Joel Libava
(Courtesy of CamEvans, on Flickr)
“I’ll show you, Mr. President.”
Right.
I guess that’s what Denny’s franchisee John Metz keeps telling himself as he goes from interview to interview.
Dumb Idea From A Denny’s Franchisee
In one of his many interviews…this one with The Huffington Post’s Janean Chun, John Metz said he will add a 5 percent surcharge to customers’ bills to offset what he said are the increased costs of Obamacare, along with reducing his employees’ hours.
And, even though I can’t seem to find find it written anywhere, I heard on one of the cable news stations that Metz suggested that his customers should just, “leave a smaller tip” to offset his 5% surcharge.
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I bet that statement went over well with the thousands of service workers all over the US who rely on tips as their main source of income.
Kind of dumb, John.
Customer Boycotts
It’s possible that some Denny’s customers will boycott this food franchise chain.
There are Denny’s franchises all over the US. I’d be willing to wager that at least some of them disagree with John Metz’s little Obamacare protest.
I know that I would be pretty angry if I was the franchisee of a Denny’s restaurant in say Enid, Oklahoma that was affected negatively by all the PR that Metz, a West Palm Beach franchisee, was getting.
About Franchise Brands
A pretty sizable percentage of the people I work with like the idea of buying a franchise that has a name… one that’s a well-known brand. These potential franchise owners feel that buying a franchise that’s a household name–like a Denny’s, seriously lowers their risk. After all, it’s not like they’ll have to educate their market about what their business does. A well-known brand can save some ramp-up time at opening. That’s good!
However…
If something negative happens with the brand, it can quickly become everybody’s problem-especially with the advent of social media.
Denny’s franchisees from Atlanta to California could be impacted negatively because of the actions of one multi-unit franchisee.
And, that’s why Metz’s “I’ll show you” Obamacare surcharge is a dumb idea.
About the Author
Joel Libava is The Franchise King® — an independent franchise advisor with 25+ years in the industry, two published books on franchising, and his writing has been featured in The New York Times, Forbes, CNBC, Entrepreneur® Magazine and others. In addition, he wrote exclusively for the U.S. Small Business Administration blog for eight years. He doesn't sell franchises. Instead, Joel helps you figure out if franchise ownership is actually right for you — and if it is, teaches you his powerful, proven-to-work franchise research techniques, so you can make a smart, informed decision on a franchise to own and be your own boss.
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