARCH PROCESS
If you decide to take part in this research, you will be interviewed from a researcher. The interview
will take from 30 to 60 minutes. The questions will attempt to investigate how the participating
multi‐unit franchisee manages and organizes the several units. The whole interview process will be
recorded, and records will be used as research data.
EXCURSION CRITERIA
The focus on this research is on multi‐unit franchisees owning at least two units within one franchise
system. Given this, you would not be able to participate if you do not fit in the above criteria.
Newcastle University
Business School
5 Barrack Road
Newcastle upon Tyne, NE1 4SE, England
Study Supervisor: Prof. Markus Blut
E‐mail: [email protected]
Phone: +44‐19 12 08 17 07
Rijksuniversiteit Groningen
Faculty of Economics and Business
Nettelbosje 2
9747 AE Groningen, The Netherlands
Study Supervisor: Henk Ritsema
E‐mail: [email protected]
Phone: +31‐503 63 38 44
Researcher: Maren Overmann
E‐mail: [email protected]
Phone: +49‐178 712 33 43
Organisational Configuration within Multi-Unit Franchising Appendix 2
59
BENEFITS OF PARTICIPATION
As your participation in this study is voluntary, the collection of data for this study will not benefit
you directly, but it is of great importance for this research study.
PARTICIPANT'S RIGHTS
Your participation in this study is voluntary and it is up to you to decide whether or not to take part.
If you decide to join this study, you will be asked to sign a consent form; you will be given a copy of
this to keep. However, you will still be free to withdraw from the study at any time without prejudice
and without giving a reason. In the event of a withdrawal, you have the right to ask that any data
provided to that point, will be excluded from the research or/and destroyed.
You have the right to omit or refuse to answer or respond to any question that is asked to you.
COMPLAINTS
In case of any complaints, you can contact either the researcher (Maren Overmann) or one of the
two study supervisors (Henk Ritsema and Markus Blut).
CONFIDENTIALITY/ANONYMITY
All information about your participation in this study will be kept confidential. Only the researcher
and the supervisors will have access to the data. Other researchers will have access to this data only
if they agree to preserve the confidentiality of the data and if they agree to the terms specified in this
form and the consent form. According to your wishes, the gained data can be used openly or can be
anonymised. If the data is used openly, your name will be used and what you have said or written as
part of this study will be used in reports, publications and other research outputs so that anything
you have contributed to this project can be recognised. If the data is anonymised, your name will not
be used in the context of the study.
RESULTS OF THE STUDY
The results of this study will be used for academic reasons and for the completion of a master thesis.
If you want to find out about the final results of this study, please contact the researcher or the
student supervisors.
Thank you for taking time to read this information.
Organisational Configuration within Multi-Unit Franchising Appendix 3
60
APPENDIX 3: CONSENT FORM
I, the undersigned, confirm that (please tick box as appropriate):
1. I have read and understood the information about the project, as provided in the
Information Sheet dated XX.XX 2013.
�
2. I have been given the opportunity to ask questions about the project and my
participation.
�
3. I voluntarily agree to participate in the project.
�
4. I understand I can withdraw at any time without giving reasons and that I will not be
penalised for withdrawing nor will I be questioned on why I have withdrawn.
�
5. The procedures regarding confidentiality have been clearly explained (e.g. use of
names, pseudonyms, anonymisation of data, etc.) to me.
�
6. I understand that the interview will be audio‐recorded and agree to it.
�
7. The use of the data in research, publications, sharing and archiving has been explained
to me.
�
8. I understand that other researchers will have access to this data only if they agree to
preserve the confidentiality of the data and if they agree to the terms I have specified
in this form.
�
9. Select only one of the following:
• I would like my name used and understand what I have said or written as part
of this study will be used in reports, publications and other research outputs so
that anything I have contributed to this project can be recognised.
• I do not want my name used in this project.
�
�
10. I, along with the Researcher, agree to sign and date this informed consent form.
�
Participant:
________________________ ___________________________ ________________
Name of Participant Signature Date
Researcher:
________________________ ___________________________ ________________
Name of Researcher Signature Date
Organisational Configuration within Multi-Unit Franchising Appendix 4
61
APPENDIX 4: SAMPLE INTERVIEW TRANSCRIPT
Interview X, Multi-Unit Franchisenehmer Vapiano
F – Multi-Unit Franchisenehmer
I – Interviewer
I: Dann fange ich einfach mal an. Sie sind Multi-Unit Franchisenehmer von Vapiano.
F: Genau.
I: Wie viele Geschäfte haben Sie?
F: Drei. Münster, Osnabrück und Bielefeld.
I: Ok. Wann haben Sie diese Geschäfte eröffnet?
F: Münster habe ich im März 2007 eröffnet, Osnabrück im August 2009 und Bielefeld letztes Jahr im November.
I: Ok. Die haben Sie auch alle selbst eröffnet, also nicht gekauft sondern selbst eröffnet?
F: Alles Neueröffnungen.
I: Ok. War das von Anfang an der Plan, dass Sie mehrere haben?
F: Also mein Plan war es schon mehrere zu machen, aber Vapiano vergibt in Deutschland ja nur Einzelfranchisegeschäfte. Und beurteilt natürlich immer, ich sage mal, anhand der Leistungen, die sie selber bringen fürs System usw. ob sie da noch in der Lage sind, ein zweites oder eventuell auch ein drittes Restaurant zu eröffnen.
I: Ok. Dann zum Aufbau Ihrer Geschäfte. Also als Sie ein Geschäft hatten, haben Sie wahrscheinlich noch selbst Restaurantleitung gemacht, gehe ich mal von aus.
F: Genau.
I: Wie hat sich das jetzt geändert mit dem zweiten und dritten Geschäft?
F: Ja, ich sage mal in dem Moment, wenn du das zweite Geschäft letztendlich auch schon angehen willst, in der Planung bist, musst du dich aus dem anderen Geschäft schon aus der Restaurantleitung zurückziehen, weil die Zeit nicht mehr da ist den Job dann, sage ich mal, mehr oder weniger zu 100% auszufüllen. Also ich sage mal sobald man das Go von der Zentrale kriegt ein zweites Geschäft aufzumachen, so habe ich das zumindest immer gemacht, und für mich sich abzeichnet da tut sich was in einer anderen Stadt, auch flächentechnisch, bin ich sofort daran auch ein zweites Management aufzubauen, so ein Schattenmanagement. Wenn ich das Restaurant eröffne, dass ich im Prinzip sofort ein fertig ausgebildetes Management vor Ort habe. Und dieses Schattenmanagement nimmt mir dann letztendlich auch diese erhöhte Arbeit in dem einen Restaurant ab, was läuft, was ich halt nicht mehr selber betreue.
I: Ok, das heißt Sie haben mit der Zusage des zweiten hier praktisch schon einen Restaurantmanager eingestellt und das gleiche schon während des Aufbaus praktisch für das zweite Geschäft entwickelt.
F: Bei mir ist immer so die Vorlaufzeit für einen Betriebsleiter 6 Monate. Dass ich den 6 Monate lang aufbaue in dem einen bestehenden Restaurant. Und dass er dann quasi in dem Moment, wenn das Restaurant aufmacht, dass er sofort von Tag eins an da auch operativ tätig sein kann und sich nicht mit sich selbst beschäftigt. Das ist ja immer die Gefahr, wenn ein Geschäft neu aufmacht, dass man am Anfang unheimlich viele Fehler macht und da ist es aus meiner Sicht intelligenter man investiert vorher ein bisschen mehr Geld in die Ausbildung, aber ich denke das zahlt sich dann relativ kurzfristig schon wieder aus.
