Schnitz plans to double stores, boost partner profits

The company is eyeing overseas markets, starting with New Zealand.

Schnitz plans to nearly double its restaurant network in the next five years, whilst lifting franchise partner profitability as the quick-service restaurant (QSR) sector faces rising costs and margin pressure.

The Australian fast-casual chain, known for its freshly crumbed schnitzels, operates more than 80 restaurants. Under a 5-year strategy led by CEO Kerri Wane, the company aims to hit 144 branches, expand into international markets, and test fresh restaurant formats.

Wane said that for the last 12 months, the company first focused on improving “box economics,” or the financial performance of individual restaurants, before accelerating expansion, laying the foundations for future success.

“2026 was the year of sales and profits, and we refocused on franchise partner profitability and ensuring that our existing restaurants were highly successful as the first priority. We have hit the scoreboard meaningfully in both areas,” she told QSR Media via Zoom.

The company aimed to raise franchise partner profits by about 3% over the initial period of its 5-year plan and has reset the goal of the organisation to generate $40m in franchise partner profits by 2031.

Schnitz was founded by Roman Dyduk and his sons, Tom and Andrew. The brand has built a following in Australia through its fast-casual concept centred on made-to-order schnitzels.

Wane said improving sales and profitability required changes inside the organisation, including driving innovation, and encouraging franchise partners and employees to confidently take chances and lead.

“When I came in, it was clear to me that we had great people and strong franchise partners and lots of good ideas… so it was all about encouraging them to get out of their comfort zone and take calculated risks,” she said.

To address this, the company promoted staff internally and increased collaboration with franchisees.

Twelve employees from the support office have been promoted, whilst some franchise partners now work part-time in head office roles. Schnitz also revived its franchise advisory committee.

The company established a high-performance hub and an innovation hub—cross-functional teams tasked with increasing sales for franchise partners whilst keeping costs under control.

Wane said these teams have added about $3.5m annualised to the system’s bottom line so far.

Schnitz has also introduced menu and service changes aimed at capturing more dining occasions. Since Wane took over, the brand has launched catering services, introduced desserts, and rolled out chicken tenders to compete in the fast-growing chicken category.

The company has posted 32 straight weeks of sales growth, with about 90% driven by these initiatives.

“We have seen incremental bumps through initiatives such as dessert, and another one when we launched our chicken tenders to market,” Wane said, adding that our guests are looking for new reasons to visit the restaurant.

Schnitz has also shortened its product launch cycle from six to three months.

Initial expansion will focus on Australia outside of Victoria, though the company is also planning to enter overseas markets, with New Zealand amongst the first targets, she said.

The group is also gearing up to test new formats as well, including drive-through locations and smaller grab-and-go outlets similar to those in airports.

Wane said Schnitz is also exploring additional brands and menu extensions, supported by an 18-month product development pipeline designed to keep guests engaged and returning.