‘Being Adaptable and Responsive to Changes in the Industry Landscape Is Key’

Joe Gale has more than 30 years of sales, operations and account management experience, including 20 years with Coca-Cola North America Foodservice where he worked closely with numerous QSR and fast casual brands. Most recently, he managed the western region franchisee relations for Coca Cola with Dairy Queen, working with franchise owners across 22 states to improve and grow their businesses.

For the past four years, he has been Director of Franchise Development at Pancheros Mexican Grill, helping to fuel the national expansion of the brand. 

Modern Restaurant Management (MRM) magazine asked Gale for his views on the current franchise environment and Pancheros growth plan. 

What are the key challenges for the franchising landscape?

A few major franchising challenges are outlined below, however, these can be effectively addressed with the proper knowledge and planning.   

Finding the right franchisees: It's crucial to find franchisees who are passionate about our brand and committed to following the systems that have made your brand successful.

Maintaining brand consistency: It is essential to ensure that franchisees adhere to operational systems and complete training programs to avoid inconsistencies across the brand.

Financial stability: Franchisees need a solid financial foundation to cover start-up costs and initial marketing efforts. Without this, it can be difficult to get things off the ground, even with the right corporate backing. 

Franchise owner independence: Some franchisees may have experience with different systems or philosophies from previous business ventures that don’t apply to their newfound partnership with you and your brand. It's important to guide them in adjusting to specific parameters in order to achieve a successful partnership.

Changing times and flexibility: Being adaptable and responsive to changes in the industry landscape is key — brands that don’t adapt will fall behind, while those that do will likely maintain their customer base and earn new guests. For example, Pancheros now implements pick-up windows where needed, as our online business has grown rapidly due to the pandemic shifting people’s buying habits.

What are the reasons you feel franchising provides good career opportunities?

When you franchise, you are given the keys to an opportunity that has proven successful over time. If you possess an entrepreneurial spirit, this is an especially great opportunity. Franchisees benefit from established brand recognition, which is far easier than starting from scratch. In addition to the initial backing, there is ongoing support from the franchisor, which helps franchisees to stand the test of time. 

Brands that don’t adapt will fall behind, while those that do will likely maintain their customer base and earn new guests.

In a franchise system, you can also leverage better pricing as part of the whole system compared to operating a single location. If you enjoy being involved in your community or are looking for ways to give back with the support and means to do so, owning a business, especially in a proven capacity like franchising, is an excellent way to contribute.  

What makes Pancheros scalable and franchisable and what do you look for in franchise partners?

I believe the simplicity of our operations plays a crucial role. Our simple business model, as well as extensive training, tools and the operational support our team provides makes Pancheros an appealing option for potential franchisees. Furthermore, the real estate, design and marketing support we offer enhances our capabilities as an ideal franchisor. 

In seeking out franchise partners, we value those who demonstrate patience, dedication and a strong presence in their community. A genuine passion for fresh food and previous restaurant or business experience are also important. When evaluating sites and planning the restaurant's build-out, financial capabilities definitely come into play and also matter significantly.

In what ways do you work with your franchisees and support them?

We offer comprehensive support to our franchisees, starting from the moment they sign with us. This includes:

Real Estate: Assistance in finding suitable locations and negotiating leases.

Design: Collaboration on the building design and coordination with contractors.

Operations: Upon signing, owners and managers receive an initial three-day classroom training and a three-week in-restaurant training program. Our team also provides on-site support during the grand opening and afterwards during the first few weeks of operation.

Marketing: We offer local and national advertising support to promote individual franchise locations, as well as management of the Pancheros loyalty program that each location is a part of. 

Our brand is committed to offering continuous support as we develop a successful partnership together.

What have been key challenges to Pancheros growth through franchising and how important is training?

We are always transparent with our partners and potential partners about the challenges associated with franchising.

As a franchisor, we prioritize brand cohesion across franchisees by providing clear operational guidelines and extensive training for franchisees and on-site staff. We also employ modern training tools and offer personalized support to address the challenges and concerns of our franchisees. Quality training is an essential element, as it enables franchisees to operate their restaurants effectively and maintain brand standards. 

Additionally, navigating the various franchise regulations across different states can be complicated. Understanding state franchise laws and having access to legal guidance is essential for success, and these are two aspects we offer assistance for. 

Standard industry challenges also play a role from time to time, including employee wage, building awareness in new markets, construction costs and capital, however, the corporate support we equip our franchisees with becomes increasingly helpful in situations like these.