I: Ok, das heißt die werden in einem bestehenden Geschäft eingearbeitet und wissen dann ganz genau, was sie zu tun haben, wenn sie ins Neue kommen.
Organisational Configuration within Multi-Unit Franchising Appendix 4
62
F: Genau.
I: Gibt es noch ein Management dahinter, also hinter dem Restaurantleiter?
F: Ich fahre meine Geschäfte mit einem Betriebsleiter und drei Managern noch, also Schichtführern oder wie auch immer man das auch immer nennt.
I: Ok. Und das war auch im ersten Geschäft, gab es da auch schon unter Ihnen vier Schichtführer?
F: Ja, ich bin mal angefangen mit drei, aber damals war auch noch nicht so klar, sage ich mal, das war ja eins der ersten Vapianos, was in einer etwas kleineren Stadt aufgemacht wurde, das war das 20. Vapiano weltweit und mittlerweile sind wir schon bei über 130. Und damals gabs halt Vapianos immer nur in größeren Städten. Da war man sich überhaupt nicht klar wie läuft das, was machen die für Umsätze und von daher, sage ich mal, habe natürlich auch versucht den Kostenrahmen erstmal so straff wie möglich zu halten. Zum Glück haben wir hier sofort gute Umsätze gemacht, so dass ich dann sage ich mal dann auch schnell aufgestockt habe.
I: Ok. Grundsätzlich als Grund, dass Sie sich am Anfang überlegt haben mit Restaurantleitern zu arbeiten, was war der primäre Grund?
F: Jetzt einen Betriebsleiter überhaupt einzustellen?
I: Mmh.
F: Ich denke mal es macht immer Sinn, wenn ein Geschäft auf zwei gesunden Beinen steht. Letztendlich ist man auch nur Mensch, man kann krank werden, man will sich letztendlich auch auf andere Sachen fokussieren. Und mein primäres Ziel liegt jetzt nicht in der Gewinnmaximierung von Stunde null an, sondern ich betreibe meine Geschäfte langfristig und ich denke da ist es dann auch gut, wenn auch neben dem Inhaber noch ein Betriebsleiter mit vor Ort ist.
I: Gibt es da auch Vorgaben von Vapiano? Also muss man Restaurantleiter haben oder muss jedes Geschäft einen haben?
F: Also es gibt schon so eine Strukturvorgabe von Vapiano. Aber der Restaurantleiter kann ja auch zwingend der Betriebsleiter oder der Franchisenehmer sein vor Ort.
I: Auch wenn es mehrere Geschäfte gibt, also Sie können praktisch von Vapiano aus auch…
F: Also ich kann mich ja dauerhaft auch hier als Betriebsleiter in Münster etablieren, sage ich jetzt mal. Und hier einfach einen Stellvertreter installieren auf dem Papier. Aber ich denke das macht langfristig, macht das keinen Sinn.
I: Ok, aber Sie können jetzt nicht gleichzeitig in Osnabrück und in Münster….
F: Könnten könnte ich alles. Aber es macht keinen Sinn sage ich mir. Das ist so.
I: Aber denken Sie, dass ein Geschäft führen schon ein Vollzeitjob ist?
F: Ja.
I: Also Sie könnten gar nicht….
F: Also ich sage mal, als Beispiel: Ich habe ja früher auch bei McDonalds gearbeitet, ich komme aus der McDonalds Schiene. Und Vapiano ist schon ne Nummer härter noch, weil Sie einfach eine andere Restaurantgröße haben. Und bedingt dadurch, dass wir ja eine eigene Produktion im Haus haben, ja, wir machen ja alles selber, wir machen die Nudeln selber, wir machen den Teig selber, wir machen alle Soßen, alle Dressings, wir schneiden das Gemüse vor Ort klein. Das heißt Sie haben auch einen erhöhten Personalbedarf. Ich sage mal so eine durchschnittliche McDonalds Filiale fahren Sie mit 40 Mitarbeitern, ich habe hier in Münster 110. So, und dann wissen Sie, was ein Betriebsleiter zu tun hat. 90% seiner Zeit ist er irgendwie mit People beschäftigt.
I: Ja. Wie viele Vapiano Franchisenehmer gibt es denn eigentlich, die mehrere haben? Haben das viele?
F: Also es gibt schon in Deutschland… Also im Ausland werden ja sowieso Länderfranchise vergeben. Da hat man natürlich, sage ich jetzt mal, sobald ein zweites aufmacht, sind das Multi-
Organisational Configuration within Multi-Unit Franchising Appendix 4
63
Franchisenehmer. In Deutschland war es lange so, dass erstmal die Franchisenehmer einzelne Geschäfte hatten. Aber mit der zunehmenden Expansion und ich sage mal so ab 2009 fing es an, dass die ersten Franchisenehmer ein zweites Geschäft hatten.
I: Ok. Gibt es denn welche, die viel mehr als drei haben?
F: Nein.
I: Also drei ist schon so das….
F: Ich bin der, der drei hat.
I: Sie sind der Größte.
F: Ich bin der Größte.
I: Ok, ja. Das macht ja auch Sinn, wenn man mal so ein bisschen vergleicht. Bei McDonalds ist es ja eigentlich alles sehr…
F: Na gut, aber ich sage mal, Vapiano hat in Deutschland knapp über 60 Geschäfte und McDonalds hat ich glaube mittlerweile 1300 irgendwas. So, da ist natürlich die Chance, dass Sie mehrere Geschäfte als Franchisenehmer haben durchweg gegeben.
I: Ja, das stimmt.
F: Auch bedingt dadurch, dass Sie ganz andere Restauranttypen haben. Also wenn Sie in so einer Stadt wie Münster sind, sage ich mal haben Sie die Möglichkeit also Expresse zu machen, im Bahnhof, in irgendwelchen Shoppingcentern. Und das gibt es bei Vapiano ja noch alles gar nicht. Wird mit Sicherheit irgendwann mal kommen. So wie ein Freestander kommen wird bei Vapiano, so wird dann auch irgendwann, wenn man sage ich mal seine Sache ausexpandiert hat, dann wird die Zentrale sich ja irgendwann mal überlegen: wir wollen ja weiterwachsen, wo gibt es Möglichkeiten. So, und dann muss man halt in kleine Regionen jetzt gehen oder sich was überlegen.
I: Ja. Ja, ich habe bei McDonalds auch schon gelernt, dass ist es glaube ich einfacher wenn McDonalds glaube ich mal ein paar Geschäfte loswerden möchte, dann suchen die sich glaube ich einfach immer einen, der das einfach übernimmt. So geht das ein bisschen schneller.
F: Ja gut, 1992 bin ich mal angefangen bei McDonalds. Das war gerade Restaurant Nummer 400, was da eröffnet hat. So, und dann hatten die wirklich stark expandiert in der Zeit nur mit Franchisenehmern. Und das war natürlich auch so eine Zeit da kam die Mauereröffnung und die Geschäfte florierten alle weil die Wirtschaft lief und…. Dann hat McDonalds irgendwann mal gesagt: wir machen jetzt alles selber. So, haben dann unheimlich viele Geschäfte selber aufgemacht. Nur McDonalds ist der bessere Franchisegeber, aber nicht der bessere Restaurantbetreiber. So, und als sie dann gemerkt haben, dass sie selber schwerlich Geld verdienen und operative Probleme haben in ihren Restaurants, haben Sie dann wirklich ganz viele Restaurants auch wieder verkauft an Franchisenehmer.
