How do you get the most bang out of your marketing dollars?

For many (not all!) restaurant franchisees, money is tight, customers scarce (and picky!), and here comes the ever-critical Q4, followed by an uncertain 2026—for restaurant operators and customers alike, who both are dealing with inflation (cost of goods for the former and menu prices for the latter). With margins shrinking like an Ozempic waistline on speed, restaurant brands are experimenting with AI to improve just about everything. But let’s stick with marketing here.

So with shrinking margins, what restaurant operator can afford to take the time to learn new tricks (i.e., AI)? Easy: those with their eyes on the future, willing to try new tools to boost revenue and reduce expenses through greater efficiencies, extending and amplifying their marketing spend—without adding new employees (or firing current ones).

As with any major new tech tool (in terms of complexity and cost), it begins with the franchisor running pilots at selected locations before rolling it out system-wide; or in the case of several early adopters, rolling it back. (See the Sept. 8 issue of this newsletter for examples.)

In May, Constant Contact and Ascend2 released a report titled, The State of Franchise Marketing. A total of 503 individual decision-makers (264 franchisees & 239 franchisors from across all industries) responded.

Nearly 9 of 10 (87%) franchisees agreed that more extensive use of AI tools would improve their marketing performance; and one in three (33%) franchisors said that integrating and expanding their use of AI was a top business priority in 2025.

Asked what they saw as the biggest benefits of using AI in their marketing, franchisors said:

44% Increased efficiency and automation

44% Enhanced content creation

41% Better insights through advanced analytics

40% Improved personalization and targeting

40% Improved customer engagement

36% Cost savings in campaign management

26% Scalability across franchise locations

And perhaps more important for readers of this newsletter, here’s what franchisors said when asked how they’re supporting their franchisees in the use of AI tools for marketing:

54% Monitoring and analyzing AI-driven marketing performance

50% Allowing flexibility for franchisees to experiment with their own AI tools

47% Sharing best practices for AI-driven marketing

46% Offering training or resources on how to use AI tools effectively

41% Providing corporate-approved AI tools or platforms

13% Did not provide AI support at the time of the survey

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Franchisee Bytes: How do you deal with problem employees?

GREG THOMAS

Company: President, LSGF Management 

Brands: 6 Smoothie King, 71 Great Clips, 1 Salty Dawg Pet Salon + Bakery (Area Developer)

Years in franchising: 21

Something I’ve noticed is that a lot of the newer franchisees are relying almost entirely on the newer marketing methods, specifically technology-based marketing (social media, SEO, AI, etc). That’s where all the hype is, that’s what’s shiny and new, that’s what’s easy, but that is not the only marketing method that’s out there.

I believe the most affordable and effective marketing is “store-level” marketing. A sandwich board, some Coroplast signs, a few balloons, anything to turn heads and get customers to notice your store. Combine that with some face-to-face marketing… get out into the community, shake hands, kiss babies, and hand out coupons. People buy from people they like. So get out from behind your desk. Go visit schools, venues, police/fire departments and start “connecting” with your community.

Technology-based marketing is great, but it’s also expensive. But don’t forget about the store-level marketing… where a nominal $100/month investment will likely net you the highest ROI.

Also, get involved with local charities. While most would prefer for you to simply stroke them a donation check, a better way is to get your customers engaged in your charity. Get them to invest by “selling” them a bounce back coupon. For example, at checkout, tell the customer, “If you’d like to donate $1 to XYZ charity, we’ll give you a coupon for $2 off your next visit.” (This is how we do it at Great Clips, and we raise about $1 million a year).

CHRIS ASLAM

Company: CEO, Rock Hawaiian LLC

Brands: 5 Hawaiian Bros

Years in franchising: 28

At Hawaiian Bros, we get the most bang from our marketing dollars by refusing to guess. We invest in understanding our guests: what they crave, what keeps them coming back, and which messages truly move them. Then we use that insight to craft campaigns that work harder.

Pair that with innovative ad tech and precision targeting, and we’re able to reach the right people with the right message at the right time, stretching every dollar further. For franchisees, that means they step into a system where the heavy lifting is already done: proven creative, optimized campaigns, and turnkey local playbooks that eliminate waste and maximize return. It’s a smarter, sharper way to market—one that turns intelligence and innovation into real growth.

SETH GOLDSTEIN

Company: Management 360 LLC

Brands: 9 Jersey Mike’s, 4 Sola Salon Suites

Years in franchising: 40

The best way to amplify marketing dollars is to partner with local charities that resonate with you and your customers. The chosen organization needs to provide access to its donors by letting them know about the relationship and how you are partnering with them. Reposts and clicks are important, but a real call to action, and, of course, a purchase, are the most crucial parts of the program. Well-established local charities are great for multiplying the call to action.

