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The Impact of Technology on Franchising in Asia

Written by Yash Patil, Digital Marketing Strategist, Astreem Consulting

Asia is one of the fastest-growing economic regions in the world, and the franchising industry is playing a major role in this growth. In 2022, the franchising industry in Asia was worth US$12.5 billion, and it is expected to reach US$20 billion by 2025. 

Technology is having a significant impact on the franchising industry in Southeast Asia. It is helping franchisors and franchisees to streamline operations, improve customer service, and reduce costs. 

Here are some of the ways that technology is impacting the franchising industry in Asia: 

  1. Online ordering and delivery: Online ordering and delivery platforms are becoming increasingly popular in the region. This is making it easier for customers to order food and other products from their favourite franchises. Franchisors are also using these platforms to reach new customers and expand their reach. 
  2. Mobile apps: Mobile apps are another way that franchisors are using technology to reach their customers. Franchisors are developing mobile apps that allow customers to order food, make reservations, and track loyalty rewards. This is making it easier for customers to interact with their favourite franchises and is helping to improve the customer experience. 
  3. Point-of-sale (POS) systems: POS systems are helping franchisors and franchisees to streamline operations and improve efficiency. POS systems can be used to track sales, inventory, and customer data. This information can then be used to make better business decisions. 
  4. Cloud computing: Cloud computing is another technology that is being used by franchisors and franchisees. Cloud computing allows franchisors to host their software and data in the cloud. This makes it easier for franchisees to access the information they need and can help reduce costs. 
  5. Big data and analytics: Franchisors and franchisees are also using big data and analytics to improve their businesses. Big data and analytics can be used to track customer behaviour, identify trends, and make better decisions about marketing and operations. 
  6. Audit Management: Audit Management has now become easier and less time-consuming. An operational audit can be monitored with the help of software. 
  7. Training: Training of employees has become a task for franchisors, but with training modules and employee assessments, it's becoming easier for franchisors to maintain consistent quality across all outlets and create positive brand value. 
  8. Standard Operating Procedures: With the help of technology, it is convenient to divide SOPs for various departments, update them SOPs, and notify the employees. 


Here are some specific examples of how big franchises are using technology to improve their businesses: 

  1. McDonald's: McDonald's uses technology to improve its customer experience. McDonald's has developed a mobile app that allows customers to order food, make payments, and track their loyalty rewards. McDonald's also uses online ordering and delivery platforms to reach new customers and expand its reach. 
  2. KFC: KFC is another franchisor that is using technology to improve its business. KFC has developed a mobile app that allows customers to order food, make payments, and track their loyalty rewards. KFC also uses online ordering and delivery platforms to reach new customers and expand its reach. 
  3. Pizza Hut: Pizza Hut is using technology to improve its customer experience and streamline its operations. Pizza Hut has developed a mobile app that allows customers to order food, make payments, and track their loyalty rewards. Pizza Hut also uses a POS system to track sales, inventory, and customer data. 
  4. 7-Eleven: 7-Eleven uses technology to improve its customer experience and streamline its operations. 7-Eleven has developed a mobile app that allows customers to order food, make payments, and track their loyalty rewards. 7-Eleven also uses a POS system to track sales, inventory, and customer data. 
  5. Grab: Grab is a Southeast Asian ride-hailing and food delivery company that is using technology to expand its reach and improve its customer experience. Grab has developed a mobile app that allows customers to book rides, order food, and make payments. Grab is also using technology to track customer behaviour and identify trends. 


These are just a few examples of how technology impacts Asia's franchising industry. As technology continues to evolve, we can expect to see even more innovative ways to improve efficiency, audit and compliance in a franchise business. 


Here are some of the benefits of using technology in the franchising industry: 

  1. Improved customer service: Technology can help franchisors and franchisees improve their customer service by making it easier for customers to interact with their businesses. For example, online ordering and delivery platforms make ordering food from their favourite franchises easier for customers. Mobile apps can also help to improve the customer experience by allowing customers to make reservations, track their loyalty rewards, and access information about their favourite franchises. 
  2. Streamlined operations: Technology can help franchisors and franchisees streamline their operations by making tracking sales, inventory, and customer data easier. For example, POS systems can be used to track sales and inventory in real-time. This information can then be used to make better business decisions. 
  3. Reduced costs: Technology can help franchisors and franchisees reduce costs by streamlining their operations and improving efficiency. 


Franchisors and franchisees who embrace technology will be better positioned to succeed in the future. By investing in technology like TreeAMS (Franchise Management Software), franchisors and franchisees can improve customer service, streamline operations, and reduce costs. This will help them to remain competitive and grow their businesses. 


Related Article:

  1. Why Operations Management Software is Essential for Franchise Operations in the Digital Age
  2. How Digital Restaurant Operations Platforms and F&B Franchise Management Software helps restaurants and kiosks grow together

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