4 things QSRs must keep an eye out for in 2014
Find out what could happen in the industry.
QSR Media spoke with Steve Hansen, King of Strategy at Think DONE Management Consultancy, to get insight on what could be expected from the QSR industry this coming 2014.
Below are Steve Hansen’s thoughts on QSR Media’s Issue of the Month.
“I see 2014 as being stronger for QSR across Australia and particularly WA.
Many international brands are seeking entry into Australia, as they can see the growth in population and also the affluence that exists here as opposed to most other countries.
The average guy in Aus today is doing very well, but maybe he does not totally appreciate how well off he is.
I believe that some brands will seek entry before they take a closer look at rents and wages, and they may need to revise their financial models once they get started.
Even though we have affluence, we still have a large barrier for business in the penalties being applied to wages, particularly on weekends and public holidays. Some restaurants have taken the stance, best to close Sundays and Mondays and stay in business, which affects the employees who rely on hours, not the penalty rate.
Wages and food costs will drive selling prices and there will need to be increases in board prices if brands are to maintain their margins.
Education and Culture are key for any brands to be sustainable for the long term and if investment in these areas is not undertaken then my guess is we may see the demise of some brands.”
