Consistency and customer satisfaction have long been the cornerstones of success in retail services. From fitness to food, front-line employees and store-level management are critical to delivering a positive customer experience, which in turn translates to profitability. Franchise ownership is common in retail services because the franchise model often provides a closer connection between ownership and the front-line. Successful franchise owners often attribute their success to the service provided by a stable and committed employee base, yet the importance of workforce stability is rarely discussed.
To address this challenge, retail brands that rely on significant levels of labor are looking for ways to reduce the amount required so operators can better invest in their critical staff. However, transformation from a heavy to light labor model can significantly alter the brand and this transformation isn’t always successful. Those brands whose business models are already aligned with a light labor model have a major advantage in the current environment. These models are already designed to deliver excellent service with fewer employees, thus enabling owners and operators to uphold exceptional service and invest more in the stability and excellence of their workforce without first going through a risky transformational change.
With over a decade of experience in franchised retail services, I’ve witnessed firsthand how operators of light labor concepts can more easily deliver great customer experiences and growth by investing in their teams through training, career development paths, and workplace culture.
At Purpose Brands specifically, with more than 7,000 franchise locations globally across our brands (Anytime Fitness, Orangetheory Fitness, Basecamp Fitness, The Bar Method, and Waxing the City), we’ve implemented operating models and technologies which allow us to deliver exceptional brand experiences while carefully managing necessary headcount and labor costs. This in turn allows operators to make investments in their teams, and, when done right, produces stability and excellence at the store-level.
The Training Challenge
Training costs are a major financial strain for owners, especially when workforce turnover is high. Having worked with franchised food concepts earlier in my career, I’ve seen firsthand how difficult it can be for operators who are constantly in the hiring and training cycle, in part due to the number of team members that are needed to fully staff the store. In fact, the National Restaurant Association reports the average formal training period taking 19 days, but let’s be honest, that is just to get started. A team member may not be highly effective for several months if not a year or more depending on the role. This prolonged ramp cycle drains resources, impacts productivity and leads to operational inefficiencies. Every lost employee means another round of recruitment, onboarding, training, and skill ramp which can take a toll on the business and impact the customer.
Effective light labor models provide relief by reducing the need for large teams and allowing automation to handle routine tasks. For example, at our Anytime Fitness clubs, self-service entry and 24/7 gym access reduce the need for a front-desk staff. This has minimized the size of the necessary team and reduces the complexity of training. With less time and attention needed for hiring and training, managers can go deeper in developing each employee and can spend more energy delivering excellent customer service.
Transforming Jobs into Careers
The light models also promote retention, as focus on fewer but select employees provides opportunities for even entry-level employees to grow within the business. This turns training from a costly cycle into a strategic investment for long-term staff development. By reducing the need for large teams, operators can focus on developing a core group of employees and offering clear pathways for advancement.
As an example, at Waxing the City, each of our studios are staffed by highly skilled waxing experts known as Cerologists. While each new hire has training from prior schooling, additional investment in their skill set is provided and allows them to grow in their beauty profession. This investment in their careers is not taken for granted, and Waxing the City boasts an average tenure of 5+ years for their Cerologist talent. This benefits the customer as they enjoy service from some of the most highly trained waxing professionals in the market. This combination of a well-trained and long-tenured workforce is the number one reason for Waxing the City’s amazing 93 OSAT customer satisfaction score.
This emphasis on employee growth makes it hard for competitors to poach team members or recruit them into other fields. Knowing someone is investing in their career provides a strong sense of satisfaction and commitment, and owners are rewarded with stability and excellence.
Workplace Culture
Understaffing, undertraining, and high-turnover all lead to frustration, making it nearly impossible to have a positive store-level culture. It is hard to build a constructive culture when every day is a fire drill, and the team doesn’t feel that they are winning over the long-term. When team morale deteriorates, declines in customer service and profitability ultimately follow.
Since team stability and end results are reliant on having a positive culture, careful consideration into ease of operations and staffing requirements must be made when choosing which brand to franchise or join. Brands that have invested in technology and built labor-light business models are easier to run thus easier to develop a good culture.
But good culture is never automatic. While smooth operations and lower complexity allows good culture, owners must still invest in finding and developing the management talent that will deliver this critical workplace culture.
Looking Ahead: Workforce Stability as a Competitive Advantage
For entrepreneurs looking for the right concept, the path forward is clear: find a franchise that allows you to streamline operations with light labor models, invest in your team, and create an environment where employees can thrive in their careers. Workforce stability isn’t just about filling roles, it’s about laying the foundation for long-term success. By reducing turnover and focusing on a smaller, more dedicated workforce, franchisees can provide the customer experience that grows the business and produces personal and financial success.
Source: https://franchisingmagazineusa.com/expert_advice/the-case-for-workforce-stability-and-efficiency-in-the-franchise-industry/
