The goal is for the franchisee to source raw materials from their own country and from a distributor who is close by. Varying specifications on raw materials make product quality and consistency a moving target. For example, the formulation of a croissant—the flour and butter—can differ, depending on how ingredients are processed.
Therefore, Platt says, the biologics of raw material must literally be broken down. For instance, Au Bon Pain teams determine the level of gluten in flour and how refined it is.
“Flour is a big one. Flour in different countries is made to different specifications. In Japan, flour is very different. Gluten and how much it is refined vary, and that can throw off the formulation, which throws off the look, the taste, and texture,” he says. “When we look at bread, we look at the structure. Things like gluten impact those attributes. So flour to Au Bon Pain is very important.”
Once the raw materials are determined, a trial and error process yields a product, which then goes through an integrity phase, Platt says. He adds that a successful integrity phase cultivates procedures on detailed raw ingredients, product formulation, and how to physically make that product.
“It might seem complicated, but each step is very important. What we end up with is a croissant that will have the same look, feel, and texture in Japan as it does in the U.S.,” Platt says. “What we want to do is always have a measure of a product. For nutrition and food safety information, we work with a third party who reports to us on an annual basis.”
Found in Translation
If a quick-serve, however, thinks it’s going to start doing business in a country in less than six months, guess again.
“This is truly a process from gestation to fruition,” Platt explains. “It takes a year to 18 months, and your relationships are long term. Some of our contracts are for 30 years.”
To put it in perspective, domestic franchisees go through a daylong orientation, but international franchisees go through a series that last two weeks. It involves a comprehensive overview of manufacturing, café operations, development, real estate, and marketing.
“We spend weeks with them showing them the way we do things, and by the end, they will have an understanding of how we do business,” Platt says.
In each international market, a project manager is on hand, leading that initial set-up team to support the franchisee. “These processes and procedures are for anyone who is considering going international because franchisees are asking all the same questions,” Platt says.
And while franchisees go through a period of adjustment, the franchisor does, too. Platt says Au Bon Pain sometimes thinks it’s answering the questions and meeting the needs of its franchisees, only to get the same request for the same information a couple of months later.
“It’s been a learning experience,” he says. “They are trying to understand and work with us, and we are trying to do the same thing. So, there could be gaps in between because no one wants to upset anybody. It’s truly a collaborative effort, a relationship based on trust. You have to be very patient and very precise because things can get lost in translation more often than not.”
Ultimately, Platt says, finding the right partner—whether a franchisee or supplier—makes for a better franchise, and all parties need to be good listeners.
“We have adjusted,” he says. “We don’t think we have all the answers, we don’t feel compelled that we always have the right answers. The devil is in the details.”
Dairy Queen’s Champagne agrees, noting the chain is negotiating with prospective franchisees in India, both of which are vying for the same locales.
“It’s probably going to take two years of focus groups before we open our first store and even longer to get it right,” he says. “But you have the right partner. There are all kinds of people with money, but you need people with experience with quick-serve restaurants and Western products and people you can build relationships with. Don’t be in a hurry; you have to be patient.”