tH e s weet s uccess of lukuma D es:
fR om m elbou RN e to a
Global pH e N ome N o N
latest N ews in foo D franchising
foo D i N
fR a N c H isi NG
a s a N expe R ie N ce D f R a N c H isee
you k N ow e V e Ryt H i NG about
f R a N c H isi NG – R i GH t?
Over the past three decades, Muffin Break has earned a special place in the country’s heart.
One of Australia’s top franchises, our iconic bakery café is widely loved for its freshly-baked muffins, award-winning coffee and authentic customer service.
Franchising with us means becoming part of a family that will support you - all the way.
Our extensive range of muffins are famously freshly-baked. With regular new recipes, gluten-free and deluxe options, there’s something for everyone at Muffin Break. The perfect complement to our delicious coffee.
Our lunch menus feature delicious options made from high-quality ingredients, with rotating menus devised by our national chefs. Our marketing team also cooks up fresh campaigns, so that everyone knows what’s happening at Muffin Break.
Our comprehensive training and support gives you a proven recipe for success. Be part of a brand that has weathered different market conditions for more than 30 years - and come out stronger than ever.
28 Lukumades: the sweet success of lukumades: From melbourne to a global phenomenon
Whats new
26 Food & Franchising Announcements from the Industry
Franchisor in Depth
38 Soul Origin: Brewing success: soul origin Barista Competition sparks growth and community
48 Zarraffa’s Coffee: toowoomba scores another Zarraffa’s Coffee Drive thru location
Franchisee in Action
34 The Cheesecake shop: savoring sweet success: the Cheesecake shops Chris Wood on his Journey to Record-Breaking Franchise Development
40 Muzz Buzz: From Police officer to Franchisee –How a Perth man Put the Buzz Back in His life
Franchise in Focus
32 Jamaica Blue: Future-Proofs with new look and tech
44 Muffin Break: From baking zero to baking hero! How muffin Break franchisees become experts
30 Tony Meredith: 6 Key strategies navigating the australian food franchise market
36 Brian & Prue Keen: as an experienced franchisee you know everything about franchising – right?
42 Robert Toth: Food in Franchising
46 Doug Downer: Food Franchise Business
Lone Star Rib House and Brews this month announced a new store location, with the opening of a new eatery in Hawthorn, marking the fifth SA location for the restaurant chain.
Building on the success of Hallett Cove and gilles Plains franchises, the move comes as lone star Rib House & Brews experiences rapid growth and demand within s outh australia.
Hawthorn Franchisee, Kishore machabattuni, comments, “ i am thrilled to be a part of the lone star Rib House & Brews s outh australia expansion with the opening of our newest eatery in Hawthorn. t his opening signifies our commitment to meeting the growing demand for delicious food and great hospitality in adelaide, particularly the demand for lone star’s famous smokey ribs” g ary Blyton, g eneral manager at lone star Rib House & Brews NsW, V iC, sa , says,
“Despite the ongoing cost of living crisis, lone star has witnessed sustained growth and demand, especially through the recent launch of our two new s outh australia venues, gilles Plains and Hallett Cove, and our first location in g eelong, Victoria.
“across the past 12 months, we have largely focussed on delivering an affordable menu, to ensure the brand remains accessible and relevant as we continue to expand our customer base nationwide.”
t he lone star Rib House & Brews extensive menu features high-quality local australian produce, in all their affordable american classics. t he franchise also offers a wide range of craft and tap beers, wines, cocktails and spirits, including a variety from adelaide’s top wineries and breweries.
Crust Pizza is introducing an exclusive range of three limited-edition pizzas to its menu in partnership with fellow Retail Food Group brand Rack’em Bones BBQ Ribs, a market leader in the emerging virtual kitchen category.
t he three new pizzas, which are available at Crust Pizza until o ctober 8th, blend the
Rack’em Bones mastery in southern Usa smokehouse meats with the Crust Pizza premium pizza offering to create a unique and authentic flavour offering that will elevate the takeaway pizza menu.
Crust Pizza marketing manager Zak marr said the new flavours, which are inspired by a tennessee smokehouse and are a
nod to the american-style “low-and-slow” barbeque trend, present an opportunity to bring an exciting new dining experience to pizza lovers around australia.
“Rack’em Bones is a brilliant new concept and a market leader in the emerging virtual kitchen category, fast becoming the leading virtual ribs outlet in australia since its launch in late 2022.”
“When our commitment to innovation, focus on premium ingredients and deep desire to develop unique flavour combinations meets the Rack’em Bones melt-in-your-mouth BBQ ribs and finger-licking wings flavours, an authentic smokehouse experience is the delicious result and we know our loyal customers will sink their teeth into this collaboration,” he said. to celebrate the fusion of the innovative flavour profiles that are unique to each brand, two new sides will also be added to the Rack’em Bones menu - the Peri Peri Wings and the Peri Peri Chicken loaded Chips, both served up with Crust Pizza’s famous Peri Peri sauce.
Family-owned Victorian bakery, Ferguson Plarre’s Bakehouse opened a new store in Truganina, west of Melbourne, in June.
located approximately 22 kilometres west of m elbourne’s CBD and a short drive off the Princes Freeway, the new truganina store gives locals a place to meet for a coffee, snack or lunch, and enjoy the sweet and savoury treats that Ferguson Plarre is known for.
truganina franchisees Varun and s adhav Puri said they were excited to have joined the team at Ferguson Plarre and were enjoying getting to know the locals in the area.
t he uncle and nephew team have a passion for bringing people together through food.
“We’re thrilled to channel our passion into our new store. truganina is a special place to us. it has a vibrant culture and culinary scene, which we’re loving being a part of so far.”
Ferguson Plarre’s Bakehouse Ceo steve Plarre said Varun and s adhav will be great ambassadors for the brand.
“We are excited to have Varun and s adhav as part of our team and they have really hit the ground running,” steve said.
t he new truganina store, located in truganina Central, brings the number of Ferguson Plarre stores to 82 across Victoria with more set to open later in the year.
For more information about Ferguson Plarre visit fergusonplarre.com.au
g otcha fresh tea bursts into new Australian locations and expands globally
Strengthening its positioning as a leader of the booming bubble tea market, Gotcha Fresh Tea has recently launched new Australian stores at Doncaster and Waverley Garden in Victoria, Adelaide Myer Centre Rundle Mall, World Square in Sydney and a new flagship site at the Sydney Fish Market.
t he only international bubble tea brand founded in australia is also rapidly increasing its global market presence with a new store in m exico, ten more under negotiation, and plans for 100 stores within the m exican market soon.
g otcha also plans to this year open 20 more stores in s audi arabia where its offering is particularly popular.
g otcha currently has more than 200 stores globally and more than 50 in australia alone.
With further store openings in the pipeline for launch during 2024, g otcha has its sights set on reaching 100 australian stores within the next three years.
“From the very outset of g otcha in 2018, we’ve endeavoured to offer an exceptional bubble tea with multiple points of difference to the offerings of our competitors,” explains g otcha Founder and o wner, Roger Fu.
“We have a unique marketing strategy that includes collaborations with pop culture icons that share our brand values, and we’re exceptionally proud of our store fitouts which are visually striking.
“o ur franchisees are very well-supported, and this is key to our business strategy. We consult our franchise partners and proudly have one of the lowest franchisee turnover rates in the industry,” says mr Fu.
See: gotchafreshtea.com.au
N ome N o N
From humble beginnings operating out of a food truck in the bustling food scene of Melbourne, Australia, to a global franchise phenomenon. Exarhos Sourligas, founder of Lukumades has taken his delicious Greek doughnut balls to the world!
