QSRs Plan Expansion Spree in 2014 Despite Uncertainty
Franchises are brushing off fears and seizing opportunities to grow.
Even a wobbling Australian economy isn’t enough to dissuade quick service restaurants (QSRs) from setting up new stores this year. Business owners admit the specter of a retail downturn hangs over the industry, but they also feel confident that their brands will attract more customers if they focus on product innovation, improved customer service and delivering a unique in-store experience.
Steve Plarre, chief executive officer at Plarre Foods Pty Ltd, which operates the popular Ferguson Plarre bakehouse chain, said his brand plans to add a record 10 new location by June, and expand even more next year. “We’ve spent a lot of time on improving what we call ‘the franchise journey’ so we expect to significantly exceed that number for 2015 along with our ability to attract the right kind of people,” says Plarre.
He notes how the current economic difficulties actually make people more open to the idea of becoming franchisers. “Franchising is often a legitimately viable and attractive solution for people experiencing job insecurity. Having been around for over 112 years, we have proof that our industry can be incredibly resilient during these tough times.”
But given the fierce competition among franchisees, Plarre says he plans to stand out by knowing their product value and finding the right kind of people who would want to join their franchise family.
Burger Urge, meanwhile, look to double in size this year to a total of 10 stores amid strong sales growth. Key drivers of growth will be increased brand awareness, the planned store openings and the release of new product specials, says Burger Urge marketing manager at Pete Kilroy.
Over at Gelatissimo, the target is to add four to six new outlets, according to Fred Pose, franchise development manager at Gelatissimo following a long-term expansion plan.
“We believe in sustainable growth; finding ideal franchisees, and the right locations to ensure steady and successful growth,” says Pose, and adds that growth this year will be driven by a strategy of product development and innovation that should engage more customers to the Gelatissimo brand and its products.
A similar strategy is at the core of the Healthy Habits expansion drive. By using product innovation and customer intimacy, the brand hopes to sustain its strong sales growth this year.
“We are continuing to extend our lead in customer service over our competitors and customers are responding to this. Finally, being part of the broader Dymocks Group we do intend to grow through acquisition and are actively in the market now looking for businesses that have synergies,” says Mark Buckland, managing director at Healthy Habits.
Regional expansion
Queensland (QLD) and New South Wales (NSW) will see a rush of new QSR chain stores, led by Roll’d.
Meanwhile, after having successfully launched 15 stores in three different states last year, Roll’d plans this year to focus on QLD and NSW locations.
“We have hired talents in both states to oversee our growth plans. Roll’d is also looking at some international opportunities with considerable investment interests already expressed,” said Bao Hoang, Founder at Roll’d
International expansion
Roll’d is not the only one eyeing international expansion, with Muzz Buzz and Foodco Group aggressively pushing out abroad.
“Our expectations for growth this year is extraordinary in the face of a challenging market,” says Warren Reynolds, executive chairman at Muzz Buzz. Growth for the coffee franchise chain will come from vertical integration in support of its products, as well as international growth.
Foreign shores also offers immense opportunity for Foodco Group, the operator of Jamaica Blue and Muffin Break.
“Our carefully planned international expansion continues to thrive,” says Serge Infanti, Managing Director at Foodco Group. He estimates UK Muffin Break operations will expand to 70 stores by 2015, and shares that Jamaica Blue operations in China, the UAE and Singapore are currently experiencing fast same-store sales growth and record new store growth this year. Plans for the first Saudi Arabia and Malaysia stores are being finalized with expected launches sometime in 2015.
Explaining its ability to attract local and international franchisers, Infanti says its brands are well recognized due to their credibility and the high demand for its products built on more than two decades of solid operations.
“Franchisees look for a franchisor with financial strength, best of breed systems, strong brands and a history of success. The pipeline for franchise partners is very strong.
