Häagen-Dazs, the maker of decadent ice cream, has long been a key player in the frozen desserts market, boasting annual sales of $1 billion globally. However, as it seeks to expand its global footprint through franchising, the iconic brand faces a perpetual challenge shared by others: how to uphold its distinctive identity while embracing new avenues for growth.
At the forefront of this delicate balancing act is Aurélie Lory, an ESCP alumna who is the Global Managing Director of 400 franchised Häagen-Dazs shops worldwide. We picked her brain on how to ensure consistency and authenticity within a franchise model.
“I am super humble when I see my franchisees. Some have been with us for over 20 years. I come with the mindset that I am sure I can learn as much from them as they can from me.”
Scoops of ambition
Founded in 1960 in New York and now owned by General Mills, Häagen-Dazs first embarked on franchising in 1976, fostering a network of franchisees that spans 40 different markets today. The franchise model means it grants individuals or companies the right to operate its ice cream shops or sell its products within a certain geographic area.
The model allows Häagen-Dazs to expand its brand presence and reach a wider audience while providing entrepreneurs with the opportunity to operate their own businesses under an established and well-known brand name.
For Häagen-Dazs, the challenge lies in safeguarding the essence of the brand while franchising as a growth strategy. For Lory, who has a marketing management degree from ESCP, maintaining brand integrity begins with a meticulous onboarding process, as well as setting clear expectations and providing tools for quality monitoring.
Secret shoppers – hired to pose as regular customers and evaluate the quality of service, product presentation and overall customer experience provided by franchisees – play a key role, not only in assessing standards but also in recognising exemplary performance.
“I use secret shoppers to show who is doing a really good job. It’s equally important that it’s not only used to control, but also to reward,” Lory says, adding that training is essential to ensure that franchise staff and managers are well-equipped to deliver the brand experience consistently.
Building trust with franchisees
Trust serves as the cornerstone in both maintaining Häagen-Dazs’s integrity and fostering successful franchising relationships. “I believe in that sense of collaboration and partnership. The franchisee will trust you if they understand you are on their side,” says Lory.
Central to cultivating trust is the acknowledgement that effective franchising is a two-way street. “I am super humble when I see my franchisees. Some have been with us for over 20 years. I come with the mindset that I am sure I can learn as much from them as they can from me.”
Whether through regular video conferences, phone calls, or formal conferences, these interactions serve to strengthen relationships and deepen mutual understanding. “The human connection is very important,” Lory adds.
She also shares insights from her trip to meet franchisees in India, where she learned about culture, consumer behaviour and market dynamics – particularly the evolving trend towards veganism versus dairy consumption.
“As India boasts a significant middle-class demographic in the making, I learnt about their purchasing power and preferences from the local franchisees,” says Lory. “What stood out was the growth of malls as focal points for brands targeting this burgeoning middle-class, something we have also done.”
Ice cream is a very emotional category, it’s not just food. There are a lot of memories that it evokes. We work with franchisees who share that passion.
Lory has accumulated some 20 years of experience since graduating from ESCP in 2003. She began her journey in luxury retail with Christian Dior Couture in France, followed by four years in Tokyo split between Van Cleef & Arpels and cheese-maker Savencia Fromage & Dairy. Returning to France, she spent six years with a wine and spirits group, before shifting to the restaurant industry. In 2018, she joined General Mills to work on Häagen-Dazs and gradually rose to the position of Global Managing Director.
Staying true to the brand identity
It’s not been plain sailing. One recurring issue involves franchisees introducing savoury items on their menus. Lory understands the motivation: to diversify their offerings. But she stresses that it’s a breach of Häagen-Dazs’s standards.
“From the outset, we’ve been crystal clear: Häagen-Dazs remains firmly rooted in the sweet category. You won’t find hot dogs or sandwiches at Häagen-Dazs. We’ve approached these franchisees and insisted on the removal of savoury options, with no room for negotiation.”
When it comes to communicating the brand’s vision and values to franchisees, Lory employs a range of strategies. Formal meetings and conventions serve as good platforms, typically occurring once or twice a year, tailored to specific market needs.
“Here, we dedicate ample time to explain everything about our brand, ranging from our innovation pipeline to marketing activations and development strategies,” she explains. “Our local teams, spanning development and operations, reinforce these messages at a more granular level.”
Communicating vision and values
Lory says the brand has a human-centred ethos. “It’s a very empathetic company. We always put our people first.” It’s also a brand with an unvarying commitment to product quality, she says. “We do not compromise on quality. We use no additives, and also have a sustainability roadmap.”
Moreover, she says it’s essential to convey to franchisees that ice cream is more than sustenance. “Ice cream is a very emotional category, it’s not just food. There are a lot of memories that it evokes. We work with franchisees who share that passion.”
By fostering collaborative partnerships with entrepreneurs who share its vision and values, she says Häagen-Dazs is poised to delight taste buds and create cherished memories for many years to come.