This sweet revolution began with the vision of one man shaping a traditional Greek delicacy - Loukoumades - into a modern treat for a global audience to enjoy. Lukumades’ founder saw a significant gap in the market, and believed commencing his journey in Melbourne’s competitive food market would be the best start. Since its inception in 2016, Lukumades has expanded its reach across continents, from Australia to Singapore, Taiwan, the UAE, and the USA. With exciting new openings on the horizon in India, the Philippines, Spain, France, and the UK, the brand’s journey highlights the power of self-belief and supportive franchising.
Lukumades began as a humble venture by Exarhos Sourligas in 2016. Inspired by Melbourne’s vibrant food scene, he envisioned creating a unique concept and offering, that fulfilled a gap in the global market. Whilst lukumades were commonly found at Greek church and in Greek restaurants or at festivals across Melbourne, there was no store in Australia that was dedicated to this delicious dessert. He set his sights on giving Melbournians a taste of his Greek doughnuts with a modern twist from a roaming food truck. The concept was simple but effective, where customers could enjoy Lukumades the traditional way, drizzled with honey and nuts, or go wild with an array of more modern toppings, snickers, matcha chocolate, lotus biscoff sauce, the list goes on.
Given the immense popularity, within 9 months he delivered Australia’s first store dedicated to Greek doughnuts - Lukumades. Lukumades’ first store opened across the road from Melbourne’s iconic Queen Vic Market and quickly became a local hotspot. The
combination of high-quality ingredients, a welcoming atmosphere, and an innovative approach to a classic dessert won over the hearts—and taste buds—of Melbournians.
The initial success proved that there was a strong market for this type of indulgence, and Exarhos realised that his unique concept had the potential to scale beyond local borders.
expansion across australia and beyond
Encouraged by the warm reception, Exarhos decided to take his business to the next level. The decision to franchise Lukumades was a strategic one, aimed at capitalising on the brand’s growing popularity. The first step was expanding within Australia, where the franchise model allowed him to tap into new markets efficiently.
The response was overwhelmingly positive, and Lukumades soon found itself with a growing network of franchises across Sydney & Melbourne. Each location maintained the brand’s core values of quality, authenticity, and exceptional customer service. Exarhos supported his franchisees through COVID, where the business thrived despite the obvious challenges, and the success provided a solid foundation for international expansion.
In 2022, Lukumades began its global journey securing locations in Singapore, Taiwan and the UAE. The franchise’s commitment to preserving the essence of its original offering, while adapting to local tastes helped it win over customers in these competitive food market. This success led to rapid expansion in Florida USA, where the concept has been exceptionally received and holds universal appeal.
Lukumades’ franchise is built from a solid foundation, with a core that focuses on collaborative relationships, authenticity and high energy.
the global footprint
Lukumades’ expansion into diverse international markets has been marked by strategic planning and adaptability. In Singapore, the franchise embraced local flavours, incorporating regional ingredients into their offerings, which resonated with the local palate. The UAE market, with its cosmopolitan nature, welcomed the franchise’s unique twist on a familiar treat, making it a popular choice among both locals and expatriates.
The USA has proven to be a significant milestone for Lukumades, with its diverse food culture offering a vast canvas for the brand’s growth. Establishing a presence in Jacksonville Beach and soon Miami, it has allowed Lukumades to reach a wide audience, showcasing its sweet delicacies to a new demographic. The brand’s ability to blend Greek tradition with American tastes contributes to its success on that side of the Atlantic.
Lukumades is not resting on its laurels. Exarhos’ ambitious plans include upcoming openings in India, the Philippines, Spain, France, and the UK. These new markets are expected to embrace Lukumades’ unique offerings, throughout 2024 and into 2025. In India and the Philippines, where the food culture is rich and varied, Lukumades is poised to make a splash with its distinct
dessert experience. The vibrant and diverse culinary scenes in these countries provide a promising landscape for the franchise’s expansion. Similarly, Spain and France, known for their own deep-rooted dessert traditions, present an exciting opportunity for Lukumades to introduce its Greek sweet treats to European palates.
The UK, is one area Exarhos is quite excited to enter! With its multicultural population and appreciation for unique food experiences, he feels it is another key market for Lukumades. The franchise plans to establish its presence in major cities, where the sweet taste of these delicious Greek doughnuts will surely capture the attention of both locals and tourists.
As Lukumades continues to grow, the franchise offers enticing master franchise opportunities both in Australia and internationally. Master franchisees have the chance to become pivotal players in the brand’s expansion, benefiting from Lukumades’ established business model, marketing strategies, and support systems. Master franchise opportunities are available across Australia and in international markets where Lukumades is looking to establish a strong presence. These opportunities allow investors to own and operate multiple franchise units within a designated region, leveraging the brand’s reputation and resources to drive growth and profitability.
Lukumades’ journey from a food truck in Melbourne to a global franchise success story, exemplifies the potential of a wellexecuted franchise model and one mans vision and perseverance in today’s complex global market. The brand’s commitment to maintaining the authenticity of its product,
while adapting to new markets has been key to its success. As it continues to expand into new territories, Lukumades remains focused on delivering an exceptional dessert experience that transcends borders.
For those interested in joining this sweet journey, whether as a franchisee or a master franchisee, Lukumades offers an opportunity to be part of a growing global phenomenon. With its blend of traditional charm and modern business acumen, Lukumades is well-positioned for continued success and expansion in the years to come.
https://www.lukumades.co/franchising
Today, the Australian food franchise market is as vibrant as ever, and the community is constantly evolving which offers opportunities and significant challenges.
With a fusion of cultures and cuisines, the potential is limitless for the food franchise industry, but it doesn’t go without its fair share of challenges due to market saturation, regulatory changes and intense competition.
As a Business Coach, I want to see food franchise businesses flourish and face the bumps and hurdles of growing a franchise with a plan. In this article, I’ll share some strategies to help your franchise navigate through the food franchise landscape, while building a sustainable and thriving business.
From fast food and cafes to health-conscious eateries and gourmet dining, Australia’s food franchise sector is incredibly diverse. Working with business owners across different industries has taught me that diversity can be both an asset and a challenge. Australia is a multicultural society, and this has created a wide range of dining preferences. Succeeding in the franchise food industry means adapting to trends and consumer preferences in today’s competitive market.
The first step is to understand what you need to do to keep up, or even better, get ahead. Assess and understand your franchise business by asking, is your market segment saturated, or is there room for growth? What trends are emerging, and how can you leverage them to your advantage? These are crucial questions every franchise owner must address.
A. Market Saturation
One of the biggest challenges in the Australian food franchise market is saturation. With many businesses offering similar products or catering to the same demographics, being able to stand out and develop a unique selling proposition becomes a challenge. This saturation often results in price wars and shrinking profit margins, making it hard to sustain a franchise business.
Amid food businesses popping up left and right, ensure that your franchise overcomes market saturation by implementing a couple of innovative strategies; one is through differentiation. Developing a unique selling proposition, that may entail offering a diverse menu with specials on different days, adopting a theme or concept, or aiming high when it comes to exceptional customer service. The second is through niche targeting by identifying what your competitors underserve, then simply offer what others don’t offer. This could involve plant-based or allergen-friendly options or perhaps offering seasonal dishes or limited-time offer menu items.
B. Regulatory Changes
Regulatory bodies pose another challenge for the food franchising industry, as they often keep updating rules and requirements. This industry is considered not only as a service-based industry but also a product-based, where most common health and safety regulations, labour laws, and environmental policies can impact operations and profitability.
