QSR Media Annual 2017 by Charlton Media Group

qsrmedia.com.au to cope with the 10 How real estate crunch

Meet Domino’s 11 pizza robot Australia ventures 22 Hog’s into meals-on-wheels

ANNUAL 2017

Check out The Coffee

26 Guy’s mobile coffee van

GET TO KNOW THE CEOS BEHIND BAKERS DELIGHT

FULL COVERAGE OF THE QSR MEDIA DETPAK AWARDS 2016

WHAT’S BEHIND HUXTABURGER’S MOVE TO FRANCHISING?

WHY FAST FOOD CHAINS ARE LEAVING CBDs

WHY SUMOSALAD IS CHANGING ITS LOCATION STRATEGY

$10000 Magic beans. When blended and roasted by the right specialists, these beans can grow businesses. You don’t have to invest millions of dollars to set up your own coffee roasting facilities, you can use ours. Start off as small as 100kg or grow as much as you can imagine. We don’t have our own coffee brand, so we’ll never compete with you. If you want better coffee in your business, come have a coffee with our business. Call Sales Director Robert Murrell on 0414 859 852.

FROM THE EDITOR Welcome to the inaugural print issue of QSR Media, your one-stop guide to Australia’s quick service and fast casual restaurant industry. As a magazine devoted to executives in the industry, we aim to present you with the greatest highlights of the past 12 months, together with exclusive, informative research to help your business thrive in a tough environment.

Publisher & EDITOR-IN-CHIEF Justine Charlton production editor Roxanne Primo Uy assistant editor Bjorn Biel Beltran GRAPHIC ARTIST Elizabeth Indoy

ADVERTISING CONTACT Justine Charlton justine@qsrmedia.com.au

ADMINISTRATION ACCOUNTS DEPARTMENT accounts@charltonmediamail.com Advertising advertising@charltonmediamail.com Editorial editorial@qsrmedia.com.au

Australia PO Box 200 Glebe NSW 2037 +61 416 079 788 United Kingdom 56C Elsham Rd W14 London 8HD +44 78 806 23271 SINGAPORE 101 Cecil St. #17-09 Tong Eng Building Singapore 069533 +65 3158 1386

Our industry is entering a period of rapid evolution and innovation. We give an overview of this change, and present a collection of exclusive NPD Group market research, commentary, and company highlights, to inform you of these trends and aid you in making the big decisions that will grow your company, and indeed the industry as a whole. QSR Media also holds a range of events throughout the year; from small roundtable discussions to our annual Conference and Awards, the fourth of which will be held this June in Sydney. This event gathers all of the biggest players in the QSR industry, along with top experts from various fields, to discuss important topics such as technology, marketing, and the modern consumer. The event also recognises the brands that have made the biggest impact on the industry in the areas of innovation, marketing, and corporate social responsibility.

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Can we help? Editorial Enquiries: If you have a story idea or press release, please email our news editor at editorial@qsrmedia.com.au For a personal message to the editor, include the word “Justine” in the subject line. For Media Partnerships, please email: justine@qsrmedia.com.au with “Partnership” in the subject line.

QSR Media Australia is published by Charlton Event Management Pty Ltd. All editorial is copyright and may not be reproduced without consent. Contributions are invited, but copies of all work should be kept as QSR Media Australia can accept no responsibility for loss. We will, however, take the gains.

Justine Charlton

ABOUT QSR MEDIA QSR Media is the number one source of news for Australia’s quick serve, fast casual, and chain restaurant industry. With daily online news, a weekly newsletter, quarterly roundtables, annual print issue, and annual summit and awards, we cover all aspects and engage with all leaders in the industry in online, print and events. Our annual online readership is over 125,000 unique visitors. The summit and awards attracts more than 400 delegates, and bespoke roundtables engage with leaders in the industry. To find our more about sponsorship and other opportunities with us, please email editorial@qsrmedia.com.au. QSR MEDIA | annual 2017

CONTENTS

Event Coverage QSR MEDIA DETPAK CONFERENCE AND AWARDS 2016

FIRST 10 QSRs take a stand for environment protection

11 Meet DRU, Domino’s pizza robot 12 Why are major fast food chains leaving CBDs?

16 Foodie culture drives innovation

24 What’s behind Huxtaburger’s

QSR MEDIA | annual 2017

36 Why SumoSalad is changing

move to franchising?

its location strategy

26 The Coffee Guy zones in on

40 MissChu lives on in brand

an untapped niche in coffee

offspring Saigon Lane

32 How Top Juice is capitalising on

EVENT COVERAGE

the healthy food trend behind Bakers Delight

INTERVIEW Hog’s Australia is rolling into the mobile food market

INTERVIEW

34 Get to know the new CEOs

Published by Charlton Event Management Pty Ltd PO Box 200 Glebe NSW 2037

First QSRs reveal how they balance innovation and tradition

38 Experts discuss the importance of digital in food service

For the latest QSR news from Australia visit the website

qsrmedia.com.au

FOOD DELIVERY Detpak has your packaging covered with a full range of Food Delivery solutions to complement your business.

AUS 1300 362 620 | NZ 0800 338 725 DETPAK.COM

News from qsrmedia.com.au Daily news from Australia most read

HUMAN RESOURCES

MENU INNOVATIONS

craveable brands. announces new board appointments

How Donut King is using the digital platform to grow its business

Hokkaido Baked Cheese Tart launches new chocolate flavour

Rob Coombe, chairman of food and beverage chain operator craveable brands., said, “We are delighted to announce the appointment of three independent directors to our business in Matthew Quinn, Naomi Simson and Henry Shiner.”

The Donut Rush app has reached a milestone of over 320,000 downloads since its launch in March. The app claimed the Google Play and Apple App Store’s top spot, overtaking App giants such as Gumtree, eBay, Skype and Twitter.

Hokkaido Baked Cheese Tart’s first new flavour in Australia, chocolate! The chocolate cheese tart is available in all locations for $4.20 each, with the original cheese flavour priced at $3.90. The new tarts are filled with a secret chocolate recipe.

MARKETING

MealPal to launch in Sydney With MealPal, consumers can get lunch every weekday from the best restaurants in Sydney, with over 100 meals to choose from. MealPal is a lunch program that gives consumers access to the best restaurants for less than $8 per meal. It aims to provide a fast efficient way to get a delicious daily lunch.

TECHNOLOGY

QSR MEDIA | annual 2017

FRANCHISING

Zeus Street Greek opens in Surry Hills The opening marks the brand’s 14th store in Australia. Zeus Surry Hills combines modern Greek street food and a relaxed contemporary environment. The design melds art deco inspired geometry and shapes with 3D finishes to add warmth and vibrancy, countering the exposed brick work and raw stone finishes.

MENU INNOVATIONS

Crust Gourmet Pizza launches onemetre Uno Grande pizza Customers can top the Uno Grande with a selection of three flavours from the traditional and gourmet Crust ranges. The one-metre pizza will arrive at your door in a customised metre pizza box and delivery bag. The Uno Grande launched just in time for the start of the 2017 State of Origin series.

Online & mobile ordering designed to integrate with your brand and existing technology

Increase revenue

Reduce in-store wait time

Gain brand loyalty

Improve customer experience

VISIT MOBI2GO.COM TO SCHEDULE A DEMO

TryMobi2Go

@mobi2go

QSR MEDIA X oracle

How QSRs can avoid understaffing nightmares

Equip staff with better tools to do their jobs and foster a better sense of ‘ownership.’

hen a quick service restaurant is understaffed, it can lead to a terrible scenario: lines grow, service quality deteriorates, and revenue and loyalty go down the drain as customers leave feeling frustrated – even vowing never to come back. Such understaffing nightmares are becoming worrisome for QSRs, as 44% report that understaffing occurs “somewhat frequently” or more often in their stores, based on a recent Oracle Hospitality survey. While understaffing is most pervasive in fast-casual restaurants – with 54% reporting it as a somewhat frequent or more frequent issue – QSRs also face considerable challenges despite efforts to improve scheduling. “Ever watchful of labour costs, it is no surprise that restaurants err on the side of understaffing when it comes to scheduling practices,” says Christopher Adams, vice president sales – food & beverage APAC at

Oracle Hospitality. The same survey reveals that QSRs can spend up to 30% or more of revenues on staffing alone, and many operators feeling the pinch respond by raising menu prices. One way QSRs can alleviate their understaffing troubles is to use advanced forecasting tools. Some forecasting systems have evolved to not only project sales, but also pull data from POS systems and automatically build staff schedules that factor in labour costs and productivity needs, according to Adams. Staff schedule changes are a major contributor to understaffing, but better processes and cloud technology can help managers and staff adapt to fluctuating schedules. “Staff schedule changes are a fact of life,” says Adams. “Technology can help manage one of the headaches of the business: schedule changes. It can enable employees to electronically make their own changes, and keep abreast of staffing needs.”

Scheduling practice must be automated

The top 3 labour concerns of QSRs and how each can be effectively addressed

abour is a crucial but also consuming area for QSRs. One only needs to look at the latest Oracle survey which reveals that most QSR operators place a high priority on hiring the right candidate, equipping new hires with proper skills, and ensuring staff do not quit. Training, recruitment, and retention were cited as the most pressing labour concerns for 70%, 68% and 66% of QSRs respectively, according to the survey of more than 200 independent operators and chains. “Training, recruitment and retention – enterprise and independent operators wholeheartedly agree that these are their top priorities when it comes to labour, ahead of other concerns such as productivity and government regulations,” says Christopher Adams, vice president sales – food & beverage APAC at Oracle Hospitality. First-rate staff QSR operators spend a lot of resources on labour concerns to meet customers’ heightened service standards. The modern diner requires more care and assistance than ever before, and demands meticulous attention to their needs. “In an era of individualisation, when customers covet personalised attention and service, it is critical for restaurants to hire first-rate staff and train them to meet, if not surpass,

QSR MEDIA | annual 2017

marketplace expectations,” says Adams. While tackling labour concerns is indeed critical to attract customers and keep them loyal, QSRs must also keep labour costs in check. Some operators are turning to new systems, including cloud platforms, to lower the resources spent to accomplish labour tasks. “To carve out appropriate time to address priorities, management needs to simplify and efficiently handle ‘processing tasks,’ including new employee onboarding and training delivery,” says Adams. Cloud platforms are particularly effective in providing operators with stronger cost control mechanisms. Oracle points out how its Hospitality Simphony Cloud platform enables operators to centrally onboard staff, which can become a costly activity when done in a dispersed manner. It can also empower staff through smoother scheduling processes. The cloud platform becomes even more beneficial for QSRs when it is used to address not only labour concerns, but also POS, kitchen management, and loss prevention. Owners and managers can make better decisions through the extensive reporting features in the cloud platform, and make necessary changes to their training, recruitment, and retention initiatives based on gathered insights.