I: Ok. Nochmal zum Aufbau zurück. Also Sie haben vier Manager, darüber haben Sie einen Restaurantleiter, darüber stehen Sie. Werden Sie noch von irgendjemandem unterstützt? Also, Verwaltung, oder haben Sie so etwas wie bei McDonalds immer gerne, einen Bezirksleiter.
F: Ja gut, Sie werden ja betreut, so nennt man das ja immer von dem Franchisegeber. Das ist ja eigentlich in jedem System genauso. Der Betreuer kommt in unregelmäßigen Abständen vorbei. Der hat auch eine Kontrollfunktion wo er bestimmte Sachen kontrollieren muss. Also Vorgaben des Franchisegebers ob die eingehalten werden. So Standard, Haltbarkeitsdaten, Sauberkeit. Dann gibt es angekündigte Besuche einmal im Jahr, wo so ein Zwei-Tages-Audit gemacht wird. Das ist eigentlich auch gängig in allen Systemen. Wo die bestimmten Vorgaben wieder abgeprüft werden, wo Sie dann letztendlich auch als Franchisenehmer beurteilt werden mit solchen Sachen. Sie haben unregelmäßige Besuche von einem externen Institut, wo Sie halt aus Sicht des Gastes gecheckt werden und Infos kriegen.
I: Ok. Aber ansonsten machen Sie noch alles selbst? Also die ganze Verwaltung für alle drei Geschäfte machen Sie noch?
Organisational Configuration within Multi-Unit Franchising Appendix 4
64
F: Also ich sage mal ich habe die Oberkoordination in der Hand und ich gucke, dass überall alles läuft. Aber meine Buchhaltung und mein Personalwesen habe ich ausgelagert. Also Lohnabrechnungen etc.
I: Ok. Das heißt Sie haben dann einen Steuerberater und…. Ok.
F: Ich sage mal wir machen alles hier fertig und schicken es dann letztendlich zur Endfinalabrechnung weg. Ich sage mal alle Rechnungen laufen über meinen Schreibtisch und werden freigegeben und gehen zum Steuerberater halt zum Kontieren und Verbuchen. Und bei den Lohnabrechnungen ist es, ich sage jetzt mal, Sie haben eine Lohnübersicht, am Monatsende werden die ganzen Löhne eingetragen, Urlaub eingetragen und Krankentage eingetragen und Nachtzuschläge eingetragen und der Steuerberater sage ich mal macht das dann letztendlich diese aufbereitete Datevform und zahlt dann die Löhne letztendlich oder bereitet alles vor und ich zahle aus.
I: Wie weit ist denn der Verantwortungsbereich von den Restaurantleitern?
F: Also die Restaurantleiter sage ich mal sind sage ich jetzt mal im Groben und Ganzen für den täglichen Ablauf des Geschäfts verantwortlich, sind verantwortlich für den Dienstplan, letztendlich auch die daraus entstehenden Kosten. Und Training. Also Materialeinsatz, Wareneinsatz. Ich sage mal, dass sind ja die beiden größten Blöcke im Restaurant, Personalkosten und Materialeinsatz. So, wir machen ja für jedes Restaurant ein Budget. So, und anhand des Budgets kann der Betriebsleiter sage ich mal gucken, wie sind seine Kosten im Vergleich zum Budget. So, da sollte er sich natürlich idealerweise sage ich mal dran halten. Das sind jetzt auch keine utopischen Werte, sondern es sind ja Erfahrungswerte, das sind Werte die aus der Vergangenheit herrühren. Das sind Werte, wo ich weiß, wenn ich jetzt… Als Beispiel, wir hatten jetzt im Juni eine Tariferhöhung. So, wenn ich ein Budget mache, muss ich natürlich ab Juni erhöhte Personalkosten einplanen, wenn ich keine Preiserhöhung in der Zwischenzeit mache. So, und das sind ja Sachen, die dann auch wirklich so geplant werden und wo der Betriebsleiter sich dann dran halten muss und letztendlich auch messen lassen muss. Weil ein Betriebsleiter kriegt ein Gehalt und er kriegt auch eine Bonifizierung. Und die Bonifizierung hängt natürlich letztendlich von dem Betriebsergebnis ab, was er selber auch erzielt. Und meine Arbeit ist es, sage ich mal, zu gucken, dass die Betriebsleiter auch in die Richtung laufen. Das wir sage ich mal betriebswirtschaftlich erfolgreich sind. Weil ich sehe meine Arbeit darin die sage ich jetzt mal diese drei Betriebe zu führen, die Betriebsergebnisse jeden Monat, wir machen ja monatliche Betriebsauswertungen, und anhand der Betriebsauswertung eventuell Maßnahmen im Restaurant mit anzuschieben. Damit es nicht in die falsche Richtung läuft.
I: Ok. Das heißt Sie machen praktisch die Budgetpläne, geben die weiter und die Restaurantleiter schauen, dass das auch alles entsprechend läuft.
F Genau.
I: Wie läuft das denn mit den Mitarbeitern, wer stellt denn zum Beispiel die Mitarbeiter ein?
F: Der Betriebsleiter. Alle Betriebsleiter bei mir sind leitende Angestellte und kriegen damit auch die Vollmacht Mitarbeiter ein- und auch wieder auszustellen.
I: Auch für Ihre Schichtführer oder…?
F: Ne, das mache ich selber.
I: Das machen Sie….
F: Management stelle ich ein und der Betriebsleiter stellt alle normalen gewerblichen Mitarbeiter ein. Aber ich sage jetzt mal, wenn es jetzt darum geht im laufenden Betrieb – im neuen Betrieb ist es noch ein bisschen was anderes – aber wenn ich jetzt einen Betrieb, zum Beispiel Bielefeld, so, und da ist jetzt so der Fall, da würde jetzt einer ausscheiden aus dem Management. Weil entweder wir nicht mit ihm zufrieden sind oder weil er mit uns nicht zufrieden ist oder weil er vielleicht umzieht, es gibt ja verschiedenste Möglichkeiten. So, und dann hat der Betriebsleiter natürlich vor Ort immer das Recht jemanden vorzuschlagen. Weil ich rekrutiere gerne auch aus eigenen Mitarbeitern. Und Sie haben durchweg eigentlich bei der Menge an Mitarbeitern im Restaurant immer einen dabei, der so das Potenzial hat in die Richtung zu gehen. Und dann können Sie mit dem Mitarbeiter reden. Und wenn der das will und wir das wollen, dann kann da auch die Ausbildung starten.
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I: Ok. Das heißt Aufgabengebiet des Betriebsleiters ist es hauptsächlich: Personal im Sinne von Training, Einstellen, Führen.
F: Einstellen, Ausstellen, Führen, Beurteilen, Urlaubsplanung, also alles was mit Personal zu tun hat, macht der selber.
