Introduction
Taco John’s, the fast-food chain specializing in Mexican-inspired dishes, has grown rapidly. At the end of 2020, it was estimated by US fast food industry experts that Taco John franchises experienced year-over-year growth in the number of new locations, with an additional 26% in 2021.
At the same time, competition among franchisors has also been on the rise, creating an increasingly difficult market for Taco John franchise owners to operate. As such, it is crucial that Taco John franchise owners understand the strategies needed to increase sales and profitability.
In this article, we’ll outline key strategies that can be implemented in order to increase franchise sales and profitability for your Taco John. Keep reading to find out more!
Focus on increasing customer loyalty through a rewards program
A rewards program can be a great way to increase loyalty and sales in your Taco Johns franchise. Customers receive rewards for repeat purchases from your restaurant, which may encourage them to choose you over other fast food outlets in the area. Customer perks can come in the form of sending them coupons for free discounts on their purchase, items tied to their purchase (like a commemorative mug or t-shirt), or discounts on future meals.
Having loyal customers is also beneficial as it can help build brand recognition. Word of mouth is a powerful tool, and if customers are excited to come back to your store based on the rewards program, it can put your name out there and drive more business to your doors.
A loyalty program rewards system should be designed to be as user-friendly as possible. Try to use a system that’s easy to understand and reach customers, like a points-based system. During their first purchase, customers can have their membership card scanned and collect reward points with each additional purchase. When they reach a certain points goal, they can redeem the points for attractive rewards (like the ones mentioned above). Simple one-time specials (such as “buy 10 tacos and get one free”) can also be used to encourage repeat visits.
If implemented correctly, a rewards program can provide a significant boost to your sales and profitability. For example, if you have a loyalty program with a 100% attendance rate and an average revenue per visit of , you could expect to increase your revenue by 0 if only 10 customers were to double the number. visits they make to your Retain each month (assuming they all used the loyalty program to make their purchases).
To ensure success, consider the following tips when creating your loyalty program:
- Find rewards that your customers will actually want and find appealing.
- Make sure the system is as simple and straightforward as possible.
- Track customer data and use it to tailor ongoing special offers that can help increase customer loyalty.
- Consider partnering with other businesses in the area to provide a wider range of rewards to interested customers.
A well-designed and implemented rewards program can not only increase your sales and profitability, but also create an environment where customers will be motivated to return time and time again. Make sure you understand your target audience and what would make them feel appreciated and keep coming back.
Create an effective marketing campaign
Creating an effective marketing campaign for your Taco John franchise will greatly benefit sales and profits. Here are some strategies to get you started.
Focus on local advertising and promotion
Start by focusing on local advertising and promotion. Due to their high visibility, local advertising and promotional activities can easily increase foot traffic and visibility for potential customers. Consider targeting local residents and businesses with campaigns specific to your Taco John’s location. You can use newspapers, radio and online advertising, direct mail and even flyers to spread awareness within the local community.
Social Media Marketing
Social media provides a great platform to engage with potential customers and increase brand awareness. Start by building a social media presence on popular sites like Facebook, Twitter, and Instagram. Post often and consistently, using platforms like Instagram Stories to showcase new menu items, special promotions and exclusive offers. Use sponsored posts, giveaways, and contests to gain subscribers and followers.
Online reviews
Online reviews are an important part of your marketing efforts. Encourage customers to leave reviews and ratings on Yelp, Google My Business, and other online review sites. Respond to reviews in a timely manner, thanking customers for their feedback. This will help build a positive image for your restaurant with potential customers, persuade them to check out your restaurant, and ultimately increase sales and profitability.
Calculation of the impact on sales and profits
Once you’ve implemented any of these strategies, you need to track the results to make sure they’re having the desired effect. Start by measuring the number of visitors coming to your restaurant, the number of orders that are placed, and the total revenue earned. You can then calculate your return on investment (ROI) to determine if the strategies you have implemented are producing results. To calculate your ROI, divide your profit by the total cost of the promotion or advertising campaign.
For example, if your total campaign costs were 0 and you generated ,000 in profit, you would divide 5000 by 500 to calculate an ROI of 10. This means your campaign was 10 times more profitable than the cost of countryside.
Using the right combination of strategies can help dramatically increase sales and profitability for your Taco John franchise.Through effective local advertising and promotion, social media marketing, and using the power of online reviews, you can reach more potential customers and grow your business. Measuring the ROI of each strategy can help you determine which strategies are most effective and should be used again in the future.
Engage with customers on social media platforms
Having an active presence on social media platforms is an important strategy for increasing sales and profitability for Taco John franchise locations. Social media keeps customers engaged and can even attract new customers who may not have heard of the franchise before. Here are some tips for using social media to increase Taco John’s sales and profitability:
- Engage with customers:
- Be responsive to customer requests and feedback to encourage trust and loyalty.
- Show your appreciation to your customers by sharing their posts, responding to their comments, and offering special offers.