QSR MEDIA X oracle

6 ways to attract and keep customers committed to your loyalty program

Giving clients a sleek loyalty card does not guarantee they will keep coming back, and QSR operators must keep ahead of customers’ curiosity to try out other options.

he adage “build it and they will come” might apply to many things, but rarely to loyalty programs. As the quick service and fast casual restaurant landscape becomes ever more competitive, a business needs to do much more than establish its operational model to attract loyal patrons. According to the findings of the latest Oracle survey, QSR operators should follow six specific strategies to create loyalty programs that will attract customers and keep them engaged for years to come. 1. Encourage consumers to visit more frequently QSR brands that want their loyalty programs to succeed must come up with creative ways to drive more store visits. The Oracle survey found that 57% of Australian consumers do not visit the same places enough to justify joining a loyalty program. Creating promotions and offers that compel consumers to visit more frequently will increase the appeal of a QSR loyalty program. Another insight for operators: casual diners who visit once a month are less likely to join a loyalty program than those that visit once a week or once a day, so focus your loyalty program push towards the latter groups. Figure out what would appeal to your dayto-day visitors and cater to their needs. 2. Reduce personal information required during sign-up Asking for too much information during the sign-up process will quickly turn customers off. The survey reveals 36% of Australians believe too much personal information is required when they register for a loyalty program, which discourages them from signing up. “It’s important to only ask for the information that you need,” says Christopher Adams, vice president sales – food & beverage APAC at Oracle Hospitality. 3. Make the sign-up process faster and simpler You may have reduced the amount of personal information you ask for during the sign-up process, but if it takes ages to

complete or is confusing for the average consumer, then your loyalty program will struggle to find members. Around 28% of Australians say they are put off from joining loyalty programs because sign-ups are time consuming or difficult to understand. “Keep it simple,” says Adams, advising QSR operators to avoid registration processes that are too long-winded or complex. 4. Make rewards relevant and redeemable for a longer time At the heart of each loyalty program are its rewards – customers will not join loyalty programs with unappealing rewards, or those with rewards that expire fast. Nearly 30% of Australians say they would not join a loyalty program if the rewards were not attractive or relevant to them, so QSR brands should re-think their approach. “It’s important to strike a balance between value to the customer and business profitability,” says Adams. 47% say that rewards expiring too quickly makes them leave a loyalty program. “If a guest visits a pizza restaurant every Friday night and is offered a reward to stop by on a weekday lunchtime for a free meal – but the reward expires next week, that’s likely to frustrate the guest,” Adams explains. 5. Lower the earning requirements for rewards If members are leaving a loyalty program

in droves, then QSR operators must check if the rewards are too hard to get. 44% of Australians cited difficulty in earning rewards as a reason for leaving a. “If you need to buy 20 different flavours of coffee to get a free one, that might not be deemed as worthwhile to the guest,” says Adams. 6. Make claiming rewards a pleasant experience Imagine a customer has jumped through all the hoops to earn a loyalty program reward, but then you make it hard for them to claim their reward. How do you think that customer would feel? 41% of Australians will not put up with that scenario, saying that rewards being too difficult to claim would encourage them to quit a loyalty program. Some examples of frustrating claiming policies include asking customers to redeem rewards at certain times of the day, or requiring many prerequisites to be satisfied to redeem rewards. This has led providers like Oracle to create cloud-based platforms that allow guests to redeem rewards at the point of sale to keep them loyal to your brand. “The top three reasons for leaving a loyalty program are all related to the rewards that are offered,” says Adams. “If customers have doubts about the accessibility and quality of a restaurant operator’s loyalty rewards, they will potentially stop using the program.”

Keep loyalty program sign-ups quick and easy

QSR MEDIA | annual 2017

QSR MEDIA X oracle

Restaurant 2025 report reveals seismic shift in adoption of digital technologies

If you think robots will soon be welcoming you when you check in to your hotel instead of the usual hospitality staff, think again! Guests still prefer interacting with humans to lifeless machines.

ast and accurate drone food deliveries, 3D printing of unappetising food into nutritious meals, and biometric diner recognition. These are some of the new technologies under development as the restaurant sector rapidly prepares to satisfy the seismic shift in consumer expectations for a great customer experience. Thatâ&#x20AC;&#x2122;s according to Restaurant 2025, a global research study conducted by Oracle, which has identified key consumer attitudes to emerging technologies, including artificial intelligence, drones, 3D printing, biometrics, voice activated responses and virtual reality, all of which are destined to reshape the dining experience. The Oracle Restaurant 2025 report surveyed 250 restaurant operators and 702 consumers in February 2017 about their reactions to technologyâ&#x20AC;&#x2122;s role in the guest experience over the next eight years. Insights from the report highlight that consumers are most willing to engage with brands with new technology if they feel that they are in control and enjoy a

Guests prefer being recognised to having loyalty cards

QSR MEDIA | annual 2017

personal experience. Indeed, as disruptive technologies continue to make an impact, anticipating consumer trends and implementing innovations that enhance guest experiences will reshape business and be vital to ensuring success. Recognition and personalisation The report reveals that recognition and personalisation will be a driver for future technologies. It also says that 33 per cent of restaurant operators believe that guest recognition via facial biometrics will be in use within the next five years. 31 per cent of restaurant guests will be more likely to visit an establishment with greater frequency if they are recognised by a server or associate without having to give their name or show a loyalty card. 49 per cent of restaurant guests agree that this recognition would improve their experience. 28 per cent of restaurant customers would visit more often, and 45 percent said it would improve their experience if service was faster because they were recognised. However, 42 per cent of restaurant guests find suggestions based on health invasive and 68 percent find suggestions based on digital footprint invasive. 72 per cent of hotel operators agree that AI-based systems that leverage guest preferences and buying history to make targeted dining recommendations will be mainstream by 2025. 36 per cent of restaurant guests say ordering through a virtual assistant would

3D printing of plates will be mainstream by 2025

improve experience, and 17 per cent would visit more often. 38 per cent of consumers said being able to adjust lighting/music in a restaurant by voice would improve their experience, and 22 per cent would visit more often. Operators are keen on gathering customer feedback by voice with 61 per cent of restaurant operators saying this will be in use in the next five years. Robots as hotel staff? 50 per cent of restaurant guests said being served by a robot would not improve the guest experience, and 40 percent would visit less. 64 percent of restaurant operators say that the use of robots for cleaning is appealing. On wearable technology, 51 per cent of restaurants say staff activity monitoring via wearable devices will be in use in the next five years. 59 per cent of restaurants say that staff checking into work and onto workstations via wearable devices will be in use in the next five years. 66 per cent of restaurant operators said guests paying by wearables would be mainstream or in mass adoption by 2025, while other uses for wearables would include marketing to guests outside the restaurant, guest recognition, and tailoring menus to guests using their wearables. 44 per cent of restaurant operators said 3D printing of cutlery/plates would be mainstream or in mass adoption by 2025. 3D printers could also create nutritious meals from unappetising food.

QSR MEDIA X oracle

Oracle Hospitality identifies what drives consumer loyalty

Oracle have announced the findings of two research initiatives to identify loyalty drivers and the impact of technology.

Consumers want to join loyalty programs

n the age of the global digital marketplace, consumers have more freedom to choose than ever before. Companies all over the world are vying for their attention, and to simply stand out amongst the competition is an accomplishment for any business. The importance of attracting loyal, repeat customers, is therefore crucial to success. To that end, Oracle Hospitality have announced the findings of two research initiatives aimed at identifying what the drivers for consumer loyalty are in the hospitality industry, and the impact of technology in this space. Insights from the study highlight the global demand for loyalty programs in the hospitality industry and the critical role of technology in creating memorable guest experiences. Loyalty programs are a critical driver of repeat business for both the food and beverage and hotel industries

with their ability to identify consumer habits, demographics, and personalisation opportunities.

Identifying consumer drivers for loyalty With these insights the hospitality industry can more effectively create frictionless experiences that encourage repeat engagement. To better understand what makes loyalty programs most effective, Oracle Hospitality recently conducted a survey of 6,500 global food and beverage consumers and 8,000 hotel travellers from the US, Brazil, Mexico, Australia, UK, Germany, France, and Japan.Consumers around the world want to join loyalty programs, according to the research. In the US, 65% of consumers are already members of one or more food and beverage programs. Even in Japan, where the lowest percentage of consumers were already members of a program according to survey, nearly one third belonged to a loyalty program. In terms of preferred loyalty program methods, plastic loyalty cards remain the preferred loyalty tool with mobile above the participation rate in Japan, where applications gaining popularity. At 62% only about one third of the population will overall, plastic swipe cards were the most subscribe to a food service loyalty program. preferred method across all generations. Only 7% of consumers in the country said they 56% of millennials wanted to use apps for will never join one. loyalty programs, and 50% of Gen Xers also QSR brands that are considering a loyalty agreed that apps their preferred method. program may also fear being late to the Perceived personal savings through loyalty program race. But 15% of respondents promotional offers and exclusive deals also in Australia admitted they were members drive loyalty among consumers. Money off of multiple loyalty programs, revealing that every purchase (71%) and free products launching a new loyalty program can still (63%) were the top two most attractive capture a lot of consumers. rewards to consumers. “Loyalty programs But not just any loyalty program will do, provide restaurant operators with the warns Adams. The best loyalty programs must opportunity to reward guests for repeat deliver value to the guest, preferably giving a business, and to guide the strategy for discount on every purchase and granting free future programs ensuring their relevancy,” products after a certain number of purchases. says Mike Webster, senior vice president When asked about the rewards that were the and general manager, Oracle Hospitality most attractive to them, 72% of Australian and Oracle Retail. “Oracle Hospitality has consumers chose a discount on every a differentiated offering that leverages purchase. The next most attractive loyalty best-in-class, cloud POS with an integrated reward is receiving free products (68%), such gift and loyalty solution and cloud analytics as getting that 10th coffee at a favourite cafe suite that minimises the creation of for free. Another reward that ranks relatively disparate data silos which can create false high among Australians is preferential perspectives of guest engagement.” treatment (44%).

