Sandwich Chefs sees a bright growth path in service stations, drive-thru store models

The chain explains to QSR Media how the move will benefit their traditional shopping centre locations.

Sandwich Chefs has decided that its slow roasted pork and beef rolls needed to hit the road and reach a new base: motorists.

The chain partnered with Fresh Trading Co. (FTC) for a slate of outlets in service stations around Australia, with the first one recently launching in Northam, WA.

Sandwich Chefs’ newest store is also offering a brand-new broadened breakfast range, as well as its classic lunch and dinner options throughout the day. Barista-made coffee and freshly-squeezed juices round out their updated offering.

Their second service station store is due to open in Nambour, QLD, with Sandwich Chefs exclusively telling QSR Media that more stores of of this kind should be expected in 2020.

National network development manager Gary Powell explains to us why this was a critical move for the brand, and what it means for their network mix in the future.

QSR Media: Aside from gaining general exposure, what were the factors that motivated Sandwich Chefs (SC) to invest resources in targeting service station locations?
Powell: The market for QSR is constantly changing, we are currently located in over 50 food courts across Australia (and growing), this move into petrol stations symbolises a shift in customer expectations that even when filling up with fuel they expect a premium food offering.

It has also allowed us to extend our network which is vital for the growth of our business. Operating within petrol stations has also opened up new opportunities and enabled us to diversify our brand offering, we can then take these learnings and experience and apply it to our wider network.

In your view, how does SC differentiate its team up with Fresh Trading Co vis-a-vis other chains/concepts that have similar partnerships?
Our partnership represents exactly that – a partnership. Many chains that set up a similar offering treat their businesses as completely separate opportunities. With FTC we work as an extension of their offering and vice versa, we both share a similar ethos and work closely in maximising the benefits of both brands. For example, customers that fill up at The Fresh Trading Co will eventually be able to redeem rewards at Sandwich Chefs, this creates a seamless experience for both of our customers and builds loyalty and trust within our brands.

Breakfast is a key component for SC's new service station model. Was this a response to consumer behavior in the area or more of a larger plan to create more breakfast options?
We’re always looking to expand our menu options; our most recent menu update focussed on post 11am offerings and has sparked a growth in sales and positive customer feedback. It was only a matter of time before we revisited an expanded our breakfast offer. Our new service station model allows us to fully trial and test our breakfast menu in a time-pressured environment, the customer responses from this menu will directly impact the roll out across the network. We’re always monitoring customer behaviour in our stores and take feedback very seriously.

What is/will be SC's approach in rolling out grab-and-go options in this model? And to what extent will customer sales/feedback factor in developing new options?
Many of our products are made from scratch, our roast pork and beef are slow roasted for 14 hours on site to ensure maximum freshness and quality. As we look to expand into grab-and-go options, we will ensure the same level of care and quality is taken. The customer experience at service stations is completely different to the experience within Shopping Centres. We will be trialling and testing many new products within the service station model and recording customer wait times and feedback.

The scene during Sandwich Chefs' grand opening in Northam. Photo: Supplied

How many stores like these do you plan to open? How significant will it be in light of SC's multi-store franchising strategy?
We plan to have two open before the end of 2019 and the potential for another ten in 2020. FTC represents a significant opportunity for our business, the level of support we are able to offer each other ensures growth and success of the network.

To what extent will technology play a role in the new model?
Technology will be vital in improving the speed and ordering process within a Service Station model. We’re exploring ways in which to improve customer flow instore, what equipment we can use to speed up ordering time and how marketing can support the ordering process via FTC initiatives and our own ordering technology. Where possible, we want customers to order ahead - potentially at the pump. It’s a very exciting time for us and FTC as we look to create an impeccable customer experience.

Any other store types/partnerships SC's is keen on pursuing?
The Service Station Model has turned our attention to potential drive-thru opportunities. We’re currently exploring how this might work and will hopefully open our first drive-thru restaurant in 2020. All research and experience gained in these models will be passed across our network with the aim of improving our stores nationally.

Any further comments you'd like to make?
Sandwich Chefs is undergoing a major overhaul in store design, marketing and operations. We’re really excited in the direction the brand is going and our increased ability to support our franchise partners and deliver customer expectations. The new service station model allows us to really test our product and make significant improvements to the customer experience. FTC is incredibly well-aligned to us, our goals and objectives.