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Implementing Change in a Franchise System
Remember The Eugene Dietzgen Company? If you are under 40, you likely do not. Dietzgen was one of the world's largest makers of slide rules. But when was the last time you saw a slide rule? According to the Internet, the Dietzgen company is still around, but I suspect that it is a shadow of its former self.
And what about Howard Johnson's ice cream and restaurants? Back in the 1960s, HoJo ' as it was referred to ' was the premium ice cream chain. Today, there are a handful left, but what was at one time an industry leader has shrunk into near oblivion.
Dietzgen was not a franchise; HoJo was. But in either case, the point is the same. Our economy is not stagnant. It is ever-changing for various reasons. The slide rule was replaced by the more efficient pocket calculator, and in HoJo's case, competitors such as Baskin Robbins simply did a better job of marketing similar products and services. Baskin Robbins developed quality products, gave them exotic names, and focused on ice cream and related products, while HoJo's concept, in contrast, included full-scale restaurants that sold ice cream. In the end, we have thousands of Baskin Robbins units today, as well as outlets of numerous other brands such as Marble Slab Creamery and Bruster's, while Hojo, like Dietzgen, became a shadow of the past.
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