I: Ok. Und dann natürlich zusätzlich der ganze Materialeinsatz…
F: Warenbestellungen, ich sage jetzt mal normale Reparaturen anleiern bis zu einem bestimmten Wert. Ich sage mal bis zu 1.000 Euro darf der alles selber beauftragen. Wenn es jetzt eine größere Reparatur ist, dann möchte ich schon mitentscheiden, ob man das vielleicht gar nicht repariert, sondern vielleicht eventuell austauscht das Teil. So, manchmal macht es Sinn, Sachen lieber auszutauschen anstatt die immer teuer zu reparieren. Da gibt es ja immer… wir machen für jedes Gerät so eine Historie und dann kann man sehen: Mensch, was ist in das Gerät schon an Reparaturen geflossen. Und irgendwann müssen Sie einfach feststellen, dass das Gerät einfach immer so ein ich sage mal permanenten Reparaturbedarf hat, dass es eigentlich sinnvoller ist, das Gerät mal auszutauschen. Dann haben Sie wieder eine Garantiezeit und erkaufen sich dann so eine andere Zeit.
I: Ok. Und wie würden Sie Ihr Aufgabengebiet beschreiben?
F: Also meine Aufgabe ist es, ich sage mal mehr oder weniger für die Betriebsleiter da zu sein. Also Unterstützer. Gucken, dass wir die wirtschaftlichen Ziele, die wir uns gesetzt haben, zu erreichen. Und ich denke ein großer Teil meiner Arbeit ist auch, dass ich mich in den Städten positioniere, politisch da ein bisschen was bewege und mich so mit Meinungsführern der Gemeinde treffe und auch für meine Gäste vor Ort da zu sein.
I: Das heißt Sie sind auch richtig noch in den Geschäften?
F: Ja ja. Ganz wirklich.
I: Das heißt Sie sind dann auch jede Woche in jedem Geschäft mindestens einen Tag oder…? Gibt es sowas wie feste Regeln?
F: Ich sage mal…. Ich wohne hier in Münster, das ist meine Hauptbasis. Ich bin hier sage ich mal 60% meiner Zeit ungefähr oder 50%. Und den Rest der Zeit bin ich in den beiden anderen Geschäften.
I: Ok. Und das heißt Sie schauen dann so ein bisschen was die Mitarbeiter machen und wo man ein bisschen was verbessern könnte…?
F: Ja immer mal ich sage mal unregelmäßig vorbeikommen, letztendlich ja auch Kontrollbesuche machen, um zu gucken wie läufts. Wenn ich jetzt quasi aus Sicht des Gastes reinkomme, ich bin ja ein ganz normaler Gast in dem Moment wenn ich da zu einer Uhrzeit reinkomme und dann kann ich ja gucken: Mensch, wie sind die besetzt, ist das Restaurant sauber, um da auch mal wieder noch Feedback zu geben. Und ich denke das ist das A und O.
I: Ok. Thema Marketing. Können Sie da viel selbst machen von Vapiano aus?
F: Also Vapiano selber macht ja kein eigenes großes Marketing. Wir haben keine Radiowerbung, keine Fernsehwerbung. Vapiano versucht viel über diese neuen Medien zu machen. Und vor Ort mache ich schon relativ viel.
I: Das machen Sie auch selbst?
F: Genau, das mache ich selber in allen Filialen. Da guckt man immer, dass man Partner findet vor Ort, die auch zu einem passen von der Zielgruppe her. Und ich habe eigentlich in jeder Stadt gute Kooperationspartner mit denen ich auch ja eigentlich relativ lange zusammenarbeite. Wie Kino oder Optiker oder Autohäuser, wo man so eine gleiche Klientel anspricht. Wo man auch mal gute Aktionen machen kann. Und wo sich letztendlich beide dann auch wiederfinden. Weil Vapiano hat denke ich schon so eine gewisse Qualität und die muss ich dann auch in den Marketingmaßnahmen wiederspiegeln. Weil wir sind jetzt nicht der, der 50% Rabatt auf alles gibt oder 2 für 1 macht. Wir punkten mit unserer Qualität, mit der Zufriedenheit der Gäste und ich denke das sollte unsere Marketingstrategie sein.
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I: Und für den Bereich Finanzen, da haben Sie ja schon gesagt, das machen Sie mit Unterstützung des Steuerberaters, das heißt der Restaurantleiter und so haben eigentlich gar nichts damit zu tun.
F: Also mit den Sachen eigentlich nicht. Ich sage mal die kriegen natürlich schon die Zahlen hinterher von mir mitgeteilt, damit die natürlich letztendlich auch wissen wo sie stehen oder wo sie was besser machen können oder teilweise auch schon überdrehen. Es gibt ja auch immer den gegenteiligen Effekt, dass man sagt: Mensch, meine Personalkosten sollten bei X% liegen und die liegen drunter. Das ist auch nicht gesund. Da haben Sie zwar im Moment vielleicht mehr Geld verdient, aber langfristig ist das auch nicht gut. Weil das schadet irgendwo dem Service. Und ich möchte auch irgendwo eine vernünftige Balance finden. Genau das gleiche bei den Food Costs. Wenn ich eine Soll-Food-Cost habe… so, und ich liege drüber, ist es schlecht für mich. So, der Gast merkt es nicht mal richtig, dass er jetzt mehr bekommen hat. Auch nicht gut. Aber noch schlimmer ist, wenn ich drunter liege. Dann könnte ich für mich ja sagen: oh toll, meine Food Cost ist relativ niedrig. Eigentlich noch niedriger als sie sein soll. Aber ich denke langfristig, der Gast ist nicht blöd. Der hat nichts im Teller drin und wird sagen: Ey, früher war der Salat mal so, heute ist er so, und morgen so. Dieser klassische Effekt. Und das trägt auch nicht zur Zufriedenheit des Gastes bei.
I: Ja. Sprechen Sie denn auch mit anderen Multi-Unit Franchisenehmern und tauschen sich so ein bisschen aus, auch was den Aufbau angeht, wie Sie das zum Beispiel händeln?
F: Also wir haben eine relativ offene Kommunikation bei Vapiano. Wir kennen alle unsere Umsätze, unsere Personalkosten. Wir haben so ein Tool wo wir unsere Kosten auch offenlegen, wo Sie dann letztendlich wissen, wo Sie sich selbst befinden. Und dann ich sage mal liegt es natürlich an jedem einzelnen selber. Ich habe Kontakt zu zwei Kollegen relativ intensiv, die auch von der Stadtgröße ähnlich gelagert sind.
I: Und die haben auch mehrere Geschäfte?
F: Ja.
I: Und die machen das auch mit dem Aufbau, mit der Organisationsstruktur so wie Sie?
F: Ähnlich sage ich mal. Jeder findet natürlich irgendwo seinen eigenen Weg sage ich mal. Und da muss jeder natürlich für sich selbst entscheiden wie er was macht. Aber ich sage jetzt mal so Food Costs usw. können Sie natürlich trotzdem vergleichen wo Sie da liegen.
I: Ja. Aber die arbeiten auch nicht irgendwie mit Bezirksleitern oder sowas? Die haben also vom Aufbau ist das ähnlich wie bei Ihnen. Oder gibt es da unterschiedliche Modelle?
F: Ne.
I: Ok. Dann Thema Standardisierung. Würden Sie sagen, dass Vapiano selbst schon einen hohen Grad an Standardisierung hat? Ich meine Sie kennen ja jetzt das Beispiel McDonalds, da ist es ja sehr sehr sehr hoch.
