Tag Archives: life

False Inferences

This Foodie Friday, let’s give a round of applause to Burger King, A&W, White Castle, and all of the other burger chains who are beginning to serve Impossible Burgers. OK, throw in the donut chains who are serving the Beyond Meat “sausage” products too. Are they indistinguishable from their meat-based versions? I have no idea – I generally don’t go to QSRs when I want a burger although I might have to just to try one out.

The round of applause is not for taste but for trying to expand their customer bases to include vegetarians and vegans. My vegan daughter will (rarely) go to a QSR and get what amounts to lettuce and tomato on a bun (think a chicken sandwich without the chicken) although some of the chains offer truly vegan patties and sandwiches.

Burger King is not one of those – their veggie burger has both milk and eggs in it. However, they are one of the first chains to add the Impossible Burger to their offerings. As it seems with many things business-related, there is a dark lining to the silver cloud. It turns out, unless you specifically ask, the Impossible Burger is cooked with the same broiler as regular burgers and chicken. So much for vegan or even vegetarian. Burger King says that 90% of the people who ordered the Impossible Whopper during a trial run this spring are meat eaters, which means most diners may not care if their faux-meat patties are cooked alongside classic beef ones. In fairness, they don’t label the product as vegan either. Still, it raises a point I want to bring to the surface today.

Humans make inferences. We use our beliefs as assumptions and make inferences based on those assumptions. We do that because we can’t act without them. We have to have some basis for understanding and the only way for us to take action is to use our assumptions to make inferences. An assumption is something we “know” based on our beliefs or previous experience.

When Burger King offers a burger that is a vegan alternative to a meat-based product (something that’s known) you can see how a customer will infer it’s still vegan even when it’s not labeled as such.  If there is room for the customer to draw a faulty inference based on reasonable assumptions, I think we need to go out of our way to correct them. I also think that it’s way out of bounds to create those false inferences knowingly – having the customer see that something is 35% off and a good buy when you marked it up the week before with the intent of marking it back down.

The difference between “relaxing” and “wasting time” is all in the meaning we assign to what we’re doing, the inferences we draw. The difference between “selling” and “dishonesty” or “hyperbole” or even “grifting” is also based on inferences. Not allowing customers to draw a well-constructed line from their assumptions to inferences and meaning is bad business in the long run, don’t you think?

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Filed under food, Huh?, Thinking Aloud

Why Doesn’t Everything Have An FDD?

Have you ever heard of a Franchise Disclosure Document? I hadn’t either until I became involved in matching people up with franchise opportunities. You can read about what the FDD entails here but in a nutshell, it’s meant to be a document that provides enough information to someone thinking about investing in a franchise so that that person can make an educated decision about the investment. It’s sort of like a prospectus you would receive before you invested in a mutual fund or a stock.

If you’re someone who is looking at franchises, putting the FDD’s of a couple of brands in which you’re interested side by side can be enlightening. You will see the differences in the ongoing fees you’re going to be paying as well as the estimated start-up costs you’ll incur. You can look at how many franchisees have joined the system over the years and where they’re located. You can see if any have left the system as well as if there are any bankruptcies or legal actions. You’ll see any differences in how they define the territory to which you’re getting exclusive rights (and if the rights you’re getting are, in fact, exclusive). In short, you’re being given a document that provides the bulk of the information you would probably have to spend weeks researching on your own if you could even find it.  In fact, the FDD even gives you a list of current franchisee so you can “validate” the franchise by calling them and asking them to tell you even more information.

My first thought when I read my first FDD was “wouldn’t it be nice if EVERYTHING had an FDD?” I mean, who wouldn’t want to be handed this kind of information by law? Not only that, once you get the FDD there is a mandatory waiting period before the franchisor can take your money, even if you’re ready to sign up on the spot. Wouldn’t THAT be nice when you’re being pressured into making a quick decision about a big purchase such as a car or a house?

Come to think of it, if you’ve ever bought a car or a house, have you remotely thought that you had complete information? Maybe you got a mechanic or a building inspector to look at them but wouldn’t it be great to have an FDD?

That’s something any business should keep in mind. While we might not want to make up a 250+ page document, we should strive to disclose as much important information as we can throughout the decision-making process to potential customers and partners. Not only does it make them feel more secure in their decision to sign up with you but it also prevents a lot of surprises down the road. Just because we’re not legally obligated to provide something that’s the equivalent of an FDD doesn’t mean we shouldn’t, don’t you think?

