Business Franchise magazine feature: food & beverage

VOL 09 ISSUE 04 may/june 2015

food franchising

the choice is yours

an effortless way to

increase sales

finding a partnership that works

Business Franchise Australia and New Zealand 41

what’snew! start the morning with Gloria Jean’s Coffees

The hosts of Network Ten’s Studio 10 now start each morning with their favourite Gloria Jean’s Coffees espresso beverage, made by an expert Gloria Jean’s Coffees barista.

Gloria Jean’s Coffees, Australia’s leading specialty coffee house, has built a custom coffee kiosk on the Studio 10 set. This kiosk is equipped with a state of the art espresso machine from which a variety of espresso-based beverages will be served, along with cold Chillers and a full range of Gloria Jean’s teas.

Damien Galea, the charismatic and Gloria Jean’s Coffees highly skilled barista who has owned two successful Gloria Jean’s Coffees franchises over the past 11 years, will create coffees for the Studio 10 hosts and their guests every morning, using his specialist barista and latte art skills.

All guests appearing on Studio 10 will also be able to order their preferred coffee beverage as part of their interactive morning experience.

Speaking about the new partnership, Nicole Saleh, Gloria Jean’s Coffees’ Group Brand and Marketing Manager, said: “We’re excited to have a Gloria Jean’s Coffees’ kiosk on live morning TV! Studio 10 is the perfect partner for Gloria Jean’s Coffees and we can’t wait to bring our brand to life with our barista, Damien Galea, educating viewers about our coffee.”

Studio 10’s Executive Producer, Rob McKnight, said: “We’re always thinking of fresh ways to engage with our guests and audiences and this is why we’ve invited a Gloria Jean’s Coffees barista to become a regular part of the Studio 10 team.

“We’re very happy to be partnering with Australia’s leading specialty coffee brand, to bring the Studio 10 team their favourite coffee prepared by their very own barista.”

The Gloria Jean’s coffee kiosk is positioned next to the studio doors on the left hand side of the Studio 10 set.

La Porchetta Celebrates 30 Years purchased a humble Italian restaurant in Melbourne’s Italian hub. They infused the venue with vibrant Italian culture and passion for life and their great food and warm atmosphere were an instant hit.

La Porchetta celebrates its 30th birthday in 2015, joining a select few Australian franchises that measure their success in decades.

Now the largest, licensed, a-la-carte restaurant franchise in Australasia, La Porchetta began in 1985 when business partners, Rocky Pantaleo and Felice Nania

The second La Porchetta opened a few years later and initial growth was measured, as the two restaurateurs planned the rollout of their vision for a national presence. Today there are more than 70 restaurants in Australia and New Zealand.

“From the beginning, we have stayed true to the family culture that made our first restaurant a success,” says CEO Sara Pantaleo. “We didn’t compromise as we grew and our core values continue to underpin every aspect of the way we manage our business today.”

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A selective franchisee recruitment process and ongoing training have been crucial to the group’s growth. La Porchetta looks first and foremost for passion and people skills in its new franchisees in the belief that these are the most important drivers of success and everything else can be learned.

“We focus on building strong relationships with franchisees and even though we have a full operations team, my door is always open for them to speak with me directly,” says Ms. Pantaleo.

“Growth doesn’t happen by accident. Moving forward, our vision is to be the leading local Italian restaurant in Australia and New Zealand and we’re now focusing on the next decades of our development.”

A perfect partnership Two iconic Australian food brands, Red Rooster and SumoSalad, have recently announced a partnership that will see SumoSalads served in over 350 Red Rooster restaurants nationally.

It sees Australia’s best roast chicken come together with Australia’s best salad brand and is an innovative Australian first for the QSR industry.

introducing two custom designed SumoSalads into the Red Rooster menu nationally.

Anna Jones, National Marketing Manager for Red Rooster says: “This partnership shows how serious we are about our real food credentials at Red Rooster. Our famous Roast Chicken paired with these fresh, high quality salads is the perfect answer for Australians who want tasty and nutritious food made easy. We are extremely excited about our partnership with SumoSalad.”

This is the latest leap in Red Rooster’s Real Food journey. Last year in an industry first, Red Rooster proactively removed all artificial colours, flavours and added MSG from their kitchen made menu.

This was the first step in the redevelopment of their entire menu to become healthier and more natural.

SumoSalad CEO Luke Baylis says: “We’re thrilled to announce this partnership with Red Rooster which will see our salads served in over 350 Red Rooster restaurants nationally. SumoSalad is always looking to expand its influence and help Australians eat healthier food with purpose. This works well with Red Rooster’s mission to provide their customers with a variety of delicious, wholesome menu items. We hope this is the first of many healthier options to come.”

SumoSalad have made no secret of their crusade to bring Australian’s better food and this partnership is the perfect demonstration of this,

Both salads are available as part of the a la carte menu as well as a part of a selection of value combos.

Michel’s Patisserie secures customer satisfaction award Michel’s Patisserie customers may have always thought their local coffee shop was the best, but now they have proof with Michel’s Patisserie recently named the nation’s Coffee Shop of the Year in the Roy Morgan Customer Satisfaction Awards.

It’s the fourth consecutive year Michel’s has taken out the award – no mean feat in the competitive world of coffee.

The Roy Morgan Customer Satisfaction Awards recognise retailers that go the extra mile to satisfy their customers.

Michel’s Patisserie Managing Director Alicia Atkinson said while all of their coffee shops frequently received customer compliments, it was heartening to once again be recognised at a national level.

She said the secrets to their success boiled down to great tasting coffee perfectly poured

by talented and friendly local baristas and their French-inspired patisserie products.

“Our customers initially come for our awardwinning coffee, but come back again and again for the welcoming service Michel’s Patisseries have become renown for,” she said.

“The unique Michel’s coffee blend has been designed for the Australian palate, and overseen by our internationally accredited Master Roaster. Sourced from beans from around the world, our coffee embodies rich notes of chocolate underpinned with subtle berry flavours that perfectly complements our patisserie range and is a favourite with our customers.”

Ms Atkinson said Michel’s Patisseries across the country would not rest on their laurels and were always on the lookout for ways to improve the customer experience.

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Coast to Coast T he Golden Roast

join a

winning team Coast to Coast The Golden Roast is one of Australia’s leading Mobile Spitroast Catering companies.

Established in 1983, they now have over 66 franchises Australia wide and have recently opened four in New Zealand, all in the Auckland area.

Coast to Coast (CTC) has based its success on its ability to consistently provide a great meal at a competitive price with freshness guaranteed regardless of the location.

With a simple but effective training system, CTC makes it possible to expand your

business very easily at minimal cost.

The national franchisor in New Zealand is former All Black Justin Marshall. Justin’s keen interest in CTC has grown and his commitment and enthusiasm together with his high profile will be of significant benefit when promoting CTC in your area.

With Auckland fully operational, CTC now have exciting opportunities available for franchises in the following areas: Hamilton, New Plymouth, Palmerston North, Wellington, Napier, Tauranga and Northland on the North Island, Christchurch, Nelson, Timaru, Dunedin and Invercargill on the South Island. These locations have been selected in order to provide franchisees with the largest population base possible to ensure your success.

Perfect for functions from 30 to 4,000 guests, CTC caters for all events, ranging from 21st birthdays to the most elegant of weddings, school graduations, sporting presentations, corporate events and any other occasion requiring catering.

Several predefined menus are available and your customers can tailor these to suit their individual requirements. The national websites www.goldenroast.co.nz and www. goldenroast.com.au are informative and easy to use and feature high quality photos, downloadable menus, an online booking system, accessible pricing and can be used on mobile devices. .