Loyalty programs are essential

he customers are pouring in, and you might think: I really don’t need a loyalty program. But a new Oracle study insists that loyalty programs offer a big opportunity for restaurant operators. “Winning repeat business remains an important goal for any restaurant loyalty program, but the true value lies in using it to gain an understanding of a restaurant operator’s customers, and then leveraging that insight to create revenue opportunities and deliver the frictionless, personalised service that guests increasingly want,” says Christopher Adams, vice president sales – food & beverage, APAC at Oracle Hospitality. “Without a loyalty program capable of delivering insights, operators risk falling behind the curve,” he adds. Operators may be hesitant to put in the effort fearing failure, but many consumers show a willingness to join food service loyalty programs, when available. In Australia, 52% of consumers in the Oracle study admitted they were members of at least one restaurant or other food and beverage loyalty program. While the statistic is below the American rate of 65%, it is

QSR MEDIA | annual 2017

FIRST 1,000,000 square metres a year.” In addition to embracing bamboo packaging, Soul Origin also has other policies in place that aim to lower the company’s environmental impact – from using PET lids made by a company called enviroware to recycled serviettes.

Coping with the Real Estate Crunch

When Chatime looks for suitable kiosks and store sites these days, dealing with frustration has become part of the process. The QSR operator shares that the real estate hunt has become tougher overall – top quality sites are quickly snapped up and this often leaves the brand with a woeful selection of low-quality or overpriced spaces. Carlos Antonius, general manager at Chatime, believes it can be tempting to settle for suboptimal sites. But he insists that patience is one of the key strategies that has helped them thrive despite the real estate crunch. “Good sites are difficult to come across. That’s why we take a patient approach, waiting for the right location,” he says. Know your specifications Chatime has very specific criteria for their store sites. Kiosks need to be 20 - 30sqm in size and located near entertainment and restaurant precincts. Meanwhile, larger stores need to be around 50 - 70sqm in size, located in areas of high foot traffic, near a restaurant or entertainment precinct and allowed to trade late at night. “We stick to our selected site criteria so that we don’t compromise on quality,” says Antonius. As well as being patient, Chatime focuses on strong partnerships with real estate stakeholders to get better industry information on the best sites available in, and coming to, the market. “By building good relationships with landlords and leasing agents, we can ensure that we are top-of-mind when new sites become available.” Finally, when a suitable site does come along, Antonius says Chatime undertakes careful financial modelling before committing to any site. This is to avoid the big mistake of building on a site that seemed to check all the boxes, but was, in fact, a poor choice when subjected to a more thorough feasibility check.

QSR MEDIA | annual 2017

Soul Origin’s environment ally-friendly operation

QSRs take a stand for environment protection

uick service restaurants are often viewed as enemies of the environment and animals. Fast food giants and multinational corporations are seen as profit-hungry machines, churning out processed food and plastic waste with little or no thought for the environment. But a new breed of brands that are more conscious of environmental protection and ethical food sourcing are starting to change this perception. One QSR brand, for example, is launching new bamboo packaging to replace the current plastic containers for their salads. A sustainable alternative Soul Origin chose to switch to bamboo because it is more sustainable and will generate less landfill waste than plastic. “Bamboo is sustainable due to the farming traditions as well as being the fastest growing wood plant, growing up to 24 inches in a day,” says Chris Mavris, general manager at Soul Origin. “Based on this small change we believe we can reduce landfill by over

Restaurant guests care about how their food is sourced and they shouldn’t have to shoulder the burden of finding out its ethical origins alone.

Raising the bar Similarly, Mexican brand Guzman y Gomez has been one of the restaurants championing environmental responsibility and ethical food sourcing. All its taquerias use biodegradable cutlery and containers made from recycled materials, according to CEO Mark Hawthorne. Beyond providing a feelgood benefit for the brand, adopting eco-friendly policies can lower costs and build stronger customer loyalty. Hawthorne argues that ethical food sourcing can also be viewed as a smart business strategy. He says more customers now support the ethical treatment of the animals from which their food is made. This has led the company to become the first fast food brand to move to 100% unprocessed Australian free range chicken and to only serve sow stall free pork – a trend that Guzman y Gomez hopes will catch on across the industry. “Restaurant guests care about how their food is sourced and they shouldn’t have to shoulder the burden of finding out its ethical origins alone. The fast food industry has a big part to play in driving change,” says Hawthorne. “Being responsible in the food we serve is incredibly important to us. It’s the right thing to do for our guests, suppliers, animals and the environment,” he adds.

Ethically sourced food from GYG

FIRST DRU is a four-wheeled vehicle with compartments built to keep the customer’s order hot or cold while travelling on the footpath at a safe speed from the store to the customer’s door.

Close-up of Domino’s Robotic Unit (DRU)

Meet DRU, Domino’s pizza robot

n an effort move towards its goal of autonomous food delivery, Domino’s has unveiled what it calls the world’s first autonomous delivery vehicle named DRU (Domino’s Robotic Unit). The prototype has been purpose-built with a sleek, refined forms, combined with a friendly persona and lighting to help customers identify and interact with it. DRU is a four-wheeled vehicle with compartments built to keep the customer’s order hot or cold while travelling on the footpath at a safe speed from the store to the customer’s door. DRU, the company notes, will not be taking to the streets in the immediate future. Fostering disruptive thinking According to the company, DRU is currently able to navigate from a starting point to his destination, selecting the best path of travel. His on-board sensors enable him to perceive obstacles along the way and avoid them if necessary. Domino’s Group CEO and managing director, Don Meij, says that autonomous vehicles are set to open up new opportunities and create an impetus for innovation for Domino’s in Australia and globally. “This highlights what can happen when disruptive thinking is fostered

– it turns into a commercially viable and revolutionary product. It allows Domino’s to explore new concepts and push the boundaries of what is possible for our customers. The DRU prototype is only the first step in our research and development as we continue to develop a range of innovations set to revolutionise the entire pizza ordering experience.” Domino’s innovation lab The company reveals that the idea for DRU came from within their internal innovation sessions and has been developed within Domino’s own DLAB, a purpose built lab aimed at helping budding entrepreneurs commercialise their ideas. DRU is powered by technology from Australian start-up company, Marathon Robotics. “With a dedicated innovation lab this project has been accelerated much faster than normal projects, without losing any of the quality control,” says Meij. “To launch DRU from concept through to development of a prototype highlights the extraordinary talent and resources available on our doorstep – both with excellent external talent such as Marathon and the knowledge and experience of our internal team at Domino’s,” he adds. “We are also working with

government agencies on the project to ensure all legal requirements are met. The agencies have been very supportive in the process to date and we’re all excited about what this technology can lead to.” Domino’s has been working with the Queensland Department of Transport and Main Roads, along with other global partners, to ensure the delivery droid concept meets relevant legislative requirements as it is trialled and tested. The company has confirmed that DRU has been involved in a number of customer deliveries in restricted streets identified by the Department under special permit and is operated in semi-autonomous mode to ensure he complies with current regulation. According to the company, the trials are a big step forward in commercialising fully autonomous delivery vehicles. The future of delivery “With autonomous vehicles opening up possibilities for saving lives, saving time and moving goods more efficiently, we look forward to continuing our work in this field and leading the commercial trials so that our customers can reap the benefits,” Meij says. “DRU is cheeky and endearing and we are confident that one day he will become an integral part of the Domino’s family. He’s a road to the future and one that we are very excited about exploring further.” As DRU spearheads Domino’s efforts towards autonomous delivery, land-based robotic units and even flying drones may soon become the future of delivery – not only in Australia, but around the world.

DRU making a delivery

QSR MEDIA | annual 2017

FIRST Australian Café Culture Evolves

Café culture is booming as consumers become increasingly sophisticated in their coffee preferences, resulting in a positive impact on value sales of hot drinks. According to research by Euromonitor International, consumers’ appreciation of unique blends and higher-quality coffee has intensified, resulting in greater demand for premium-priced products. Independent cafés have been responding to this trend faster than chained cafés, by offering exclusive blends from single origins, microroasters and speciality coffees. Higher demand for these unique blends has resulted in the emergence of boutique coffee roasters across the country, with most of them focused on sourcing their beans directly from the country of origin, attempting to skip market intermediaries. Furthermore, higher demand for these specialised blends has driven the emergence of boutique coffee roasters across the country. Outlook The popularity of café culture is anticipated to continue with consumers seeking unique blends from smaller roasters that target specific niches. As a result, these roasters are able to charge premium prices through creating a sense of exclusivity and quality. Additionally, baristas are projected to become more knowledgeable about the origin and story of the coffees they sell. This in turn will educate consumers hoping to discover speciality coffees that are not available within mass markets. As the number of smaller cafés grows, chains such as Starbucks and Gloria Jean’s will have to attempt to entice customers through their doors by either incorporating smaller roast offerings that are distinguishable from mass products, or by developing new product innovations that have a novelty factor. Republished with the permission of Euromonitor International. For more information, visit http://blog.euromonitor.com/ category/consumer-foodservice

QSR MEDIA | annual 2017

Why are major fast food chains leaving CBDs?

rands like McDonald’s and KFC are leading an exodus of fast food from business districts. Colliers Radar by Daniel Lees, director of research at Colliers International, has found that rising rents, landlord preferences and nimble independent operators are the driving forces behind the exodus of QSRs from Australia’s central business district (CBD) locations. “We’ve seen this trend emerge in the past months and the reality is that as rents increase in our CBDs, traditional fast food outlets are shifting their market share to metropolitan and regional areas where their profit margin is higher,” says Julian Demetrovics, director of retail tenant advisory at Colliers International. “They’ve got the most recognisable logos in the world and the opportunity cost of capital is outweighing their desire for brand presence in the CBD.” The rise of independent restaurants While it’s widely recognised that consumers are making the switch to healthy dining alternatives, soaring CBD rents and the emergence of high end, independent restaurateurs are having a more measurable impact on this trend. Retail landlords are

Re-evaluating network expansion strategies

Traditional fast food outlets are shifting their market share to metropolitan and regional areas where their profit margin is higher.

increasingly replacing traditional food courts with contemporary dining precincts, targeting a new breed of tenant to deliver unique food offerings in their centre. These changes have seen traditional fast food retailers such as McDonalds, Hungry Jacks and KFC re-evaluate their network expansion strategy within the CBD, and focus their efforts on enhancing their value proposition in metro areas by capitalising on convenient formats such as drive through. “Some players are bucking the trend though. Guzman y Gomez, Oporto and Domino’s Pizza are actually increasing their footprint in our CBDs, sacrificing seating and reducing store format to better suit CBD locations,” said Michael Bate, head of retail at Colliers International. Colliers Radar anticipates that the issues faced by some traditional QSRs in CBD locations may also flow through to select metro markets with falling office vacancy levels and rising rents, such as North Sydney and Parramatta.

