Title: The Multiplier Model: The Success of International Franchises and Adaptability to Local Markets
Introduction:
The global reach of franchises is a testament to their success in adapting and meeting the needs of diverse customer bases. In Mark Siebert’s book, “The Multiplier Model,” he explores the concept of international franchises and their ability to tailor their products and services to different cultures. This article dives deeper into the topic, providing insights into why franchises thrive in various cultures and discussing the adaptability of renowned brands like McDonald’s.
The Success of Franchises: Meeting Local Needs
Franchises have flourished in different cultures because they excel at understanding and fulfilling the unique requirements of their customers. Unlike some international companies that may disregard local preferences, franchises have found success by embracing and adapting to cultural differences. This adaptability allows them to outperform their competitors by catering to specific tastes, sourcing locally, and creating a consistent brand experience.
McDonald’s: An International Example of Adaptability
McDonald’s is a prime example of a franchise that has mastered the art of adapting to local markets. When visiting McDonald’s in different countries, one can observe how the ingredients used in their products vary based on cultural preferences and availability. For instance, the beef used in McDonald’s burgers will be locally sourced and influenced by factors such as the cows’ diet, resulting in distinct flavors.
Regional Offerings: Uniqueness within the United States
Even within the United States, regional differences in food offerings exist. Alaska introduces the “McKinley Mac,” a larger version of the Big Mac, and some southern states serve biscuits and gravy. Localized items like the McLobster in New England or Spam in Hawaii reflect the franchise’s effort to cater to specific regional preferences. These regionalized offerings further highlight the adaptability of franchises in addressing local markets.
The Brand Promise: Consistency Beyond the Product
While the product offerings of franchises may differ across regions, the brand promise remains consistent. McDonald’s is a prime example of this, showcasing that a brand extends beyond its food items. McDonald’s has built a strong brand by adhering to core values such as quality, service, cleanliness, and value. Regardless of the product variations, customers trust the brand to deliver a consistent and satisfactory experience.
Understanding the Essence of the Brand and the Promise
The key takeaway from McDonald’s success story is that the brand is not solely defined by its product or menu items. It is the promise of a consistent experience that drives customer loyalty. Franchisees must embrace the brand’s core values and deliver on the promise to maintain the trust and loyalty of their customers. The brand extends beyond the food to encompass a reliable and satisfactory overall experience.
The Importance of Scalable Systems for Franchise Growth
The multiplier model, as discussed in Mark Siebert’s book, emphasizes the vital role scalable systems play in enabling franchise growth. To transition from a small business to a successful and scalable franchise, entrepreneurs must establish robust systems that can be replicated across markets. These systems encompass processes, quality control, training, and the maintenance of core brand values to ensure consistent performance and customer satisfaction.
Conclusion:
The success of international franchises lies in their ability to adapt to local markets while maintaining a consistent brand promise. McDonald’s serves as a prime example of a franchise that understands the importance of catering to cultural preferences and sourcing locally. By emphasizing scalable systems and the delivery of a consistent brand experience, franchises can thrive in diverse markets around the world. Understanding the essence of the brand and the promise it holds is essential for sustained success and growth in the franchise industry.
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The following excerpt is from franchise expert Mark Siebert’s book The multiplier model. buy It Now.
I have been lucky to be able travel the world widely. I’ve been to every state in the US, almost every province in Canada, and dozens of other countries.
When I travel abroad, one way to judge how A “western” economy This implies looking at how many international franchises you see on the street. When I tell people that I am a franchise consultant, often lament how these companies rob some countries of their culture. And while I love immersing myself in the local culture of any country I visit, I never regret the Worldwide success of franchises. because successful franchises can tailor and deliver their products and services to a wide range of customers.
International franchises can (and should) adapt to their local customers
Why franchises thrive in these cultures it’s that they do a better job of meeting the needs of their customers than the companies they supplanted. They bought their products more efficiently and passed those savings on. They experimented with different products to find out which ones the consumer liked best. And most of all, they provided the customer with a consistent brand experience from market to market. They fulfilled their brand promise. The systems that they developed and adapted to the local market led to his success.
McDonald’s is an international example of adaptability
One of the things I enjoy when traveling abroad is visiting mcdonald’s to see how they have adapted to the market. When visiting mcdonald’s In other countries, the ingredients used in their products may be slightly different from market to market. The beef, for example, will be locally sourced, and the diet of the cows (grass-fed or grain-fed) influences things like marbling and flavor. The same can be said of mcdonalds frieswhere different local growing conditions will produce a slightly different potato (or may even require a completely different type of potato), just as growing conditions can affect the grapes used to make wine.
