Creating Partners in Growth

The following is a two section excerpt from Chapter 8 of my new book 5 Pennies of Profit: 10 Road Rules of Becoming a Franchise Mega-Brand! due to be published this Fall.

 

I grew up with Super 8 Motels - quite literally. As a youngster in my early twenties, I joined the company in franchise operations and spent eight years helping grow one of the largest and iconic brands in the United States today and am very proud to have been a part of it.

While we may not have exactly realized it at the time - there are two distinct initiatives that were implemented at Super 8 Motels that set us apart from the competition on a considerable scale, generated tremendous revenues for our franchisees, and were quite visionary. 

Those initiatives are the national reservation system and the V.I.P. customer program. During the 1970-80’s it was virtually unheard of to have an in-house reservation system, as most lodging chains outsourced their reservations to companies that specialized in that process. As well, the V.I.P. club, better known today as a “loyalty program” was even way more advanced and visionary for its time. Today, both these types of programs are taken for granted and utilized by countless numbers of businesses in varying sectors.

As you might expect - both of these programs were more happenstance than strategically planned initiatives - but none the less were smashing successes that still thrive today.

Let’s examine them as they are perfect examples of franchisor sponsored initiatives that benefited all franchisees and created partners in growth.

Superline - The Super 8 Motels National Reservation System

In 1974 the very first Super 8 Motel was built in Aberdeen, SD and in 1975, the toll-free national reservation line was launched and handled by a single operator. She would receive the call from a guest, write the reservation down on a scrap paper, and then call the motel to book the room.

Starting in 1977, the system was named Superline and was “upgraded” to a large wheel with hundreds of slots that spun in a circle. Operators on one side would receive the reservation and then stick it in a correlating slot for the motel. Operators on the other side would spin the wheel, pull the form and call the motel to book the room. Believe it or not- this was a highly efficient system.

By the early 80’s the daily call volume was exceeding a 1,000 reservations per day and a computerized system was required. By the end of the 80’s over 325,000 calls per month were coming through Superline and being dispatched directly to franchisees properties.

Super 8 Motels was the first national economy lodging chain that offered a centralized toll-free reservation line. Not only did Superline generate direct revenues to franchisees for being a part of the system - it was also a tremendous value proposition for joining the system.

The Super 8 Motels V.I.P. Club

Another program that benefited and created partners in growth with the franchisees was the launch of the Super 8 Motels V.I.P. card in 1977. Initially conceptualized by then brand President Dennis Bale after he noticed another motel that had a frequent customer program - the V.I.P. program was launched with nothing more than applications at the motels. An applicant had a credit check ran on them and then received a paper card that was typed out with their name, address, and member number. Yes - this was all done with a typewriter at the time.

V.I.P. members received a 10 percent discount on rates at participating locations and could cash checks at those properties. The program grew like wildfire - as within a few months, the membership count was over 1,000 and by 1983 had grown to over 60,000 members. In two more short years, the count had grown to over 207,000 members and gaining speed. Not many years later the count had grown to over 6 million people.

The guests that carried these cards were people who stayed frequently at franchisees properties and were fiercely loyal. This program, along with Superline played a major role in the growth of Super 8 Motels and continues that success today.

Authors Note: I still have my original V.I.P. card. Back in the day, Super 8 corporate staffers carried special issue cards that had a denotation of “S8” with a corporate number on them. I always got a chuckle when desk clerks would get extremely nervous after they noticed my number at check-in. On another note, I also know the whereabouts of the wheel that was used in the early reservation center. Wouldn’t that make for an interesting conversation piece?

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Copyright 2011 Helgerson Franchise Group & Lonnie Helgerson