A standard Golden Roast Buffet consists of the following: • 3 meats; • 8 salads and/or vegetables; • bread; • condiments including mint jelly, homemade gravy, apple sauce and mustards; • a range of desserts; • gluten-free and vegetarian options also available; • plates, cutlery, napkins; and • staff cooking, carving and serving.

All training and equipment is supplied to CTC franchisees. CTC has a full operations manual and computer ordering system that will ensure your food orders, supply orders and all financials are easily managed.

Each stainless steel spit is designed to cook inside or out with no smoke or mess and each spit can feed approximately 100 guests. Included in the purchase price

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FE ATURE CTC will also run a promotion party in your area to get you started, hosted by Justin and Australia/New Zealand CEO Phil Hosking.

These functions are great fun and a sure way to get things off to a good start for you. With all training completed by PhiI, this ensures that you are able to operate all facets of the business from the very first day.

Australian franchises are still available, and include: • Northern beaches and Cronulla in Sydney; • Albury Wadonga in Victoria; • Port Augusta in South Australia; • Geraldton, Albany and Broome in Western Australia; and • Darwin and Alice Springs in the Northern Territory.

Phil says, “We have over 30 years’ experience in opening franchises Australia wide and now in New Zealand, and we look forward to sharing our success with others over the next few years and expanding our CTC family.

As the Australian franchisor and manager of the Canberra franchise, I firmly believe in the benefits of managing a CTC franchise, including flexible hours, leveraging a simple, stable and effective ‘ready-to-use’ methodology and framework, and being part of an exciting venture. Being a rugby and basketball coach, and raising a family, I have also run this great business and have relished every moment.”

Start-up costs are typically around $75,000, and can vary depending on the amount of equipment you require.

If you too would like to join former AllBlack Justin Marshall and Phil in this exciting franchise opportunity, contact Phil today on: T: 02 6242 9700 E: Canberra@goldenroast.com.au W: www.goldenroast.co.nz/franchise www.goldenroast.com.au/franchise

Business Franchise Australia and New Zealand 45

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Serving up the best

in Food Franchising Did you know that Australians spend over 130 billion dollars on food and beverages every year? Or that Australians drink over one billion cups of coffee in cafĂŠs, restaurants and take away outlets?

Then what are you waiting for?

Join the world of food franchising!

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FE AT U R E The early days Until the early 1970’s, franchising was virtually an unknown concept in Australia.

That quickly changed with the arrival of the ‘golden arches’ along with two all-beef patties, forever changing the suburban landscape. KFC and Pizza Hut joined McDonald’s, and so began the story of franchising in Australia.

Since these early days, franchising has grown in leaps and bounds to include almost every industry and covers almost every product and service imaginable.

The food sector of franchising continues to thrive and grow, with food franchises representing a large proportion of the franchising industry.

Eighteen percent of all franchise systems focus on accommodation and food, which includes fast food and coffee shops, with only retail franchises higher (27 per cent).*

Hungry for more!

Research shows that people are increasingly spending more and more on food and beverages. The value of food and liquor retailing in Australia grew by 4 per cent in 2012–13, to reach $141.4 billion.** According to the most recent Australian Food Statistics Report (ABS 2011) household expenditure on food and beverages in Australia increased to an estimated $255 a week in 2009–10, up from $226 in 2003–04 and $222 in 1998–99.

Meals out and takeaway food increased as a proportion of the total household expenditure on food and beverages over the same three survey periods.

“Whilst premium quality international food offerings often come at a higher price point, successful franchise owners will tell you that people are happy to pay a premium for a top quality product.”

Australian Bureau of Statistics research supports these findings, with the trend for spending on meals out and fast foods increasing by 50 per cent from 2003-04 to 2009-10.**

Australia’s love of food Put simply, we love our food, and in terms of franchising the options have never been more prolific. From the early days of burgers and pizzas, we are now being served up more options than ever, and with growing concerns over our increasing waistlines healthy options have become popular in recent times.

In addition, more and more people are raising concerns of gluten intolerance, lactose intolerance, nut allergies, high cholesterol, diabetes… the list goes on! As food retailers, being able to cater for all kinds of food intolerances and preferences is becoming increasingly important.

Responding to consumer desires is vital for sustainability in the food industry.

SumoSalad have struck while the iron is hot. The brainchild of Luke Baylis and James Miller, SumoSalad was conceived with the view that ‘fast food’ could be good, healthy food too. It was a unique lunchtime concept: a fast food outlet that sold made to order salads which were nutritious, delicious and convenient. Since its inception in 2003, SumoSalad has grown to over 78 franchise stores and six company-owned outlets.

Boost Juice is another healthy franchise success story. Since 2000, there have been over 350 franchised and company-owned Boost Juice stores in Australia, and in a further 11 countries worldwide. Boost Juice has taken the country by storm.

La Porchetta has over 70 restaurants in Australia and New Zealand, and are the market leaders in cooking quality Italian food with fresh ingredients. With the first La Porchetta Restaurant open in Melbourne’s Italian hub in 1985, they have been part of the Australian food landscape for 30 years.

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The coffee market has grown considerably in Australia in the last few years, and has proved to be a booming market for many franchisors.

Café culture Coffee culture has swept Australia in a big way. For most people, a trip to the shops cannot pass without stopping for a coffee, a long day at work wouldn’t be the same without the familiar take away coffee cup on our desk, and a long drive simply wouldn’t be possible without a mandatory coffee break! The coffee market has grown considerably in Australia in the last few years, and has proved to be a booming market for many franchisors.

The ever expanding list of franchise opportunities for those interested in a coffee franchise provides a wide variety of options for potential franchisees. Cafe2U is one of Australia’s most successful coffee franchises, with over 170 Australians successfully running their own mobile Cafe2U coffee van business. From a onevan coffee business, a decade on Cafe2U has become a bona fide global franchise operating in seven countries including Australia, New Zealand, the UK, South Africa and the United States.

Alternatively, there are a wide range of coffee shop franchise opportunities where coffee is served in stylish, relaxed and friendly surroundings, most also providing a takeaway option for customers. If you’ve always wanted to run your own café, then perhaps these options could be suited to you.

Global cravings Australia has always been proud of its multi-cultural heritage and our cravings for food from all over the world is reflective of this. Our cravings are for food from all over the world - Indian, Thai, Spanish, Italian, Chinese, Middle Eastern and many more.

Potential franchisees can choose from a variety of retail food options covering all kinds of cuisines. And whilst premium quality international food offerings often come at a higher price point, successful franchise owners will tell you that people are happy to pay a premium for a top quality product that is made exactly how they want it.

48 Business Franchise Australia and New Zealand

Fast food Of course, if we go back to where franchising first began in Australia, the fast food sector of franchising remains as strong as ever. With fast food outlets providing tasty, quick, and cheap food in all locations, from highways to malls and on the high street, the appeal for consumers remains high, and with many now providing healthy alternatives these businesses remain highly competitive in the industry.

Rules and regulations As with any industry it’s important to understand the rules and regulations associated with the business, and this is extremely important when working in food retail. Janine Allis, Founder of Boost Juice and Managing Director of Retail Zoo, gave this advice for Business Franchise readers thinking of getting into the food industry: “First of all you need to fully understand what it means to be in food, particularly healthy food.

“This can all be very daunting and confusing, particularly when many of these bodies do not give you a clear answer on a question regarding the rules. But business always has its challenges. You need to just keep going, becoming a sponge and soaking up all the information you can possibly absorb. Information is key, because making a mistake in regards to any of the above Codes and Associations can not only cause massive fines, but can be terrible for the public relations of your business.”