Larger franchise organizations can get further with larger, well-known organizations, or by creating their own foundation. This allows for some controls and ensures your marketing and donation dollars go to good local uses. Doing good for people always translates to additional acknowledgment and sales. It’s a great motivator for your customers and teams. However, it needs to be authentic and culturally part of the business.

ROB BRANCA

Company: President, Branded Management Group and Branded Realty Group

Brands: Dunkin (200+), RimTyme, Interstate Battery

Years in franchising: 20

I’m not on any of the Dunkin’ marketing committees, but I know that we combine our social media outreach and our loyalty programs to achieve the most direct communication with our guests and try to provide them with information and value that is meaningful to them.

FRANCHISEE BYTES

How do you deal with problem employees?

Professionally, respectfully, and as often as possible.
—Chad Given is Brand President of Sizzling Platter, which operates 361 Little Caesars, 107 Little Caesars Mexico, 185 Wingstop, 92 Jamba, 33 Jersey Mike’s Subs, 31 Dunkin’, 7 Sizzler, 5 Red Robin, and 1 Cinnabon. He is the 2025 Mega-Growth Leadership MVP for achieving excellence in growth and expansion. He’s been in franchising for 25 years.

We go straight into solution mode. The more viewpoints at the table, the more creative and effective the resolution.
—Lawrence Kourie is Owner-Operator of 22 Dave’s Hot Chicken restaurants. He’s been in franchising for 12 years.

I give employees multiple opportunities to improve, and I listen to their concerns. However, if an employee is toxic, they must be reprimanded immediately.
—Sam Chand is the 2025 Multi-Brand Leadership MVP for achieving brand leadership with multiple brands. He is CEO of Jasam Enterprises, which operates 35 KFC and 25 Checkers & Rally’s. He’s been in franchising for 27 years.

We believe that everyone should have the leeway to make mistakes and then learn from them. We coach and develop our team members so that they feel supported and confident in their decisions. If we find out that someone in our organization does not fit our company culture and they are not living out our core values and beliefs, then we believe we must protect the company culture and do what is best for everyone. We usually will then have to decide whether they are the right fit for our company and whether we are the right fit for them.
—Nick Crouch is Co-Winner of the 2025 Single-Brand Leadership MVP for achieving leadership with a single brand. He is Co-CEO of Dyne Hospitality Group, which operates 118 Tropical Smoothie Cafes. He’s been in franchising for 13 years.

How we lead our teams has more impact on our success than anything else. We coach and deal with issues quickly and never underestimate the impact that a poorly performing or highly negative employee can have on the team. Helping someone find a better fit is often the best thing you can do for everyone.
—Mike Kulp is CEO of KBP Brands, which operates 828 KFC, 119 Arby’s, 85 Sonic, and 56 Taco Bell locations. In 2016, he served as Chair of the Multi-Unit Franchising Conference. He’s been in franchising for 26 years.

There is open and clear communication to prevent minor issues from becoming major problems. We train our leaders to be proactive.
—Chanel Grant is the 2025 Diversity, Equality, and Inclusion MVP for her demonstrated exceptional commitment to the promotion of diversity, equity, and inclusion in her organization. She is co-owner of Healthy Living Ventures, which operates 6 Tropical Smoothie Cafe, 3 Hand & Stone Massage and Facial Spa, and 1 Vio Med Spa locations. She has been involved in franchising for 10 years.

We have a process for write-ups and retraining, and we provide verbal and written counseling for first and second infractions.
—Carrie and Josh Ayers are the 2025 Veteran Entrepreneurship MVPs for outstanding performance, leadership, and innovation by military veterans. They operate 6 Playa Bowls and have been in franchising for 5 years.

Verbal coaching session, then written coaching session, and finally termination. Even the most skilled employees are not worth it if they are a drag on your culture and team morale. We elevate the employees who see the big picture, put “we” before “me,” and can train their replacement.
—Alex Karcher is Operating Principal of JCK Restaurants, which operates 61 Carl’s Jr., 11 Jersey Mike’s, 8 The Human Bean, 8 Dave’s Hot Chicken, and 1 Hawaiian Bros. He’s been in franchising for 14 years.

As a multi-unit operator, challenges are expected, but our general managers are well trained and empowered with clear policies to handle employee issues independently and effectively.
—Yunus Shahul, with his brother Thameem, is owner of Smartfoods Group, which operates 24 Cousins Maine Lobster units and 1 German Doner Kebab. He’s been in franchising for 7 years.