Is bigger really better when it comes to business size?

By Sarah Stowe | 29 Oct 2015 View comments

Bigger franchises have thier benefits.

A proven system and a network of more than 700 bakeries established over 31 years means size has played a vital role in Bakers Delight’s success. Establishing our position has been achieved through a proven business formula, combined with a unique product and service offering that continues to facilitate growth across Australia, New Zealand and Canada, serving 2,000,000 customers each week.

With a large, established network comes a distinctive and strong brand – we’re all about real people baking real bread and delivering real delight. The brand has been built on this premise and is sustained today.

A major benefit that comes with size is a greater opportunity to share ideas; from conferences, marketing forums, baking competitions and territory-based meetings, franchisees can share their successes and talk through challenges with like-minded business operators. Franchisees also have the opportunity to benchmark business performance against their peers, which provides a strong source of motivation.

Scope of operational support is also a key benefit of being a larger, well-established franchise network. One-on-one operations support with an assigned area manager provides guidance to franchisees in operating a successful business. And being a part of a big franchise enables the franchisor to support its franchises in all facets of operating a business including, marketing, information technology, financial management, employee relations and training.

Our group purchasing arrangement is a resource to assist in simplifying bakery operations, enabling franchisees to concentrate on operating their bakery. The team negotiates relevant supply agreements and works through distribution issues so as to maximise the network’s collective buying power. We also have an experienced property team that locates viable retail precincts and negotiates leases directly with landlords on behalf of the network.

The size and the success of the network has also enabled Bakers Delight to establish procedures such as training and development programs, product recipes, occupational health and safety, food safety procedures and other invaluable resources tried, tested and constantly improved over years of operation. Prospective franchisees are then formally trained on all aspects of operating a business before purchasing a bakery.

Of course a key advantage of a mature network is that existing franchises for sale have an established track record. For potential franchisees looking to buy into Bakers Delight, this is an invaluable benefit. They are able to see instantly how the business is performing, giving a transparent viewpoint to make a decision. Speaking with other franchisees also offers an insider’s point of view and an idea of the potential of each bakery business.

There is no doubt being big and having a track record established over more than three decades plays a huge part in not only Bakers Delight‘s continued success but the opportunities offered to the network and the stability and risk mitigation for new franchisees.