What you need to know about AFC's Urban Burger acquisition
They plan to unveil 20 stores next year.
The Australian Franchising Corporation has recently welcomed gourmet burger bar, Urban Burger, into the company. The acquisition raised the number of AFC's brand systems to a total of four, which includes Wok Me, The Burrito Bar, and Global Burgers Bar and Grill.
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Below is a Q&A with Luke McGrath, Australian Franchising Corporation's Managing Director.
QSR Media: What was the reason behind the recent acquisition?
McGrath: Strength in numbers, and the fact there's a massive gap in the marketplace for the local burger bar. Grill'd have come out and created food as fashion, and forgotten about the local burger bar, and Urban Burger represents that. It's a very versatile concept too; there can be an Urban in so many different locations.
QSR Media: What are some of AFC’s short and long-term plans for Urban Burger?
McGrath: Both short and long-term the goal is to increase turnover, customer awareness, and brand recognition, as well as opening more stores, with a particular focus on expanding interstate in the next couple of years.
QSR Media: How well do you think Urban Burger will integrate with AFC’s other brand systems?
McGrath: Urban has to stand on its own two feet, it'll have its own marketing and operations team, and its own brand and identity.
The brand is a great fit for us, and what we're doing is tapping into AFC's wealth of knowledge and experience to help grow a small business.
QSR Media: What challenges is AFC preparing for in this new development?
McGrath: Every day is a challenge at the moment in retail, competition is so fierce, and with wage laws the way they are it makes things difficult.
That, combined with the red tape of small business franchise legislation, is making our industry unattractive to franchisees.
Aside from that, it'll be a challenge to manage growth. Too much growth can be a scary thing, so it's imperative we control it, and make sure it's sustainable.
QSR Media: Urban Burger has had many changes of ownership recently, how will you re-assure the market of your long-term intentions?
McGrath: We've been in the food industry for a long time, which is a huge advantage that the previous owners haven't had, plus we have other stores with similar products and positioning.
Basically, AFC has a proven track record. Wok Me, The Burrito Bar, and Global Burgers Bar and Grill have all been hugely successful, and we're going to carry over the same strategies and frameworks to ensure the long-term success of Urban Burger.
QSR Media: Any other comments?
McGrath: I'm massively excited by the acquisition of Urban Burger, and I think it's one of the most exciting things to happen to retail in Australia in the last five years.
The QSR market is booming, and there's a massive opportunity for Urban to be in every strip in every location in the country.
Not since the likes of Subway has an opportunity like this been around.
Next year we plan to open 20 Urban stores, so it's going to be a massive concept.
