ERA Group offers 10 tips for optimizing costs in your franchise in an international landscape full of uncertainties

• ERA Group offers 10 tips for optimizing costs in your franchise in an international landscape fraught with uncertainty

The current international climate, marked by trade tensions, regulatory changes, and geopolitical risks, is forcing many companies to review their cost structures. Although Spain is not among the countries directly affected by the new tariffs proposed against several European partners, franchises are not immune to their indirect effects.

From ERA Group, a consulting firm specializing in cost optimization and supplier management, emphasizes a key point: today, the impact is felt not so much through direct channels as through the ripple effect on supply chains, prices, and contracts. For franchises, which operate on tight margins and replicable models, staying ahead of the curve is essential.

Here are 10 practical tips for optimizing costs without compromising quality or business growth.

• Review the supply chain as a whole, not by country
• One of the most common mistakes is analyzing risk solely based on the country of origin. In a global environment, costs travel through supply chains, not across borders. A price increase from a European supplier can directly impact your franchise, even if it is not directly affected by strained markets.
• 2. Don’t wait for costs to rise before renegotiating
  3. Uncertainty should not paralyze you, but rather prompt conversations. Reviewing contracts, supply terms, and price adjustment clauses now allows you to gain room to maneuver before the impact materializes.
  4. 3. Diversify suppliers even within the same countryIt’s not just about seeking international alternatives. In many cases, diversifying within the same market reduces operational risks, dependency, and the supplier’s ability to negotiate unilaterally.
     4. 4. Centralize strategic decisions, but allow for flexibility in execution

• 2. 3. 4. 5. Analyze “forgotten” costs that directly impact your margin
           6. Transportation, energy, maintenance, insurance, and auxiliary services are often overlooked, but in volatile environments, they are the first to become more expensive. Optimizing these areas can generate quick and sustainable savings.
           7. 6. Make cost optimization a continuous process
              7. Optimization is not about making one-off cuts. The most resilient franchises are those that integrate cost review as part of their ongoing management, not as a reaction to a crisis.
              8. 7. Gain real visibility into the cost structureMany franchises operate with incomplete or inconsistent information across locations. Without comparable and consolidated data, it is impossible to detect inefficiencies or anticipate risks.
                 8. 8. Do not automatically pass the cost on to the consumer
                    9. Raising prices may seem like the quickest solution, but it is not always the most sustainable. Optimizing processes, renegotiating with suppliers, or adjusting consumption is usually less damaging to the brand and demand.
                    10. 9. Strengthen medium-term financial planningGlobal uncertainty calls for scenarios, not single forecasts. Working with realistic scenarios allows for a quick response if supply, transportation, or energy costs change.
                        10. 10. Seek support from external experts for critical decisions
                            11. In complex environments, having a specialized external perspective helps identify cost-saving opportunities that aren’t obvious internally and prioritize actions with a real impact on margins.
                            12. “Today more than ever, cost optimization is not just a matter of saving money, but a strategic tool for building resilience and protecting the franchise model against an increasingly uncertain international environment. In an international environment as volatile as today’s, cost optimization can no longer be viewed as a one-off or reactive exercise. For franchises, anticipation is key: reviewing suppliers, contracts, and structures before the impact hits the bottom line makes the difference between protecting margins or losing competitiveness. “Today, cost optimization is a strategic decision to build resilience, not just to save money,” says Carlos Franco, consulting partner at ERA Group.