RFG banks on pizza chains in massive expansion scheme
They launched their latest expansion strategy called 'Project QSR400'.
Retail Food Group (RFG) recently revealed the company’s upcoming plans to further the growth of their brand systems, specifically QSR pizza chains, Pizza Capers and Crust Gourmet Pizza Bar.
RFG will be launching ‘Project QSR400,’ which will pave way for the company to expand their pizza outlets and reach a goal of opening 400 stores by the third quarter of 2015 financial year.
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Below is a Q&A with Gary Alford, Retail Food Group Director of Franchise.
QSR Media: What pushed the brand to launch the Project QSR400 initiative?
Alford: The gourmet pizza market in which Pizza Capers and Crust brand systems are recognised as the leaders has been identified to have huge growth potential across the Australian market.
The two brands are also shaping up as having great potential internationally.
Retail Food Group has launched Project QSR400 as a way to ensure we are capitalising on this opportunity and are setting ourselves a high yet achievable goal for growth.
QSR Media: Which new markets is the Company targeting?
Alford: We have identified over 100 new territories across Australia that we feel would be ideally suited to one of our QSR brands.
We are confident that our stores will add choice and a true gourmet offering in each of the identified markets.
QSR Media: With the strategy focusing on the outlet growth of the company's pizza brands, will competition amongst the two brands pose as a possible issue?
Alford: The past eight months since the acquisition of Crust has been all about implementing a segmentation strategy to position Pizza Capers and Crust so that there is room for outlet growth while minimising direct competition.
This has been done through building strong marketing platforms for both brands that encapsulate their differing brand personalities.
QSR Media: What challenges is the company anticipating?
Alford: We know that franchisee recruitment will be a challenge, so we are strengthening our corporate structures and operational systems to allow us to open and operate stores corporately before bringing franchisees on board.
We feel this will help to minimise any perceived risk for potential franchisees while also establishing stores and training staff at the highest possible standard.
QSR Media: Will the strategy be centering only on domestic growth or will the company look into expanding in the international arena as well?
Alford: While Project QSR400 is concentrated on the domestic growth of Pizza Capers and Crust, Retail Food Group will be refocussing on international opportunities.
Crust currently operates stores in New Zealand, Singapore and the USA, while Pizza Capers also has a presence in Singapore.
QSR Media: Tell us more about the 'bolt-on' strategy of the company, and how it will be progressed.
Alford: The ‘bolt-on’ strategy is currently being trialled at the Pizza Capers Slice Bar at Esquires in Upper Coomera on the Gold Coast.
We will continue to monitor this pilot store and look for any future opportunities to partner with complementary businesses.
QSR Media: What key steps or actions is the company going to take to be able to achieve the footprint of 400 outlets?
Alford: As well as identifying the best possible sites for our outlets, we will be continuing to focus on driving our existing e-commerce platforms, product innovation and operational excellence to achieve our goal of a QSR footprint of 400 outlets.