To overcome this challenge, information is key and action is imperative. Regularly update your knowledge of the relevant regulations and standards of the industry. Aside from staying informed, being able to be trained and train your team with the current regulations will set you apart. This will enhance your business’ operational efficiency, whilst helping to avoid potential legal issues.
C. Intense
Your food franchise is as good as the dining experience you create. Food franchises offer more than just the taste of the menu items, they also offer an experience from the moment a customer contacts you.
Like most industries, when it comes to beating the competition, I give my clients the usual advice that business is not for
tony meredith Coaching focuses on helping business owners Grow Sales, Increase Profits, and Regain Time. Tony Meredith Coaching started in 2018 and works with hundreds of small-medium businesses across Australia, in the areas of Franchising, Retail, Services, Manufacturing, and Trades. Tony has over 25 years’ experience working for some of the world’s largest corporations in a variety of senior sales and leadership roles. Contact Tony and his team if you want to grow an outstanding franchise business. info@tonymeredithcoaching.com.au https://tonymeredithcoaching.com.au/ https://www.linkedin.com/in/tony-meredith-coach/ https://www.facebook.com/tonymeredithcoaching
the weak-hearted and starting or growing the business means putting in extra effort consistently in order to gain the rewards. It is challenging to stay ahead of the competition with numerous food franchises and independent operators all vying for the customer’s attention, therefore it has become a game of who has the most innovative marketing, ability to delight customers, and community engagement. To be on top of these areas, I have broken the plan into five key elements that you and your team must maintain with OFFER;
1. Operational Efficiency
2. Financial Management
3. Fortifying a Resilient Workforce
4. Embracing Change and Innovation
5. Revamping Technological tools
Operational Efficiency. Like any franchise, your operational system is the backbone and streamlining the operations and supply chain management are your major milestones to a successful food franchise. This encompasses streamlining your processes, optimising resource allocation, and minimising waste, to ensure profitability in a competitive market.
Financial Management. The heart of your business is your financial management and being able to effectively manage this by monitoring cash flow, controlling expenses, and making informed financial decisions is essential to sustaining your food franchise.
Fortifying a Resilient Workforce. You may have a team, but as the saying goes, “a team is as strong as its weakest link.” Being in the fast-paced food franchising industry means that a lot of your success rest on a highly effective team. Build a team that is skilled and motivated by investing in your employees’ development and fostering a positive work environment, both of which can lead to higher productivity and delighting customers.
Embracing Change and Innovation. I often see businesses do well to succeed but then stop innovating and evolving. Being involved in food franchising means you must embrace
change and continuously seek opportunities for improvement. This often means being able to adapt to changing market conditions and being innovative to address consumer preferences. Innovate your menu offerings while building strategic partnerships to enhance your franchise’s capabilities. In addition, constantly exploring new avenues for growth are crucial for attracting a diverse customer base and setting your franchise’s long-term success.
Revamping Technological Tools. When practising the first four elements, remember to incorporate today’s most efficient tool, technology. Embracing technology in all forms advances your business to new heights. The key is to utilise technology across your operations especially when it comes to building a strong online presence and developing your digital capabilities, which are essential to reaching and engaging with your customers. These tools can enhance operational efficiency, improve customer engagement, and, ultimately, drive growth.
Generally, my advice in navigating the Australian food franchise market is to have a proactive and strategic approach to not just the big things, but to the little 1% of your franchise that together hold a big stake in the whole. By understanding the landscape, differentiating your offerings, staying informed with regulations, and focusing on delighting your customers, you as a franchise owner can thrive in any economic environment.
Though the challenges are significant, it is important to remember that they also present opportunities for those willing to adapt and innovate. Through implementing the strategies discussed in this article, you can not only overcome these challenges but also position your franchise for long-term success. Continue to embrace the changes and continually seek to improve. Remember, the reason why you say you can’t, is the reason that you should. v
Now with around 100 franchises across Australia and 60 internationally, the brand has expanded its footprint yet again with two new stores in Yanchep Central and Joondalup, Western Australia.
The new stores mark a significant elevation of the brand’s visual identity and integrated tech, reflecting its commitment to innovation and sustainability.
While Jamaica Blue has always been known for its stylish stores, it was time for an update. Founded in the early 90s, over the past 14 years Jamaica Blue has further cemented itself as an urban oasis, with its coastal blue and white theme.
However, it was time for a rejuvenation and a vibrant new colour palette, says Chief Development Officer Matthew Williams.
“Store designs evolve with the brand and we have continuously updated colour palettes, signage and adjusted uniforms over the past 14 years,” says Matthew. “However, a year ago we decided to completely refresh the design.”
Part of the Foodco franchise group, Jamaica Blue has gained a loyal following for award-winning coffee and seriously good food, made using the freshest ingredients available.
The fresh palette draws from a blend of warm apricot and refreshing pistachio tones, with highlights provided by a gorgeous yacht race blue. It’s a modern, sleek aesthetic which will appeal to a broader customer base while maintaining the brand’s signature style.
One of the standout features of the new store design is its emphasis on sustainability.
Jamaica Blue is committed to minimising its environmental footprint, and this is reflected in the materials and furnishings chosen for the new stores, including booths and banquettes made from recycled materials.
Designing for disassembly is also a huge part of sustainable commercial fitouts. The brand has reduced its use of stone, opting for finishes and panels that can easily be retreated or repainted rather than replaced. This will ultimately reduce waste going to landfill and also prove more cost-effective for franchisees.
Jamaica Blue operates in diverse markets, both domestically and internationally. This geographic diversity necessitates a flexible
design approach that can be adapted to various settings and customer expectations.
The new stores in Yanchep Central and Joondalup will be large, 100-seat dine-in cafés, with Joondalup also offering a dinner service—a feature available in only a select few Jamaica Blue locations.
However, the new store design also needs to be versatile enough to suit smaller scale locations, such as espresso bars and kiosks, as well as international locations.
Jamaica Blue is targeting 15 new store builds across Australia over the next 12 months, with another 24 existing sites undergoing refurbishment with the new look. You can see current available opportunities here.
International expansion is also planned, with four new sites on the radar for the UK and 5-10 across New Zealand, UAE and Malaysia.
This expansion and redesign aligns with Jamaica Blue’s goal of becoming a globally recognised café brand, known for its innovation and sleek design.
Today’s customers expect choice and speed. New tech integration is an essential part of this, enhancing customer experience (CX) with self-ordering kiosks that provide a quick and efficient option for customers looking for an easy takeaway service.
The new Jamaica Blue kiosks are designed to integrate seamlessly with the existing point-of-sale systems, ensuring they are cost-effective and easy for both franchisees and customers. Customers can still choose to order at the counter and have a friendly experience with staff, while the kiosks provide an additional layer of convenience.
Jamaica Blue has the advantage of following
the experience of supermarkets and fast food franchises that were early adopters of the technology.
“We want to be sure the system works and the bugs are ironed out before we ask franchisees to spend their money on technology,” says Williams.
Continual investment in technology and equipment is a cornerstone of the brand. Along with the new look and self-serving kiosks, Jamaica Blue is also upgrading its equipment to ensure the brand retains its reputation as a purveyor of high quality coffee.
This includes the introduction of the Ubermilk premium milk frother and the PUQpress, an automatic tamper that ensures consistent coffee compacting.
These innovations are part of the overall streamlining in operations, which will improve product quality and ultimately boost franchisee profitability.
Jamaica Blue and Foodco recently won the 2023 ‘Established Franchisor of the Year’ award and the ‘Field Manager of the Year’ award at the Franchising Council of Australia (FCA) awards.