And if you’re ready to change your life and look at a new opportunity, click here and I’ll help you make that happen. With an FDD too!

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Filed under Consulting, Franchises, Thinking Aloud

Foreign Flavors

This Foodie Friday, let’s think about the Black Cheese donut. Yes, there is such a thing although unless you live in Jakarta you’ve probably not sampled one. It’s a donut that’s glazed in chocolate icing and then rolled in parmesan cheese. No, I’m not making this up – you can find them at Dunkin’ outlets in Indonesia.

Then there is the Thai snack food of BBQ-flavored fish. They’re bite-sized – yum! You can buy a creamed corn pie (think apple pie but creamed corn) at KFC outlets in Japan or haggis-flavored potato chips in Scotland. If you want a brief around the world tour of some odd food products that will probably seem strange to those of us with American palates, click here and scroll through 46 of them.

The thing is that they’re not odd, not to the people in the areas where they’re made and distributed. As with most things, if there wasn’t demand the product wouldn’t continue to exist. The fact that they got made in the first place is a tribute to anyone who was involved in the process but for whom the product has no appeal. Ignoring our own prejudices is something that helps us succeed in business. Most of us aren’t the typical consumer of our product and, therefore, must keep an open mind where research or other data tells us that there is a market opportunity.

You might not need to be reminded that not everyone sees the world in the same way. One glance at the evening news or even your own social media stream will confirm that for you. Not everyone will love a Black Cheese donut but apparently, enough people do to justify their continued presence on Dunkin’s shelves. We need to try some flavors that are foreign and, even if we don’t like them, remind ourselves that others do.  Crab flavored Pringles might not be your thing. Maybe you prefer the Iberian ham chips. I had my first ketchup flavored chips when I was in Canada. They seemed like a good idea – ketchup goes on french fries which are potatoes, so… Well, they weren’t, but I don’t think any less of our Canadian brethren for making them popular.

Want to keep your business open? Keep your mind open as well. The flavor might only be foreign to you!

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Filed under Consulting, food

The Fear Barrier

I spent last week at a conference of franchise consultants and franchisors. If you’ve read this blog before you’ll know that one of the recurring themes is the need to be learning constantly and going to meetings like that one is one of the best ways to educate yourself. After all, who knows more about that challenges that you face in your business than other folks who are dealing with the same issues?

One issue that came up a lot in my conversations with my peers is the issue of fear. We’re in the business of helping people realize their dream of business ownership. We find out their “why” and then find businesses – franchises – that match their goals and their budgets. In the process, we end up sending them a lot of very specific information about potential investments and it’s at that point that the fear barrier sometimes kicks in.

Imagine that you’re looking at several opportunities that could make your dream come true. You have the resources to make it happen. The next step is for you to speak directly to the development people at the brand and to continue your investigation. What often happens at this point is that people “go dark.” They don’t respond to phone calls or emails. I suspect that it isn’t that they’re not interested but, rather, that they’re TOO interested and suddenly things are VERY real. The notion of quitting your job and investing your savings in something completely new can be terrifying.

The people with whom we’re having these discussions identified themselves. They filled out a request to chat with someone about franchise opportunities. They WANT to make this happen, or at least they want enough information to see if that’s what they want. I’ve had people say they’ve reviewed the information and a company I’ve found for them isn’t quite right. That’s fine: we keep looking (I represent over 500 different brands). They’re not unafraid but they’re not letting the fear paralyze them. They use it as motivation. They believe that they can change their lives for the better and 94% of the time they will be right (that’s the percentage of franchisees that consider themselves successful).

No matter whether you’re looking at franchises or at changing companies or jobs or careers, the fear barrier will be there. The people who are truly successful – the ones who realize their dream and find self-fulfillment – are the ones that break through the fear barrier, not waiting for the “right time” or accepting the things in their lives that are really unacceptable to them when they step back and think about it. Is that person you?

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Filed under Helpful Hints, Reality checks

Balsamico And Business

The question, this Foodie Friday, is have you ever had true balsamic vinegar? Not the junk they sell at the supermarket that’s probably made outside of Italy, but true balsamic vinegar that bears a D.O.P. stamp, a European Union certification that guarantees an ingredient’s quality, production, and place of origin. In the case of balsamic, it must be made in Reggio Emilia and Modena, Italy, using traditional methods, and production is overseen from beginning to end by a special certification agency.