Choices, Choices!

Given the growing and changing food industry, the customer demand and availability of so many systems to choose from, which one do you go with?

First decide that you are interested in the food retail business. Then get together with your family and make sure they are interested in the food business – this is important not to overlook – as you will be spending a great deal of time in your new business.

You must then get with your franchise banker and put together a realistic sum of money you can afford to put into this new venture. This will most likely weed out some systems quite quickly – as the larger, more well-known food names come with a hefty price tag. They are strong, tried and tested and have proven success stories – but you must truly be able to afford to buy into this.

Once you have an amount in mind, you can begin to shop around. Are you looking for a particular location? Are you looking for a particular type of food or drink? Are you looking for a premised based business, or a mobile unit?

You will be able to narrow down your search, but don’t rush. If you get to your short list, it is time to take the focus away from the product and direct all your attention to the franchise system and the franchisor.

Get to know your franchisor The franchisor holds the key. The management system, the operational procedures, the leasing agreements, the contracts, and the fees have been generated by the franchisor. Check the franchisors background – is it solid? Meet with him or her. Do they seem to be a person of integrity? Do they answer all of your questions openly and honestly? Do they invite you to do your own investigations into the company? Are they eager for you to talk to existing franchisees?

cuisine whets your appetite for the exciting world of food franchising, you will most likely find that you have started on a fantastic path to success.

Enjoy! *Franchising Australia 2014 Report **DAFF (Australian Food statistics 2011-12)

Look out for our next special feature:

On The Road Franchising

If at any point you feel pushed, rushed, bullied or even ignored by the franchisor – it is time to consider walking away. Hopefully though, the franchisor will be professional, honest and open.

The next step is to meet with several existing franchisees. While it’s fine to have all the manuals in place and have the franchisor tell you how great and successful the business may be, it’s the franchisees that have the real story. Visit them in their place of business, ask questions, and ask their employees if they enjoy working there.

One of the great things about researching food franchises is that you can simply drop in and eat. Be a random customer, visit several locations. Is the food good? Is the service good?

Is it consistent from one location to another? Do the employees seem happy?

Do the customers seem happy?

By doing as much research as you can you can gain the knowledge to know if you are making the right choice at the right time.

So if making coffees, flipping burgers, or if carefully crafting international

Given the growing and changing food industry, the customer demand and availability of so many systems to choose from, which one do you go with?

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FE AT U R E

You need to be aware of the FSC (Food Standards Code), TGA (Therapeutic Goods Association) and the Health Authority.

Then you need to consider what the ACCC rules are and of course if you get into franchising there is also the Franchising Code of Conduct. These are just a few of the governmental and industry bodies that have specific requirements when it comes to the food industry.

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The Choice is Yours

When it comes to deciding which franchise is right for you, the choice is yours.

The Australian franchising industry is growing at a rapid pace, and with so many options for potential franchisees it is important to not only thoroughly research the industries, models and brands available, but research your own unique passion, strengths, goals and knowledge.

There are so many things to consider, from product range and support systems to supply contracts and sales projections, but the answers to the most important questions come from within.

1. What’s my passion?

When you make the decision to purchase a franchise, you are more often than not signing a long-term agreement with the brand. You will be living and breathing their values, products, mantras and vision for the future. You will probably be spending more time with this brand than your family, your friends and your partner!

That’s why it’s so important to consider your passions. Do you love the smell and taste of coffee? Coffee franchise operators are around coffee all the time, from unpacking roasted beans to operating the coffee machines and training baristas, and of course talking to customers about the blends, heritage and expertise of each cup served.

Do you enjoy being out on the road,

50 Business Franchise Australia and New Zealand

meeting new people and visiting local events? Those who want to break the routine of the daily grind can find solace in the growing mobile franchise market.

Mobile coffee van operators have regular customers that they visit every week on a prescribed route, visiting many different businesses and people in one day. They can also attend events and become an integral feature of that local community.

Are you passionate about cooking, with an interest in food, fresh ingredients and unique flavour combinations? The ‘masterchef’ effect has truly changed the Quick Service Restaurant market, with consumers now enjoying ingredients like pulled pork, kimchi and duck from their local pizza store. If you are interested in food and making delicious flavours come to life, then maybe a QSR franchise is for you.

fe feature at u r e “Some people open their first franchise with plans to create a multi-store empire, while others just want to do something they love every day.”

Gary Alford | Director of Franchise Retail Food Group

It’s important to identify your passions early on so you can use them to find the franchise that will keep you motivated for years to come.

strengths combined make an unstoppable team.

2. What are my strengths?

Some people exercise to win races; others exercise to enjoy the experience. The same sentiment applies to business. Some people open their first franchise with plans to create a multi-store empire, while others just want to do something they love every day.

Every person has a good idea of their strengths and weaknesses, and you should be aware of both before you embark upon your franchising journey, particularly if you are purchasing a franchise with a partner.

Full training is provided for any new franchisee by the franchisor to help turn any potential weaknesses into strengths.

In fact, at Retail Food Group we have a world-class training academy on the Gold Coast where every new franchisee spends four to eight weeks learning the ropes of their new business. This initial training is where you will learn business, operational, food preparation and customer service skills.

While you will learn all the skills you will need to be successful in your business during the training period, identifying you and your partner’s strengths and weaknesses before you make the final decision might provide new insights.

The best franchisee partnerships are those where each person brings something different to the business; both sets of

3. What do I want my business to achieve?

It’s important to consider your own personal reasons for looking to open your own business so you can find the system that will help you achieve your goals.

Many people say they want to ‘be their own boss’ but don’t consider what kind of boss they’d like themselves to be.

If you’re the kind of boss that places importance on a strong life/work balance and set goals to spend time with family, a franchise that allows you to earn solid returns for minimal hours worked is a great option. Mobile coffee franchises primarily serve customer in the early hours of the morning, then shut down for the afternoon and weekends.

However, if you are an entrepreneur and want to be your own boss so you can be rewarded for all the hard work and dedication you put into your business, a

“By finding out if the industry is in growth or decline, and identifying some of the key challenges for businesses operating in the sector, you can determine which franchisor is implementing the best strategies.”

franchise that allows for high levels of growth and expansion might be better suited to you.

Buying into a franchise is a great opportunity to carve out your own future, from the friendly local café owner to the operator of a cluster of bakeries. With proven business systems, expert advice and structured support systems in place, franchises give you the freedom to achieve your goals, whatever they may be.

4. What do I know about the industry?

Before making a long term investment in a franchise, it’s a good idea to study the industry and build your knowledge base.

By finding out if the industry is in growth or decline, and identifying some of the key challenges for businesses operating in the sector, you can determine which franchisor is implementing the best strategies to combat these challenges.

The retail food franchise industry is made up of many different, smaller markets.

The coffee and café market is growing rapidly in Australia with further growth projected for the sector over the coming years. It should also be noted however that Australian coffee consumers are becoming more and more sophisticated and demanding as it pertains to the standard of beverage they accept.

Therefore, this type of growth bodes well for coffee franchises who can deliver to the high standards of the Australian consumer’s discerning tastes by serving barista crafted, premium roasted blends.

For example, Michel’s Patisserie has won Roy Morgan’s Coffee Shop of the Year for four consecutive years. The brand’s premium coffee blend is roasted and

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“The old franchising saying still rings true; when you go into a franchise you are going into business for yourself, but not by yourself.” manufactured exclusively for Michel’s Patisserie franchises in a state-of-the-art Australian roasting facility. The beans are ground fresh in each store, and each cup of coffee is made by a trained barista.

mentoring from the franchisor and a plethora of shared resources set franchisees up for their best opportunity for success.