Drones could make foodservice delivery cheaper Autonomous delivery vehicles (robots) have taken to the streets and skies in recent trials as major delivery influencers attempt to push the boundaries of what technology can do to improve the delivery experience, and challenge the established foodservice delivery order. Though still in test-mode, simply put, drones could deliver a meal from the point of preparation straight to the consumer’s door without human intervention. Drones leverage a variety of advanced technologies, such as GPS, computer imagery and collision avoidance technology, to navigate even dense urban environments. In a perfect delivery world in which drone technology was feasible, and the right legislation was in place, drones could shorten delivery times, expand coverage zones and offset high-volume orders during peak hours. Republished with the permission of Euromonitor International. For more information, visit http://blog.euromonitor.com/ category/consumer-foodservice

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FIRST

QSRs reveal how they balance innovation and tradition

he pressure is on for Australian QSRs to roll out new products. They are expected to change their business models to suit the changing preferences of consumers, but operators insist that their survival also hinges on sticking to their unique brand story. This delicate balancing act between pursuing innovation and honouring tradition is deeply felt at Mexican chain Zambrero. Having made a name with themselves for their healthy and delicious dishes, Zambrero strives to push out new products that keep interest in the brand fresh, while maintaining the food quality that fans have come to expect. Stick to your roots Karim Messih, CEO at Zambrero, says there is never a trade-off between the brand story and evolving to meet market demands. “To be market leaders and achieve growth you cannot compromise on quality. Customers look to Zambrero for new and exciting products that are unique in the QSR space that focus on traditional Mexican ingredients,” he adds. Messih stresses that in coming up with new products, Zambrero always keeps in mind its tradition that started in Canberra

in 2005. “Zambrero’s roots are firmly planted so we will always be about fresh healthy Mexican food and our humanitarian Plate 4 Plate initiative that looks to help end world hunger,” says Messih. “With these foundations, we have plenty of scope to grow and evolve what we can offer our customers.” Incremental changes At The Coffee Club, introducing new offerings is vital to pulling ahead of the competition. But changes to the menu are rolled out incrementally and with a eye towards longevity, rather than just cashing in on the latest food trends. “We introduce changes incrementally, strategically, and in a way that supports our short and long-term sales goals. In short, we introduce twists to classics and familiar favourites,” says The Coffee Club team. “Introducing new offerings helps us ride the wave of food trends without necessarily being a slave to them. For example, we won’t serve kimchi or roulette, which are popular dishes right now but may be out of favour in the years to come.” One of the more creative aspects of The Coffee Club’s menu changes is the rollout of a seasonal menu or a national promotions menu, served alongside the core menu.

The Coffee Club introduces changes gradually

These seasonal promotions occur a few times annually, and run for one month to six or eight weeks at a time. The rise of new technology has enabled other QSR brands to also adapt new marketing and business models. Soul Origin, for example, has embraced modern technology through a year-long partnership with the online ordering app Hey You. “As part of this online ordering expansion we have just launched our online catering order site and are looking at an online loyalty program,” says Chris Mavris, general manager at Soul Origin. “New market demands allow us to focus on online ordering but still remain true to our mission, making all products fresh in-store daily. We are embracing innovation to better grow our customer base without compromising on our beliefs.” But he notes that while Soul Origin has fast-tracked innovations in online ordering, these remain firmly grounded in its core brand story. “Soul Origin believes in the tradition of eating mindfully – filling up on fresh, nutritious, simple food.”

new entrant watch

Check out how Five Guys aims to go global with its five-year plan The burger chain, which has gained a cult following in the United States, is looking to expand into Australia, amongst other regions, as part of a massive effort to expand its global network. Five Guys announced that it is accelerating its international franchise expansion with plans to nearly quadruple its global footprint from eight countries to 28 over the next five years. The company’s immediate focus is on continued expansion throughout Europe and the Middle East, and entering the markets of Australia, Japan and South Korea. “We always knew international was going to be a strong opportunity but the results have outpaced even our most optimistic projections,” says Five Guys chief operating officer Sam Chamberlain. The brand opened its first restaurant outside North America in 2013 in London. In three years, Five Guys has grown to more than 50 locations in the UK, and inrecent years has successfully entered five new markets: Ireland, United Arab Emirates, Saudi Arabia, Kuwait, and France. Average unit volumes in international markets are running as much as 5-7 times that of domestic locations, according to the company. “The demand from international consumers has been overwhelming and we are applying resources to meet this demand,” Chamberlain says. Five Guys’ UK chief executive John Eckbert has reportedly said that the company is in talks with its US parent to start the burger chain’s

QSR MEDIA | annual 2017

Five Guys restaurant

expansion in Europe. In addition to its growth plans for the five countries the brand is already operating in; namely UK, France, Germany, Spain and Portugal, Five Guys saw potential for its success in other European nations. Founded by Jerry and Janie Murrell, Five Guys opened its first location in Arlington, Virginia in 1986. It later opened multiple locations in the Washington DC area, and eventually began offering franchise opportunities in 2003. In just under 18 months, Five Guys Enterprises sold options for more than 300 units. Now, more than 30 years after Five Guys first opened, there are almost 1,500 locations in eight countries worldwide, while another 1,500 units are in development.

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FIRST Mobile Ordering for Drive-Thrus

Much of the draw of the drivethrough is rooted in speed and convenience; however, recent advancements in technology have created the potential for an even faster, more seamless drive-through transaction. Euromonitor International has found that some new concepts, like California’s Starbird Chicken fast casual chain, have taken this idea to its logical conclusion, offering a new blueprint for the modern drive-through that does away with traditional windows and drive-through lanes entirely, relying instead on mobile technology and a retail-esque click and collect model. Starbird’s curbside delivery is speeding up transactions by enabling the bulk of the transaction to happen virtually, and likely before the consumer even reaches the outlet. Benefits of mobile ordering Customers ordering via Starbird’s mobile app can peruse the menu at their leisure, viewing items without affecting other customers who are already, virtually, ‘in line’. In addition, moving the first three steps of the drive-through process to the virtual realm alleviates the space needs of a traditional drive-through. While the mobile drive-through still requires space for cars to park while awaiting curbside delivery, the requirement is significantly smaller. In urban locations, the mobile click-and-collect system could also be applied for customers on foot or on bicycles. Finally, like online ordering, the mobile drive-through allows operators to capture valuable customer data regarding ordering patterns and frequency, opening up possibilities for loyalty programs, customer feedback, targeted marketing campaigns, and even geo-fencing possibilities. Convenience has become more attainable in every purchase. Republished with the permission of Euromonitor International. For more information, visit http://blog. euromonitor.com/category/consumerfoodservice

QSR MEDIA | annual 2017

In-N-Out Burger jumped on the pop-up store bandwagon

How the foodie culture drives innovation

ustralians’ expectations regarding the dining experience continues to evolve, with consumers becoming increasingly enthusiastic foodies and demanding new culinary experiences. As a response to this trend foodservice operators continue to innovate and experiment with formats, menus and concepts. Demand for novelty gastronomic experiences has supported the reemergence of pop-up restaurants. Although pop-up stores are not new to Australia, they are increasingly gaining relevance in the foodservice industry, with a number of operators opening temporarily, including US burger chain In-N-Out Burger and Copenhagen’s world-renowned Noma. Other industry players such as The Keystone Group and Merivale Group, owners of multiple restaurants, have also created spaces that allow them to have temporary restaurants across the country. More investments pouring in Euromonitor International expects to see additional investment in food menus and outlet formats as well as further experimentation in food concepts that can support the demand for unique and adventurous food experiences. Although most of the innovation takes place across independent operators, Euromonitor anticipates innovation will also be

Although most of the innovation takes place across independent operators, Euromonitor anticipates innovation will also be common in chained operators.

common in chained operators. With key players such as McDonald’s already proving it is possible to offer a distinctive eating experience despite having a highly standardised business model, more chained operators are expected to follow initiatives like “Create your Taste” and The Corner McCafé by McDonalds. With pop-up restaurants representing a great opportunity for operators to test products and business concepts while promoting their business, we can expect to see more restaurants opening temporarily in Australia. Furthermore, Euromonitor also anticipates new developments of spaces exclusively designed for the roll-out of pop-up restaurants by industry groups following the initiative of key industry players. Republished with the permission of Euromonitor International. For more information, you may visit http://blog.euromonitor.com/category/ consumer-foodservice

The foodie culture is evolving

Co-published corporate profile

QSRs will rely on technology to remain competitive

Faster, better, hassle-free Oracle Hospitality Simphony Cloud is a POS and back-office platform that enables a new approach to hospitality management.