I won’t go into detail about the process, but the key takeaway for today is that it takes a long time to make. Like a dozen years or more. Every step of the way, the amount of vinegar in the barrels is reduced as the product concentrates. You need to take the long view of what the business will be if you’re going to start producing this stuff! It requires patience, resilience, capital, commitment, and much more.

The same can be said about a winery. Planting vines, getting them to produce, bottling and aging all take time. You need to think long-term. I think the same sort of thinking is involved when you go to make some dishes. Great barbecue takes a long time. So does a great Bolognese Sauce (even with a pressure cooker – believe me, I’ve tried!).

Whether it’s Balsamico or business, there are no short cuts. Great things take time, generally more than we’d like. As we often see in today’s world, moving fast and breaking things often results in a disaster even as the company expands rapidly. The fall is often as fast as the rise.

Maybe my thinking is more tortoise than hare, but I’m a believer in taking the time to get things right. I play the long game. As with balsamico, you need to commit to the process, as do all the stakeholders. There’s a reason the good vinegar sells for $200 an ounce, and once you’ve experienced it you’ll understand the difference between it and the $16 bottle you get at the supermarket. Greatness takes time, both in the barrel and in business, right?

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Filed under food, Thinking Aloud

Great Skills

I spent some time last week speaking with a fellow who is trying to change his life. I meet a lot of those folks in my franchise consulting role. They’re tired of working for someone else and want to invest what they’ve saved in creating a new, better life for themselves and their families.

One thing we talk about early on in the process is the skill set the candidate is bringing with them. Have they managed people? Do they like selling? Do they know about technology? It’s not that any skill set is better or worse. It’s simply about identifying what they bring beyond financial resources as we examine the hundreds of possibilities out there.

The fellow I spoke with last week works in auto repair. He’s a “body man.” Unfortunately, many of the auto body repair franchises are well beyond his financial abilities so we talked about some others. I also brought up a franchise that’s involved in drywall repair. He said he didn’t know anything about drywall and he didn’t have those skills. I reminded him that this, like most other franchises, offers a lot of training but putting that aside, I asked why repairing drywall is that much different from repairing sheet metal. He’s now considering the franchise but it raised a good point that we all need to remember.

Many of us focus on the trees and not on the forest. We think about learning a skill in a vacuum instead of the broader application that learning may have. Learning to code, for example, can teach project management, since you can’t perform either one well without a great plan and a flow chart of sorts.  It’s also a good reminder that learning the “broad” skills of communication, problem-solving, and teamwork have application across the board. That’s why so many of the business opportunities I deal with emphasize they want candidates with those skills and will train them on the specific skills needed to be successful.

Unlike Napoleon Dynamite, we all DO have skills and most of us have more of them than we think. What are yours?

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Filed under Helpful Hints

Every Day Is April Fools

How many head-scratching headlines have you seen today? Google’s Files app now cleans your phone screen from the inside? Guy Fieri has been brought in to cater the Champions’ Dinner at the Masters? Roku announced a remote designed to be dog-friendly?

None of those things are true, of course. They’re just three of this year’s batch of April Fool’s jokes that seem to run rampant across the interwebs. Actually, HelloFresh’s announcement of a Unicorn Box, which they say is a “brand new, first-of-its-kind experience will let you eat like a mythical creature. Brush away the confetti to find a box full of farm-fresh rainbows, smiles, and joy right at your doorstep” sounds kind of yummy. It’s so obviously silly that you can ignore it safely. Others, like the Google video of the screen cleaner, are close enough to plausible to have you wondering if they’re a joke or a scientific breakthrough.

So you’re probably dialing up your BS detector as you surf around the digital world today. You probably have seen odd announcements from your friends on social media saying they’re leaving their jobs or investing in gold mines. You know they’re kidding but there is an excellent reminder in all of this.

Every day is April Fool’s Day. There is an awful lot of made-up garbage floating around out there and if we’re not skeptics we’re going to have the proverbial wool pulled over our eyes. Unfortunately, it’s rarely as obvious when something is fake the other 364 days of the year. Check facts using reputable fact-checking sites. Ask yourself who has an interest in what I’m reading being the truth and how does it affect them if it’s not? Read and listen carefully. What’s not being said? Does it seem as if a fine line is being walked with how the words are chosen and phrased?

If you can’t dazzle them with the facts, baffle them with your BS is my paraphrasing of the old W.C. Fields quote (he used brilliance instead of facts).  You need to remember that more people and businesses think that way than you’d expect. Make every day April Fool’s when it comes to picking up what they’re putting down. Make sense?

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Filed under Reality checks, Thinking Aloud, What's Going On