There are a wide range of franchise options available to the new franchise buyer, and this is testament to the significant strengths and benefits of the franchise business model.

It is at this point however relevant to point out that franchising does not guarantee success to a franchisee. It is however a very good starting point where the franchisor has the relevant industry experience and scale to leverage that to the franchisees benefit.

From the very beginning, franchisees are supported in their business by experts in the field. Strong brand recognition cannot be underestimated in delivering immediate patronage, and access to superior buying power through a major franchisor serves to increase franchisees bottom line.

When it comes to making the decision about which franchise to buy, remember to consider your own passion, strengths, goals, and personality. You should likewise consider those very traits in the franchisor to ensure you are both compatible and complementary.

For the life of the business ongoing training, regular contact and business

The old franchising saying still rings true; when you go into a franchise you are

52 Business Franchise Australia and New Zealand

going into business for yourself, but not by yourself.

Retail Food Group’s Director of Franchise Gary Alford has held a variety of roles in operations, integration and expansion across franchising and coffee across his nineteen year tenure with RFG. RFG is Australia’s largest owner, developer and manager of retail food franchise systems, with a network of c.2450 outlets spanning 46 global territories. RFG is also a significant roaster and supplier of coffee and affiliated products.

For more information contact: T: 1800 067 619 E: rfga@rfg.com.au W: www.rfg.com.au

SUCCESS?

Domino's is not just Australia and New Zealand's leading pizza brand – it's also one of the world's most advanced digital retailers. So if you're looking for a franchise that delivers on your goals, you can't go past Domino's.

Undisputed leaders in online ordering.

Australia and NZ's first and most advanced mobile ordering apps.

State of the art digital store management tools in the hands of every franchisee.

Australia and NZ's only pizza creation app and only real-time pizza tracker.

Ongoing training and support for franchisees and their teams.

Innovative digital marketing with millions of customers assessable via email and social media.

A proven and trusted brand that's passionate about pizza and people.

Call 1300 131 888 or visit: dominos.com.au/franchising Business Franchise Australia and New Zealand 53

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L a Porchet ta

La Porchetta has a focused drive on expansion

La Porchetta, the largest franchised restaurant operator in Australia and New Zealand is celebrating its 30th birthday this year with a focused drive to expansion.

With more than 70 restaurants in the group, the brand is poised for more site openings in both countries, underpinned says CEO, Sara Pantaleo by the hospitality industry’s impressive growth in recent years.

La Porchetta franchisees choose to invest in the brand for many reasons, including the comprehensive training and ongoing support that is provided and the group’s long history of success.

When husband and wife team Amit Chillar and Noor Sarwara were looking for a franchised business to purchase in 2011, two criteria drove their search. They wanted to ensure that their investment would be safe and they wanted to work with people, not behind a desk or in an office. Amit is an accountant by training and La Porchetta stood out, because it’s

a proven system. “Franchising is a safe way to invest your money,” he said. “La Porchetta is an established model and we didn’t want to reinvent the wheel.”

Neither Amit nor Noor had owned a business before and the support that La Porchetta provides to franchisees was very important to them. “When I was investigating the opportunity, I could see just how accessible the CEO, Support Office and the other franchisees are,” Amit said. “There is a culture of support here that you don’t get in every brand.”

La Porchetta’s family culture and values were also very appealing. “It’s a familyoriented business and we now think of ourselves as part of the La Porchetta family,” said Amit.

Neither had a hospitality background and both found La Porchetta’s initial training program invaluable. “The training was just amazing and it helped us a lot,” said Amit. “We learned about every aspect of the business, from dishwashing to staff recruitment and cash management.”

Business partners, Jason Krainski and Stephen Montebello purchased a La Porchetta restaurant in the Victorian seaside town of Rosebud in 2005. Nine years later, following the success of that business, they opened their second La Porchetta at nearby Hastings.

54 Business Franchise Australia and New Zealand

For Jason and Stephen, the decision to buy a La Porchetta was easy, because it was a trusted brand they had grown up with. “We chose La Porchetta because we both ate there as kids,” said Stephen.

“It was a brand we knew and loved, and when the opportunity came up to purchase a restaurant, we were keen to take it.

“We were young and had no business experience, so buying a franchise was perfect for us, because it gave us a model to follow,” said Stephen. “Now we’re part of the brand, we can see that one important reason for its success is the fantastic initial training and ongoing support you get from Support Office. It’s one of the great advantages of owning a La Porchetta franchise.”

For many franchisees, owning a La Porchetta is also a lifestyle choice.

“When you have a proven system with good policies and procedures and that’s backed by great training, you can step away and have a life work balance,” said Stephen. “When you find that balance, you come back to work refreshed and ready to grow the business even more.”

For more information contact: T: 03 9460 6700 E: franchising@laporchetta.com W: www.laporchetta.com

Full Colour

C0 M94 Y98 K0 C0 M0 Y0 K100 C0 M0 Y0 K75 C0 M0 Y0 K35 C0 M0 Y0 K20

Fonts: Snell Roundhand Glypha LT Std - 55 Roman

Own a Slice of La Porchetta!

Join our 70 restaurants in Australia and New Zealand and help us show why we are the market leaders in cooking quality Italian food with fresh ingredients.

We are looking for passionate food lovers with a strong work ethic and drive to join our family.

You bring the dream and La Porchetta will provide the recipe for success.

WHY LA PORCHETTA? • A proven profitable operation.

• We are a much loved and recognisable national brand.

• We have strong local area marketing support and advice.

• Be part of franchisee regular meetings where you can network and learn from other like-minded professionals.

• We offer a flat fee structure that allows you to build your business faster.

Opportunities now available Australia-wide in key metropolitan and regional areas.

Visit: http://www.laporchetta.com.au/franchising, email: franchising@laporchetta.com.au OR call (03) 9460 6700.

Follow us on Social Media

/LaPorchetta /LaPorchettaOfficial /LaPorchettaChefsTV

Download our New iPhone App or Android App

www.laporchetta.com

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SALES THROUGH SERVICE:

An effortless way to increase sales We all love to eat and drink and if you’re like me you may also love to observe certain trends in the marketplace; noticing an increasing number of people who dine out and grab takeaway.

Gone are the days where takeaway was for the Friday night; people are eating out or doing the grab and go every minute of every single day.

So looking from a fly on the wall perspective, it would be common for one to make an assumption that the food and beverage is booming and is likely to be on the incline rather than the decline. Is this an accurate reflection for this coming year?

Some say yes and others say no. In fact, I was reading in a recent article where it was predicted that ‘… there will be a slowdown

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of growth in the overall food and beverage market in this current year and therefore some challenges for the franchising sector will also be experienced’.

Now I’m going to make a bold statement here, if we all built our businesses on predictions and the forecasts, the economy would be built on fear and most business owners would be closing the doors before they gave themselves a chance to shine.

So how do you shine? How do you maximise your potential? How do you take

fe feature at u r e “If we all built our businesses on predictions and the forecasts, the economy would be built on fear and most business owners would be closing the doors before they gave themselves a chance to shine.”

Tania Allen | Founder Vision Alliance

control and steer your ship to where you want it to go regardless of the economy and regardless of all other outside influences?

Here’s some proven ways that will help you maximise your potential in your business providing of course, you do the right things, in the right order and at the right time on a consistent basis.

Business gurus both present and past say there are many ways to grow a business and some ways are more complicated than others. Oftentimes because of the conflicting messages out there it’s easy for any business owner to lose sight of what’s really going to help us produce short term results and long term benefit and gain.

Let’s explore the top three that will help you build momentum faster.