It reflects the brand’s dedication to supporting its franchisees and maintaining
high operational standards. The ‘Established Franchisor of the Year’ award, in particular, recognises the hard work of the marketing, product development, and operations teams in evolving the brand.
James Wadsworth, a Victorian-based field manager, was honored with the Field Manager of the Year award, underscoring the critical role of on-the-ground support in franchisee success.
“This award is excellent recognition for James, who interacts with franchisees daily, offering support and guidance. Field managers are essential in ensuring that our standards are met across all locations,” says Williams.
As Jamaica Blue rolls out its stylish new look and expands both domestically and internationally, it is committed to sustainability, quality, and in-depth franchisee support. This comprehensive approach ensures that the brand is wellpositioned to continue its success in the competitive café market.
If you’re looking for a seriously good franchise opportunity, check out the latest Jamaica Blue opportunities here or get in touch with the team today. v
As Australia’s $172 billion franchising industry mindset shifts from merely driving franchise sales, the importance of Franchisee innovation, franchisee-driven business systems and understandings of the local markets have magnified. Innate entrepreneurial mindsets in prospective franchisees are now critical to success.
Chris Wood’s franchise journey with The Cheesecake Shop began with his dedication to understanding the local community and an unwavering entrepreneurial spirit. Starting his career as a Domino’s delivery driver, Chris quickly climbed the franchise ranks, demonstrating a relentless drive and commitment. His efforts culminated in winning the Franchise Manager of the Year award in Australasia, showcasing his solutionoriented approach, exemplary customer service and high-profit mindset.
Chris validated his entrepreneurial mindset by leading his own franchise, The Cheesecake Shop Port Macquarie, to record-breaking success. He attributes his achievements to robust community engagement and strong local connections, which helped him secure the highest sales figures for an opening week in the brand’s 33-year history.
After a record-breaking opening week for The Cheesecake Shop’s 33-year-old
brand history, Chris and his wife, Adriana Wood, have quickly established a strong presence in the local community, sharing their passion for cakes and desserts with Port Macquarie residents. Chris’s journey through the Domino’s franchise is nothing short of inspiring. Starting as a Domino’s delivery driver, his dedication and hard work propelled him to become the proud franchisee of two Domino’s stores. His impact and commitment were recognised nationally when Chris became the recipient of one of Australasia’s prestigious Franchise awards. His pursuit of growth extended beyond The Cheesecake Shop, showcasing entrepreneurial acumen through ventures in gyms and property development.
The recipe for franchise success is consistency in connecting your business with the community. It’s about crafting an unparalleled business model and assembling a stellar team to elevate your franchise brand. Chris emphasised that being a franchisee entails more than merely driving sales; it demands an entrepreneurial mindset, innovative strategies, and community engagement. His dedication to local marketing, top-tier customer service, and a growth-oriented approach culminated in his role as The Cheesecake Shop’s newest franchisee, firmly rooted in Port Macquarie’s community.
Entrepreneurial traits are synonymous with passion and embodying a growth mindset in every business endeavor. Finding a franchise that resonated with our community’s ethos was crucial. Coupled with a proactive approach and the ability to pivot in response to market dynamics, sustained success naturally follows.
Chris underscores the significance of community engagement as pivotal to business strategy. Positioning the community at the core of all marketing, recruitment, and operational efforts is essential. Innovating within this framework fosters mutual growth, ensuring both business success and ethical entrepreneurship.
Franchises don’t just influence local economies; they foster a symbiotic relationship, integrating innovation into community culture and celebrating memorable milestones. We’ve been warmly embraced in Port Macquarie and eagerly anticipate participating in many community events to come. Before opening our new store, our approach was community centric. We conducted an extensive recruitment drive, receiving over 300 applications to ensure we had the right team in place.
Chris highlighted the strong bond between small businesses and regional communities, stressing the importance of supporting franchise partners who, in turn, hire and inspire locals.
Through focused local marketing initiatives, we created a substantial buzz in Port Macquarie. We proudly introduced our refreshed retro branding, positioning our store as a pioneer in the region. The Cheesecake Shop equips franchise partners with robust national logistical, operational, and marketing support, leveraging its strong brand recognition to ensure their success.
Chris strongly believes community engagement is the core of franchise success. Adriana and I immersed ourselves in the fabric of Port Macquarie’s community. Approach franchising with a growth mindset, resilience, and adaptability. Hard work yields countless rewards. Effective leadership and strategic vision are crucial; fostering an internal culture and external brand that encourages creativity, experimentation, and idea-sharing creates a mutually beneficial relationship for both businesses and communities.
Underlining the company’s commitment to supporting franchise development, The Cheesecake Shop CEO Scott Bush said “Our skilled Franchise Partners are the numberone ingredient who drive our success and help communities celebrate and create sweet memories since our inception in 1991. If you bring a growth mindset, a can-do attitude and the ability to be agile and adaptable to the business mix, we have shown the proof is in the pudding.” v
Underlining the company’s commitment to supporting franchise development, The Cheesecake Shop CEO Scott Bush said “Our skilled Franchise Partners are the number-one ingredient who drive our success and help communities celebrate and create sweet memories since our inception in 1991. If you bring a growth mindset, a can-do attitude and the ability to be agile and adaptable to the business mix, we have shown the proof is in the pudding.”
Brian Keen has been involved in the franchise industry for more than 30 years and prue has been involved with systems and business for as long. Together they founded Franchise Simply, Systems2Grow and Microloan Foundation Australia. Brian’s on-the-ground business experience as a multi-unit franchisee, franchisor and consultant helping many of the big names create their own franchise systems and growth over the years combined with Prue’s structured approach has been fed into Franchise Simply, helping today’s SMEs and Franchisors grow their business by franchising.
www.franchisesimply.com.au | www.systems2grow.com
Just lately I have had a couple of franchisees with experience in different brands coming to me saying they are considering buying the rights to become the Australian franchisor or setting up their own franchise group.
Invariably, the people concerned say they know everything about franchising and that they just want help with setting up their systems. The rest is in the bag, and they see no problems in the future.
The problem with this is – franchisees don’t know what they don’t know and so don’t have any idea of the questions to ask. Their considerable and very valuable experience in the field gives a false sense of security… So, I ask questions of my own – hoping to make the transition from franchisee to highly legislated franchisor simpler and less chaotic.
The response to this question is generally, ‘ To give the franchisee support’.
But when I push, there’s not really any understanding about what this means. Yes, product training but there is not much understanding of the rest.
A franchisor is responsible for making the group work. Understanding:
• What it is you provide your customers and what they need, the market, the kind of people who will be good at delivering the product to that market and their frailties.
• Marketing needed to make sure there is enough traffic to sustain the group.
• All the legislation that sits around business and especially franchised business in Australia and how this is going to be covered – business structures, insurances,
staff management, franchisee management (yes, it’s different to staff management –you are dealing with business partners, albeit partners who have to work within the rules set out in the agreement) and much more.
• The support a franchisee is going to need to get the job done. Yes, the training at induction and ongoing, help with business and staff. These are things that make a franchise work - relationship building, making sure everyone is doing things the franchise way which means visits to check, holding events to pull people together, holding people to account when things go wrong, it’s not all fun.
• How the money works. How much does it cost to run the franchisor side of the business? How much does each franchisee need to turnover to give themselves a fair profit and still pay their own costs and
the franchisor for all their help plus their royalties.
This list is long, and franchisors need to be very experienced in everything about business and managing people to succeed. It’s no accident that Tom Potter who established Eagle Boys Pizza described his move to franchising as,
‘I’ve moved from the pizza business to the people business’.
All these responsibilities are associated with a suite of details around each particular trade or product.