- Host contests and giveaways for customers to engage and increased engagement rate.
- Advertise strategically:
- Place targeted ads directly to users who live near your franchise location.
- Offer customers special promotions and discounts through ads and content.
- Track the results of your advertising efforts to better understand customer preferences.
Engaging with customers on social media platforms has the potential to have a huge impact on Taco John’s sales and profitability. An increase in engagement rate can lead to more customers, more repeat customers, and brand loyalty. For example, if a Taco John franchise experiences a 20% increase in engagement rate, profits could potentially increase by 6.7%.
By engaging with customers through social media and strategic advertising, Taco John franchisees can increase sales and profitability. Actively engaging with customers on social media platforms can give them the opportunity to build relationships and build trust, customer loyalty and overall engagement. Ads provide Taco John franchisees with the ability to make special offers and drive traffic to their business, which increases profits overall.
Streamline operations through the implementation of technology
As a Taco John’s franchise owner, you know that the success of your business depends on the efficiency of your operations. Technology can be a useful tool to help streamline your processes and improve profitability.
First, invest in a POS (point of sale) system. A POS system streamlines and tracks orders, from entering orders to printing a receipt. It lets you keep tabs on customer orders and daily sales, compare past records, and manage your inventory. This can eliminate the need for paper receipts and manual entry, freeing up time and resources. Invoices and customer-related information can be available in the cloud, which is useful if you need to access information quickly.
You can also use technology to monitor employee performance. Invest in a time and attendance system to ensure all employees are accumulating time in and on time, as well as tracking their number of hours worked. This helps to hold staff accountable and allows you to assess the performance of each of your staff members. Employee efficiency and productivity can be monitored and improved with technology, allowing you to work smarter, not harder.
Technology can also help with menu engineering. Implement a menu optimization system to help you analyze customer behaviors and ordering preferences. This allows you to maximize menu items to improve both sales and profitability. With in-depth insights into customer protein flavor and preferences, you can make data-driven decisions about what to promote and identify opportunities for growth.
Finally, integrate online ordering into your website and mobile apps. It will help you reach more customers and provide an easier and faster way for customers to order. Online ordering can also improve the efficiency of operations by eliminating bottlenecks and saving time. Customers who order online often spend more on their orders, so this method can also increase sales.
By implementing the right technology in your business, you can make operations simpler and more efficient, and increase sales and profitability for your Taco John franchise. With careful planning and analysis, you can ensure that your franchise will be successful and profitable.
Perform market research on customer needs
As a Taco John franchise owner, conducting market research on customer needs is key to driving sales and profitability. Knowing what your customers want and need can help you create an appealing menu and develop strategies for targeting new and existing customers. There are a few strategies you can use to identify what your customers are looking for in their tacos.
Identify your target customers
By conducting market research, you can identify who your target customers are. Are they looking for something new or traditional? Do they prefer healthy foods or indulgent meals? Knowing what your target audience is looking for will inform the items you create for your menu. You can use surveys, online forums, or customer feedback forms to help you get an idea of what your target customers want.
Analyze your current menu
Another beneficial approach used to gain insight into customer needs is to review your current menu. By analyzing the menu items customers order frequently, you can tell which items are the most popular. When researching customer needs and preferences, you can use this information to create new features or improve current offers to make them more appealing.
Observing food trends
Understanding eating habits and trends can also influence new menu items. Changing seasons and cultural events can trigger eating habits that can help you attract customers by introducing limited-time items that cater to trending tastes. For example, during the winter months, you might consider introducing hot soup or chili to the menu.
Analyze sales numbers
Analyzing your sales figures is a great way to understand customer needs. Keep track of sales for each item, as well as total sales over a period of time. This will help you identify the most (and least) popular items, and you can adjust your prices accordingly.
Importance of market research
Conducting market research on customer needs is key to increasing sales and increasing franchise profits. By understanding what your customers want and need, you can create a menu that appeals to their tastes and desires. Strategic analysis and use of key data points such as food trends, customer reviews, and sales numbers can help you identify items to add to your menu and ultimately increase your profits.
Calculation example
For example, if you increase sales of a certain item by 15%, and the item costs a total of .50 to earn and .00 to sell, the increased sales may result in the following revenue:
- 15% Sales Increase: 15% of 5.00 = .75
- Gross profit = .50 (cost) + .75 (15% increase in sales) = .25 (profit)
Conclusion
The strategies outlined above are all effective ways to increase the sales and profitability of a Taco John franchise. From focusing on customer loyalty through rewards programs and marketing campaigns to streamlining operations through technology and partner companies, as well as engaging with customers on social media, it is possible to ‘reach more customers and tap into new markets. Using market research, seasonal promotions, discounts and customer reviews will also help drive sales and profitability.
In 2020, Taco John estimated 17% year-over-year growth in the number of new locations, with an additional 26% in 2021.With the right strategies and hard work, you can get your Taco John’s franchise running and be part of the success!