very facet of the hospitality industry (and food and beverage is no exception) is facing everescalating demands from consumers who want faster, better, individualised and hassle-free service. Responding to the challenges of the era of individualisation will be the greatest factor shaping our industry – and lead to greater adoption of cloud-based technology. According to a recent Oracle study (The Era I Enterprise: Ready for Anything), which surveyed 300 C-level executives across a range of industries in North America, 84% said their organisation has witnessed a trend toward customers wanting a more individualised experience. But fewer than 20% gave their organisation an ‘A’ for its ability to offer such a degree of customer (or employee) service. They acknowledged weaknesses such as an inability to respond quickly to change or opportunity, or to offer individualised products and services. Most importantly, 81% of survey participants said they believe there is an important link between cloud-based IT solutions and their organisation’s ability to deliver individualised customer experiences. Furthermore, many IT experts say today’s on-premise operating model is unsustainable, considering the expense. Moving to the cloud, with its promise of reduced IT complexity and accelerated innovations, will be essential

to delivering exceptional service to consumers – and earning their loyalty. The role of technology – especially cloud-based solutions paired with mobility – is to accelerate innovation and speed of service to meet the demands of today’s consumers, especially millennials. With mobile devices becoming ubiquitous across all walks of life, the need and demand for mobile staff- and guestfacing solutions is exponentially increasing in our industry. Mobile POS units untether staff and free them from ordering stations, meaning they can cater to guests wherever they are and deliver individualised service – at the lightning speeds which they now expect. Technology presents opportunities to transform food and beverage operations in ways that were previously unimaginable. Oracle Hospitality Simphony Cloud is an enterprise hospitality management platform that provides point-of-sale (POS) and back-office functionality on fixed and mobile devices to support a range of food and beverage operations. It provides guest engagement capabilities, standardised reporting, and advanced central management controls to increase

operational efficiency. It can handle multi property POS configurations consisting of thousands of workstations, and is still flexible enough to scale down to single property operations. As a cloud solution, the platform enables a whole new approach to the guest experience, while reducing the cost and complexity of IT. Oracle Hospitality Simphony Cloud lowers the onsite technology burden and total cost of ownership by eliminating the need for servers in each location. At the same time, the related costs of onsite software maintenance and technical support are greatly reduced, enabling resources to be deployed to other strategic initiatives. In addition, Oracle Hospitality Simphony Cloud’s multi-layered resilience model ensures that operations continue even when the internet is unavailable, enabling business to carry on as normal. The cloud also enables greater centralisation, providing a consistent guest and brand experience across locations, simplified reporting, and efficiency of updates. Additionally, the cloud offers food and beverage operators increased speed and agility, reducing time to market for new menu items, promotions, and innovations in payment and service. The future of QSRs The path forward will rely on technologies that make restaurants smarter, accelerate service and, most importantly, personalise experiences for each and every consumer. In a recent global research study, Restaurant 2025, Oracle identified key consumer attitudes to emerging technologies, including artificial intelligence, drones, 3D printing, biometrics, voice activated responses and virtual reality. Insights from the report highlight that consumers are most willing to engage with brands with new technology if they feel that they are in control and enjoy a personal experience. As disruptive technologies continue to make an impact, anticipating consumer trends and implementing new innovations will reshape business and be vital to ensuring long-term success.

“The need and demand for mobile staff- and guest-facing solutions is exponentially increasing in our industry.” QSR MEDIA | annual 2017

NUMBERS by the NPD Group NUMBERS

Foodservice Australia

Foodservice industry customers who listed ‘healthy choices’ as their reason for visiting an outlet

Sources: NPD Group Inc./CREST, Incidence YE Sep 2016

Demographics motivated by healthy choices

Sources: NPD Group Inc./CREST, Incidence YE Sep 2016

Categories indexed as a healthy choice

Sources: NPD Group Inc./CREST, Incidence YE Sep 2016

Most popular items at occasions motivated by healthy choices

Source: NPD Group Inc.

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Sources: NPD Group Inc./CREST, Incidence YE Sep 2016

NUMBERS by the NPD Group Generation Z in Foodservice

NUMBERS

Foodservice Australia

Sources: Abs & NPD Group/CREST, AU, Total Foodservice End Dec 2016

Generation Z foodservice visits in previous years

Sources: Abs & NPD Group/CREST, AU, Total Foodservice End Dec 2016

Foodservice visits sourced to Millennials (18 to 34)

Sources: Abs & NPD Group/CREST, AU, Total Foodservice End Dec 2016

Incremental traffic visits share contribution 2010 vs 2016

Sources: Abs & NPD Group/CREST, AU, Total Foodservice End Dec 2016

Source: NPD Group Inc.

QSR MEDIA | annual 2017

QSR MEDIA X espressology

Coffee and millennials

Coffee service has changed enormously over the past eight years.

he two biggest catalysts driving the change are firstly, the World Barista Championship and secondly, social media. The World Barista Championships (WBC) began in the year 2000 so coffee consuming millennials would have no recollection of a pre–WBC coffee approach. The WBC works for the coffee industry globally, to some extent, like F1 does for the automotive industry. It drives innovation and branding. Regarding innovation, most of the machine equipment improvements are driven by machine companies competing for the rights to win the WBC machine sponsorship deal. For instance, prospective machines are subjected to a series of trials with a panel of ex-WBC barista competitors. The machines must perform to WBC specifications for brewing temperature stability, pump pressure accuracy and barista ergonomic functionality, among many other factors. This has driven manufacturer exploration of technical aspects like pressure profiling,

temperature profiling, and all kinds of barista minutiae to satisfy the demands of this new breed of curious millennial baristas. The latest San Remo Opera, for example, was actually engineered and designed with input from Saša Šestić, Australia’s 2015 World Barista Champion. It is much more complex to operate than your average old-school heat-exchange machine which was the industry standard just over ten years ago. These kind of developments may seem over the horizon for most QSR operators, but with the advent of social media and café review websites like Beanhunter, these trends become mainstream very quickly. It is dangerous for any QSR business to stick their head in the sand and say consumers don’t care about this kind of detail. Social media not only fuels the proliferation of new machine innovations–it also enables new coffee blending and roast styles to gain sway. The average roast profile that was acceptable ten years ago Driving innovation and branding will struggle to fly once it receives a series of bad reviews on social media. This is the reason why many Italian coffee roasters, who dominated the Australian market a decade and half ago, are either losing cover all the current crop coffees that may be market share or are having to roast their ll QSR businesses go to great lengths coffee locally. Again millennial baristas, suitable for the final taste objectives. to create a strong brand image that who will not accept coffee that is several reflects their unique values and months old and that has been shipped half Step 4. Create The Coffee Shortlist products. Some QSR chains don’t have way around the world, are determining confidence in their own brand when it comes Narrow down the number of coffees to be these trends and reinforcing their roasted for espresso (anywhere from 6 to to coffee. Espressology has a strong track implementation via social media. 8 separate coffees); roast these samples at record of helping QSR businesses put their different settings for comparative espresso own hard-won branding on their coffee. tasting. Select the final coffees and tentative Tough decision making The challenge for QSR companies is to stay roast style for the blend. Step 1. Blend Development Strategy up to date with these trends as independent Introduce the Espressology Blend operators are rapidly adopting lowStep 5. Premium Blend – Final Selection Development strategy: we don’t have a Re-roast the final coffees to differing Agtron slung, sexy, and very expensive espresso competing brand for cafés. We purely help (roast development) levels. Re-test coffees as machines, while still making commercially companies build their own in-house blends. both espresso and milk-based coffees in the sound investment decisions. There are huge implications for decision making when one same way as the majority of customers will Step 2. Coffee Taste Profile Objectives espresso machine costs $7,000 versus taste the blend. Identify your current situation and your final another that costs $25,000 to produce the taste profile objectives. For instance: a blend same number of cups of coffee. Particularly Step 6. Own Brand Coffee Implementation that is overall acidic and fruity will require if you are an operator who needs to keep different roast profiles and coffee origins to a It is ideal if stakeholders are involved in this development process so you can control how store establishment costs down. blend that is chocolatey and low acid. Keeping up with competitors and to showcase the wonderful new flavours of continuously growing coffee sales across your very own new coffee. This may require Step 3. Cupping and Tasting a chain of stores requires close attention Initial traditional cupping using international new training programs and in-house coffee Specialty Coffee Association Specifications. expertise and in-house coffee champions–all to detail from QSR operators, in much the same way that millennials are paying close of which we can help you with. This can take several tasting sessions to attention to their coffee.

6 steps to design a new coffee

QSR MEDIA | annual 2017

QSR MEDIA X espressology

How to amass loyal clients and brand equity

ive years ago, a recognised franchisor was supplying coffee from one of Australia’s largest coffee roasters and from one of Italy’s best-known coffee roasters. The set-up allowed the franchisor to earn royalty income, but Rob Murrell, sales director at Espressology, says what really took the franchisor’s business to the next level was when it decided to make a private in-house branded blend that more than tripled their like-store coffee sales. “By developing their own private inhouse branded blend, within five years the franchisor had increased like-store coffee sales by 340% and had a whole lot of happier franchisees who were also a whole

lot more profitable,” says Murrell. Inspired by the success of that franchisor, Espressology now helps many other coffee businesses adopt a model to achieve similar high-growth outcomes. The Sydney-based coffee roasting company works with coffee professionals to perfect their own blends and set up their own private label coffee brand. More than making a coffee blend for businesses, Espressology provides a unique proactive, preventative machine service system that reduces the downtime of machines, according to Murrell. The new system means franchisee machines break down less frequently and allows Espressology-assisted brands to attract

Coffee and the QSR market

What were the biggest changes in the coffee market Down Under?

ver the last twenty years the coffee market in Australia has changed dramatically. One of the biggest changes has been the erosion of mainstream overt coffee branding and the rise of understated independent (‘indie’) proprietary branding. One classic example of this was the initial attempt by global coffee behemoth Starbucks to crack the Australian market. It was not successful. They are trying again with new business partners and may well succeed with the right approach. But what is that approach? And what are the coffee lessons of their previous experience that should be learnt by all QSR players? Another change has been the decline of major national and international coffee brands that in the past had considerable success in the café market and were often default coffee brands for QSR businesses. But their ascendancy has gradually receded in favour of either low-key or proprietary branding. A new trend Before the year 2000 it was rare for a QSR chain to promote their own brand of coffee. It would have been perceived as perhaps second rate in comparison to the well-known national café brands. Now the reverse is almost the rule. Many QSR businesses are either investing directly in their own coffee operations or using custom roasting facilities like Espressology to build their own proprietary coffee cultures.

