Burger Urge appoints industry heavyweight Tom Potter as it moves for National Expansion
Growth plans to be executed in the next few years.
The chain is gearing up for growth in the next few years, their priorities lie in turning BU into a national brand good enough to go head to head with bigger national retailers; and to create good financial result for their franchise partners, said Sean Carthew, Managing Director and one of the founding brothers of Burger Urge.
Recently, the chain welcomed Eagle Boys founder Tom Potter on board as chair which he pointed as a very strong addition to their team, in its efforts to grow the brand. The Carthew brothers sealed the six year relationship with Potter who first acted as their mentor when BU was at infancy.
It was also announced this week that the burger chain has acquired the master franchise rights to Urban Burger and will be rebranding existing stores immediately. The acquisition process was guided and encouraged by Potter despite Urban Burger's chequered history.
Potter's addition to the team and the recent acquisition of Urban Burger seems to be a propitious kickoff to the chain's long term growth plans. According to Carthew, BU is looking to have five stores on ground by Christmas and open 10 franchise sites by 2015, with the focus this year to be on Queensland.
"[We plan to] double that by 2016, [to have a total of] 41 stores by Christmas 2016."
Diners will soon see Urban Burger franchises converted to the Burger Urge brand and model. In fact, the first converted store was opened this week at Sailsbury, Queensland.
The decision to acquire the franchise was strengthened by the advise of Potter, said Carthew. "Tom said there were clear synergies between the two businesses," pointing out to similarities in existing infrastructure, shop fit outs and equipment, which would allow the burger chain to reduce the cost of set up.
BIG CHANGES, INSIDE AND OUT
BU's expansion will be assisted by big changes within the brand, noted Carthew.
He shared that the chain will be putting in a full time operations manager for franchise stores and a full time operations manager for company stores, to meet the demand of an expanding operation.
The chain will also have a shift in focus, with plans to move into broader markets.
STANDING OUT OF THE CROWD
Carthew is confident that BU can set itself apart from the crowded burger scene.
He emphasised that BU will continue to offer competitive prices, noting that the premium product average for their customer is $16.50, compared to other players in the market at $20 for a similar offering. "[We are a] lower price point option for customers."
Franchisers can also expect continuing competitive rates. "We are one of the most competitive in the market with 6% royalty fee and total fees including marketing is 8% of turnover, many of the National franchise chains are charging well north of 10%."
Adding, "[the chain is also] competitive in set up cost. [We have a] smaller footprint for stores, which reduces fit out costs.. Our break even point is substantially lower, around half of what is normal in the market."
Diners can also expect a few more controversial campaigns in the next 12 months, Carthew said.
"The controversial marketing will continue. We had very limited budget to begin with. Needing some exposure, we had to be creative in approach to our branding and that has delivered pretty good results. We managed to get a lot of national press in 2012 to 2013 on a limited budget."
"This also ties in to our brand beliefs. We are a younger brand, we like to have fun with the campaigns and we don't want to be generic brand. We're more than about selling hamburgers, we want to engage with audience, employees, franchisees and customers.
