Vertical integration strategy is Motto Motto’s secret ingredient to success

The Japanese fast-casual dining restaurant has ambitious growth plans for the next five years.

Bringing the flavours of Japan to the Australian market whilst keeping the menu innovative and as cost-effective as possible is one of Motto Motto’s goals. And they do this by having a vertical integration group form part of its operations.

A Japanese fast-casual dining restaurant borne from one of Australia’s most awarded Japanese restaurants, Sono, Motto Motto has 10 restaurants around Queensland and New South Wales.

In a quick chat with QSR Media, William Liu, Group Founder & Managing Director discussed the impact of their vertical integration strategy in the business, their expansion plans as well as how they help take partner franchisers to bring the Motto Motto magic to the market.

QSR Media: What sets Motto Motto apart from other Japanese fast-casual dining options, and how do you maintain a competitive edge?

We believe that our unique position as a steadily growing brand with a scalable business model sets us apart in the Japanese fast-casual dining landscape. While there are many independent players in this market, there are few chains that can offer the same level of support to Owner Operators as we do.

Our ability to stay ahead of food trends and frequently innovate our menu offerings is a key factor that sets us apart from other Japanese fast-casual dining options. For example, we have introduced "Australia's most inexpensive, yet indulgent lobster roll" (for only $15!), "Japanese fish and chips", Plant-Based Ramen, Japanese "cloud rolls", matcha-soft serve sandwiches, "Motto's Curry Collective" and "Australia's spiciest ramen". By constantly introducing new and unique products, we ensure that we remain relevant and appealing to our guests. Our central production facility plays a pivotal role in this, designing new dishes and streamlining innovation to ensure scalability and efficiency.

Overall, our focus on innovation and strong support system for Owner Operators make us a standout option in the Japanese fast-casual dining space. We are confident in our ability to maintain our competitive edge and continue to grow our brand in the years to come.

How does Motto Motto adapt its menu and marketing to cater to local tastes and preferences in Australia?

At Motto Motto, we're all about bringing the delicious flavours of Japan to the Australian market in a way that's both true to our roots and excitingly innovative.  We believe in the importance of adapting our menu to cater to local tastes and preferences, which is why we're always on the lookout for emerging food trends and fresh local ingredients to incorporate into our dishes.

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By blending traditional Japanese techniques with Western flavours and presentation, we're able to create a unique dining experience that's both familiar and exciting.  And it's not just our menu that's adaptable - we're also experts at tailoring our marketing strategies to resonate with our Australian audience. We use data and insights to create targeted campaigns that really hit the mark, and we're always exploring new and creative ways to connect with our customers.  So if you're looking for a Japanese restaurant that's both authentic and innovative, look no further than Motto Motto! We're passionate about bringing the best of Japan to the Australian market, and we're always up for a challenge when it comes to adapting to local tastes and preferences. Come dine with us and see what all the fuss is about!

What can you tell us about your marketing style?

Our brand marketing is a key feature of our support system. We have a comprehensive brand marketing calendar that includes PR, digital marketing, and limited-time offers. Our marketing team is committed to developing and implementing effective strategies to generate brand awareness and drive foot traffic to our restaurants. We have had significant success with campaigns such as Australia's most inexpensive but indulgent Lobster Roll and our Starlight Bento Box Fundraiser. In January 2023, we experienced an increase in transactions by 43% on the same time last year driven by our Starlight Fundraiser. Our Owner Operators also raised $20k for sick kids! 

In addition, our MyMotto Membership program boasts almost 60,000 members. It is a strategically designed program to acquire new guests, increase visitation, increase sales per guest, and reward loyal guests. The program is designed to engage guests to dine at their local Motto Motto through a range of benefits like 'Meat-Free Mondays', 'Free Fresh Noodle Tuesdays', and the recent 'MyMotto Summer of Soft Serve'.  We recognise that owning and operating a franchise can be challenging, but with our proven systems and ongoing support, we are confident in the success of our Owner Operators.

How has Motto Motto been performing for the past year?

One of the factors that set us apart from our competitors is our vertically integrated group, which includes a manufacturing business and a sophisticated supply chain. This allows us to have greater control over our costs and quality, which has contributed to our strong financial performance. Additionally, our commitment to innovation and investment in custom-designed engineering and equipment has enabled us to optimise our operations and reduce labour costs.  We are also proud to report that we have multiple multisite Owner Operators who have reported profitable restaurants. Their success is a testament to the strength of our franchise system and the support that we provide to our Owner Operators.  

Looking forward, we are projecting annualised group revenue to hit $40 million for the financial year 2023/24. We are confident in our ability to continue delivering strong financial results for our Owner Operators, while also maintaining our commitment to providing exceptional Japanese-inspired cuisine and unparalleled dining experiences to our guests across the country.

What can you tell us about your plans for the next five years? Any interesting innovations to share?

We've got some fantastic new menu items and promotions coming your way at Motto Motto! Our team has been hard at work developing inventive and delicious new dishes, and we're also introducing unique promotions and events to engage our guests. We have a focus on quality (of course) but there will be a short-term focus on customisation and budget. Stay tuned!

We are also aiming to reach 50 restaurants across the country within the next five years.  Our sights are set on major cities like Sydney and Melbourne, where we've already made a big impact, as well as exploring exciting opportunities in regional areas. In fact, we're already on track to open five new locations this year alone, meaning that by the end of 2023, we will have 15 restaurants serving up your local Japanese favourites and providing Motto Motto Grade dining experiences!  

We believe that everyone deserves to indulge in premium-quality Japanese food in a warm and welcoming environment, and our expansion plans are driven by our unwavering commitment to delivering exactly that to even more guests across Australia. So get ready to experience the Motto Motto magic in a city near you – as your Japanese local, we can't wait to welcome you through our doors!