One of the mistakes made by Starbucks in their initial assault on the Australian QSR market was the assumption that the same appeal to specialty coffee that succeeded elsewhere in the world would automatically work here. In some ways they were ahead of the market and in other ways not quite in tune with the sophistication of the Australian coffee consumer. They were ahead of the market in that they offered a range of single origin coffees alongside their main espresso blend of coffee when they launched. There was not as much demand by Australian consumers for this kind of specialty coffee back then. But what Australian consumers did want and still do want, is a smooth coffee that combines well with milk to produce a rich, well-pronounced milky coffee flavour. It was

new customers every time competitor machines fail. “The first impression of a new customer – getting great coffee – means a much higher percentage of new customers becoming permanent ongoing customers,” says Murrell. Espressology also conducts an intensive barista training and support program prior to and after new store openings. This helps enhance an already positive first impression that customers have, by interacting with highly trained and helpful baristas. To keep product and service quality at a high level, Espressology conducts an exhaustive Five Star barista and coffee evaluation program on a regular basis with all franchisees. this key that enabled some local operators to leap ahead of their competitors, whilst Starbucks struggled. It is only recent that offering extra single origin coffees has become almost obligatory for any self-respecting café. This is now rapidly seeping into the QSR market. (By single origin coffee we mean not a brand, but the country or region of origin where the coffee was actually grown.) But there is a gap between ultra specialty coffee that is in the realm of elite dining versus middle of the market, affordable coffee that complements accessible, clean food for the QSR market. It still remains true that the overwhelming majority of Australian consumers favour a rich, consistently good milky coffee experience. Over complicating a coffee offer, with alternate, low profit-yielding brewing methods in an attempt to appear specialty, could see QSRs falling into the same trap as Starbucks did.

xxxxxx should not be complicated Coffee

QSR MEDIA | annual 2017

interview: hog’s australia others we’re hoping to work with in the future now that we have a mobile offering.

Hog’s Express serves customers from its mobile food truck

Hog’s Australia is rolling into the mobile food market Hog’s Express, the brand’s new ‘meals-on-wheels’ initiative, will take to the streets to offer quick and affordable food to busy Australians.

og’s Breath Australia announced its move into the mobile food industry with Hog’s Express, taking to the road with food trucks, and popping up in shopping and service centres around the country. CEO Ross Worth said the time was right to diversify the brand with a mobile offering as consumers are looking for quick, accessible and inexpensive options. Recent successful trials of Hog’s Express has given the rollout further momentum. “We’ve quietly trialled our food truck at several events in WA over the past few months, from local sporting fixtures to the Adele concert at Domain Stadium, where we served more than 500 people in under three hours, and it was clear to us that Australia wants the option to grab a Hog’s fix on the go,” Worth said. “Food trucks also give us an opportunity to have closer interaction with customers, and offer our franchisees the ability to really connect with their local community if they choose.” In addition to food trucks, Hog’s is also looking at options to have

QSR MEDIA | annual 2017

Evolution in the hospitality arena means that we have to be always willing to embrace new initiatives, and we have a great food offering that can be prepared in a quick service environment.

Hog’s Express in shopping and service centres. Worth said that Hog’s is also experimenting with its first drivethru restaurant that will allow busy customers to grab their orders from the takeaway menu on the run, and is also considering delivery options. QSR Media sat down with the people behind Hog’s Breath to talk about their foray into the mobile market, and where it will take the brand. QSR Media: Can you tell us more about the decision to go mobile? How did it come about? Evolution in the hospitality arena means that we have to be always willing to embrace new initiatives, and we have a great food offering that can be prepared in a quick service environment. We’re also heavily involved in sports marketing and sponsorships and now have the ability to take our Hog’spitality on the road to support our valued sponsors and customer base. Our sponsorship of the Supercars team, DJR Penske, and the Broncos cheerleaders are great examples of this, and there are many

QSR Media: Can you tell us more about Hog’s Express? What was the reaction? Hog’s Express is a smaller footprint offering which is both mobile and static, which allows us to be far more versatile and have an offering where the set-up cost requires less capital than a 300 seat full service restaurant. Plus, we can take our great product to a wider audience. The reaction has been fantastic, which is what gave us the impetus to roll it out wider beyond the initial trials. We served more than 500 people in under three hours at the Adele Concert at Domain Stadium, so there is definitely demand. QSR Media: What can you say about drive-thrus? This is a growing market for guest convenience and this allows our loyal customers another Hog’s proposition to call in for quality meals on the go. We’re looking at opening our first drive-thru at an old QSR facility in Maitland, so stay tuned for the launch. QSR Media: What can you say about the recent trends in delivery today? Due to busy lifestyles this area is becoming a huge part of society and growing in all areas, so we need to continue to evolve the Hog’s brand and remain current and relevant, to be in tune with today’s consumer demands. It’s an area that we’re exploring, and we’re in talks with a service provider in this area. QSR Media: What would you like to tell the market about the direction of Hog’s as a brand? We continually ensure that we’re listening to our guests’ wants and needs, and we’re proving that even though we are a very successful 28 year old Australian business, we will continue to develop new strategies and evolve our brand to suit today’s consumer, both now and well into the future.

Co-published corporate profile

Build your own unique brand of coffee Espressology will help you create your own private coffee blend that reflects your taste and brand.

ith custom coffee roasting, Espressology creates your perfect coffee roast profiles to best reflect your brand and reputation, in the same way that a bespoke tailor creates clothes to professionally reflect your taste and help present you to the world at your best. Espressology no ordinary contract coffee roaster. Whether it’s a custom blend or a single estate specialty origin coffee, Espressology coffee will consistently reflect great taste to the world. And you don’t have to invest millions of dollars to gain access to your very own roasting facility. Espressology ensures consistency of flavour and quality with pinpoint accuracy–helping you every step of the way in establishing your very own blend that exactly reflects your taste and brand. Espressology has invested in equipment that will enable your coffee business to grow as much as your vision desires. QSR Media got in touch with Espressology to discuss the company’s history and what it offers. Tell us about some of your big milestones. Espressology transitioned from managing Retail Food Group’s entire coffee business to establishing our own stand alone factory utilising a unique ‘Heat-print’ Probat 120kg coffee roaster. We are now roasting for some of Australia’s leading emerging specialty coffee brands. How does your product differ from others in the market? We provide specialty coffee expertise that is far in excess of the capability of small roasters, and yet we don’t have a brand to compete with our customers. We are dedicated to sharing our unique global expertise with our customers.

The influence of barista’s in coffee production is continually growing. Most successful coffee brands have their own baristas who have considerable expertise. Often though, these baristas will be recent entrants into the coffee industry who are eager to extend their coffee knowledge. Espressology enables baristas to grow their expertise.

“Helping you every step of the way in establishing your very own blend that exactly reflects your taste and brand.”

Can you tell us more about Espressology? What do you offer QSRs and how do QSRs benefit from your services? Espressology has had considerable experience with both the production and the retail side of the QSR industry which enables us to provide specialised QSR advice that few other coffee businesses can match. Anything else you have in store for QSRs? What should the industry be excited about? The new Uber milk machine combined with the new Forcetamp sets a whole new benchmark in consistency and minimises the cost of ongoing staff training. These technological developments at the specialty end of the coffee world are ideal for the QSR market. Any other comments? The ongoing dedication to improvement and change means that Espressology stays continually ahead of the curve with new coffee developments, which can then be passed onto the QSR customers to keep them up to date with a rapidly changing and ever-challenging coffee consumer.

Taste-testing coffee blends

What are your plans for the next two to five years? To be recognised as Australia’s best bespoke coffee roaster. We are not interested in being the biggest, while providing private label coffee to the highest global coffee standards. What are the latest trends that you see will impact your business?

The team behind Espressology

QSR MEDIA | annual 2017

interview: huxtaburger of our brand and culture. The Huxtaboys who started it all, Jeff, Dante and Daniel, have worked extremely hard to build this amazing brand and we’re determined to find people who truly support and align with this vision. Those who fit the burger lifestyle, believe in our social values, and are passionate about taste, are the people we want!

The team at Huxtaburger welcomes potential franchise partners

What’s behind Huxtaburger’s move to franchising? The ‘Huxtamovement’ is coming as Victoria’s popular burger chain starts building a nationwide network of restaurants.

he cult burger chain wants to become a ‘national brand like no other’. The Melbourne burger brand is taking its Americanstyle burgers to the people, giving fans the opportunity to own and run their very own store. Huxtaburger has stores in Hawthorn, Melbourne, Eastland, Prahran, and Collingwood. The plan is to bring the burger joint to a new set of neighbourhood hot spots across the city. DC Strategy, the franchise developer, has taken Huxtaburger under its wing to execute the transition. Huxtaburger general manager Matt Fickling says, “The casual dining space is booming and the demand for more premium options is stronger than ever. As a relevant and recognisable brand that’s backed by awesome food credentials, Huxtaburger offers a robust business model with a solid strategy for growth and national expansion over the next five years.” QSR Media got to talk with Fickling about the burger brand’s decision to open up for franchising, as well as where Huxtaburger plans to go in the future. 24

QSR MEDIA | annual 2017

The brand is everything at Huxtaburger and the challenge is to grow with an absolute appreciation for our origins.

QSR Media: What makes your brand concept unique and attractive to prospective franchise partners? Huxtaburger is Melbourne’s original cult burger brand and we aren’t afraid to say it. The brand is backed by awesome food credentials that have been honed, refined and crafted through decades of hard work and dedication. Huxtaburger is a concept that was born inside a hatted restaurant and, because of that, we confidently proclaim that, we own taste. With an untameably cheeky and a touch twisted personality, our Huxtomers embrace our uniqueness and live the ultimate burger lifestyle. QSR Media: What’s your plan to recruit good franchise partners? We have set our parameters very firmly when looking for awesome people to join the Huxtatribe. Partnering with Australia’s best franchise consultants, DC Strategy, we have created a clear policy for our recruitment and development program. That being said, our number one priority is to maintain the integrity

QSR Media: What would you like to tell potential franchise partners? The Huxtamovement is coming. There is a big opportunity here to join an innovative and agile brand. We embrace change and are passionately driven by ideas. With top food credentials, a proven track record and a motivated leadership team, we are well placed to impact the burger landscape in a major way. Successful organisations are made up of innovation and discipline and we are committed to both. QSR Media: What have you learned on this journey towards franchising? First and foremost, it has cemented the fact that we are not a burger business, we are a people business. As previously mentioned, our number one focus and commitment through this journey has been about maintaining our brand and culture. Although already well positioned, our biggest learning curve has been bringing it back to basics, to truly understand and define who we are and who we want to be when we grow up. QSR Media: What are some of your goals with this strategy? Our goal is to build a national brand like no other in Australia. Staying true to our food credentials, never compromising on taste, living and breathing a burger lifestyle, promoting our social values, and always being ready to serve. The brand is everything at Huxtaburger and the challenge is to grow with an absolute appreciation for our origins. Our brand and culture will never be compromised.