F: Ja. Also ich sage mal, die haben schon einen relativ hohen Grad an Standardisierung. Aber es ist ich sage mal für den Franchisenehmer vor Ort deutlich schwieriger das durchzusetzen als jetzt bei McDonalds. Hat natürlich was damit zu tun, dass wir ich glaube das fünffache an Artikeln haben, weil wir halt mit Frische arbeiten. So, und bei McDonalds haben Sie wirklich die Soße in so einer Pistole, kennen Sie ja, da wird ja zweimal geschossen. So, und wenn der Spender ok ist, haben Sie genau die Menge Soße drauf, die drauf soll. Hier arbeiten Sie mit Menschen, die mit irgendwelchen Schäufelchen arbeiten und da ist so ein bisschen auch das Gefühl des Mitarbeiters spielt da immer mit. Es gibt ganz klare Vorgaben von Vapiano. Wie viel Gramm Zwiebeln in das Gericht kommen und wieviel Gramm Paprika reinkommen. Aber ich sage mal die Fehlertoleranz ist natürlich hier deutlich höher als bei McDonalds als Beispiel. Die Vorgaben sind ganz klar da für alles. Also alles ist im Prinzip vorgegeben. Nur sage ich mal die Umsetzung vor Ort ist schon deutlich schwieriger. Ist so.
I: ja, das stimmt. Ja, wenn da jemand steht und kocht….
F: Das fängt an… Ich sage mal so, Sie kochen. So, und dann müssen Sie hinterher Salz reinmachen. So, Sie haben da ein Salztöpfchen stehen, der eine hat breite Finger, der andere hat schmale Finger, der eine isst selber gerne salzig, der andere nicht so salzig, So, und das ist dann natürlich auch dann…
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Das Ergebnis des Kochens schmeckt nie 100% gleich bei Vapiano. Obwohl es ganz klare Vorgaben gibt.
I: Aber es schmeckt immer ähnlich.
F: Ja, soll ja auch so sein. Nur so im Gefühl ist es einfach deutlich schwieriger. Die Vorgaben sind ganz klar da. Ohne Vorgaben wäre es ja total chaotisch. Nur dann letztendlich die Umsetzung vor Ort ist deutlich schwieriger und ich sage mal bedarf eines deutlich höheren Trainingsaufwands bei Vapiano. Also da ist man bei McDonalds schon deutlich einfacher strukturiert. Weil das Produktportfolio kleiner ist, die Sachen einfacher zu händeln sind, weil einfach alles fertig ist. Und hier ist einfach so eine Sache halt, das ist frisch. Das fängt hinten an, wenn der die Grundsoße kocht, Bolognese. Kocht der die 10 Minuten länger oder kürzer. Das spiegelt sich schon in der Konsistenz der Bolognesemasse wieder. Das trägt natürlich dann auch schon vorne dazu bei, ist die Masse fester oder flüssiger. Einfach schwieriger, deutlich schwieriger.
I: Gibt es denn Sachen die Sie, also unabhängig von den Vorgaben von Vapiano jetzt, noch standardisiert haben, weil Sie gemerkt haben mit dem zweiten oder dritten Geschäft da sollte man Standards einführen?
F: Also ich sage mal so, man findet vor Ort schon so bestimmte Tools, will ich die mal so benennen, die haben das Arbeiten erleichtert. Von Vapiano kommen einfach sage ich mal Standardvorgaben was die Rezepturen betrifft hauptsächlich und solche Sachen. Mindesthaltbarkeitsdaten. So, was von Vapiano natürlich nicht geleistet werden kann sage ich mal sind zum Beispiel Lagerordnungen. Wie befülle ich ein Lager, habe ich irgendwelche Auffülllisten. Oder wie strukturiere ich meinen Betrieb. So, da sage ich mal werden wirklich mit jedem Geschäft professioneller, wo Sie einfach sagen können, Mensch, ich gestalte meine Läger so und so und dann gibt es irgendwelche Pläne wie was wo im Lager steht. Wieviel Sachen da reingehören. Und das sind einfach Sachen, die Sie einfach vor Ort als Unternehmer leisten können, wo Sie sich dann einfach selber organisieren können und wo Sie es letztendlich auch dem Management und dem einzelnen Mitarbeiter deutlich leichter machen. Sie ersparen sich viele Laufwege. Sie ersparen sich durch eine vernünftige Lagerhaltung durch ein vernünftiges FIFO Abfallkosten. Und das sage ich mal können Sie einfach vor Ort viel besser leisten. Gerade wenn Sie in die Expansion gehen. Wenn Sie ein neues Geschäft machen als Neuling sage ich jetzt mal, da läuft viel chaotisch. Trotz natürlich Standardvorgaben, aber da ist einfach wie so ein Hühnerhaufen. So, und wenn Sie von Anfang an so eine Grundstruktur schon haben in einem Restaurant, dass Sie da alles geordnet haben, dass der Mitarbeiter so Hilfen einfach hat mit Listen, mit Lagerordnungen und so, da können Sie unheimlich viel Ruhe ins Geschäft bringen. Das bringt wirklich dann die Erfahrung aus dem laufenden Geschäft und Sie werden eigentlich mit jedem Geschäft immer professioneller. Auch wie Sie das Geschäft aufbauen letztendlich. Vom Rückbereich. Da machen Sie sich hinterher wirklich über jedes Regal Gedanken. Ist das Regal an der Stelle wirklich top positioniert. Am Anfang haben Sie gar keine Ahnung davon. Da vertrauen Sie dann sage ich mal mehr auf die Architekten und die Franchisegeber. So, wenn Sie aber im Restaurant sind, werden Sie hinterher feststellen, dass es operativ blöd ist, dass das Lager nicht da ist, sondern da ist. Und dass Sie dann dahinten hinlaufen müssen und dass die Spüle jetzt dasteht, eigentlich wäre sie da viel besser aufgehoben. So, das sehen Sie erst hinterher.
I: Also das sind dann aber auch so Sachen, die Sie frei machen können? Das können Sie sich so einteilen, wie Sie wollen?
F: Genau. Also Sie sind schon ganz frei was die Planung des Restaurants betrifft. Sie müssen natürlich auch da wieder die Standards von Vapiano einhalten. Die dann sagen du musst pro Restaurant mindestens einen Olivenbaum haben, du musst so und so viel Prozent hohe Tische haben, du musst so und so viel Lounge Plätze haben. Also es gibt immer eine Minimumvorgabe, aber innerhalb dieser Vorgaben kann ich mich trotzdem noch ganz variabel bewegen. Ich sage mal, ich kann entscheiden, steht die Bar hier, da, dahinten oder da unten. Kann ich selber entscheiden. Aber ich muss eine Bar haben. Verstehen Sie. So, und an der Bar müssen Sie mindestens eine Kaffeemaschine haben, eine solche Vitrine, eine Eisvitrine, ein Eiswürfelbereiter. Das Minimum muss man immer unterbringen. Ob Sie dann hinterher eine eckige Bar machen, eine runde Bar, eine lange Bar, das können Sie selber. Das ist vom Raum letztendlich auch abhängig. Das ist ja der große Unterschied zwischen McDonalds, die hauptsächlich Freestander haben, wo alles standardisiert ist, wo jeder ich sage jetzt mal `gleich
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aufgebaut ist`. Da haben Sie vielleicht orange Kissen und da grüne Kissen, aber das Geschäft ist gleich.