Most of these details generally sit around the characteristics of the people you need to deliver your product – your franchisees.
Are you setting up a full-service restaurant franchise and need franchisees with the ability to manage the food, service, staff, money, ordering and more? These guys need to have the drive and personal strength to handle busy, detailed business tasks and sometimes difficult staffing or logistics circumstances with ease.
Or are you setting up a massage therapy business and know your massage therapists need to be empathetic people, able to build caring relationships with your customers. Experience tells me this group will not have the personality to deal with the more practical and direct side of business such as cold call marketing or making sure the bookkeeping is up to date.
So, when pulling together the way your franchisor business is structured you need to look at the likely personality of your best franchisees, the ones who will succeed in pulling in customers and looking after them well and ask,
‘Will they need help and if so, what will this likely be?’
Most modern franchises we see handle nearly all the marketing at the franchisor level. Certainly, generating leads is held at this level because this is mostly digital these days. Websites, social media, marketing methods such as AdWords are all best done centrally, funded by a Marketing Fund made up of contributions from both franchisor and franchisee.
Most franchisees then do very little in the
way of Local Area Marketing. Maybe local events work for some sectors.
The dividing line is sales.
Real Estate Agents and the restaurateur previously discussed will need to be completely capable of making the sale.
A massage therapist not so much. The franchisor will need to manage sales and simply provide the customer details so the therapist can deliver the product.
Trades people however, are often great at converting the sale. When they visit to check the quote, their expertise is on show and provided they have training, they naturally give the confidence that they can do the job.
Most business tasks today have been digitised. Bookkeeping has been simplified with the likes of Xero and sophisticated POS systems and in many cases, this means the franchisor can take most of these tasks away very easily.
Franchisors need to understand that Fair Work legislation means they need to take care that franchisees are managing staff within the legislation. The Fair Work website is clear on what is needed so make sure you get expert advice.
Each business is different, so think it through. What will you, as franchisor need to do to help your franchisees:
• Deliver the best product or service to your customers
• Become the best business people within their trade
• Can pay their way within the group
• And become profitable and happy members of the team
franchisor you can be leading your group to success?
Having had experience as a franchisee, you are in the best position to be a fantastic franchisor, supporting your franchisees to success.
Just make sure you get as much information as you can about the franchisor’s role before you take the plunge.
The combination will give you a firm footing to move forwards. v
s
oul oR i G i N ’s ba R ista
competitio
N s pa R ks G R owt H a ND commu N ity
At Soul Origin, we believe in nurturing not just a business, but a thriving community.
Our franchise partners are more than just partners; they’re part of a family that celebrates excellence, creativity, and growth. One of the highlights of our annual calendar is the Soul Origin Barista Competition, a testament to our commitment to quality and camaraderie.
This year, the 2024 competition was
our biggest and most competitive yet, showcasing the incredible talent and dedication within our network.
celebrating excellence: 2024’s top baristas
The 2024 Soul Origin Barista Competition concluded with resounding success, marking another milestone in our journey. We extend heartfelt congratulations to Kristina from Lakehaven, who was crowned Barista Champion, and to the Brisbane
Uptown team for clinching the Barista Team Championship. The event was a vibrant celebration of skill, passion, and the relentless pursuit of excellence.
Kristina’s victory was particularly significant as she became the first non-franchise partner to win the Barista Champion title. Her journey to the top was marked by perseverance and a meticulous approach to her craft. As a returning finalist from last year, Kristina’s composure and exceptional routine set her apart. We also applaud Nita from Darwin Galleria, who secured second place, and Resham from Chadstone, who claimed third. Both demonstrated remarkable skill and poise in their first appearance in the finale.
the teams that brew together, Win together
In the team category, Andy and Emily from Brisbane Uptown showcased the true spirit of Soul Origin. Returning after missing out on the finale last year, their consistency and teamwork earned them the Team Barista Champion title in a thrilling finale. Early favourites, Cockburn (WA), faced a spirited challenge in the semi-finals, eventually securing third place after a close contest with Northland (VIC), who finished second.
a showcase of talent and dedication
This year’s competition saw unprecedented participation, with over 100 stores contributing 125 individual baristas and over 50 teams. The enthusiasm and creativity displayed by our baristas was truly inspiring. Each participant brought their unique flair to the competition, making it a vibrant and rewarding experience for everyone involved.
The growth and development witnessed among our baristas were particularly encouraging. The competition not only provided a platform for showcasing skills but also fostered a sense of community and mutual support. The dedication to excellence was palpable, and it is this spirit that drives Soul Origin forward.
fostering growth and opportunity
The Soul Origin Barista Competition is more than just a contest; it’s a celebration of our values and our commitment to fostering growth and opportunity. For our Franchise Partners, it’s an avenue to showcase the talent within their teams and a reminder of the potential for growth and development within the Soul Origin family.
We believe in empowering our Franchise Partners to be more than just business owners. The competition is a testament to the culture of excellence and community that we cultivate daily. It’s an opportunity for our partners to see their team members shine and to take pride in their development.
As we celebrate the successes of this year’s competition, we are already looking forward to the future. The 2024 competition set a new benchmark for participation and excellence, and we are excited to see what the next
year will bring. The creativity, dedication, and passion displayed by our baristas this year have set the stage for even greater achievements.
We are committed to continuing this tradition of excellence and community. The Soul Origin Barista Competition is a cornerstone of our culture, and we will continue to invest in it as a platform for growth and celebration.
If you’re looking to be part of a community that values excellence, creativity, and growth, Soul Origin is the place for you. Our Franchise Partners are at the heart of everything we do, and we are dedicated to providing them with the support and opportunities they need to succeed.
The Soul Origin Barista Competition is just one of the many ways we celebrate our community and foster growth. It’s a reflection of our commitment to quality and our belief in the potential of every member of our family.
The 2024 Soul Origin Barista Competition was a resounding success, showcasing the incredible talent and dedication within our community. From individual baristas to teams, the competition highlighted the spirit of excellence that defines Soul Origin. As we look to the future, we are excited to continue nurturing this culture of growth and opportunity. Congratulations once again to all our winners and participants, and thank you to everyone who made this year’s competition a success. Here’s to even greater achievements in the years to come!
Join us at Soul Origin and be part of a community that celebrates excellence, fosters growth, and believes in the power of a great cup of coffee. v
for information on franchise opportunities, please scan here!
A former police officer says the global pandemic and a realisation he wasn’t truly happy prompted him to rethink his career goals and become a business owner, taking on three franchise stores with Muzz Buzz.
Tony Biancuzzo was a police officer for more than a decade, including during COVID, and says he was approaching his 45th birthday when he knew he wanted to try something different.
“There wasn’t one particular moment, but it was a slow realisation that my job was no longer making me happy and that was
starting to impact my home life too.”
“The global pandemic was a tough time for many, but I think in particular front line workers including police officers, and I started to think of ways I could put my skills to use differently.
“I’d always wanted to own my own business but didn’t really know where to start, so I thought having the structure and support of a franchise would be the way to go.”
Tony bought two Muzz Buzz stores almost 12 months ago, Riverton and Armadale, and took on his third in Kwinana just a few weeks ago.
“I’m loving the fresh challenge, the upskilling and the learning, but I’m also getting to apply
the communication and people skills you develop in the police force in a completely different way.”
Mr Biancuzzo says he opted for a Muzz Buzz franchise as the company is West-Australian owned and operated, which resonated with him.
“I wanted the local support and the local knowledge and advice, rather than feeling like I was simply a WA outlet of an east-coast run business.”
“Not only did Muzz Buzz tick those boxes, but the support offered by the franchisors was above and beyond what I expected. It’s a big step to take on your own business, so anything that can make the challenge a little easier is welcomed.
