There is an old axiom in the food business that says that strong sales cure all. However, there are times when that is not entirely true. In the last several years, declining customer mall traffic and frugal shoppers have put this axiom to the test. Surprisingly, few have been tested more than the franchisee of a major franchise food company. Nationally known franchise units, with instant recognition, appear to be excellent for food courts. What you may not know is that flat or declining sales affect them more than the other non-franchise units, even if they have high sales levels. Many of our franchise clients are frustrated with food courts, while our mall clients are upset with franchise operator's menu changes. What is the cause of this deteriorating relationship?
The landlord, at the onset, is usually delighted to have a national or well-known regional franchise food operator in his or her food court. The name recognition, image, potentially high sales, limited menu, operating consistency, product quality, cleanliness, value, good service, trained employees and generally well-rounded operations normally make the franchise operator a good tenant. It is important to note that the franchise operator is answerable to both food court management and the franchise company. The franchise operator must meet operating standards set and monitored by the franchisor.