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Just the thought of being available 24 hours a day makes some prospective franchisees cringe. Yet, as a new business owner, the schedule will likely require many “extra” hours, anyway. The choice really depends on several factors, from your franchise industry to personal preference. And I think looking into a 24-hour franchise makes a lot of sense in many cases.
Most store-front franchise sites have limited hours. Business-related shipping stores, for example, predominately close on Sundays. Restaurants often close on slower days, too.
There are some exceptions, however. Some fast-food locations are open non-stop, and 7-11—now famous for its round-the-clock business model—abandoned its namesake hours long ago. In addition, newer franchises are starting to pop up offering all-day (and all-night) convenience for busy urbanites to streamline grocery purchases.
Service-based franchises have 24/7 options, too. If you own a home services franchise, such as a plumbing franchise, you will be responding to emergency water leaks at all hours.
But even if emergency response is not part of your business model, customers do contact businesses at all hours.
Once upon a time, we could only call businesses or make appointments when providers were open during the day. Now, we consumers expect online access and responsive assistance at all hours. Not every business needs round-the-clock support; for many, voice messages will suffice. But for those that require it, there are unique aspects to consider.
The Pain Points
Let’s get the no-so-good out of the way first. A 24/7 franchise creates a business that customers appreciate when they need it. But there are some pain points for owners.
- Increased Labor: Wages will be your biggest expense, and supporting staff or live24/7 answering service is expensive. If you must have someone on call for immediate response or service, you will have to pay them in most locations (even if they never have to do anything). An expense without offsetting income is particularly annoying. Perhaps you are the sole provider without employees, but if you hope to scale up your franchise operation, incremental labor costs can hurt your bottom line.
- Security Concerns: Depending on your location, security and employee safety could be a concern. From cameras to hired security guards, the liability is very real. I once owned an executive car service, primarily servicing corporate airport travel. Our location was fairly secure, but when a medical marijuana business nearby was burgled overnight, we had to pay for armed guards at night to protect our employees and assets until the landlord took over and resolved the issue (the tenant moved elsewhere). We weren’t the victims, but the safety of employees was our responsibility. Let’s just say that the profit numbers dived in those weeks.
- Lifestyle Disruptions: A 24/7 franchise will disrupt your life, and Murphy’s Law says it will happen at the worst time. Eventually, a scenario like a corporate client whose sewer lines have backed up will inevitably call you in desperation during your little girl’s dance recital. A 24/7 business can (and will) intrude on your private time occasionally.
The Upside to 24/7 Franchises
Given the cons to being at someone’s beck and call all day and night, it’s hard to imagine why anyone would consider a franchise that demands constant access and responsiveness. Yet, there are good reasons to consider a 24/7 franchise model.
- Customer Building: When you develop a reputation for being consistently available, your customers will rely on you. It will be easier to build and maintain a strong customer base to support your ongoing success.
- Niche Marketing: Not every service that could be open 24/7 chooses to do it. But you would stand out from your competition by choosing to operate at all or extended hours. Medical franchises or fitness locations, for example, offer options for patients and members who need service outside of traditional work hours. You can market yourself with a strong niche in customer service if you operate at all hours.
- Staff Support: Ideally, you will engage your staff and build their skills to suit your needs. If your staff fully manages your operation without you at times (you have to rest occasionally), each shift manager becomes a partner who runs your successful franchise. As you support their career, they develop an owner’s mentality that helps move your franchise forward, even if you are asleep.
Customer buying habits have shifted to expect access at all hours, even for retail storefronts. Whether you choose to offer long hours in a business or must provide it, you have options that customers will greatly appreciate. In return, you build customer relationships to support your new 24/7 franchise.
Anne Daniells is a co-owner of Enterprising Solutions, a professional services firm specializing in corporate communication and financial improvement for businesses where she shares decades of corporate and entrepreneurial experience—including franchise ownership—in her writings on business culture. She has authored hundreds of articles for publications including AllBusiness.com, TweakYourBiz.com, and MSN.com. Reach out via her website for more on where corporate culture, communication, and human architecture collide.