I: Ich habe gelernt es gibt 10 Dekostile.
F: Ja. Das kenne ich. Aber trotzdem ist das Restaurant ja in der Bauweise immer gleich. Das eine ist vielleicht ein Stück länger und hat dadurch ein paar Sitzplätze mehr. Aber bei Vapiano, wir haben ja keinen Standardbau. Sie gehen ja immer in irgendwelche gemieteten Lokale rein und da ist ja jede Grundfläche anders. Der eine ist lang, der eine breit, der eine hoch, der andere hat zwei Etagen. Der eine ist breiter als tief und da müssen Sie sich ja den Räumlichkeiten auch anpassen.
I: Ok, das heißt sowas machen Sie dann für jedes Restaurant individuell. Und so Sachen wie: wie mache ich die Küche am besten, ist das dann auch immer individuell oder haben Sie ab dem zweiten gesagt: ich habe in der ersten Küche gemerkt, dass ist so und so am besten, so machen wir es in allen?
F: Sie versuchen natürlich die Fehler oder die Schwächen aus dem ersten Geschäft zu beseitigen, wenn Sie das zweite Restaurant planen.
I: Das heißt bei der Lagerhaltung haben Sie das auch gemacht? Also mit der Öffnung des zweiten haben Sie direkt gesagt: So wird das gemacht?
F: Ja, ja. Da haben Sie eine ganz andere Sicht, sage ich mal, auf Laufwege. Wie bewegt sich jetzt der Mitarbeiter wenn er an der Kochstation ist. So, und dann müssen Sie natürlich immer gucken wie kann ich das in dem Bautyp vor Ort auch unterbringen. Ist ja auch nicht so ganz einfach. Ist ja nicht so, dass der zweite genauso gebaut ist wie dieser hier. Jedes Restaurant ist da anders. Nur Sie können dann wirklich ich sage mal Sie haben erstmal eine Aufgabe wo Sie wissen, das ist nicht optimal, das möchte ich im nächsten Geschäft verbessern und dann müssen Sie halt gucken wie kann ich das verbessern. Das ist halt der Vorteil wenn Sie halt mehrere Geschäft haben, dass Sie dann sage ich mal immer besser werden können. Und letztendlich durch diese ganzen Verbesserungen, die Sie dann hoffentlich auch erreichen können, können Sie natürlich auch Ihre Produktivität steigern. Weil der Mitarbeiter einfach sage ich mal produktiver ist. Der geht nicht mehr so einen halben Tag durch ein Restaurant. Es ist so.
I: Wie ist dann denn bei den Mitarbeitern? Die Restaurantleiter, haben die von Ihnen irgendwelche Vorgaben, Standards, wie die Ihre Mitarbeiter händeln sollen, also dass es zum Beispiel wöchentliche Meetings geben soll oder…?
F: Es ist ganz klar vorgegeben auch.
I: Sowas haben Sie dann aber gemacht?
F: Ja.
I: Gibt es noch irgendwelche anderen Vorgaben, die Sie entwickelt haben?
F: Also ich sage mal Vapiano als Franchisegeber rät immer so tägliche Meetings zu machen an den Kochstationen, um den Mitarbeiter halt auch immer so tagesaktuelle Infos zu geben. Und wir machen intern immer erstmal ein Betriebsleiter-Meeting, immer wenn die BWA aus dem Vormonat vorliegt, es dauert ja immer ein bisschen bis alle Rechnungen eingetrudelt sind. So, und dann machen wir immer ein kurzes Meeting, wo wir halt die Ergebnisse durchsprechen und dann habe ich auch alle drei am Tisch sitzen. So, und dann kann man auch mal gucken: Mensch, warum ist, ich sage jetzt mal, die Food-Cost hier deutlich schlechter als in den andern beiden. So, und dann muss man überlegen woran es liegt, Und dann aus dem Gespräch gleichzeitig die Maßnahmen, Schulungen, Trainings usw. daraus ableiten. Damit es vielleicht wieder besser wird.
I: Ok. Das heißt das Level der Standardisierung ist mit jedem Geschäft…
F: Und Meeting geht von oben nach unten. Wenn ich ein Meeting mit meinen Betriebsleitern dann habe, dann folgt daraus natürlich ein Meeting Betriebsleiter mit Schichtführern. Und das halt was ich mit denen besprochen habe, wird dann da nochmal besprochen und geht dann letztendlich wieder vom einzelnen Restaurantleiter an den Teamleiter an der Station. Wenn ich sage: Wir haben da und da ein Problem, dass mir Mozzarella-Käse ohne Ende wegfliegt. So, dann kann das ja kein Problem vom Salat oder von der Pasta sein. Dann habe ich ein Pizza Problem, weil ich da den Käse überportioniere.
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So, und dann kann da gleich der Teamleiter für die Pizza gleich wieder mit ins Boot geholt werden, dass der auch da wieder guckt. Also das ist ja immer von oben nach unten geht das dann runter.
I: Ok. Also, die Standardisierung wird mit jedem ein bisschen höher einfach um das ganze effektiver zu gestalten und weil Sie gemerkt haben manche Sachen laufen einfach besser, wenn man Sie so und so und so macht.
F: Ja.
I: Ok. Thema ich nenne es mal knowledge sharing. Also die Restaurantleiter untereinander, die sprechen ja sicherlich miteinander. Erstmal auf formellem Wege, also wenn die Meetings mit Ihnen haben gehe ich davon mal aus. Und sprechen die auch informell miteinander, also ohne Sie?
F: Ja. Also die haben eine ganz offene Kommunikation. Das fängt ja an mit irgendwelchem Warentausch, die die dann mal machen. Mensch, ich habe das zu wenig bestellt, und ich komme dann nachher mal vorbei und hole das ab. Dann wird ein Kaffee getrunken. Und das ist auch von mir so gefördert, dass da eine offene Kommunikation stattfindet. Wir machen auch zweimal im Jahr Manager-Essen wo ich dann gezielt versuche dann auch von umliegenden Kollegen dann auch noch einen Betriebsleiter oder einen Schichtführer zu kriegen, der dann da die Schicht macht, dass ich dann da alle mal auch zusammen habe. Dass da wirklich so ein Zusammenhaltsgefühl entsteht. Oder wenn ich jetzt einen neuen Schichtführer mal beschäftige, dass der dann auch mal in alle Geschäfte geht und da mal so eine gewisse Zeit verbringt um zu gucken: Mensch wie machen die das, wie machen die das. Jeder macht es dann doch noch ein bisschen anders vor Ort. Liegt aber auch wiederum an den einzelnen Gegebenheiten vor Ort, die wieder da sind.
I: Das hört sich jetzt vielleicht ein bisschen doof an, aber warum machen Sie das? Im Endeffekt könnten Sie ja auch so ein bisschen die Konkurrenz schüren? Ginge ja auch.
