Shingle Inn on taking their brand to new markets and their 2013 plans

Shingle Inn started franchising in 2009, they now have 29 stores and are taking their brand out of native QLD to other Australian markets. Find out how they differentiate themselves and what their 2013 plans are in this Q&A with their Co-Director Andrew Bellchambers.

QSR Media: How has 2012 been for the group?

Andrew: Despite the challenging economic environment, it’s been a good year for the café chain that currently numbers 29 cafes with a possible three more stores on the horizon to reach 32 stores before 2013.

We’ve opened eight stores so far this year, across four states along the Eastern seaboard and expect to open a few more before the end of the year.

In spite of the environment the stores we have opened this year have been highly successful, trading over and above our initial expectations.

We felt it was always going to be a challenge moving into new territories where we are not as well known as we are in Brisbane but we’re thrilled with customers’ response to our brand, the look and feel of our stores, and our unique group of products.

We’re confident we can continue that success by staying true to the foundations of our brand, in particular our family culture, as we continue to grow.

QSR Media: What are some of your goals for 2013?

Andrew: Growth and innovation are the two key areas of focus heading into the New Year.

We’ve just returned from our annual Shingle Inn conference where the theme was innovation.

The necessity to keep abreast of trends and improve efficiency through the use of technology has come to the forefront as one area we’re going to particularly focus on. One of the key areas where I believe this has become increasingly important has been in the area of customer loyalty.

Customers are smart and sophisticated and at the cutting edge of technology these days and it’s harder to gain and secure loyalty than even before in our history.

We’re looking at better ways to satisfy customer needs through the use of smart phone technology and engaging with customers on social media with the ultimate goal of a more efficient in-store experience without losing the personal touches.

The growth of the network is another focus for the group, especially into the new markets that have only been explored in the past 18 months such as Sydney, where there are currently three stores, ACT where there is one store and Melbourne, the newest market where the first store opened only last month. I expect the café chain network to sit at around 45 stores by the end of next year.

In the immediate future, we want to focus on the markets where we’re only scratching the surface of what we can potentially offer and where we’ve already received positive feedback.

At the same time over the next 12 months and into 2014, we’ll start exploring options in Western Australia and North Queensland and possibly into Asia.

Another exciting development for the café in 2013 will be the reopening of the historic store in Brisbane’s newly refurbished City Hall.

We gifted the fit-out from the original store to the City of Brisbane and Brisbane City Council is currently piecing it together in its new home in City Hall. The re-opening of the historic store in this remarkable building will be another great chapter in the history of Shingle Inn.

QSR Media: What differentiates you in the "cafe" QSR segment?

Andrew: Given Shingle Inn’s long history, proving the café can stand the test of time, the heritage of the brand is one factor unmatched in today’s café culture. This factor is given great consideration in the building of stores as well as the products on offer.

We take great care in creating luxurious environments that help customers to feel like coming to Shingle Inn is a special occasion; one they can enjoy as often as they like to escape their hectic lives.

Many of our products are made from traditional recipes that have been part of the business for generations and they’re all still made from scratch using real eggs and butter, just as you would at home.

This creates an authenticity in Shingle Inn’s products and reflects their positioning of Decadent Delicious Deserved that accompanies their logo and packaging.

Our focus beyond that is to create an exceptional customer experience. Service culture is one part of the café experience where the gap is widening and we are working on a program that will ensure Shingle Inn is a market leader in this area of the café industry.

QSR Media: How would you describe Shingle Inn the brand?

Andrew: Shingle Inn is a boutique café, built on the foundation of heritage, exceeding customers’ expectations and superior quality food and coffee.

These are just three of eight founding principles of the business that was recently distilled into one declaration that all company stakeholders, including franchisees and company team members, signed at the company’s conference in September.

Shingle Inn seeks to be recognised by customers as the most-loved café business in the world

QSR Media: You have a number of new franchise sites available on your website, how have you picked these sites?

Andrew: The current focus on growth is around large shopping centres given that pedestrian traffic numbers are currently skewed towards this particular shopping environment.

We do have a couple of high street locations, but we find that shopping centres currently provide the most ideal environment for attracting customers to our brand. We have good relationships with all the major shopping centre organisations such as GPT, Stockland, AMP and Westfield which enables us to find good locations where our franchisees have the best opportunity for success.

We have also spent time looking at locations in community precincts but given they are usually limited to a small number of tenancies it’s much harder to find the location, size and rent that is appropriate for the business model.

QSR Media: Shingle Inn has a strong QLD heritage, how do you fare going to other Australian states that aren't familiar with the brand?

Andrew: Any brand that wants to grow has to move beyond its traditional home and comfort zone.

We approach new markets without any preconceived idea of how people will react to the brand which ensures we try harder to make it work. I think it’s important not to believe your own hype and keep the core foundations of the business at the heart of everything you do.

One of the most positive parts of expanding via a franchising model is that the store owners are not new to the market.

Our specific brand might be new to the market, but the people running it aren’t. Most often franchisees open the business in an area they’ve lived in for a considerable amount of time. They’re already part of their local community and frequent visitors to the shopping centre, in many cases.

They’re the face of Shingle Inn in their own communities and because they love and believe in the brand, we can be sure we’re all focussed on the end goal of becoming the world’s most-loved café business.