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Discovering “the industry’s f-word” – How fragmented tech adoption derails your GTM

October 30, 2024 | Go-to-Market (GTM) | by Grant Gadoci

This blog kicks off a 4-part series designed to help companies selling into the restaurant industry better understand, classify, and strategically approach go-to-market efforts for franchised brands.

In restaurant tech, your go-to-market strategy (GTM) must account for slow, fragmented adoption when targeting large brands. The root cause? One word: franchising.

While franchisees drive industry growth, they add complexity that can derail GTM strategies. Enterprise chains rarely adopt software across all locations at once, a reality often underestimated. I’ve seen countless restaurant tech companies struggle with these challenges firsthand.

The result? We find ourselves navigating a web of 154 brands in the United States alone with 200+ locations each, where technology adoption remains heavily decentralized. No matter the concept, the scenario is the same: dispersed LLCs, hard-to-reach decision-makers, and an unpredictable path to meaningful revenue growth.

Sure, a handful of “unicorn” companies have managed to secure corporate mandates that streamline top-down software sales—but these are edge cases, not the rule. For the majority, cracking the “fractured adoption” nut is a necessity, forcing us to confront its impacts on everything from prioritizing strategic initiatives to controlling customer acquisition costs (CAQ). Without addressing these challenges, we risk wasting time, burning valuable resources, and missing critical bookings targets.

Read more: Why is it so hard to sell to franchised brands →

The industry’s “f-word”

Fragmented franchises add layers of nuance that can frustrate Account Executives and frazzle B2Bs of all types. For over a decade, I’ve referred to franchising as “the restaurant industry’s f-word”—and for good reason. They really can eff with your GTM strategy.

Adding to the challenge, no two franchise systems are alike, making any one-size-fits-all approach a losing game. Franchise structures vary widely: some brands rely on a few large groups managing regions, while others have hundreds or thousands of franchisees making independent buying decisions.

This fragmentation makes selling into franchised brands as difficult as it is daunting. For those who take on the cold-calling, pitch-slapping hustle with individual franchisees, it doesn’t take long to realize each owner-operator has unique needs, technology challenges, and financial constraints. Selling into a franchise network often means crafting hundreds of micro-sales pitches instead of delivering a single, unified message, a scenario guaranteed to thrill marketing when sales goes off-script.

Whether actively targeting franchisees or contemplating it, the questions remain the same: which brands are worth pursuing, and which will drain your resources? Some brands may be clear strategic wins, while others—even desirable ones—may fall short on critical factors like discoverability or decision-maker access. Not every brand is winnable, and the challenge is knowing which ones are worth the effort.

Do we have to?

When it comes to selling into franchised brands, there are two main approaches: avoid them or tackle them with purpose and a well-defined strategy.

For early-stage restaurant tech companies, avoiding franchise-heavy brands seems simpler. Focusing on corporate-owned chains with centralized decision-making can lower acquisition costs and speed up market entry, avoiding the lift of managing fragmented adoption.

Larger, more established companies simply don’t have this luxury. As growth reaches the late majority on the technology adoption curve, franchise brands become unavoidable. With more than two hundred thousand franchised units, they represent over a third of the total addressable market. For companies looking to continue increasing revenue and solidify market presence, tackling franchised brands becomes non-negotiable. It’s a matter of adjusting your strategy, retooling your GTM, and engaging franchisees with a scalable approach.

The autopilot illusion

For those targeting franchise-heavy brands, land and expand is a go-to strategy: win early and drive momentum across the network.

However, when it comes to executing land and expand as a GTM strategy, the details often fall short. Too frequently, the “plan” amounts to landing the logo, handing off the account to post-sales, and hoping the rest will take care of itself. Spoiler alert: this approach has a success rate of exactly zero. You can’t simply expect expansion to happen on its own.

One of the most dangerous misconceptions is the belief that satisfied franchisees will naturally drive further growth—whether through referrals or other franchisees showing up, eager to adopt your solution. I call this the Autopilot Trap. The “fanatical franchisee” fallacy assumes that satisfied customers will recruit others, but this rarely happens predictably. Many companies offer discounts for referrals, hoping franchisees will evangelize their software. I know because I’ve tried it—personally, for years. Despite the occasional outlier, franchised brands don’t operate as a unified entity, and no single franchisee holds sway over others’ buying decisions. They function as a collection of fragmented buyers, where no single entity moves the needle collectively. Relying on word-of-mouth or network effects without a targeted effort is a strategy that will inevitably disappoint.

A common misstep is over-relying on post-sales teams for growth, oversimplifying what expansion really takes and assuming it will occur passively. Expansion demands a clear strategy, designated resources, and a customized plan for each fractured brand. While post-sales teams are essential for nurturing relationships, they aren’t always best suited to handle fractured accounts requiring proactive outreach and strategic positioning. Without the right resources or a mandate for aggressive growth, post-sales teams may spin their wheels, unable to deliver meaningful results.

Driving adoption in franchise-heavy brands will fail if you expect growth will “just happen” or rely on franchisees to sell themselves. Without a deliberate, well-resourced strategy from the outset, stagnation—not growth—will likely be the outcome. Success requires targeted planning, careful resource allocation, and the recognition that one initial sale is only the beginning when dealing with franchise-heavy brands.

The challenge, then, is identifying which brands are worth that effort and how to prioritize and allocate resources effectively.

Where do we go from here?

Selling into franchise-heavy brands is complex and often misunderstood. Franchisees drive growth but also introduce obstacles that complicate GTM strategies. With independent decision-makers and fragmented buying processes, no two brands are alike, making a one-size-fits-all approach ineffective.

By understanding the dynamics behind these brands, you can begin to adjust your strategy, manage expectations, and set your business up for more predictable success. The next step? Learning how to qualify the right accounts so you can make smart decisions about where to focus your efforts.

Before moving on, remember…

  • Franchise is the “industry f-word”: Fragmented brands complicate sales with independent, decentralized decision-makers.
  • Slow adoption is the norm: Without mandates, franchise adoption is inconsistent and gradual.
  • Targeting is costly: Chasing fragmented accounts without a focused strategy drains resources.
  • Tailored strategies are essential: Prioritize brands wisely and plan for varied decision-maker structures.
  • Avoid the “Autopilot Trap”: Don’t assume one franchisee win leads to automatic growth; expansion needs a proactive, sustained strategy.

Next, we’ll dive into the critical steps for defining which franchise brands are worth pursuing, and how to assess and prioritize them to make your GTM strategy both targeted and effective.


Explore how Restaurantology’s data and consulting services can empower your business by contacting us for more detailed insights. Whether you’re looking to refine your go-to-market, optimize systems and market data, or gain a deeper understanding of industry trends, Restaurantology provides actionable intelligence to guide your strategic decisions and help you stay ahead in the competitive restaurant tech landscape.