F: „Konkurrenz“ wir ja schon so ein bisschen geschürt. Das liegt ja auch daran, wenn Sie ein gutes Team haben und alle sage ich mal offen sind für „Kritik“, weil nichts anderes ist ja eine BWA-Besprechung. Da wird gelobt, aber hauptsächlich wird ja geguckt wo kann ich mich noch verbessern. So, und dann haben Sie natürlich schon diesen Wettbewerb und diesen ja ich sage mal Konkurrenzkampf, dass jeder der Beste sein will. So, und wenn Sie jetzt mal so ein Ausreißer haben, versucht natürlich derjenige, der Betriebsleiter, das so schnell wie möglich hinzukriegen, dass er die Kosten wieder da einfängt und sich beim nächsten Meeting dann vielleicht an die Spitze setzt. Also da gibt es schon so eine Art Konkurrenzkampf.
I: Ok, aber Sie sehen trotzdem einen Sinn darin, dass die alle miteinander arbeiten?
F: Auf jeden Fall. Also ich sage mal die Erfahrungen, die ich habe und die ich teile sind doch besser als die, die ich für mich behalte. Weil letztendlich sage ich mal sollen die ja alle voneinander profitieren.
I: Und das können Sie dann auch wirklich mit ihren Erfahrungen und…
F: Zum Glück habe ich in der Betriebsleitung, die sind alle vom ersten Tag bei mir beschäftigt, die Betriebsleiter.
I: Zentralisierung und Dezentralisierung. Da würde mich interessieren, welche Sachen haben Sie bewusst zentralisiert und welche bewusst dezentralisiert?
F: Zentralisiert habe ich die komplette Buchhaltung bei mir. Also in die einzelnen Restaurants, also Osnabrück und Bielefeld, gehen keine Rechnungen ein. Alle Rechnungen, was jetzt Rechnungen oder irgendetwas posttechnisches betrifft, läuft alles hier auf.
I: Was ist der Grund?
F: Weil ich das ja kontrolliere. Und ich habe Zuhause mein eigenes Büro. Hier wird die Post gesammelt im Restaurant, die nehme ich dann mit nach Hause. Oder hier unten, da habe ich auch so ein Abrechnungsbüro, je nachdem ob da was frei ist. Da mache ich die Post von hier und schicke das dann letztendlich auch an die Steuerberater.
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I: Also ist dann letztendlich der Grund Sie können das am effektivsten machen oder sollen das die Restaurantleiter vielleicht auch alles gar nicht so unbedingt mitbekommen oder sollen die sich auf andere Sachen konzentrieren?
F: Das ist ja kein Geheimnis. Ich sage jetzt mal wenn ich eine Reparaturrechnung kriege, die hat der Betriebsleiter beauftragt. Aber letztendlich sage ich mal ist es mein Restaurant, mein Geld. So, und dann möchte ich schon selber das Heft des Handelns in der Hand behalten. Und nicht zentralisiert bewusst ist die Personalfrage, dass jeder Betriebsleiter für sich selber sein Personal sucht.
I: Ok. Und der Grund dafür ist…?
F: Erstens sage ich mal muss der auch mit den Leuten zusammenarbeiten. Und es kommen erfahrungsgemäß ja auch immer Leute ins Restaurant und fragen, ob es Arbeit ist. Ist einfach so in der Branche. So, und wenn Sie den dann wieder woanders hinschicken müssen, gehen Ihnen auch einfach unheimlich viele Mitarbeiter verloren. Weil ich sage mal die Fluktuation, also der Wechsel in der Gastronomie, gerade in der Systemgastronomie, ist schon nicht ganz ohne. Was jetzt den normalen Mitarbeiter betrifft. So und von daher wäre es töricht das Ganze zu versuchen zu zentralisieren.
I: Ok. So, das meiste haben wir glaube ich schon. Wie würden Sie denn Ihren Führungsstil beschreiben und hat der sich geändert seit Sie von einem auf drei Restaurants jetzt letztendlich gekommen sind?
F: Mein Führungsstil, wie würde ich den bezeichnen…. Ja, also ich sage mal, so grob gesagt ich kann gut Arbeit abgeben. Also ich bin nicht jemand der irgendwie sich versucht selber alles an die Fersen zu heften, sondern ich versuche schon gezielt wirklich die Aufgaben abzugeben in den Restaurants, so dass ich für mich selber genug Spielraum habe. Und ich denke das ist auch gut so. Weil ich sage mal wenn ich jemanden als führenden oder als leitenden Angestellten habe und ich schreibe dem alles vor, dann verliert er auch die Lust an der Arbeit. Geändert hat sich natürlich…. Ich sage mal natürlich ändert man immer so ein bisschen seinen Führungsstil, hat natürlich auch mit Alter, mit Erfahrung usw. zu tun. Aber ich denke schon, dass ich so im Groben und Ganzen meinen Führungsstil beibehalten habe. Ich bin ein ganz offener Typ, ich rede immer Klartext mit den Leuten, da wird nichts „beschönigt“. Und ich denke damit bin ich gut gefahren bis jetzt. Eigentlich habe ich im Management so gut wie keine Fluktuation über die ganzen Jahre. Bei mir kann auch jeder gutes Geld verdienen. Immer vorausgesetzt ich verdiene auch gutes Geld. Und wenn die Leute das einmal begriffen haben sage ich immer, dann haben sie auch Spaß an der Arbeit.
I: Das heißt eigentlich hat sich Ihr Führungsstil nicht wirklich verändert durch die Vergrößerung sondern eher durch Erfahrung, die Sie haben.
F: Natürlich vom ersten auf den zweiten Laden, der Schritt ist schon ein bisschen anders. Weil man selber seine Tätigkeiten natürlich anders definiert. Weil Sie mehr in diese Kontrollfunktion gehen. Sie verlassen eigentlich die operative Schiene und gehen wirklich nur noch auf Kontrollfunktion und Betreuungsfunktion, auf Überwachungsfunktion. Und mittendrin im Geschäft wird es natürlich noch mehr. Sie sind dann ganz viel Zeit des Tages im Auto unterwegs, um von Standort A nach B zu kommen. Und nutzen diese Zeit dann wieder und telefonieren einfach noch mehr. Ich sage mal der administrative Aufwand ist natürlich immer größer je mehr Geschäfte Sie haben. Man muss dann halt natürlich aufpassen, dass man das nicht schleifen lässt.
I: Welcher Schritt war denn größer, vom ersten aufs zweite oder vom zweiten aufs dritte?
F: Ja vom ersten auf den zweiten ist größer. Weil Sie dann einfach diese Wandlung haben. Ich sage mal so beim dritten kommt ich sage jetzt einfach mal nur noch ein Geschäft dazu. Aber diese operative Schiene haben Sie ja schon gehabt, dass Sie Betriebsleiter betreuen, dass Sie Gespräche machen. Da sitzt dann plötzlich nur noch einer mehr am Tisch. Und natürlich haben Sie schon mehr Arbeit, weil Sie auch einfach mehr unterwegs sind. Aber der Schritt von 1 auf 2 ist deutlich schwieriger als von 2 auf 3. Ich denke mal, wenn Sie irgendwann noch weiter expandieren, dann kommen Sie wirklich irgendwann in die Bredouille, dass Sie es selber auch nicht mehr schaffen.
I: Was glauben Sie denn wann der Punkt erreicht wäre?
F: Also ich sage mal wenn ich jetzt theoretisch noch eine Stadt dazunehmen würde, egal wo, dann ist der Schritt erreicht, dann würde ich noch einen einstellen.
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I: Das heißt dann würden Sie dieses Bezirksleitersystem….