As obvious as they sound, I invite you to take some time to consider the following and see what changes you can make and what actions you can take as early as tomorrow to build a more solid foundation for increased profits and set your business on a more predictable path.

Increase the number of customers Now this one sounds a little obvious and it’s what most business owners want more of every single day. What I would ask you to do however, is to consider what this really means.…

To increase the number of customers, you firstly need to increase the number of prospects coming into your business. We all know not everyone who walks into your business will buy, so your number one aim is to ensure your business is welcoming and invites more people in and aims to provide a solution to your customers’ challenges, frustrations, concerns, wants or needs.

With the understanding that not all prospects will turn into a paying customer,

it’s important to ensure you have a strategy and a process in place to ensure that the majority of prospects are converted into customers and the rest are nurtured so they eventually buy or perhaps recommend you to others.

There’s your business tip number one: increase the number of customers in your business. In order to do that you firstly have to increase the number of prospects interested in doing business with you, and then you must do whatever it takes to show value and benefit to that prospect so they naturally want to buy what it is you offer and sell and this is what we refer to as increasing your conversions.

There are other ways you can increase the number of customers and that’s through customer retention. Your aim in business should be to increase the number of customers coming through your doors every single day. It is however very expensive to build a business based on a new customer strategy only, so take some time to consider how you would go about retaining your current customers, in other words coming back to you over and over and also how you could reactivate past customers who haven’t purchased from you for a while.

Increase the transaction value McDonalds have been famous for this, using the traditional “Would you like fries with that?” approach to getting your customers to buy more. Many a business owner believes they must increase market share and set out to achieve what is often a deflating activity. What if I told you that you can influence the success in your business faster just by focusing on increasing wallet share and not just market share?

So what is market share and how do we increase it? Imagine a woman has $20 in her wallet to spend on food and beverage items for the day. She may walk into

her local café and purchase a takeaway coffee for $4.20. Its lunch time and she’s undecided as to what she would like, so chooses to take the coffee for now.

Meanwhile she’s walked out of your business and past another. By the time she decides what she wants for lunch, she’s well and truly gone. Will she turn back? Highly unlikely. She is more than likely going to walk into another store and buy what she feels like at the time. This is a very simple example of losing wallet share. She had $20 to spend, $4.20 was spent in your shop and possibly another $10 was spent in another store.

Key points for you to consider are, how do you get the customer to spend more in your business without feeling like you are following a script and doing the “Would you like fries with that?” strategy or worse still feeling like you’re squeezing the last dollar out of someone’s pocket just to fill yours with classic upsell and cross sell strategies.

Here’s a simple solution that will make everyone happy…

SERVE DON’T SELL. If you change your mindset and how you look at ‘upsells’ and ‘cross sells’ and increasing the transaction value, how you can “serve” your customer more then increasing the average transaction will become top of mind and will allow your business and service to flow. In fact I believe you are doing your customers a disservice by not offering another item with their original purchase.

The worst case scenario is your customer will say no. It’s that simple.

Increase the frequency of re-purchase An effortless way of increasing sales in your business is increasing the frequency of re-purchase. The key is to be mindful of how you invite your customers back more

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often. If you’re a retail store think about how you would get your customers to come in more often. Perhaps it’s getting them on a morning coffee run pick up, offer an SMS ordering system, or perhaps you could send an SMS blast out to your customer base offering lunch time specials or afternoon treats.

As a service based business look at how you can package up your offers and get your clients coming back for more and of course more often. Regular automated touch points via email and SMS and phone provides a way for a well-balanced customer nurturing strategy.

Increasing this area alone by 10 per cent can impact revenues significantly. Imagine what you could do if you increased this by more than that?

Time to take action…

Knowledge is all but useless unless it’s applied so it’s time to get moving and implement some of these tips into your business to ensure you build momentum faster.

“Knowledge is all but useless unless it’s applied so it’s time to get moving and implement some of these tips into your business.”

Take some time to consider how you will: • Increase the number prospects into your business. Some ideas could include increase referrals, carry out consistent marketing, social media, running special events, special offers, promotions etc.

If you would like to learn more about

how you can maximise your potential in

business. Tania Allen is offering all readers of Business Franchise a Complimentary Road Map Strategy Session.

• Increase the average transaction value.

Consider companion selling, what else will complement the original purchase?

Is there an upgrade to what you are selling?

Tania Allen is the founder of Vision

• Increase the frequency of purchase. Take some time to think of ways you can invite your customers back sooner. Think about your offers and ongoing promotions.

out of business and more out of life. For

Some say achieving business success is easy. I have to agree. The key to achieving momentum and maximising your potential is doing the right things in the right order and at the right time and more importantly on a consistent basis.

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Alliance and author of Franchise Profits.

Vision Alliance is a business growth and franchise consulting firm that helps franchisors and franchisees get more more information about how Tania and her team can support you in maximising your potential in your franchise please contact: P: 1300 76 49 20 or 0419 481 203 E: tania@vision-alliance.com W: www.vision-alliance.com

FE AT U R E

T he Spor ting Globe Ba r & G r ill

Best food at the game If watching sports in a fun and social environment is your idea of a perfect day, all whilst running your own business, then this is the franchise for you!

The Sporting Globe Bar & Grill is a hospitality and sports entertainment brand with a mission to be Australia’s most loved sports bar and grill. Offering quality casual food and a large range of beers in a welcoming atmosphere with the ultimate state-of-the-art sports fit out, The Sporting Globe is a great place to eat, drink and catch a game.

VISION Founded in 2009 by lifelong friends James Sinclair and Brad Harris, the idea was born from James’ time living in New York. Seeing the American Sports Bar and Grill ingrained into American culture, and recognising that there was a gap in the Australian market-place, James relocated back to Australia. Along with Brad, they turned their vision of a contemporary Sports Bar into an Australian reality with the opening of their first venue in Geelong in early 2010.

The team worked hard to win customers

by delivering exceptional service with a customer first culture, strong promotion, serving good value and quality branded products, and offering a strong loyalty program. The venue in Geelong incorporating restaurant, bar, beer garden and function rooms proved an instant hit with locals.

Committed to ensuring everyone feels welcome, The Sporting Globe attracts a broad demographic of customers, including couples, groups of friends, families, sporting clubs, business people and large events or functions, all of whom can go in and have a good meal, sit with friends and family and watch a game of sport, in a social and fun environment.

GROWTH With the Geelong venue flourishing, The Sporting Globe opened two more venues at Fountain Gate and Moonee Ponds in 2012 and 2013 respectively.

With three outlets open and trading successfully, franchise systems and processes were developed and implemented.

The first franchise venue was opened in early 2014 in Richmond, by franchisees Kelvin Moore and Sean Kagan. Kelvin was looking for new opportunities after finishing a ten year career playing AFL with Richmond Football Club and says the decision to become a franchisee was easy due to the great business model and

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administrative support offered. It wasn’t too long before Watergardens followed suit with Werribee Plaza opening soon.

With plans already in place to expand into Western Australia later in 2015, The Sporting Globe is preparing to take the concept nationwide. Capitalising on the climate, sports-mad Aussies and large expat population, all of whom want to watch sports from home and around the world, The Sporting Bar & Grill offer a wide range of sports. From big-money boxing matches and NBA Playoffs to homegrown favourites AFL, cricket and rugby, customers flock to their local Sporting Globe Bar & Grill to watch the action and experience the atmosphere of a sports bar environment, with all the major events sold out well in advance.

JOIN A GROWING NETWORK Franchise Development Manager, Brad Dekkers outlines the type of franchisees that The Sporting Bar & Grill are seeking.