Related: Why it is important to market your franchise
Some of the things you can find in McDonald’s around the world that you probably won’t find in the United States include:
- Australia: Gourmet Angus Cheese and Truffle
- Brazil—Pão de Queijo (cheese bread)
- Canada—Poutine; McLobster (lobster roll)
- Chile—Guacamole 2 Meats (double beef with guacamole); Empanadas Con Queso (empanadas with cheese)
- Chinese: taro cake; Mashed Potato Burger (burger topped with bacon and mashed potatoes); bacon, macaroni and cheese toasties; Black and White Burgers (twin burgers with black and white bun)
- Costa Rica: McPinto Deluxe (breakfast with gallo pinto, a traditional dish of beans and rice)
- Egypt: McFalafel (vegan falafel wrap)
- Finland—Chili Cheese Tops (fried dough stuffed with chili peppers and cheese)
- France—Macarons
- Germany—McNürnburger (made with bratwurst); Beer
- Greece: Greek Mac (burger in pita bread)
- Hong Kong—Rice Fantastic (burger with rice patties instead of buns)
- India—McCurry Bread; BigSpicy Paneer Wrap; Maharaja Mac (chicken burger); McAloo Tikki (Vegetarian Burger)
- Italy—Spinach Parmesan Nuggets; sweet with nutella
- Japan—Ebi Filet-O Shrimp Burger; Melon McFloat; McChoco Potato (french fries with chocolate sauce); Shaka Shaka Chicken (breaded fried chicken with a spice packet); Idaho Burger (bacon burger and hash brown burger); Gracoro Burger (macaroni, shrimp and white sauce patty)
- Korea: Shrimp Beef Burger (Beef Patty plus Shrimp Burger)
- Lithuania: Aštrus surio gabaleliai (fried spicy cheese with hot Chapala peppers in a crispy crust)
- Malaysia—Prosperity Burger (long beef or chicken patty with black pepper sauce); Bubur Ayam McD (a local rice porridge)
- Mexico—McMolletes (local version of the McMuffin, with refried beans and pico de gallo)
- Middle East: McArabia (grilled chicken in pita bread)
- Netherlands: McKroket (fried beef and cheese burger)
- Norway: McLaks (salmon burger)
- Philippines: Chicken McDo With McSpaghetti (fried chicken thigh with spaghetti and meat sauce)
- Poland: Cordon Bleu Burger (beef patty, chicken burger and bacon)
- Singapore: Chicken Singa Porridge (congee with fried chicken strips)
- Spain—Gazpacho
- Sweden: McPlant Burger (McDonald’s is testing its first plant-based burger here)
- Turkey—McTurco (kebab meat in a pita)
- UK: Bacon Roll; Mozzarella Scoops
- Uruguay—Panqueque Helado (pancake filled with dulce de leche and topped with vanilla ice cream)
- Venezuela—Empanadas
- And the list goes on.
Even within the United States, there are differences in regional offerings:
- Alaska introduces the McKinley Mac, an even bigger Mac with two quarter-pound beef patties.
- In some southern states, you can get biscuits and gravy.
- The McLobster, mentioned above, is available in New England in the summer.
- Hawaii features Peach Mango Pie and also offers Spam for those who want to partake in breakfast.
- And bratwurst has been offered at some Wisconsin locations.
Related: These are the top 200 global franchise brands in 2023
The brand is not the product.
And while the mcdonalds case study contains some valuable lessons for those looking to adapt their concepts for foreign markets, there is perhaps a much deeper lesson underlying these product offerings: the brand is not the product.
No one questions the consistency of the brand because McDonald’s is very careful in selecting suppliers and preparing your products. But more importantly, McDonald’s knows that its brand is about more than its food. McDonald’s, which is known for its hamburgers, does not sell beef (or pork, for that matter) in its 350 locations in India (despite the fact that some states in India allow it), where on 50 percent of the menu is vegetarian.. Yet the McDonald’s brand remains one of the strongest in the world (and India) despite these product line differences.
What exactly is the brand and the brand promise?
Over the years I have heard Stories of Ray Kroc’s visits to their franchisees. He would often begin by patrolling the parking lot, picking up every bit of trash and unceremoniously piling it on the counter while he waited for the franchisee to show up for the inevitable reprimand from him. His message: McDonald’s Core Values. They were quality, service, cleanliness and value. And it is better that no franchisee forgets it.
Ultimately, it’s not the product, the design, or the name. The brand is the promise of a consistent experience from one money machine to the next. And you need to keep that promise if you want the business to continue that will allow your machine to grow.
begin with The multiplier model
Going from a small business to a successful start-up and scalable growth requires more than good luck. A system is needed. For the past 34 years, franchise consultant and growth expert Mark Siebert has been sought out by more than 70,000 executives looking to expand their businesses. Of those 70,000, only 5,000 had the right systems to go from successful to scalable. In The multiplier modelSiebert discusses the factors that determine whether an entrepreneur is ready to scale their business and the best ways to get started. Read more.
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