How to build a national QSR brand: Rock Paper Scissors launches its first franchise outlet

Rock Paper Scissors may be only at 5 outlets now but they are ready to roll out many more nation-wide. In this interview with founder Tanya Gilchrist we find out what they are all about.

QSR Media: Tell us about Rock Paper Scissors

Tanya: Rock Paper Scissors is a QSR model for fish and chips. We have developed models for takeaway, fast casual dining, drive thru and express/micro outlets. It has been quite a ride from our launch in December 2010. Hayley( my sister) and I could not believe it when we realized that there didn't seem to be any real brand in fish and chips so we decided to combine our skills to create something fresh and new and try to catapult the industry into the now.

QSR Media: What makes you different?

Tanya: In terms of business, we are very strong on systems and process. We built our model specifically to franchise so we knew from the get go that we needed to be spot on in this area. This provides simplicity and better control for franchisees and ensures that customers get the consistency and quality they seek in a brand.

For our customers, we have put a contemporary twist on traditional fish and chips with some unique Rock Paper Scissors flavours and style. Our processes mean that we are able to put out great, freshly prepared food very quickly. We have custom designed packaging designed specifically for our food that maximises heat retention and facilitates 'on the move food'.

QSR Media: What are your plans for 2013?

Tanya: Growth is our main focus now and franchising growth is key to our strategy. We are off to a great start with our first franchisee scheduled to open in 3 weeks and another store due in June. We definitely want to see some expansion beyond North Queensland this year.

We have a number of proprietary products and intend to expand and grow our current retail range of seasonings and sauces both within our stores and through other mediums.

We are also working closely with some Australian seafood suppliers to deliver some exciting new products.

QSR Media: You are now at 5 stores, how are you going to grow your brand?

Tanya: Franchising is obviously a key part of our growth strategy with both new stores and conversions being important in our plan. Growth through corporate alliances, especially in venues will also provide not only growth but improved recognition of the Rock Paper Scissors brand.

QSR Media: Why NE Qld, how will the brand translate outside of this territory?

Tanya: We wanted a market big enough to develop a brand, have multiple stores and a range of models. Starting in a regional area allowed us to perfect our model before launching it nationally.

Fish and chips has always been seen as a local industry with specific supply issues for each region. I think this is one of the factors that have inhibited the industry's development. We challenged this from the beginning and discovered that it's true - people do develop trust in brands. We have chosen fish that is universally palatable and fished sustainably. When we first opened we had lots of customers request specific local fish but now it's a rarity . Great fish and chips is not specific to the fish type.

Consumers are also demanding more healthy choices for fast food and with fish being one of the least processed options as well as the nutritional benefits of fish generally the marketability to the health conscious is high. Our grilled fish wrap for instance has less than 250 calories and 4g of fat.

Because we built Rock Paper Scissors to be national, everything from our supply chain & menu development to marketing and promotions strategies has been developed with this in mind. I think this gives us a strength beyond our size.

QSR Media: Your mobile apps, what results are you getting here?

Tanya: Our web and mobile ordering means that customers get the convenience of being there for 2 minutes with the freshness of 'cooked to order'. Phone orders which are labour intensive and have a high margin for error are entrenched in the fish & chip industry - perhaps more than any other food service. We wanted to provide a more contemporary option. Technology , web and mobile purchase options are such a part of life now that in many ways they are the 'norm'. We felt it was important to provide this service to customers.

We did however want a fully integrated system - no orders going to emails that had to be checked or prioritised for preparation on time. We worked very closely with our suppliers to get it all fully automated. When a customer places their order by app or on the web it is stored until 10 minutes before it is due to be collected. It is then released to our POS and kitchen display screens and prepared for collection just in time. The labour saving accuracy of orders received and customer convenience make this a very effective solution for us.

Customers love being able to customize their orders. It is great for large orders, they can specify what each individual wants, get the total for each person and then we pack it with each person's name.

We are getting about 20% of our orders this way at some stores and it increases each month. People also tend to spend more in online orders than instore - they customise more & try the extras more. Online ordering has a significant positive impact on profitability.

QSR Media: You seem to invest in technology (touch screen drive thru, mobile apps), what kind of investments are needed and what kind of ROI are you getting?

Tanya: You are right. We do love technology but, as those who work with us in this sphere will tell you - we are very specific. Our outcomes are the critical part for us. We are very flexible in terms of how our technology partners get there but and we rarely deviate on the outcomes we specify for projects. We love breaking new ground but we also seek use and integrate what we have to its maximum capacity.

The ROI on technology in my opinion needs to be high because it changes so rapidly. I look for an ROI of 12- 15 months and it's completely doable if you invest wisely.

QSR Media: What advice would you give to another QSR looking to expand their brand?

Tanya: Get your operating model right so it doesn't need you. If you don't do this you can't grow your brand.

Consider every decision as a part of the whole picture.

QSR Media: Any other comments

Tanya: The QSR industry is full of models all vying for the same portion of the palate yet nobody was fulfilling the demand for a brand in fish and chips - one of the most consumed takeaway foods. Fish and Chips is a well-established market and screaming for a brand. Our aim is for Rock Paper Scissors to be the contemporary fish and chip brand.