“We are looking for franchisees that are great with people first and foremost. The franchise model is built around having the franchisee in front of customers, providing the great customer service that only an owner/operator can.

“Our franchisees also need to be leaders, capable of motivating and managing their staff. Venues can have anywhere from 30 to 50 staff so we need someone that can really

feature feature “The Sporting Globe Bar & Grill is a hospitality and sports entertainment brand with a mission to be Australia’s most loved sports bar and grill.”

engage with their staff and motivate, lead and coach them to also provide that great customer service.

“We can train all of the technical elements such as making a cocktail or rostering staff, what we need in a franchisee is strong communication and leadership skills. As the franchisor, we aspire to do everything we can for the franchisee, in terms of administration and support to really help them focus on what’s important; their staff and customers.

“As franchisor, we perform management accounting and reporting, supplier procurement and payroll execution on behalf of the franchisee, removing much of the administrative burden. We give the franchisees time to be front-of-house and this is what they love the most,” Brad says.

TRAINING AND SUPPORT The Sporting Globe offers franchisees a comprehensive training program plus assistance with the opening of the venue.

The extensive six week training program covers all facets of running a franchise including: • Company culture; • Essential procedures and policies; • Modular training in business roles, systems and products; and • Management training including venue staffing, functions, local area marketing, stock control and financial management.

It is a requirement of The Sporting Globe, that all franchisees work in the venue full time for a minimum of the first 12 months of operation, believing that committing yourself to master every aspect of the

business will deliver you the best results in the short and long term.

Alongside a dedicated Accounts and Marketing team, the Operations team provide ongoing support to all franchisees, going to the venues each week, reviewing all aspects of the business, from stock control to cleaning to customer service, ensuring any issues and potential improvements can be identified and actioned promptly and efficiently.

Brad explains, “We hold fortnightly management meetings where we sit down with the franchisee and look at all aspects of performance. We look at the ratios and KPIs against set benchmarks and identify what we are doing well and what we can be doing better. We see ourselves as a really hands-on franchisor; committed to helping the franchisee get the best out

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T he Spor ting Globe Ba r & G r ill

of their business. As mentioned, our ideal franchisee needs to be good with people as everything else can be trained. This means we are actively involved in helping them in all areas of the business, including any areas that they may not have the experience in.”

As part of the Operations team, there is also a Group Executive Chef, who is responsible for the menu design and constant development, alongside all kitchen operations. The menu is constantly reviewed and updated, to ensure that it remains relevant to customers and the market.

In addition to the support detailed above, The Sporting Globe also offer: Establishment support: • Site selection support;

• Venue design support,

“With the Geelong venue flourishing, The Sporting Globe Bar & Grill opened two more company owned outlets in Victoria.”

• Use of loyalty club system, with approximately 35,000 members; and • Menu design and development.

Management support:

• Development support, and

• Management accounting and administrative support;

Operating support:

• Management reporting.

• Opening marketing support.

• Trade using our strong brand and Trademark logo The Sporting Globe®;

• Receive initial and ongoing management training and support; • Have access to staff training resources;

• Payroll execution; and

INVESTMENT Investment starts from $750,000, up to $1.5 million, dependent on venue size. With a franchise model that successfully works as

• Proven systems and procedures in our Operations manual;

• Transact efficiently with our Point of Sale system and support; • Support visitations and operational assessments; • Supplier procurement; and

• Ongoing product development.

Marketing:

• Ongoing marketing support through social media, graphic design, promotions, venue activations, campaign execution, major events and more;

62 Business 62 Business Franchise Franchise AustraliaAustralia and Newand Zealand New Zealand

both a stand-alone outlet or as part of an entertainment complex within shopping centres, you are provided with a turn-key operation, ready for you to walk into and trade successfully from the very first day.

If you would like to find out more about this award-winning Sports Bar and Grill, contact Franchise Development Manager Brad Dekkers on: T: 03 9645 4798 or 0400 616 285 E: franchise@sportingglobe.com.au W: www.sportingglobe.com.au/ franchise

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E x per t Advice

Buying into the Food and Beverage sector

a financier’s perspective

How often do we hear of or indeed speak to people, be they family, friends or even colleagues that remark, “I have had enough of working for a boss in the corporate hustle and bustle and simply want to run my own café”…or words to that effect?

We may also have heard of a number who have made the change and regretted it or conversely have been very successful - we may not have heard of those who are simply in the daily grind of being a small business owner.

The decision to run your own business, be it a café or any other food or beverage outlet, is not dissimilar to any small business with all of the pros and cons that go with it.

Once you have made the decision to leave corporate life behind do you open a new or buy an independent café or open/buy a franchised one?

There are many pros and cons for either option, some of these include:

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fe feature at u r e “One of the main reasons many businesses (including franchises) are not successful is because they fail to plan.”

Ian Watt | Senior Business Development Manager - Franchising, NSW & ACT retail & business banking, Westpac

Franchise: Pros: Brand is already known, comprehensive marketing and training and support is provided, strong supplier relationships in place.

Cons: May cost more, may be viewed as restrictive to comply with.

Independent: Pros: You can build your own name/brand, may cost less than a franchise, totally in charge of your own destiny.

Cons: Can be difficult to market since it is a ‘new’ business/brand, no immediate peer support network.

So, which way do you go and how would a lender view your decision? Much of this should be answered from an objective view formed from considering the following (note this list is not exhaustive as there are many other factors to consider): Firstly, if you have relevant experience in the food industry, starting out on your own could be considered as having a higher probability of success. If however, you are new to the industry then buying/ establishing a franchised outlet would most likely be a better choice.

Secondly, if it takes longer to trade up then your own venture could cost you more and may also take longer to break even, let alone provide a positive return. On the other hand a franchise could help you leverage

economies of scale of the franchisor and get you started at a lower cost. Earning a positive return may be much faster as the model is tried and tested and works on the already successful marketing and operations of the franchise system.

Finally, as an independent the brand you build is yours - in fact you could become a franchisor yourself! Conversely, as a successful franchisee you could buy multiple units of the same franchise and grow your business. This is something many franchisors are keen to see occur for many reasons, not the least of which is it fuels organic growth of the franchise system.

Bankers will typically consider any funding application on its merits – against a risk framework which includes benchmarking data for the franchise brand concerned.

This includes market evidence of store re-sales and values achieved as well as trading projections and set up costs across the outlet models offered by the brand, e.g. shopping centre food court, kiosk or restaurant style, stand alone, or drive thru etc.

The key metrics of the business model are important for bankers to use as a guide against which funding applications are compared and assessed. The rigour applied by franchisors on site selection should not be under estimated and bankers look for sound objective judgement from thorough demographic and other analysis being

applied.

In regards to the food or Quick Service Restaurant (QSR) sector, as for any other for that matter, the financial performance of an outlet is measured through benchmarking KPIs. Variable cost management by the franchise owner is critical to the success of the business with labour a major item – get the staff roster wrong and you can seriously damage the profit margin. Incur too much wastage, not have the right store trading hours, not understand foot traffic flows or simply ignore optimum supply purchasing requirements can all individually and collectively adversely impact the profit margin. Franchisor field manager support is very important to ensure that you are on the right path with your franchise – indeed if your longer term plan is to sell the business, at the best possible price, you will definitely need to ensure you are actively managing the KPIs as best as possible.

Seek out as much information as you can through your due diligence, from as many sources as possible, so that when you do review the financials of a potential purchase, you can identify the KPIs and compare how your target store is performing against them. Whilst the numbers are obviously important, what’s equally and perhaps even more important, is why they differ and the underlying reasons. This could be the difference between success and failure if you proceed.