Mr Biancuzzo has this advice for other would-be franchisees;
• Consider Whether a Franchise is Right for You: Mr Biancuzzo says he’s thrived working within the structure and guidelines provided by Muzz Buzz, but acknowledges it wouldn’t work for everyone. “I knew I wanted to get into business but didn’t know how, I wanted to learn and to be taught. But if you have a specific business idea and plan, then perhaps a franchise might leave you feeling constrained. I think a key part of being successful is identifying whether the opportunity is truly right for you.”
• Be Prepared to Work: While Franchisees have the benefit of built-in brand recognition and an established network of experience, success in a franchise requires work. Mr Biancuzzo says he’s learning all aspects of the business, from customer service to marketing to back-end admin so that he can see where any improvements and changes might be needed. “You can’t just purchase a franchise and think that’s it for the next 20 years, you have to be prepared to learn the business inside out.”
• Build Relationships: This starts with the Franchisors. Mr Biancuzzo says it’s important to build a mutually respectful relationship based on similar values and goals to ensure you’re moving in the same direction. It’s also important to build relationships with staff, suppliers, stakeholders and customers.
Muzz Buzz Executive Chairman Warren Reynolds says Mr Biancuzzo has hit the ground running since coming on board and is already having an impact.
“Tony has a strong work ethic and wants to succeed and is truly interested in learning the business. His stores are all showing positive signs, and we look forward to seeing them grow.”
Mr Reynolds says the company has worked hard to develop a positive culture where Franchisees and other staff feel supported.
“Developing and maintaining that kind of culture starts with Head Office, but then flows down to Franchisees and staff at their stores.”
“Of course there will be tough days at work, but if you feel supported and like you have a strong team to reach out to for help, it makes running your business that much easier.”
Mr Biancuzzo says he’s enjoying work again, and it’s a difference his wife and two children have noticed.
“My wife says I’m back to being the man she married. Can’t get a better endorsement than that.” v
Warren Reynolds is the major shareholder and Executive Chairman of Muzz Buzz, a WA owned and operated business, specialising in Great Coffee on the Go. There are currently more than 30 stores across metropolitan and regional WA. Mr Reynolds has more than three decades business experience, including in the US and Melbourne. He’s also an accomplished aerobatic pilot and enjoys flying in his spare time.
“Things
ain’t cooking in my kitchen, strange afflictions wash over me…”
a song many in the hospitality sector have been singing over the past 2 years.
I was in China town Melbourne for a yum cha on a Saturday morning recently and the sheer number of closed restaurants and graffitied buildings, was a shock.
We have also seen ‘high end’ restaurants close due to cost of living pressures and increased operating costs such as Rosetta (Neil Perry) la Luna bistro (Adrian Richardson) the legendary Ginger Boy and more recently Botswana Butchery closed their doors in Melbourne, Sydney and Canberra. We have also seen that landlords are now no longer giving much leeway on rent concessions as they did during the pandemic.
Amongst that doom and gloom, the franchise
sector continues to hold its own and in fact is showing growth in the hospitality and fast food sector with many new and overseas systems opening up.
As they say when one door closes, another cafe opens and from adversity there is great opportunity! (actually, I said that) !
What’s happening in food and franchising?
Here are some numbers that are interesting (source IBIS World):
• Revenue has decreased to $185bn down 2.4% over the past 5 years.
• Profit has decreased 7.7% over that same period.
• The next 5 years projection is that there will be little, to no growth.
Franchised businesses pre covid were slow and steady, helped by rising disposable income and positive consumer sentiment. Since then, there have been cost of living pressures, wars, supply chain issues, and increased operational and supply costs have made it difficult for business and affected consumer confidence. The increased costs have also impacted on profit.
The bigger franchise systems such as Metcash, Harvey Norman, Subway, Dominos, and McDonalds can adapt to the changed conditions and consumer trends as they have the resources (financial and systems) to manage these challenges, whereas newer franchise systems may not have the same resilience.
On the plus side Australia is a multicultural society, embracing foods from many countries from noodles to pappadums, pasta to sushi, kebabs to gyros, burgers to pho and this diversity in offering has also encouraged many overseas franchisors to enter the Australian market.
should i buy an existing franchise or go into a new ‘greenfield” site ?
The great benefit of buying an existing franchised business is that from day one you have revenue coming in, which hopefully means you need less working capital for the first 12 months of operation. Of course, you are then buying a going concern business with goodwill and the cash outlay is generally higher than a greenfield site.
The key things to look for when buying an existing franchise are:
• The Lease - what term is left on the lease, is there any option? Does the lease cover the term of your franchise – what are the annual rent increases. (Note- many leases provided for annual CPI increases which was good for the tenant when CPI was low however over the past 2 years the CPI
has increased substantially so rent reviews to CPI now favour the landlord not the tenant!).
• The Plant and Equipment - check it is fit for purpose and functional as the cost of upgrade or replacement can be expensive.
• Refit or rebrand - check if the franchisor or landlord requires you to refit the premises or rebrand shortly after you buy the business as again that can be a substantial extra capital cost.
The benefit of establishing a new “greenfield” site is that you have the latest fit out and you may be able to negotiate a reduced rent for the first 12 months, but this may also pose a greater risk than buying an established franchise as you have to build the business from scratch which may need greater working capital for the first 12 months of operation. Franchisees should weigh up the option of taking up a new franchise system or buying into a long established brand and seek appropriate financial and legal advice.
For new franchisees there are some new brands that you may not have heard of worth a look such as Sankalp Indian (12 outlets), Dosa Hutt (16 outlets) Monkey King Thai, Thailander (8 outlets), Dragon Hot Pot, The Lok Lok Dumpling Bar, misschu (aka Miss Chu) to name a few.
We have been engaged to assist a new Canadian based franchise Punjabi Chaap Corner enter the Australian market.
The Franchisor has had great success in Canada serving vegetarian food with tastes from Punjabi. For those that are not familiar a “Chaap” is little like a shashlik. It is known as the best Chaap Franchise in India. They are looking for a Master franchisee in
robert toth is Special Counsel and Franchise Specialist at Sanicki Lawyers with over 35 years of experience in franchise, licensing and distribution law.
Robert is also an Accredited Commercial Law Specialist and regularly publishes articles on franchising in Australia and overseas journals and acts for a number of overseas, local and master franchisors and acts in dispute resolution and mediations. contact robert@sanickilawyers.com.au or even call him on mobile 0412 67 37 57 www.sanickilawyers.com.au
Australia and any interested party should contact our office.
We believe this is a good opportunity and be highly successful in Australia with consumers looking to eat less meat and more tasty vegetarian options.
In franchising over the years we have seen many cycles and trends such as the Pizza era, chocolate and ice creameries, coffee franchises, burgers, chicken and many B2B services now on offer.
We continue to see increased competition and new players in the burger segment with an increase in plant based burger chains and also new “boutique burger” brands such as Burgertory and Betty’s Burgers.
This reminds me of the time when it was all about pizzas and my article “How many pizzas can one country eat?” The same could be said about Burgers today!
Australians continue to have a love affair with their coffee whether from a café, a van or a hole in the wall... provided its good coffee!
There is a myriad of franchise offerings from low cost mobile franchises such as The Coffee Guy and Xpresso Mobile Café and Bean Lab where the investment can be from $60,000 to Hudsons Coffee, Degani and Coffee Club which require an investment from around $350,000 plus.
