Go into any successful franchise or chain store with an open mind and it is easy to see why they are successful. In most cases, it is because they offer a product that, for the price, is demonstrably superior. Wal-Mart sells premium brands at low prices and has superior inventory management. It offers discounted prescriptions to seniors. It offers free RV parking for vacationers. Home Depot hires aisle attendants who are genuinely knowledgeable. They will cut your wood for you, on the spot, no hassles. You can rent a van to take it all home. Subway sells sandwiches on fresh-baked bread, often still hot from the oven. You get to put it together precisely the way you like. Tim Hortons sells the best filter coffee around. And we sometimes forget that even McDonald's sells fries that are superior to what you can find at half the bistros in Paris.
These companies may advertise heavily now, but they did not build their businesses through advertising. When they were able to make significant inroads into a particular market, it was usually because that market was so poorly served before. Independent bookstores could have installed comfortable chairs and started serving coffee long ago; they just didn't get around to it until they started feeling the heat from Barnes & Noble or Chapters. Lumberyard attendants could have stopped being jerks or intimidating female customers years ago; they just didn't get around to it until the Home Depot opened up around the corner. Service stations could have stopped ripping off their customers whenever they wanted: they just didn't get around to it until chains like Midas took away a significant chunk of their business. Coffee shops could have invested in an espresso machine any time they wanted; they just didn't get around to it until Starbucks came along. Department stores could have adopted "no hassle" refund policies from the beginning; they just didn't get around to it until the big chains started doing it. The list goes on and on.
Part of the reason that so many of these successful chains are American is that Americans have dedicated an extraordinary amount of time and thought to the question of how to produce an enjoyable retail experience. How many times have you walked into a store only to have the staff act as though they're the ones doing you a favor by talking to you? How many times have you looked at your mechanic and suspected that you're being taken for a ride? How many times have you been afraid to ask a question in the hardware store for fear that the staff would treat you like you're stupid? How many times has the waiter in a fancy restaurant rat- tied off the list of daily specials without telling you any of the prices? These are the sorts of negative experiences that drive customers away. A successful franchise generally has a system in place that eliminates these sorts of experiences—otherwise every branch and outlet suffers.
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