I have become obsessed with the realization that chain store operators are leaving billions of dollars of sales on the table by failing to properly train and develop their talent in the real estate teams (total sales of US retail establishments is around $4 trillion according to the 2007 Economic Censuspublished in 2009).
Why is this? Laziness? Ignorance? I don’t think so. Some of the most clever AND street-wise people I’ve ever met are senior executives in chain store companies. I think that the training challenge is relatively new and requires adapting to new market conditions. It’s the natural evolution of the chain store business. Sears built an empire with selection (“Sears Has Everything”). Wal-Mart revolutionized retailing with their supply chain management. Apple has seemingly cornered the market on “cool” and “easy.” Here are some of the driving factors that have increased the priority of training from low-moderate to high: Continue reading →
We have some preliminary information about the state of training for analysts based on several different types of chain store operators: apparel retailer, casual dining restaurant, shopping center developer, and a quick serve restaurant. Continue reading →
Ray Kroc once said, “If we are going to go anywhere, we’ve got to have talent. And, I’m going to put my money in talent.” McDonald’s Hamburger University graduates about 5,000 people per year.
Benjamin Franklin said, “If a man empties his purse into his head, no man can take it away from him. An investment in knowledge always pays the best interest.”
Training is recognized as essential in many areas of chain store operations. The National Restaurant Association conducted its one millionth training class last month. The NRA has been running its ServSafe Food Safety, ServSafe Alcohol, ProStart curriculum, ManageFirst, and other programs for the last 25 years. (http://www.restaurant.org/pressroom/pressrelease/?ID=2137). Continue reading →
After 3 ½ weeks, my blog page called “Site Selection Surprises: Stories from the Field,” has more than twice the average page views of the other blog articles. What’s so compelling about this article? The stated purpose of the page is to provide a forum for chain store real estate dealmakers and analysts to share stories of success and failure in order to build our experience base for evaluating future deals. Makes sense, who wouldn’t want that?