F: Ja, dann brauche ich einen, dringend. Ich sage mal jetzt kriege ich das noch alleine hin. Jetzt bin ich quasi so der Bezirksleiter. Aber wenn Sie noch ein Geschäft in einer anderen Stadt haben, dann wird wirklich irgendwann schwieriger, dass Sie dann noch wirklich genug Zeit in dem einzelnen Betrieb haben. So, und wenn Sie dann noch jemanden wechseln, wird’s dann schwierig, dass Geschäfte dann zu lange unbetreut sind.
I: Aber ist das denn dann wirklich die Größe und die Anzahl der Geschäfte oder mehr auch, dass die Geschäfte bei Vapiano auch ein bisschen weiter auseinanderliegen als das bei anderen als zum Beispiel bei McDonalds der Fall ist?
F: Das hat natürlich auch noch was damit zu tun. Ich sage mal es ist natürlich einfacher, wenn ich in Münster drei Geschäfte habe oder ich habe ein Geschäft in Münster, Osnabrück und Bielefeld. Deshalb sage ich ja, wenn noch eine Stadt jetzt dazukommen würde, würde ich sofort jemanden noch einstellen, weil ich sage: das kann ich gar nicht mehr leisten zeittechnisch, weil ich dann nur noch im Auto bin wenn ich die Geschäfte regelmäßig abfahren will und hätte dann quasi zu wenig Zeit in den einzelnen Geschäften.
I: Wenn sich jetzt praktisch noch einen zweiten nach Münster setzen würden…?
F: Dann würde ich es noch hinkriegen.
I: Ok. Ja, was mich noch interessieren würde wäre jetzt als abschließende Frage: Denken Sie denn, dass wie Sie das aufgebaut haben, also mit Schichtführern, Restaurantleitern und Sie on top mit Zentralisierung, Dezentralisierung usw, dass das die ideale Form ist es zu managen bei der Größe, die Sie jetzt haben?
F: Also für mich ist das optimal wo ich sage ich kann das alles gut händeln. Ich habe auch selber noch Luft andere Sachen zu machen, mich so damit zu beschäftigen selber noch zu expandieren.
I: Also Sie planen schon…
F: Ich plane immer…. Und letztendlich auch so zu arbeiten, dass die Geschäfte alle gut laufen. Das eine ist immer die Umsatzseite, die stimmen muss. Und das andere und wichtigere ist noch die Ertragsseite. Nur Umsatz alleine bringt Ihnen auch nichts, wenn Sie Ihre Kosten nicht im Griff haben. Und ich denke meine Betriebsergebnisse sind alle so, dass alle happy sind und dass da jetzt kein Anzeichen ist, ich sage mal: der ist überlastet, der kriegt das nicht hin. Es ist ja auch ganz oft so, wenn die Leute sich zu viel ans Bein binden und dann alles selber machen wollen, wird’s schwierig. Aber ich kann gut abgeben. Und ich denke so ist es dann auch… klar, Sie müssen die richtigen Leute haben an Ihrer Seite, Sie müssen es abgeben können und Sie müssen sich letztendlich auch Freiräume schaffen, um sich um das große Ganze zu kümmern und letztendlich auch noch um andere Sachen zu kümmern wie eventuelle Expansion. Und ich sage mal Vapiano lebt ja auch vor Ort davon, dass denke ich jemand da ist, der da mal hingeht, da mal hingeht. So Präsenz zeigt. Und ich denke Sie sind da auch Teil der Gemeinde. Und was ja auch ganz wichtig ist.
I: Ich überlege gerade, hatte ich schon gefragt, warum Sie das gewerbliche Mitarbeitermangement dezentralisiert hatten?
F: Warum ich das gemacht habe?
I: Ja.
F: Ich habe ja gesagt vorhin, weil es einfacher zu händeln ist, wenn ich das nicht zentral mache sondern dezentral.
I: Einfach vom Zeitaufwand für Sie?
F: Ja, nicht nur vom Zeitaufwand, sondern auch ich sage mal, es geht ja auch darum den optimalen Mitarbeiter zu finden. So, und wenn Sie es zentralisieren, gerade bei der Größe des Gebiets, ich sage mal es wird niemand von Bielefeld nach Münster kommen zum Vorstellungsgespräch, weil er gewerblicher Mitarbeiter werden will. Das können Sie knicken. So, und ich sage mal ganz oft, 50% der Mitarbeiter, die Sie akquirieren, kommen rein und fragen: Sucht ihr Mitarbeiter? So, und wenn Sie dann den Betriebsleiter mal nicht vor Ort haben, der ja letztendlich bei mir zumindest, andere machen
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das ja auch anders, der ja letztendlich auch als leitender Angestellter dazu befähigt ist den ein- und auszustellen, der ruft mich ja nicht an und sagt. Chef, ich habe hier einen Mitarbeiter rausgeschmissen, sondern der entlässt den einfach. Oder entscheidet irgendwann mal, wenn seine Frist gekommen ist, den Vertrag einfach nicht zu verlängern, weil irgendetwas vorgefallen ist. So, und da vertraue ich letztendlich auch meinem Betriebsleiter vor Ort, der letztendlich auch in der Lage sein soll, sage ich mal, die Mitarbeiter zu finden, die wir brauchen. Es gibt ja ganz klare Anforderungsprofile, die wir haben an einen Mitarbeiter. So, und der muss ja selber auch mit dem Mitarbeiter klarkommen. Ich möchte niemandem einen Mitarbeiter aufdrängen, wo er sagt: Mensch, den hätte ich selber gar nicht eingestellt. Andererseits sage ich mal, wenn ich hinkomme und da findet sich so eine Mitarbeiterqualität, die mir nicht gefällt, dann würde ich das auch kundtun. Aber ich denke mal da sind wir alle so auf einer Spur. Da gibt es ganz klare Vorgaben was wir wollen und ich denke das wissen alle und so denke ich ist die Mitarbeiterqualität auch bei uns. Man sieht das ja auch in den Bewertungen, die wir haben, alles ist gut. Bei uns wird immer sehr die Mitarbeiterfreundlichkeit hervorgehoben, dass ein Mitarbeiter relativ freundlich sind, dass ich immer eine gute Besetzung habe usw.
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APPENDIX 5: INTERVIEW INFORMATION
Interviewee Company No. of
units Status
Interview
Date
Interview
Duration
Interview
Location
D3 McDonald‘s 3
Former deputy general manager and son of a franchisee
15 October 00:42 h. McDonald’s unit
D8 McDonald‘s 8 Franchisee 16 October 01:37 h. Office D15 McDonald‘s 15 Franchisee 14 October 00:42 h. Skype V3 Vapiano 3 Franchisee 21 October 00:45 h. Vapiano unit J3 Joey’s Pizza 3 Franchisee 28 October 01:00 h. Café K4 KFC 4 Franchisee 30 October 01:20 h. KFC unit
K17 KFC, Pizza Hut & Coffee Corner
17 Franchisee 23 October 00:54 h. Office
S3 Subway 3 Franchisee 24 October 00:43 h. Subway unit S5 Subway 5 Franchisee 25 October 00:54 h. Skype S11 Subway 11 Franchisee 29 October 00:50 h. Office
Jan
Schmelzle
Deutscher Franchise Verband e.V. (German Franchise Association)
-
Employee in the area of legal coordination and organisation
12 September 9 October 15 October
Around 10-15 minutes each
Phone