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“The choice as to which road you travel will depend on many things including your experience, risk profile, business interests and the resources you may have.”

From a banking point of view your whole banking relationship should be reviewed at least annually to ensure that you are receiving the attention, care and products and services you need to effectively and efficiently run your business, and at a price that is fair and competitive. This includes core products such as business loans, trading accounts, credit cards and the pricing charged for each service/product availed of.

In this day and age of new technological advances at an ever increasing pace, banking through digital innovation continues to grow exponentially. Point of sale technology with ‘tap and go’ functionality was merely a dream a few years ago and banks are continuing to work fast to bring the latest hardware to market and roll this out to their customers. Online ordering is another growth channel and one which the banks are helping with through their point-of-sale applications.

Franchisors typically have the buying/ negotiating power given the service/product

volumes involved; having group deals in place for their network for such generic services as point-of-sale terminals and the costs involved in processing transactions using them. Franchisees should always be asking their franchisors about their preferred banking partners and how they can help them.

effective debt and transactional banking solutions to aid your success.

The choice as to which road you travel will depend on many things including your experience, risk profile, business interests and the resources (financial, personal etc.) you may have. You may want to meet a franchise consultant, lawyer or accountant, or all three, and investigate the many opportunities that exist and critically analyse if franchising is meant for you.

The bank has a national network of franchise specialist business bankers who are able to deal with the specific needs of the franchise sector.

Your banker remains a great resource for you to bounce your business ideas off, seek advice regarding how best to fund/structure your business and to provide the most

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Ian Watt is the Senior Business Development Manager - Franchising, NSW & ACT Westpac continues their long-term commitment to franchising in Australia.

Contact Ian at: P: 0419 271 995 E: ianwatt@westpac.com.au W: www.westpac.com.au/business- banking/industries/franchising/

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X presso M obile Café

Setting the benchmark!

100 per cent Australian owned and operated, Xpresso Mobile Café is the ultimate mobile café franchise system! We use the best vans and the best coffee – Di Bella Coffee.

This coupled with extensive training, smartphone/app/beacon technology and our innovative mobile café fitout ensures that each and every franchisee is successful!

We ARE the benchmark in Aussie mobile cafés!

We operate in areas where businesses have limited access to quality espresso coffee and related products as well as café style snack food items such as cookies, banana bread, muffins, chocolate and protein balls etc. We also stock bottled water, energy drinks and ‘Coffee Kick’ – a ready-to-drink cold pressed coffee in a can product.

Franchisees work their own hours Monday to Friday within their own large territory and then on weekends are free to roam outside their territory to service events that are provided by the franchisor or other events that the franchisee may source. Part of the intensive training is territory-based.

A mentor accompanies the new franchisee, after their Di Bella Coffee barista training, for two weeks and assists with quality control and building a solid customer base (the daily run). The mentor also assists with

stock ordering and all areas of operation of the business. We practically hold the hand of each and every new franchisee until they are comfortable working on their own.

Xpresso Mobile Café franchisees are marketed and promoted through our dedicated Facebook page at www.facebook/ XpressoMobileCafé, Youtube and the fully interactive website www.xpresso.com.au Everything is included! We also throw in a marketing kit including branded Di Bella Coffee breeze barriers, mini tables and chairs as well as a branded Di Bella Coffee umbrella – perfect for those events where you wish to draw a crowd!

Your new Xpresso Mobile Café will include: • an INCOME GUARANTEE!! $2500 PER WEEK FOR FOUR (4) WEEKS

• a brand new Mercedes Benz Vito (auto diesel) 3-seater van fully customised to sell the full suite of Di Bella Coffee products

• NO RULES on what food you can sell! (all foods must be individually wrapped and we do not sell heated foods) • NO NOISY & SMELLY GENERATORS! We use an innovative LPG gas/battery/inverter power source

• three weeks of training which will leave you with a customer base and instant cash flow

• Smartphone and beacon technology that notifies your customers that you are outside, manages loyalty and communication to your customers!! Very cool!

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• Bluetooth wireless connectivity to your smartphone to play music at the rear of van (speakers also fitted) AND mobile payment systems!!

• A dedicated huge display fridge to stock food/drink items as well as innovative Di Bella Coffee.

Awards 2013 Di Bella Coffee awarded the BRW top 50 most innovative company’s award 2014 ‘Coffee Roasters Industry Choice’ award - in the large specialty roaster category at the 2014 Golden Bean Competition - Australia’s most prestigious specialty coffee awards

Length of Agreement: 5 + 5 Years Year Business Established: 2013

Year Franchising Commenced: 2013

Number of Franchisees: 17

Cost: $119 500 + GST (includes the van!) Only exclusions are insurance and franchisor legals. Finance available to approved applicants.

Skills required None! Just your friendly personality! If you follow the comprehensive Xpresso Mobile Café training system and procedures, you will be successful. We will fully support you in every aspect of the business.

Xpresso Mobile Café is on a national hunt for happy and positive people that are as passionate about coffee as we are. If this sounds like you and you want to become self-employed in Australia’s billion dollar espresso coffee industry, contact Xpresso Mobile Café today and ask for a new franchisee pack.

T: 1300 655 559 W: www.xpresso.com.au

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Collaboration, not competition

finding a partnership that works In any business, it is important to always be looking for new ways to innovate your products, offer a better customer experience and find growth within new markets.

At Red Rooster, we could have continued to serve the same menu that Australians were very familiar with, however with a genuine commitment to our customers and the ongoing aspiration to be the best business we can be, we decided to make some changes.

Consumers all over the world are becoming more informed and savvy to their purchases with demand for more choice, higher quality and reasonable prices. Partnerships between businesses can be a great way to fast track growth opportunities and create a win-win situation.

THE PARTNERSHIP

Now, we are excited to share another noteworthy step on our journey - our partnership with fellow franchisor and widely renowned salad experts SumoSalad.

Rob Coombe, Group CEO of Quick Service Restaurant Holdings (Oporto, Red Rooster, Chicken Treat) and Luke Baylis, CEO of SumoSalad had known each other through industry connections for quite some time.

Both saw an opportunity to establish a

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win-win for both their franchise systems and most importantly for both sets of franchisees.

Geographically, both brands have a very different national footprint. Currently SumoSalad has 118 stores nationally, predominately located in metro areas and food courts, which cements their popularity in the lunchtime occasion. Red Rooster currently has over 350 stores nationally with a strong regional and rural portfolio, predominately drive-throughs. We currently operate one menu across all day parts with some products more popular at certain times.

For SumoSalad, this partnership is the ideal opportunity to gain brand awareness and traction in locations where the brand currently isn’t accessible. It could open up

fe feature at u r e “Customer experience is central to building and maintaining success and it is important to remain on the front foot with implementing ideas to strengthen this.”

Chris Green | Chief Executive Officer Red Rooster

opportunities for new franchises, with the added bonus of existing visibility within that market. On top of this, partnering with us means visibility to a strong night time trade, broadening awareness and consumption of their products across another day part.

For Red Rooster, it bolsters our menu with a premium offering and also offers an alternative to our breadlines especially during lunchtime trade. We have also identified other parts of the business where the partnership is beneficial including our catering offering and family meals.

The key to success with any partnership is to find a cohort that is complimentary.

Whether that is through products, services or creating new reasons for business at different times, it is important that the businesses won’t cannibalise each other and together they are stronger.

This partnership is unique to the Australian QSR category. It is an ongoing collaboration with the common goal to expand influence and help Australians eat wholesome food with purpose. It demonstrates how serious we are about our real food credentials. Currently, we are committed to an initial twelve-month period consisting of ongoing product development and the introduction of more menu items.

