AI has actually been here for years
Whether you like it or not AI or, put less frightening, new forms of technology have been around for many years. You may not have realised it and have probably been using forms of AI for decades
People of a certain age, like myself, will remember when the World Wide Web was spoken about in the same way as AI is now with phrases like ‘that will never catch on’. Fast forward to today and no business can operate without a website and much more. AI, as it is now more commonly known thanks to Chat GPT and other Open AI platforms is the new www., so you need to start researching it and thinking about how it can help your business, though in every likelihood you have actually been using it already. Ignore the pace of technology at your peril. I agree it is very early days with some of the AI technology, so some care is needed. There are also very limited legal precedents or guidelines but we are expecting something from the UK this year.
So let’s look at what has happened so far. The first decade of the 21st century saw the emergence of AI through Machine Learning or put more simply the analysis of massive amounts of data and ‘learnt’ from it. Since then every company has been analysing data, finding patterns, generating insights, making predictions and taking action. It has helped business plan accordingly. As we moved into the 2010s AI moved on to Deep Learning or the vision and speech phase when self-driving cars and voice recognition evolved – and continues to do so now. As we moved into the 2020s where we continue to be now is the Generative AI phase and the launch of technology like Chat GPT.
Azura joined the Canadian Franchise Association (CFA) at the beginning of 2024 and attended their annual convention recently. During the event, there was a very thought provoking session around this topic and the practical uses a franchisor and their franchisees can employ. By now most franchise professionals have used Chat GPT but there is much more to take a look at. The most common uses of Chat GPT to date have been helping with writing articles (not this one or I would have z’s instead of s’!!), writing job descriptions, seeking questions to ask in an interview and asking questions similar to those you might ask in Google – without getting the advertisers. Of course, some of the information could be inaccurate but personally, I have found it to be useful.
These uses of Chat GPT are fairly light touch and the information needs to be carefully considered and perhaps a second opinion is required. But, what other uses can franchise networks benefit from?
Well, to begin with, AI-powered stock management systems can predict which products will or do sell best, optimise stock levels, and reduce waste. AI-powered chatbots and virtual assistants can handle routine customer enquiries, freeing up human agents to focus on more complex issues. Things are advanced now so the chatbot can resemble the person you are looking for – after recording your own image and voice. It can help franchises personalise marketing campaigns, target customers more effectively, and optimise pricing and promotions. AI-powered scheduling systems can optimise employee schedules based on predicted demand, reducing labour costs and improving customer service. AI-powered quality control systems can detect defects and anomalies in products, reducing the cost of returns and improving customer satisfaction. AI-powered maintenance and repair systems can predict when equipment is likely to fail, reducing downtime and maintenance costs. AI-powered training systems can personalise learning for employees, improving knowledge retention and reducing training costs. AI-powered financial management systems can automate routine tasks, such as invoicing and expense tracking, reducing errors and improving accuracy. AI can help franchises identify optimal locations for new stores based on demographic data, traffic patterns, and other factors.
Of course, much of this is already being undertaken, so as I said at the beginning of this article AI has been with us for decades we just haven’t considered it as that.
The real question is – what technology will improve your business?
If you are planning a career change franchising might just be the New Year cocktail you need
The New Year is a great time for franchising.
The exhibition at Olympia is taking place later this month. If you are looking for a business this is the place to go to find out more about franchising. There are lots of useful seminars and you can take some information away regarding any specific franchises, if you want to undertake any further research. However, never make a decision on the day, listen to what you have been told and go away and look at things objectively.
It is also just after the Christmas holidays when people take time off to unwind and relax with family. You might even have spoken about the event with them and asked for their thoughts. Once you have been to the exhibition you should speak to your family again to see what they think now. Some of them may have even joined you if you are planning to go in to the venture with others.
The Festive season is a good time to reflect on your career and whether it is time for a change. If you feel stuck in a career you might have thought about franchising. It is not without risk, just like taking on a new job or independent business, as you still have to work hard but it really is down to you, your staff, and your chosen franchisor. If you are thinking of buying a franchise I would aways recommend and start to look at those that are members of the British Franchise Association (bfa), as they have had to pass some stringent criteria to join, often having to adapt the structure of the business and their legal agreement to achieve membership. Those at the exhibition that are members will usually use the bfa logo on their literature or stand. But, don’t take their word for it, check out their website www.thebfa.org
The New Year with its resolutions can infuse new life into people. Franchising allows a brand to expand and grow by partnering with enthusiastic and motivated franchisees who bring their energy and passion to the business. Some have even brought their ideas – you cannot ignore the fact that the Big Mac was the brainchild of a franchisee.
After the New Year comes Spring when plants flourish and nature thrives. Similarly, franchising can enable a business to expand rapidly by granting franchises to entrepreneurs who establish new locations or territories. This growth allows the brand to reach new markets and customers – in turn, growing the franchise network and benefitting all those that are part of it.
It can also be a time when people experience a sense of freedom and independence. In franchising, franchisees enjoy a level of autonomy and independence while still benefiting from the established brand, systems, training and support provided by the franchisor. Franchising allows individuals to be their own boss and run their own business while leveraging the experience and resources of the franchisor.
Christmas is also a time when people come together, socialise, and enjoy various activities. Similarly, franchising encourages collaboration and networking between franchisees and the franchisor. Franchisees can learn from each other, share best practices, and collaborate on marketing initiatives or joint ventures, creating a sense of community within the franchise system. One of the key events franchisors run is an annual conference, which helps to facilitate this. They also run regional meetings for this purpose but also to share new ideas, practices and news.
To help with your franchise selection, speak to some of the existing network and ask the all-important question, ‘Would you still buy the business today’? If the answer is no – be wary but ask why to see if it is a plausible response. For example, ‘no – I’m too old and am nearing retirement’ or ill-health related but not due to the franchise.
The New Year is all too fleeting and has a limited duration. Similarly, franchising opportunities may be popular and therefore have a specific window for purchase. Franchise systems will also have stringent criteria for selecting new franchisees, making it important in some cases to seize the opportunity within a certain timeframe. However, to caveat that anyone should take as much time as they need, any franchise that rushes you into a decision is one to be very wary of. As is one that offers a discount by purchasing now – they might need the cash to survive, so always check their financial position.
With the changeable weather in the UK, an adjustment or adaptation of activities to suit the climate may be required. Similarly, franchising requires adaptability and flexibility to respond to market changes, consumer demands, and evolving business landscapes. Successful franchisors and franchisees are agile and willing to adapt their strategies to stay relevant and meet customer needs.
These and many more things you will need to consider as you relax with family. However, if you are planning a career change franchising might just be the New Year cocktail you need.
Have a Prosperous New Year!