For new franchisees we recommend that you look at a franchise that suits your lifestyle and skill set, and one that you can see yourself doing longer term as many franchises have a certain “life span” after which the franchisee will want to sell or exit. So, ask yourself if you can see yourself selling smoked chickens three years down the track
Consider your exit plan at the same time as going into the franchise and also consider if it has long term appeal and it is not just a passing fad.
Once you are in a franchise there is no easy exit and there are only limited options to exit the system. It is also important to ensure that you can take a reasonable salary out of the business as you go as there may not be any
large capital gain or profit at the end.
So do your cash flow analysis before you commit and get financial advice to make sure the business is viable and can cover your costs and salary. if the numbers don’t work, we suggest you walk away and look elsewhere as there are many franchise systems out there.
With all of the challenges confronting business there remains positive opportunities and this can be seen in the resurgence of restaurants and the fast food sector in shopping centres, shopping strips and CBD areas and the influx of new franchise systems from overseas.
Before you jump in !
• Do your due diligence on the franchisor just as much as they do their due diligence on you.
• Is it a greenfield site which may be a higher risk than an existing site?
• Are you being offered an A, B or C grade site?
• Is the Franchisor big on technology and innovation? If not, how will they compete in the market sector they are in.
• Is the store fit out due for an upgrade and refurbishment?
• Is the plant and equipment new or will it need replacement?
• Will you hold the lease or hold under an occupancy licence.
• Be clear about your budget – what can you afford?
• Ensure they have adequate working capital to cover the first 6 to 12 months of operation (particularly if a new greenfield site).
• Factor in rent increases and fit out upgrades in your cash flow forecasts.
• Make sure you can take a salary for your effort along the way.
Above all to make an informed decision and limit your risk, seek advice from a Specialist Franchise Lawyer who is a Member of the Franchise Council of Australia (FCA) and independent financial advice before you jump in! v
Muffin Break, a beloved bakery café franchise, has become an Australian favourite since its launch in 1989. Its popularity is not just thanks to its famous freshly-baked muffins and awardwinning coffee (although they’re major components)! Behind the scenes, Muffin Break also invests in an exceptional franchisee support system, which ensures quality across the network.
Operated by Foodco, one of Australia’s top franchise groups, Muffin Break offers extensive training and ongoing support to ensure that franchisees thrive, even if they have absolutely no prior experience in baking or running a café.
This unique approach has made Muffin Break a standout in the competitive café franchising landscape.
One of Muffin Break’s key selling points for prospective franchisees is that no previous baking or café management experience
is required. Franchisees come from a diverse range of backgrounds, although an entrepreneurial spirit and love of people is essential.
The brand’s comprehensive training system equips franchisees with all the skills they need to succeed. From baking techniques to customer service and business management, the training covers every aspect of operating a Muffin Break store.
The unique program covers initial training at Muffin Break’s state-of-the-art Centre of Retail Excellence (CORE) in Sydney, Muffin Break training stores and online through the eLearning and communication portal.
During this process franchisees learn handson baking skills, and get thoroughly to grips with daily operations.
Training doesn’t stop once the doors of a new Muffin Break store open. The brand is committed to providing ongoing support to ensure continued success. This support comes in various forms, including regular visits from field managers, access to a dedicated franchise support team, and continuous professional development opportunities.
Field managers play a crucial role in the Muffin Break support ecosystem. These experienced professionals visit stores regularly to provide guidance, offer feedback, and help franchisees navigate any challenges they might face. They also ensure that each store maintains the high standards that customers expect from the Muffin Break brand.
The support is so good, it regularly wins awards. Most recently James Wadsworth, a Victorian-based field manager for Foodco, was honoured with the 2023 Field Manager of the Year award at the Franchising Council of Australia (FCA) awards.
In addition to field manager support, franchisees have access to a dedicated national support team that is just a phone call or email away. This team provides assistance with everything from troubleshooting
operational issues to developing marketing strategies, ensuring that franchisees never feel isolated or unsupported.
A Muffin Break franchise also gives partners access to impactful national marketing campaigns that drive traffic to stores and increase brand visibility. From seasonal promotions to the national loyalty program, Muffin Break’s marketing campaigns are designed to keep customers engaged and coming back for more.
Product development is another area where Muffin Break excels. The brand is constantly innovating, introducing new products that cater to changing consumer preferences. This commitment to innovation not only keeps
the menu fresh and exciting but also helps franchisees stay competitive in the market.
A major part of Muffin Break’s success is also the strong sense of community among its franchisees. The brand fosters a collaborative environment where franchisees can share experiences, exchange ideas, and support one another. This community spirit is reinforced through regular franchisee meetings, regional conferences, awards and an online platform where franchisees can connect and communicate.
It is this community that truly sets Muffin Break apart from other franchise networks.
“We did extensive research into different coffee and food franchises and Muffin Break was by far the most supportive, with excellent structures in place. We were welcomed into the Muffin Break family and have had the most amazing journey and success as a result of all this,” says Gayle, Franchise Owner of Muffin Break Coolalinga & Palmerston, Darwin.
Thanks to its strategic training programs, Muffin Break can take a new franchisee from baking zero to baking hero, giving them the practical skills, business tools and resources they need to succeed.
The brand’s comprehensive training, ongoing support, and community-driven approach make owning a business accessible to individuals from all walks of life. Whether you have a background in hospitality or are entirely new to the industry, Muffin Break can help you build a life you love.
If you’ve been dreaming of your own café business, explore Muffin Break’s current opportunities, or get in touch with the team today. v
Everyone thinks that food businesses must be successful because there’re so many of them.
I started my career working in food franchising and have over 40 years of experience owning and operating food businesses, including the four that I own right now. I have a love–hate relationship with food businesses because they can be great, but they can also be very hard work. I’ve made it harder on myself because I own multiple businesses, but that’s the power of franchising: you run the systems, and the people run the business. So, you need to get into a food business that has great systems and then recruit, train, motivate and develop the right people as they will determine the success of your food business as much as you, if not more, as they interact with more customers than you will and will make more products than you, too.
100% of the success of a food franchise is on the business owner themselves and how active they are within their business, the experienced franchisor has developed the brand, the products. the marketing and helped find a suitable location at a fair market rent. The role of the franchisee is to be handson and work both in, and on the business. For those that have seen the movie the Founder (the story of McDonald's) The founder (of McDonald’s Corporation) Ray Kroc, initially recruited investors into the McDonald's restaurant business as franchisees but quickly realised the high operational standards he desired were not being achieved with absentee owners and he quickly changed his business recruitment model to handson Owner-Operators/Franchisees. These were people that worked in the business and ensured exceptional service and controls over the business, this is the premise of food franchising, that an owner will do a better job than an employee.
d owner an experienced Franchising expert with an impressive 30+ year senior management history in developing and leading businesses within the Franchising sector. He has been recognised in the Top 30 Franchise Executives in Australia on four occasions and in the Top 100 Global Influencers in Franchising on three occasions.
Doug owns three franchises as a franchisee and has owned 8 franchises as a franchisee, he has been responsible for the establishment of three of his own start-up franchise systems including all aspects from strategy through to market entry. Doug has operated at CEO and Director level in eight franchise systems. He also started and currently owns and operates five successful SME Businesses of his own, so he is well versed in all aspects of franchising.
ontact d oug at: doug@franchiseready.com.au | Website: www.franchiseready.com.au
Larger more sophisticated food franchises can suit an investor or multi-store operator but the franchisee needs to be equally sophisticated and have another set of skills in leadership and managing large teams in order to be successful. I estimate that 90% of food franchises suit a hands-on owner-operator/ franchisee.
