Growth, new locations, and the opportunity to scale up are all indicators of success for several sectors of multi-site retail, including quick service restaurants (QSR), C-store, and petroleum. But when brands scale up and expand their multi-site operations, they tend to experience a similar group of challenges. 

In this post, we’ll take a look at six of the most common problems faced by multi-site chain retailers. Ed Franczek, Executive VP, Retail at Big Red Rooster Flow, will also share insights on some process and project management solutions to help resolve them.

1. Running late and over budget

Missing an opening day deadline for multiple new locations–or even one–is costly. “It creates a chain reaction of challenges, especially when budget and revenue calculations hinge upon meeting a specific date,” says Franczek.

Missing an opening day deadline creates challenges.

Trying to compensate and expedite completion by paying overtime rates just hikes up the total project cost. 

The ripple effect continues through all stages of installation and setup, as well as stocking the new location, creating a coordination nightmare, and one expensive delay after another.

Solution: End-to-end project management 

To ensure that opening dates and deadlines are met while staying under budget, you need comprehensive project management that can handle all the details and parties involved. 

Look for a professional partner that has experience successfully implementing many similar projects, one skilled in coordinating multiple project teams and having an extensive resource network.

2. Over-stretched, under-resourced teams

While growth may be gradual, it also can be explosive, pushing teams beyond the level of work that they can handle. The volume of work or timeline associated with scaling up may demand an increase in staff. And surprises inevitably occur at exactly the wrong time.

You don't know what you don't know.

Expansion into different geographic regions often includes dealing with new sets of rules and regulations. Franczek notes that geography and climate can introduce new potential risks, such as flooding, earthquakes, or extreme weather: “You find that you don’t know what you don’t know.” 

An in-house team’s finite resources can quickly become overwhelmed. Specialized permitting issues demand accurate information to comply with regional and municipal rules for concerns such as water run-off, building codes, or other regulations like those affecting paved surfaces.

Solution: Specialized regional expertise across all geographic regions

Tapping into the specialized resources of a process and project management team with experience in scaling up across multiple geographic regions saves time, effort, and headaches.

There’s no need to start from scratch learning the nuances of regional regulations, and the right partner functions like a seamless extension of your own staff.

3. Too many diverse vendors across too many diverse sites

Coordinating vendors is difficult and time-consuming. Managing store improvement projects means ensuring that a vast variety of resources and schedules are perfectly orchestrated. 

Not only do you have ongoing projects at multiple sites, but Franczek notes that each layer in the process involves many different suppliers for equipment, services, materials, and field resources. And each of those vendors has their own team of contacts and installers.

You’re responsible for specifying, sourcing, expediting, and coordinating across all stages and locations. That includes resolving logistics and supply chain issues while ensuring harmonious interaction among all parties so project completion milestones can be met on time.

Solution: Aggregated vendor relationships with a single point of contact

Work with a project management partner who can streamline a complex web of suppliers, locations, processes, and timelines into one key overarching relationship–and even find the best deals to save you money. (More in item 5.) 

Trade chaos for control and restore your focus to the big picture. The right partner will have experience with all phases and sources to handle coordination and sourcing for your equipment, materials, field resources, and operational needs.

4. Third party vendors who don’t follow brand specs

Brand specifications for materials, construction, and installation are created for a reason. “How closely the specifications are followed affects the quality of execution and the way a customer identifies and perceives your brand,” says Franczek.

Following specifications closely are important.

You provide direction to site owners/store operators, but if they choose their own unapproved sources for solutions, the results can range from off-brand colors and logo treatments to inferior quality components that affect the customer experience. 

Consistency matters, yet getting that message across to site owners, vendors, and installers who implement the instructions can be challenging. Unacceptable substitutions can lead to the inconvenience and expense of rework.

Solution: A detailed brand book and advocacy for brand standards

Make it easy for third parties to accurately meet interior and exterior physical brand standards, whether or not the brand logo is involved. Look for a project management partner that produces a clear and detailed brand book to guide project execution and illustrate correct implementation.

Your project management partner should ensure all store locations deploy and accurately execute all the interior and exterior elements that contribute to your brand image. Effective management for store improvement projects includes both clear guidance and active follow-up.

5. Overspending because you’re not getting optimized pricing

Your procurement department is focused on purchasing everything that’s needed to support your core business, such as sellable merchandise across all sites, and provide ongoing supply. “In other words, purchasing for a QSR is typically more about food and ingredients than infrastructure,” says Franczek.

Store improvement projects and constructing new locations create additional needs for signage, fixtures, and operational equipment that must adhere to the brand specifications and standards determined by the marketing department. 

Ordering fixtures, displays, equipment, and specialty items based on supporting 10, 20, or 100 current or new locations may seem like high volume, but you could still be leaving money on the table while tolerating long lead times and variable supply.

Solution: National-level volume pricing and turnkey procurement

When your project management partner works on a nationwide scale, the definition of high volume changes dramatically. By leveraging strong vendor relationships, you could be enjoying volume pricing based on scale orders of a higher magnitude and with more consistent supply. 

Turnkey procurement systems–done correctly–can yield immediate and long-term savings. Look for partners who can provide contract management, monitoring of raw goods prices, and efficient procurement of signage, FF&E, lighting, and ongoing maintenance and repair.

6. Complicated relationships with multiple owner/operators

Vendors often don’t understand the different ownership patterns and contracts under which stores and restaurants operate or the complex relationships that connect brands with owner/operators.

Franczek notes that a single store improvement project can involve a wide range of owner/operators, large and small. Participation could be required or voluntary.

Effective process and project management of store improvements demands tremendous clarity in communications. It also requires a thorough understanding of the connections and sometimes conflicting objectives involved in this dual ownership environment.

Solution: Experience navigating complex relationships

Not every project management team has the same history of working with owner/operators in multi-site retail, so it’s important to choose a partner who understands how to navigate these complexities on your behalf.

Completing projects on time involves relationship skills and strategic guidance as well as the tenacity to manage third parties and hold them to the schedule and brand guidelines. You need an advocate in your corner, with experience in nuanced relationships.

Relief for multi-site retail expansion headaches

That’s a long list of challenges. So where do you start? With experience gained from completing thousands of multi-site projects, Big Red Rooster Flow is an expert at resolving the full range of complex process and project management challenges you face.

We have teams of specialists in all areas of operation to cut through the complexity so you gain control over schedules, budget, and timing. We coordinate all aspects of project management, start to finish, including accurate execution of interior and exterior physical brand standards.

Our vast supply network helps us to aggregate vendors so you have one point of contact and are assured of optimized pricing. Imagine what it could be like to apply these solutions to your multi-site retail chain.

Learn more about how Big Red Rooster Flow has helped other brands scale up!

See our Case Studies