These are the hottest QSR expansion locations in Australia
Franchise chains reveal their target cities and states.
While some QSRs are eyeing overseas expansions, many are also planning to grow their presence locally by targeting populous cities or trailblazing into promising regional areas. Others though choose to stick to their existing locations, doubling their efforts to solidify their core markets.
Populous cities
Among the chains interviewed, SumoSalad appeared to be the most aggressive in its local expansion plans. The healthy fast food franchise is looking to launch at least 15 new stores each year in Australian high street, central business district (CBD) and regional locations. This will add to the over 90 stores it already operates nationwide.
“There are some metro cities we are specifically targeting like Melbourne CBD, where we are under-represented. We are also working with our supply chain partners to ‘plug the gaps’ in regional areas like Wollongong for example,” said Luke Baylis, CEO at SumoSalad.
“We have specific strategies in place to attract new franchisees in these areas, and we have developed a program for multi-site operators, within our existing franchisee base.”
Meanwhile, Burger Edge franchisor Issam Soubjaki said the brand is homing in on the largest cities in Australia – Sydney, Brisbane and Canberra.
Victoria and Queensland
Among the states, Victoria and Queensland are popular choices for local expansion despite the heightened competition in these markets.
We continue to focus on our core markets of Victoria and Queensland for growth as well as in-filling in New South Wales which was a market we historically passed over. There is a modicum of competition in our markets but generally that has not caused us concern,” said Mark Buckland, Managing Director at Healthy Habits.
Buckland said Healthy Habits plans to compete and rise above the swath of new entrants by “coming back to some of the basics.”
“We do find is that a lot of businesses have lost sight of some of the basic truths of retailing in a race to the bottom on pricing or else become distracted by fads rather than what customers really want.”
The Cheesecake Shop is also looking to Victoria to drive most of its growth until 2014 after its recent expansion drive in the state.
“We are on track to grow our footprint by 11% in Victoria, a figure not achieved since The Cheesecake Shop’s halcyon days in the mid-1990’s when they were twice recognized by the Franchise Council of Australia as Australia’s leading franchisor,” said Peter Dable, National Marketing Manager at The Cheesecake Shop.
“This Victorian success is due in large part to an avalanche effect flowing from the opening of a new store in Roxburgh Park Victoria earlier this year,” added Dable, noting that the Roxburgh Park store was the first new Victorian store for The Cheesecake Shop since 2008.
“Within weeks of opening , the Roxburgh Park store achieved the highest level of weekly turnover in the network’s 200 store portfolio before settling into a regular top 10 position.”