Co-published corporate profile

A passion for food, a passion for family Sandhurst’s recipes are based on family traditions, not made to formulas created to save money. innovative offerings that are suited to their market. What are some of the challenges you have overcome? Investing in good quality staff and focusing on supply chain improvements are some of the issues that we have overcome. We have strived to improve forecasting models and invest in ERP systems in order to ‘iron out’ supply problems. As we deal with seasonal crops, it is critical to work up to 18 months out from current demands. We all know that 90% of our problems are operational issues, so by investing in staff, systems and quality we can try to address some of these problems.

Recipes based on family tradition

andhurst Fine Foods is a familyowned Australian business that was established in 1988. Its heritage owes much to generations of ancestors in regional Italy where life revolved around working with seasons to grow, harvest and preserve food. Italian ingredients remain at the heart of the business, but today they have a wide range of products with an emphasis on quality and authenticity, to cater for both food service and retail markets. These products reflect Australian food trends and tastes with Sandhurst providing essential ingredients for global cuisines. QSR Media sat down with Sandhurst to discuss its plans for the future, among other things. Tell us about some of your milestones. The challenges and the milestones are always the same – you always need to revisit your offering, service levels become more critical, and consistency is the key. Foodservice distributors like to deal with us as a ‘small family business’ but we need to also understand their needs in terms of competitive pricing, consistent product and

How does your product differ from others in the market? We are a unique family business that has strong ties to Mediterranean Foods – ‘A Passion For Food, A Passion for Family’ is our mantra. We genuinely look at all products that we manufacture, and aim for consistency and a quality that is suited to the needs of modern foodsrevice operators. A lot of our recipes and formulations are based on family traditions and not made to ‘formulas’ that some food companies will create to save money. What are your plans for the next two to five years? We want to grow our foodservice business and be relevant to the modern operator – we aim to be the ‘first choice’ for all mediterranean foods and condiments. Sandhurst is a company founded on the passion of the family that is behind the brand – we will grow with the market as the market evolves. What are the latest trends that you see will impact your business? I see four major food trends emerging at present – some are already ‘mature’ and others have some growth: burgers and premium versions of traditional fast-foods – we are seeing some great burger products coming through and related products (slow

cooked meats, milkshakes etc). Sushi is continuing to grow as a preferred snack or lunch treat. Mexican continues to gain momentum as Aussies love the feel and vibe of Mexican foods. Finally, wellness, vegetarianism, health, provenance and environmental care – people will look at how products are made. Sugar, dairy, soft drinks, and red meat will all be impacted by people being informed of the way these products are made or their effect on our long-term health. What can you say about the growing use of exotic flavours and ingredients in the quick service restaurant industry? It’s great to see regional influences from all parts of the world to the extent that items that were once ‘niche’ are now mainstream – think chipotle, anchovy, capers, great Mexican flavours such as tomatillo and salsa – there is influence from all parts of the world now in Australia – not just Asia and the Mediterranean. What can you say about innovation in foodservice today? Innovation means delivering a product that is better packed, fresher or more portion control – we have many examples of this from ready-to-eat quinoa to fresh basil pesto to semi dried tomato strips – all designed to make FS operators’ lives easier! What food trend do you think we will see continue on five years down the line? Health and wellness will be a main concern – the ‘country trends’ will come and go but we will see even Italian food go through a change to make it more ‘authentic’ and less ‘commercial’ – just look at pizza and what has been done in Italy, where a QSR can serve a very traditional pizza (Eataly and Rosso Pomodoro for example). Anything else you have in store for QSRs? Plenty of inspirational menu ideas – plenty of portion control solutions – plenty of great time saving innovative foods from Peru, Italy, Spain, Greece, Turkey and Mexico!

“Sandhurst Fine Foods is a company founded on the passion of the family that is behind the brand.” QSR MEDIA | annual 2017

interview: The Coffee guy coffee for its customers. Within such a high demand market, with customers having plenty of choice and knowledge, the quality and convenience of coffee is critical. Each van is customised and fitted with the finest Italian espresso hardware finished in sleek stainless steel, to produce the best coffee that our customers know and love. The unique blend brewed fresh in The Coffee Guy vans has been chosen specifically for the mobile coffee market and runs a smooth, aromatic and rich in colour coffee to cater for the extensive hot and cold menu offering. A unique blend chosen specifically for the mobile coffee market

The Coffee Guy zones in on an untapped niche in coffee The Retail Food Group’s mobile coffee van franchise is bucking the trend of high-cost, high-stress coffee businesses.

he Coffee Guy operates on a primary franchise model of a mobile coffee van, delivering quality coffee daily to customers within a set territory. The Retail Food Group purchased The Coffee Guy in November of 2012 and are launching in various territories across Australia. QSR Media sat down with the people behind the mobile coffee franchise to ask them what makes the brand different for franchise owners, and what their plans are for the future. QSR Media: Can you tell us more about The Coffee Guy? The Coffee Guy is Australia’s newest and most exciting mobile coffee franchise. From its humble beginnings ten years ago in Auckland, New Zealand, The Coffee Guy has grown throughout Australia since successfully launching in the mobile coffee market on the east coast in May 2013, to now being a local icon in select territories throughout the country. After the launch of the first The Coffee Guy franchise on the west coast in Canning Vale, the brand 26

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The coffee market is an ever changing and evolving industry that relies on market trends and taste to be successful.

has further expansion plans across the country in a mix of metro and regional locations throughout Australia, offering a slate of opportunities for potential franchise partners. QSR Media: What differentiates your brand in the coffee market? The growth of coffee culture in Australia has been significant, making it a very robust industry with key players. The Coffee Guy’s biggest benefit is that its mobile platform removes the cost and complexity of running a traditional café due to its static nature and low cost startup. In any new business there is fear of the unknown, however The Coffee Guy overcomes these concerns through intensive training and business development programs, which significantly reduce these fears for the franchise partner. QSR Media: How are your customers reacting? From what we see and hear from our customers and on social media, The Coffee Guy caters to all elements of producing a quality

QSR Media: What are the opportunities you are currently seeing in the industry? Australia is one of the biggest mobile coffee van markets, but The Coffee Guy fills an unfulfilled niche. Being a new and exciting mobile coffee franchise that delivers high quality coffee daily to customers, the biggest benefit for business owners is the exceptionally low start-up cost. The cost considerations are limited to vehicle costs (rego, service, insurance and fuel), franchise fees (marketing and advertising), loan repayments and stock control. One of the biggest opportunities for potential franchise partners is that The Coffee Guy is the perfect lifestyle and business choice, giving the owner the opportunity to have a great work-life balance due to the minimal time and cost considerations. Business hours are generally Monday to Friday and work on the weekends is usually limited to the morning. QSR Media: What would you like to tell the market about the direction of your brand? The coffee market is an ever changing and evolving industry that relies on market trends and taste to be successful. At The Coffee Guy, we always aim to keep up with the latest market trends, coffee quality and flavour, by introducing new product lines and menu innovations, as well as alternative coffee brewing methods.

Co-published corporate profile

Online ordering made for hospitality Increase your sales, reduce in-store wait times, encourage loyalty – and keep your customers happy.

obi2Go is an online and mobile ordering platform made for the hospitality and quick service restaurant industry. Used by businesses in over 300 cities around the world, Mobi2Go is generating millions in monthly revenue for clients. It’s the company’s goal to make your life easier and your business more profitable, with the best online and mobile ordering platform in the world. QSR Media explores what Mobi2Go can offer the QSR industry. Tell us about some of your biggest milestones. We’ve integrated with more POS, loyalty and marketing partners so companies can easily set up online ordering and grow their businesses. Our third-party delivery partners have also opened a new channel that allows franchisees to reach new customers. Most recently we’ve launched Mobi2Go payments, a payment gateway that removes the pain points for large franchise groups when rolling out online ordering. Mobi2Go payments allows customers to easily order online with any credit card or with Apple Pay. What are some of the biggest challenges you’ve encountered? While consumers are driving the adoption of online and mobile ordering, many businesses are still trying to understand how the technology fits into their current strategy and business model. This means we are helping many businesses and franchise owners understand the benefits of digital technology. Restaurant owner/operators are extremely careful when integrating new technology because they are also representing their franchisees. We are working to show these business owners the benefits of going digital, and how easy it is to get started. How does your product stand out in the market? Mobi2Go provides restaurants with a way to build their own online and mobile ordering solution by integrating their current brand identity, website and technology. We focus on helping restaurants drive more clients to their website by giving them complete control over the customer experience and

order data. If we’re doing our jobs right, your customers will think you’ve built the system yourself – without the cost and pain of having to build a customised solution. What are the latest trends you see that will impact your business? For consumers, it’s more important than ever to have delivery and takeaway options when it comes to eating out. That’s why some restaurants are building bigger kitchens and smaller dining areas. Restaurant’s globally are testing online and mobile ordering to meet their customers’ demands. If done right, restaurants can use digital ordering as a loyalty program to bring in repeat business and retain more loyal customers. Apart from consumer trends, restaurants are realising the importance of sending customers to their own website. Businesses invest a lot of time and energy in developing a brand and selecting the right technology. It’s important that restaurants can still have a personal experience with guests, regardless of whether it’s in person or online. What can you say about the growing role of digital platforms in the quick service and fast casual restaurant industry? Digital platforms are transforming the quick service and fast casual restaurant industries. Whether it’s a marketing, loyalty,

or transactional platform, digital tools allow business owners to automate growth and get back to focusing on their business. What opportunities are there for brands when they offer online ordering? Online and mobile ordering goes beyond just increased order size, loyalty, and efficiency. More customers than ever are choosing takeaway or delivery options for dining, which means restaurants can spend less on the front of house dining experience and invest more in the kitchen. With 49% of millennials admitting to eating out once a week and another 36% saying they get takeaway and delivery weekly, franchise groups are using online and mobile ordering to expand into a whole new market. What are the challenges of going digital? There are so many options for businesses who are thinking about going digital that it’s difficult for companies to select the right partner. Right now, there are an overwhelming amount of services that are creating confusion in the marketplace. When third party ordering services drop out of the industry, it effects the stability of the overall marketplace. Businesses need reliable partners who can accommodate national and global expansion, whilst staying on top of trends in the market.

