Crust Gourmet Group – an Australian franchise success story
This business is one of the most innovative and impressive franchise businesses l have seen in almost 30 years of franchising.
Considering I have worked with a number of Australia’s biggest and most respected franchise brands throughout my journey, I can understand why this statement would raise an eyebrow or two.
However, the fact is, in my opinion, that Crust Gourmet Group is an Australian franchise business success story.
From humble beginnings with its first store opening in Annandale, NSW in 2001, Crust Gourmet Group now has more than 60 stores throughout Australia, as well as representation overseas, following the launch of its store in Singapore this year.
The past seven years has seen the rise and rise of Crust.
Success didn’t come by accident. It came as a result of careful planning, understanding the market and clever marketing, together with a healthy and committed culture determined for success.
I first became involved with the brand in 2003, when Crust was a 6-store business. At that point, whilst the potential was untapped, I couldn’t get overly enthusiastic about the segment.
Suffice to say that the pizza takeaway segment was crowded and the industry was smack bang in the middle of an aggressive price war.
Smashing prices was at the detriment of many operators and the sector was fast becoming unattractive for consumers and potential business owners.
In a bid to maintain the vision for supremacy in the marketplace, Crust had to break away from the pack.
Crust Gourmet Group set itself apart from the rest by developing and building a niche business model that offered healthy and tasty gourmet pizzas, which generated high sales volumes and margins.
The owners knew their business intimately and developed a foundation built on a healthy culture and committed team.
To grow the business, franchising was chosen as the model. This would provide expansion capital and a higher level of customer service to the business owners.
A through Feasibility Study into franchising was undertaken, drawing on the experience within its existing six stores operating throughout Sydney and Melbourne.
The management structure and systems were reinforced, resulting in extensive Operations Manuals and training programs being developed. Clear definitions of roles and responsibilities within the organisation were also implemented.
The foundation was solid.
A major commitment to marketing enhanced the brand from the outset and generated franchise enquiries right from the beginning. Continued marketing throughout Australia and overseas has helped fuel the group’s growth.
Marketing innovations have included:
- The first pizza group in Australia to be given the Heart Foundation approval on a range of products,
- Pioneer in utilising social media,
- Highly effective web site that is continually being improved,
- Community involvement i.e. Tour de Cure, Open Family, Heart Foundation & Prostate Cancer Foundation of Australia.
The growth of the business has flown in the face of the ‘norm’ in franchising.
The Crust Gourmet Group doubled its network from 25 stores to 50 during the Global Financial Crisis from 2008 to 2010.
With Melbourne and Sydney well represented, growth is being focused on QLD and WA.
The first international store opened in Singapore in 2010 and International interests continue to flow. It is definitely on the radar to examine and pursue new international markets.
The most pleasing aspect for the brand is that its entire network continues to perform well, which is attracting ongoing franchise interest.
Crust Gourmet Group – a real life success story.
Sergio Alderuccio is the General Manager, Franchising and Distribution with the FC Group.
Sergio has more than 25 years experience as a franchise advisor to companies in retail, service, manufacturing, government, automotive and hospitality.
He has advised many of Australia’s leading franchisors and has also been a franchisee on numerous occasions.
