Degani expands but maintains focus on local relevance

A priority, according to the brand.

"Remaining relevant is a key focus for Degani and is synonymous with how we began. I feel this is one of the main differentiators for local franchise business partners and is something we wish to maintain," explains Dan Gallo, Chief Executive Officer of Degani.

He shares that the chain's target is to open 21 stores by next year, bringing the total to 91 stores nationally. They are also looking into some opportunities in China, Malaysia and India. In addition, six stores are set to open in Townsville, Queensland in 2016.

One month ago, the chain announced that it is looking for new business partners in Townsville. Gallo noted that the reason they're encouraging Townsville people to run this upcoming stores, is so they can bring their own unique feel and culture to the Degani brand.

"We are looking at multiple touch points to ensure we keep a local relevance. A firm focus is on identifying local franchise business partners that understand and are fully immersed into their local market," he said. "This means they will easily integrate themselves and their Degani business into their local community and become involved on a higher and more personal level than simply sponsorships and such like that you see other franchise companies doing."

Gallo adds that aside from getting local partners, the chain will be designing its fit outs to suit the local area and influences, citing "for example a café in Crown Casino will be different to a café in Mt Isa, we invariably will have different guests in these businesses and want to ensure we are providing what our customers want and when they want it."

"Similarly, we are looking to local suppliers as well to assist with everything from building the store to supplying local fresh products and produce. For example, if we are in Gippsland Victoria, we want to source our meats from the local Angus trade, this both supports local industry, but also provides us with the benefit of fresh product to our consumers and delivers an ethically sourced confidence in our guests minds."

Clementine Scott, Degani's Marketing Manager adds that the retail landscape is shifting and the importance of keeping up with consumer behavior is vital, hence the emphasis on local and personalised store marketing.

"In order to grow the brand nationally, there will be some mass media initiatives established via an Integrated Marketing Communications approach (IMC), television, radio, newspaper, outdoor, magazine and on the web. Local Store Marketing (LSM), which reinforces the brand message at a community level, will be the most crucial part of your success."

A STEP INTO THE FUTURE

A few months ago, Degani shifted its marketing to heavily focus on digital, social and online media including utilising Facebook, Twitter and Instagram; and the chain recently announced that as a result, they have acquired 10 new franchisees.

Scott shared to QSR Media that up until 2014, Degani did not invest a large amount of money into the marketing kitty. Digital marketing was a new path for the chain however, their efforts were fruitful with the launch of the campaign "#mydegani".

"Marketing has entered into the ‘age of experience’ where digital technology has shifted the balance of power from companies to consumers. Great design is good for business – but it is also very easy to copy over time. In order to prevent your competitors from mirroring your experience, our strategy is to combine branded storytelling and experience," she noted.

"The successful combination of story and experience is the formula that will deliver value and loyalty from customers. The hashtag #mydegani allows every single customer to interact with our brand and does not limit the network to one brand image."

Simultaneously, Degani also launched a campaign dubbed as "for the love of coffee," to accompany its search for potential Townsville business partners.

To encourage locals, the chain will be awarding $15,000 worth of training program for free to the first Townsville business partners, and all will be flown to Melbourne for the program and the chance to be immersed into the Degani family.

"All of our tools and support structures are designed to be flexible to support localised brand customisation, but to also provide the confidence that the Degani Support Team is always available to assist," Gallo emphasized.