Raise Prices or Cut Staff? What About Neither?

When times are tough, franchises don't have to make major sacrifices. They just need to rethink value.

- MATT HALLER, PRESIDENT and CEO, INTERNATIONAL FRANCHISE ASSOCIATION

Whenever costs climb and consumers tighten their belts, businesses face a choice: Either raise prices or cut staff and services.

But the smartest franchise brands are now wondering: What if there's another way? The franchisors in these brands have begun working closely with their franchisees to analyze every dollar of every cost, all while asking tough questions: Does this actually improve the customer experience? Does it help franchisees make more money? And if not, why are we doing it?

The result is a sharper approach to franchise operations in difficult moments—one that removes unnecessary costs while investing in what truly matters to customers and franchise owners. It's called “value reengineering.”

Here, we'll walk through how five franchise brand leaders reengineered their value. Each story outlines a real problem a brand faced, the practical innovation they thought up to solve it, and a takeaway that every business can learn from.

PROBLEM #1/ If customers have new needs, you need new tech to match.

Many franchise businesses face the same challenge: customers expect transparency, personalization, and proof that they're getting real value—but franchisees sometimes operate with outdated systems that make delivering that experience difficult. Brands want to stand out, but clunky tech holds them back.

Dog daycare and boarding brand Dogtopia had always differentiated itself by using an enrollment-based model and offering all-day play in large, open rooms. But as customers became more focused on the health and longevity of their pets, Dogtopia saw two opportunities: First, to show families how their daycare benefits their dog's health; and second, to simplify the franchisees' workload so they can focus more on directly engaging and serving their guests.