AGILITE! To enter foreign markets, franchise networks need to adapt to the cultural norms of the target countries. In terms of their commercial offers, distribution methods and contracts. The proof is in the form of three French franchise networks with international operations.
International expansion, an obvious growth driver for networks
If more and more French franchise networks are entering new international markets, it’s obviously for business reasons. Brioche Dorée (Groupe Le Duff), for example, generates 25% of its sales from its 62 outlets abroad. And this year, the company is aiming for 12 new openings worldwide, notably in the Middle East (Egypt, Saudi Arabia), India and Romania.
The O2 home services network, now present in Côte d’Ivoire, Senegal and Morocco, intends to develop its brand and boost sales by internationalizing its concept. “We are targeting expatriate communities and the CSP + diasporas in these countries,” explains Jean-François Auclair, Managing Director of O2 Care Services.
For Ange bakeries, present in two territories (French overseas departments and territories, and Canada), foreign markets are an obvious source of external growth, given the highly competitive bread market in France. “It’s also a desire on the part of our founders to share our bread beyond France’s borders,” explains Mathieu Tailland, Ange’s Director of International Expansion.
Going international out of social conviction
In addition to this economic motivation, some franchisors are expanding internationally out of social conviction. “In Africa, where we operate, many domestic workers live undeclared in families’ homes. A form of modern-day slavery. By exporting our concept, we want to show that the French art of living is perfectly possible if you are registered and attached to a company. This confers rights on employees”, insists Jean-François Auclair, Managing Director of the O2 Care Services franchise. For the company, it’s also a way of identifying skilled workers likely to come and work in France one day. “Over the next 5 years, our country will need 450,000 more care assistants, so that elderly people can remain in their own homes more easily. If some of our foreign partners train skilled workers, some employees may be tempted to join us in France. But that’s for the longer term,” he explains.
Adapting the offer to local customers
To succeed in their international expansion, French franchisors obviously can’t just barge into a foreign country with their turnkey offering and impose it locally. The concept needs to be adapted to take account of cultural differences.
“We have to adapt to each country’s consumer habits, religion and appetite for more or less veggie food, for example. So we have a main offer common to all our countries, and a complementary offer to reinforce our “francitude”. Abroad, we sell eclairs, mille-feuilles and macaroons, for example. Or croissant-based sandwiches. This is not the case in France,” explains Éric Wauthier-Wurmser, International Franchise Director, Groupe Le Duff.
On Reunion Island, for example, Ange bakeries offer spicier, cane-sugar-based products. In Canada, his poulet provençal sandwiches are heated (not in France). “Our pain bâtard is baked in rectangular molds like sandwich loaves. In France, it looks more like a large olive stone,” emphasizes Mathieu Tailland.
O2 has also had to adapt its service offering to local customs. “In Côte d’Ivoire and Senegal, on a daily basis, we have one or two employees per client family, whereas in France, we deploy staff for 3 hours once or twice a week. So in these countries, we have packaged a more comprehensive ‘housekeeper’ offer”, explains Jean-François Auclair.
Be agile in distribution
Franchise networks are therefore adapting their commercial offers, but also taking account of consumer trends. In the Middle East, for example, Brioche Dorée must offer table service. “In Japan, we wrap our products like gifts,” explains Éric Wauthier-Wurmser.
In Canada, where the “takeaway” culture is highly developed, the Ange franchise has set up café areas dedicated to this type of local demand. A corner now deployed in all the company’s outlets, including in France.
Choosing the right contracts with foreign partners
To expand internationally, brands generally opt for the master franchise system. They therefore rely on a local partner who already has a portfolio of local companies and who will take charge of developing the French network abroad. But this is not systematic. “In Canada, we have opted for branches rather than franchises. This will serve as a bridgehead for our attack on the North American market,” explains Mathieu Tailland (Ange).
For the time being, O2 prefers to operate as a brand licensee in Africa. “It’s a less restrictive model in terms of network management, as it’s impossible for us to send a coordinator on site on a regular basis. So we work a lot on these subjects by videoconference. For their supplies, our licensees have access to our purchasing platform but can also adjust their offer with local products. However, all these products carry our brand name, so they are all validated by our “Africa” coordinator before being used in the network”, concludes Jean-François Auclair, Managing Director of O2 Care Services.
