Over the past few years, Red Roof Inn has launched a number of programs focused on increasing its industry footprint and boosting customer gratification. While hosting its biannual convention in September, Red Roof also took a look at the satisfaction of its own franchisees, analyzing what makes its system so appealing that 90 percent of Red Roof franchisees say they would recommend the brand to others. At the conference, LODGING caught up with President Andrew Alexander to discuss Red Roof’s business initiatives and the company’s new relationship with AH&LA.
What sets Red Roof’s franchising system apart from competitors? Our franchisees are good at what they do and they understand we are good at what we do, so everyone knows that collaboration is the best way to get a positive result. From the corporate standpoint, we discuss new initiatives with franchisees before we execute them, which gets the franchisees involved—they understand what we are going to roll out. RediBill is a big initiative of ours this year, and our franchisees knew about that a year and a half before we started rolling it out. We discussed it, and they helped us with the design. It’s an entirely open environment.
What does it take a property to become a Red Roof PLUS+? In order for one of our properties to become Red Roof PLUS+, they must be 100 percent compliant with PLUS+ standards. In this sense, what we are doing is revolutionary in our industry because no one in the economy segment requires 100 percent consistency. From our point of view, that’s what upscale-economy is—a niche that no one else is bold enough to try. We have to turn away owners who want to be Red Roof PLUS+ but don’t meet all of the standards. However, if and when they earn PLUS+ status, they appreciate it more because they know everyone in their segment has to meet the same standards. Our PLUS+ franchisees also know all their fellow PLUS+ owners. It’s a club and they’re all the best. This 100 percent consistency also drives traffic, business, and ADR.
What is your relationship with AH&LA like? We recently became a brand partner with AH&LA and it was very important because the organization is more essential to our industry now than it’s ever been before. There are so many issues in hospitality that require attention, and they’re the ones taking them on. There’s legislation being passed that makes it much more difficult for companies to operate under a franchisor/franchisee model. There’s discussion as to what exactly defines exempt and non-exempt employees and joint-employer litigation. These are all things that AH&LA is crucially keeping an eye on, and at Red Roof we are behind them 100 percent. The industry needs to act with a single voice in order to be heard, and they’re in the best position to do it. I’ve never felt more concerned about attacks on small businesses and franchising than I do right now, so obviously we’re cheering them on.
