The Cheesecake Shop reports franchisee profits up by 7.5%
The bakery chain also plans to open 14 stores, including four in the U.K., by next year.
The Cheesecake Shop has revealed that their average profits for franchisees rose to 7.5% for 2018.
Their benchmarking data show that their average sales grew to 3.6%. EBITDA and owners wages also increased to 19.6% from last year’s 18.9%.
“These are averages and of course, depending on the franchisee’s circumstances they may do better or worse than the average. We have some under performers (around 10% of stores), where profits are not satisfactory and we have a program of additional support to help these franchisees improve,” The Cheesecake Shop managing director Ken Rosebery said.
The Cheesecake Shop have 212 franchisees in Australia and New Zealand, that primarily operate in suburban areas. Implementing cloud based accounting, payroll and reporting systems back in 2014 is said to have improved monitoring of franchisee financial health and payroll compliance.
“This has really helped us to better manage franchisee profitability and ensure they get value from their investment. We’re proud to have achieved improved performance for our franchisees when franchising in general is copping a lot of negative media lately,” Rosebery added.