EXECUTION If you are considering entering in to a relationship with a potential partner, it’s important to have shared short-term and long-term goals and also be aware that it may be sometime before the partnership comes to fruition.

For us, this partnership was in the works for almost twelve months before we were able to go public. Working through both franchising systems and finding the best way to integrate the businesses took a

considerable amount of time and thought.

Even though our geographical footprint is complimentary in terms of business opportunity, we discovered that our supplier and supply chains were very different. This was overcome through finding common ground where possible and also instigating new supplier relationships where necessary.

Applying astute business acumen to our relationship, we both knew that introducing growth strategies was key. SumoSalad have designed an initial two salads exclusively for our menu with this to develop over time.

During this period we will continue to work through the intricacies and internal operations of both franchises to ensure maximum output when the time is right.

CUSTOMER EXPERIENCE As well as having a great product, it is pertinent to nurture and grow your loyal customer base. Customers are the sole reason why any business is able to grow and expand and potentially become a successful national brand. Customer experience is central to building and maintaining success and it is important to remain on the front foot with implementing ideas to strengthen this.

Partnerships have the potential to be one of the most powerful ways to evolve your customer experience. For us, we know that our customers are always looking for delicious meals that are wholesome and nourishing, so knowing that they can come to Red Rooster and now also enjoy SumoSalad is making their experience more enjoyable and memorable.

But partnerships don’t always need to be product or franchise related to have this same effect. We recently ran a promotion with online streaming service Quickflix whereby customers who purchased two Roast Chickens for $20 received two months free streaming from the comfort of their own home. This was a limited time

partnership and was very successful for both parties.

Businesses should always be looking at their target market through a creative lens.

Discovering truly compelling ways to enhance your customers’ experience and employing these ideas has the capability to drive incremental revenue from your existing customer base, and to grow that base also.

Franchisors and franchisees should always be looking to other products and markets for potential growth and share best practice within the industry. Not everyone is your competition! Look for complimentary opportunities either inside or outside your category to expand your current customer base and foster growth. We are proud of our desire to create change both within Red Rooster and in the broader franchising business sector and are excited about our partnership with SumoSalad.

Chris Green has recently joined Red Rooster as Chief Executive Officer. Green is one of those rare individuals that started out as a 14 ½ year-old working at McDonalds and worked his way up through the entire system.

Green has spent the last 27 years working both locally and internationally for McDonalds, most recently as Vice President of Operations & Franchising in Malaysia.

Red Rooster is Australia’s largest roast chicken restaurant chain specialising in providing nourishing and wholesome real food. From the opening of the first Red Rooster store in Kelmscott, Western Australia in 1972, Red Rooster now operates over 350 restaurants across Australia and employs over 7,500 people.

For further information please go to: W: www.redrooster.com.au

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Shape Shopf it ters

The power of local

manufacturing franchisors, “What can we do to reduce the cost of the fitout?”

This is an obvious question for a franchisor to ask their fitout partner, but not often an easy one to answer. There are many things that need to be considered with every component that goes into the fitout, but the top three would be Quality, Price and Procurement.

Quality

For many franchisees the cost of the actual fitout will be the deciding factor of the economic viability of the franchise system and whether or not they are able to finance the startup costs.

Over the years I have been asked many times the same question by different

From fittings, fixtures, equipment to finishes, everything needs to be the right quality to uphold both the design integrity and the franchisors’ brand image to deliver the customer experience over the time of the lease. This doesn’t necessarily mean it has to be the best quality money can buy, but it has to be the right quality for its chosen purpose.

Price There’s truth in the saying, “Look after the pennies and the pounds will look after themselves.” If the individual components that go into making up the fitout are overpriced or over specified then it’s no surprise what the final fitout cost will look like against the budget. At Shape we do a lot of work identifying areas of potential reductions in component prices and making our clients aware of the options, working together to maintain the intent but minimise the cost. Price point is always going to go hand in hand with Quality, which is why I would always put the right quality ahead of a cheaper option; otherwise it’s just a false economy.

Procurement

Wayne Billings

Whatever the selected item is, it needs to be available in the required time frame, the right quantity and in many cases to be available over time for future stores. It is difficult to manage specified items with long lead times from overseas suppliers in a 6-8 week fitout program. Shipping

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delays etc. create unnecessary uncertainty for all involved and added pressure on an impending opening date. All these things need to be considered for each individual component.

It’s not always the case that taking the cheaper imported option is the best option.

When we start to look at the joinery and furniture components that go into an individual fitout and in many cases, the significant cost they carry to the bottom line it is often tempting to look at a cheaper imported product. While this is done successfully for some products, it’s not often the case for retail food tenancies or in particular Quick Service Restaurants.

Why? There is a high priority to keep the operational needs of the system to its proven formula. Ovens, fryers, grills, refrigeration and washing facilities are required to be positioned to allow for a practical workflow. What’s left of the tenancy is the opportunity to create the customer experience. As most tenancies will differ in size and shape this is where the joinery and furniture items will need to bend and mould to fit both the space and the design intent. If we look at the three criteria previously mentioned you will start to see some grey areas over the viability of procuring and importing a product manufactured offshore at a cheaper price.

The drop in quality of the finished product is reflected in the price point, which is the only positive I have found in my personal experience with this. Procurement can be a nightmare with a lack of control of the production run as well as shipping hold ups and problems through customs. Once that’s been negotiated there is the risk of damage during transport and then the added concern of manufacturing errors. If that’s the case then its modifications to a brand new unit, more than likely at the closing stages of the fitout.

That said, there starts to become some

fe feature at u r e “The local economy is supported by people supporting local manufacturing.” real advantages with choosing a locally manufactured product and partnering with a fitout company that has a quality and competent manufacturing capability.

Quality is definitely going to be far superior. Price may be a little higher but given the risks of the cheaper option the value is by far better and procurement is a one sided argument.

There are also a number of other advantages to using locally manufactured joinery and furniture.

The use of recycled materials including bricks and timbers has been very popular in recent times and while creating some great ambience and character to many fitouts, it also has a significant positive impact on our environment. What used to go into landfill at a rapid rate is now being picked apart, salvaged and reused and often the recycled product is far better quality than what is currently available.

The local economy is supported by people supporting local manufacturing.

Manufacturing in Australia peaked in the 1960’s at 25 per cent. Today this sits below 7 per cent and with big companies like Holden packing it in, the situation looks like getting worse. It’s now more important than ever to support local manufacturing and Australian made products.

Research and development is a key area.

At Shape we spend a lot of time working with our partners developing exactly what it is they require from particular joinery or furniture items. This can be anything from the look and feel of the material being used to the practicality or functionality of a specific item. Small samples are always easier to look at, re-work and approve before investing in a custom designed piece therefore avoiding a potential costly mistake. This service can only be provided by a local manufacturer particularly given the tight time frames that this is normally undertaken in.

In my opinion there is a definite advantage of maintaining a high level of manufacturing capability locally at Shape.

It provides a far better service to my clients allowing me deliver the highest quality product in the shortest time. It allows me to continue to develop products to suit their

needs and it gives me 100 per cent control over production and delivery. To me, that’s the power of local manufacturing.

Wayne Billings is the founder and Director of Shape Shopfitters P/L and has spent the past 17 years developing Shape’s local manufacturing capabilities.

He is focussed on partnering with retail food franchisors and producing outstanding results while delivering exceptional service.

Shape are one of Australia’s largest retail food shopfitters and excel at producing iconic tenancies. Shape have completed hundreds of fitouts and continue to work with many major retail food brands Australia wide.

For more information contact: P: 03 9432 1044 W: www.shapeshopfitters.com,au

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