With the cost of operations at historic highs, many Australian businesses are looking for ways to improve margins wherever possible.
And according to Gareth Boyd, Head of Growth at the credit card comparison website CreditCardCompare.com.au, being more strategic about how you pay for typical business expenses is key to that.
“In today’s tight margin environment, every dollar counts for franchise businesses,” says Boyd. “The right credit card strategy turns your unavoidable expenses into valuable rewards, effectively giving you a discount on everything you buy. It’s a smart money management hack that becomes a competitive advantage that builds over time.”
Practical Applications for Franchises
Franchise businesses can gain substantial benefits by using credit cards that offer rewards on regular business expenses, creating opportunities to build rewards that enhance profitability.
Common franchise expenses such as inventory purchases, utility bills, marketing costs, and equipment maintenance can all generate rewards when paid with the right card. Some franchise owners use these accumulated points for staff incentives, business travel, or cash back that offsets operating costs.
“Smart franchise owners look at their entire expense ecosystem,” Boyd explains. “From regular supplier payments to one-time purchases, each transaction becomes an opportunity to earn something back.”
Multi-Location Food Franchise Case Study
A franchise owner with four food service locations implemented a strategic credit card approach that transformed regular business expenses into valuable rewards.
The business was spending approximately $30,000 monthly on supplies, equipment, and marketing across all locations but was using standard business accounts that offered no benefits on that spending.
After reviewing options, the business switched to a rewards credit card offering points on all purchases with no cap. They then centralised all franchise expenses — everything from inventory orders to advertising — to get paid with this card.
Within the first year, the business accumulated over 500,000 reward points. The franchise owner used these points in three strategic ways:
1. Offset business travel costs when scouting potential new locations.
2. Funding for a staff incentive program where top-performing team members received rewards funded by converted points.
3. Redeemed points for family holidays.
The advantage of this approach was that the business wasn’t spending any extra money. They simply redirected expenses they would have paid anyway through a channel that gave them something back. The reward points effectively worked as a discount on their operational costs.
Getting Started
If you are new to earning rewards, Boyd suggests starting with a thorough review of your current expenses and payment methods.
“Map out your major spending categories, identify which ones could earn rewards, and research which financial products might best match your specific business needs,” he recommends.