People look at food businesses and think they must be good — you don’t have to wait for the cash to hit your account like some other franchise opportunities, as they are cash businesses, and the purchase price of the products is usually significantly lower than many other business opportunities. Finally, the cash flow is strong as it flows in daily, and most franchisors have negotiated good trading terms with suppliers meaning you don’t have to have huge cash tied up in stock.
The food sector is the largest sector in the world of franchising. If you have worked in food service, it’s a sector worth investigating if you’re looking to buy a franchise. That’s because you kind of know what you’re in for: it’s hard work, you’re on your feet for long periods of time and your transaction dollar amount is often low, so you must get and serve lots of customers.
Some people fall in love with idea of owning a café and having their friends come around. I can assure you it’s nothing like that. When you’re establishing your food business, you work harder than you’ve ever worked in your life before. Because it’s yours, you must and, it may take a while to get customers to change their current preferences to your products.
A food franchise would suit most people because in franchising the development of the brand, business model and operating standards have already been established and it may suit someone that may be a little more passive or potentially introverted as once the location is up and running, the owner can wait for customers to come to them. It’s true that you should be marketing over and above what your franchisor does, but this may not be your expertise, so it tends to be a reactive franchise opportunity compared to a franchise where you have to go out and hunt
“ Some people fall in love with idea of owning a café and having their friends come around. I can assure you it’s nothing like that. When you’re establishing your food business, you work harder than you’ve ever worked in your life before.”
for business, many food franchises are located on busy strips and in shopping centres, where there are large amounts of foot traffic, so a franchisee can be a little more passive but the best performing food franchises are those where the owner is always marketing and promoting their business through media and through outstanding customer service and by being present in the business.
The major challenge for businesses in the food and beverage services industry is their exposure to the discretionary spending of consumers, which has dried up as cost-ofliving pressures mount. It has been estimated that up to 10% of hospitality businesses may close this year, whilst this sounds alarming, we know that franchise businesses are usually twice as successful as independent businesses, so the risk is lessened in franchising.
What we are seeing with our clients and the general market is the top end and the bottom end of the market are doing well, people are prepared to treat themselves and pay a premium or if their buying regularly there needs to be a value offering, just look at what McDonald’s is doing right now with their $6.95 meal consisting of 2 burgers, fries and a drink – That’s cheap!
If you’re looking at a food franchise you need to be aware of the pros and cons and in this market, make sure you know who your customer is, what they’re prepared to spend and have an offering that suits them.
The same can be said of food franchise opportunities, there’s lots of choice, what makes them stand out and do they suit what you’re looking for. v
things to Be aWare of in fooD franchising
Some of the negative attributes associated with food franchises include:
• Reliance on team members that are often unskilled and potentially unreliable as they see their role as a steppingstone to their ‘real job’.
• Wage costs are wildly variable, and at the whim of sales, it’s a fine balancing act. Not too many rostered hours or labour costs will be too high (ideally 25–30%) and not too few rostered hours to impact the customer experience. But get this wrong and the results can be catastrophic.
• Cost of Goods (COGs) are variable and require excellent controls and recipe management to maintain optimum percentages. Most food businesses need to be under 30% COGs to be profitable.
• Cost of Goods (COGs) and labour costs are variable and require excellent controls to maintain optimum percentages
• It’s bloody hard work. Standing on your feet for excessive periods of time, and today, food service is seven days a week from early to late, so it has the potential to impact your quality of life.
• The success of a food business is heavily reliant on real estate: location is everything, and that comes at a price. Ideally, a food business would like to run at 4–10% for full-service restaurants and 8-14% for takeaway, known as quick-service restaurants (QSRs).
• Consumer behaviour can change, and unless you have a strong loyalty program, ongoing marketing and a great product that is always evolving, customers are prone to try other products.
• If you’re situated in a shopping centre and to a lesser degree on a high street, there’s a strong chance of competition and copying of your best products which you have no control over.
toowoomba sco R es a N ot H e R
Z
Coffee lovers in Toowoomba are set to experience greater convenience and accessibility with the grand opening of Zarraffa’s newest drive thru only location in Harristown
Only the sixth of the company’s new ‘drive thru only’ concept stores, Zarraffa’s Coffee Harristown officially opened in August and is operated by seasoned franchisee Damian Doyle, who also owns the Anzac Avenue store.
The Zarraffa’s drive thru only store model was launched last year and is designed to enhance customer experience for those who are time poor and demand convenience, while delivering significant expansion opportunities for the Aussie-owned company and its franchisees.
“Opening this drive thru only store has been a long-term goal of mine and the concept is perfect for relieving the high demand on our
“ One of the most rewarding parts is being able to employ local juniors and support them as they grow into managerial roles or professionals in other industries.”
existing Anzac Avenue store, while offering a quick and easy coffee fix for our customers,” said Damian.
Zarraffa’s Coffee CEO, Marnie Sheldon, believes the company’s drive thru only model will help the brand grow in previously unexplored ways, as more sites can now be considered for the streamlined store footprint.
“Our Harristown store represents the future of Zarraffa’s Coffee, one of many of our new store locations that will be built on smaller, non-traditional sites that are more convenient for our customers, and we’re excited to see the positive impact this new location will have on the Toowoomba community,” said Marnie.
With a remarkable history of over 15 years with Zarraffa's, Damian previously opened Toowoomba’s first Zarraffa’s Coffee location
at Clifford Square Shopping Centre in 2009 before relocating the original store to Anzac Avenue in late 2023.
A family affair, co-owner of the Harristown store is Damian’s son, Mackenzie Doyle, making his first foray as a franchisee, while Damian’s three daughters, who have been integral to the success of the Anzac Avenue store, will continue to support both locations.
In addition, a number of long-term employees who have been working with Damian from his early days as a franchisee will continue to bring their invaluable experience and dedication to the new store.
“Having Mackenzie on board makes this venture even more special. He has literally grown up around coffee most of his life, and together with our team we’re committed to
providing top quality specialty coffee and excellent service to our community,” Damian added.
Located on Alderley St, Zarraffa’s Coffee Harristown is designed with customer convenience in mind, featuring a single-lane drive thru, a walk-up window, and a cozy outdoor seating area.
The store will operate from 4:30am to 8:00pm daily and is strategically positioned to serve both outgoing traffic and those entering the Gore Highway, making it easier for locals and commuters to grab their favourite coffee on the go.
The store will employ approximately 22 new staff members, contributing to the local job market and supporting Zarraffa’s ongoing commitment to the local community.
“One of the most rewarding parts is being able to employ local juniors and support them as they grow into managerial roles or professionals in other industries, including to date, paramedics, lawyers, accountants, actors and directors,” said Damian.
“It's also important to me that I build strong relationships with local schools. This allows us to help students enter the workforce – we have six new school-based trainees starting with us soon.”
Along with supporting team members in their respective journeys, Marnie Sheldon believes it is the achievement of multi-generational ownership – fast becoming a trend among the brand’s franchisee group – that should be applauded.
“Zarraffa’s is almost 30 years old and it is heartwarming to see the children of our franchisees now taking their first forays into store ownership. Many who started out in high school working for their parents and have moved up the ranks are now growing each business with so much experience under their belt,” Marnie added.
“For this reason, it’s our franchisees, like Damian and Mackenzie, who are at the heart of what makes Zarraffa’s expansion plans possible. Seasoned operators who are opening more sites, alongside the next generation are only going to strengthen the growth of the brand and ensure our that customers receive the best possible experience for years to come.”
Zarraffa’s Coffee Harristown Drive Thru is located at 545 Alderley St, Harristown, Queensland 4350.
Opening hours: 4.30am – 8pm, 7 days a week.
For more information about Zarraffa’s Coffee visit www.zarraffas.com