“It’s important that restaurants can still have a personal experience with guests... in person or online.”

Personal experience trumps digital

QSR MEDIA | annual 2017

QSR MEDIA X MObi2go

Seven steps to ensure you deliver great customer service at your restaurant

As the owner of a hospitality business, you know that customer service is critical to your success.

ith new businesses popping up on every corner, customers have more options than ever when it comes to where to dine or which café to frequent. Unfortunately, this means that one bad experience can permanently alter a guest’s perception of your restaurant. Thankfully, new trends and technology are making it easy to offer great customer service to every guest. Here are seven steps you can use to take advantage of these trends and enhance your customer’s experience: Step 1: Hire great staff One of the biggest challenges restaurant owners face is finding and retaining the right staff. Ultimately, the quality of your customer service directly reflects the quality of your team. Unfortunately, finding a good team is easier said than done. When it comes to hiring, finding great talent starts at the top. Efficient managers will have a strong work ethic and be able to manage stressful circumstances. Apart from the responsibilities of day-to-day operations, managers will be required to support staff during unpredictable customer interactions. Great managers will also help attract top staff. Front-of-house staff members will have the most interaction with customers, so each employee needs to be carefully interviewed and trained.

through points programs, tiered incentives, or gamification experiences. New technology makes it easier than ever to implement programs that may have been difficult to create in the past. Some POS providers are simplifying the process by letting you create a loyalty program within your POS system. Revel Loyalty, Maitre’D, and WizBang Technology’s Onetap solutions are just a few of the POS providers that are allowing customers to create loyalty programs with their current technology. Step 4: Automate your restaurant customer service with technology Today’s tech-savvy consumers have more choices than ever when it comes to eating out. Now that many consumers are screening menus online before visiting in person, an online presence is required for exceptional customer experience. Online and mobile ordering is becoming increasingly popular for hospitality businesses and provides customers with the option to place a delivery or takeaway order on-demand. Apart from online ordering, restaurant owners are using technology such as table side tablets, digital menus, and games ‘while-u-wait’ to provide a unique customer service experience.

Step 5: Delivery In a recent study, 36% of millennials admitted to ordering delivery at least once Step 2: Provide proper training per week. As a restaurant owner, this means Proper training is the key to successfully onboarding any new hire, regardless of his or you need to provide great customer service her skill level. An effective training program for both customers dining in and those will provide a strong foundation for customer who order out. Although some restaurants manage delivery internally, others are service and reflect your business’ unique outsourcing delivery to third parties. culture. “Your staff needs to be attentive Companies such as BringIt and OrderLord to customer demands while displaying the specialise in delivery and provide an excellent personality of your establishment,” said door-to-door experience for customers. Shaun Fowler in a recent article on Chron.com. Traditional training methods, Step 6: Ask for feedback / talk to your such as shadowing and mentoring are an customers effective way for new hires to learn about Customer feedback is a great way for you your business. to improve your hospitality business as the restaurant industry continues to evolve. Step 3: Incentivise loyalty Recent data published by Fast Casual showed Whilst many managers find time to talk to consumers throughout the day, it’s hard to that 27% of first time guests returned at get deep insight from your customers in a least once if they were informed about a hospitality business’ loyalty program. These short amount of time. Traditional comment cards may do the loyalty programs entice guests to return 28

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trick, but technology is making it easier than ever to receive feedback from customers. Websites such as Yelp and Google offer customers the option to leave public reviews on their third-party site, while Facebook provides you with a way to reach your customers for feedback and monitor reviews on your page. While many customers are happy to share feedback, some businesses offer incentives for more detailed insights. Step 7: Make changes and implement new policies To provide an exceptional customer experience, training and policies should evolve based on the feedback you receive from customers. The key to any of these changes is great communication with your team from the top down. While some management retrains their staff regularly, others prefer to communicate changes at quarterly staff meetings. Regardless of the approach, your customers will recognise the positive experience they receive with each meaningful change you implement.

Customer service: the core of businesses

QSR MEDIA X MObi2go

Starbucks doubles down on mobile ordering

Find out if you should also increase your mobile ordering initiatives just as Starbucks did.

n March, Starbucks announced it is doubling down on mobile ordering by opening its first mobile-only store. The company created the pick-up only location as a way to increase efficiency for customers using the Starbucks mobile app. Starbucks first launched mobile ordering on its app in 2015 and experienced instant success. Customers were eager to skip long lines and expedite the ordering process. The company had over 5 million transactions in its first month, accounting for more than 10% of orders at busy locations. Starbucks’ new location will better serve the growing number of customers who order online. Since Starbucks’ initial launch in 2015, many QSRs around the world have tested mobile ordering. Recently, McDonald’s stock was upgraded when the company announced that 14,000 locations would start receiving mobile orders at the end of this year. Even early adopters, such as Chipotle, have continued to make investments in digital ordering with its “Smarter Pickup Time” feature. The feature, released earlier this year, was created to make mobile ordering even easier. While some big brands have invested in complex build outs, QSRs of all sizes are turning to more affordable technology partners. New Zealand-based restaurant Burger Wisconsin launched online and mobile ordering with Mobi2Go’s digital technology at 22 locations in 2014. The company saw a significant increase in revenue, a reduction in phone orders and improved order flow in the kitchen – even with over 80 burger combinations available. As restaurant technology continues to advance, mobile ordering is becoming easier and more affordable for businesses to integrate. Here are three reasons so many QSRs are taking advantage of mobile ordering. Mobile ordering increases order size When Taco Bell launched mobile ordering in October 2014, the company saw immediate success. In the first six months, the app was downloaded 2 million times and gained an average order size that was 20% higher than in-store customers. By 2016, order sizes continued to increase on the Taco Bell app. The app is now producing an average order size that is 30% higher than in-store

QSRs are turning to more affordable technology partners

purchases. So why are people ordering more on mobile? Simple. Add-ons are more convenient to purchase on mobile. In fact, Taco Bell customers who order in-store are more likely to remove toppings than add new ones. In-store customers can also feel pressure to order quickly as a line builds behind them. Customers who order on the app feel less pressure and can be offered additional upsells that customers in stores more easily overlook. Large QSRs aren’t the only stores experiencing revenue increase. Pizza shops that offer online ordering have seen an increase of 15-20% in the average ticket size. When customers feel less pressure to rush through their order, they have more time to select add-ons, which increases each order size. Mobile ordering boosts efficiency Starbucks’ new mobile order only store was launched with one goal in mind: to boost efficiency. With mobile orders representing 20% of Starbucks’ US store sales, the pickup only location will help those customers avoid long lines at pickup. Many other QSRs are experiencing increased efficiency in takeaway orders for both customers and staff members. On average, 75% of phone orders take more than a minute and 30% take longer than three minutes. Offering an automated option to customers will not only increase the accuracy of orders but can save hours of worker time. This frees up your staff for other tasks. Mobile ordering can also help increase efficiency at the pickup counter by allowing customers to

pay online via credit card. This can decrease customer wait time in the store and even give customers the option to have their order delivered by in-house staff or a thirdparty service. Mobile ordering increases loyalty Many QSRs have leveraged mobile ordering apps to integrate loyalty incentives for regular customers. Starbucks has seen success with their tiered point system while many QSRs are turning to gamification to engage with customers. Gamification allows companies to engage customers by incorporating games, fun, and competition into the company’s mobile app. The average consumer spends 5 minutes a day playing games on their smartphone. By incorporating gamification into their mobile app, QSRs have an opportunity to reach these consumers outside normal dining hours. When Taco Bell launched mobile ordering in 2015, the company used gamification to increase customer loyalty and spreading brand awareness. Users were encouraged to share the app with others via social media to receive free food and beverages. In return, news about Taco Bell’s new app spread quickly, resulting in 5 million downloads during its first year. Regardless of program structure, only 32% of millennials say they would be loyal to a brand without good loyalty program. By incorporating a good loyalty program into your mobile ordering, customers are five times more likely to return to your business. QSR MEDIA | annual 2017

event coverage: Annual Conference and Awards

QSR Media Detpak Conference and Awards 2016

op executives from local and international companies like the Retail Food Group, Red Rooster, and Soul Origin attended the conference and spearheaded sessions on the evolving quick service and fast casual restaurant landscape. Held on 26 July 2016 at the Sofitel Hotel, Sydney, the QSR Media Detpak Conference and Awards 2016 was the biggest event in the multi-site restaurant industry. In an interactive session format, significant topics like the future of food, breakthroughs in digital engagement, the latest marketing trends and many others were discussed among panels of experts and industry leaders. The Honourable John Barilaro, New South Wales Minister for Regional Development, Skills, and Small Business opened the conference with a keynote speech. QSR Media also recognised and celebrated the very best of the Australian quick service and fast casual restaurant industry at the QSR Media Detpak Awards held on the same day. Different brands were recognised for their ground-breaking marketing campaigns, innovations in health, corporate social responsibility initiatives, and much more.

The winners of the third QSR Media Detpak Awards were: Best Digital Initiative Chicken Treat Best Brand Transformation The Coffee Emporium Best Corporate Social Responsibility initiative Zambrero Best Marketing Campaign Gelatissimo Best New Concept Zeus Street Greek Training Initiative of the Year Soul Origin Best Loyalty Program Boost Juice Best Innovation - Food & Beverage Foodco Group - Jamaica Blue Best Innovation - Health Thr1ve Collective Best Sustainability Initiative Zambrero Best Franchise Network Support Foodco Group - Jamaica Blue 2016 Multi Site Restaurant of the Year Soul Origin Best Brand Mission Execution Sumo Salad - Green Label Hall of Fame Serge Infanti, Managing Director, Foodco 30

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interview: TOP JUICE What our customers come to us for is our ‘real food’ offer, and we aim to be the first choice for juices and food that is delicious, healthy, and convenient.

Top Juice uses fresh fruits and vegetables in its beverages

How Top Juice is capitalising on the healthy food trend The healthy juice brand is seizing new opportunities in the beverage sector as consumers continue to look for healthier options.

SR Media got in touch with Barry Barber, general manager of Top Juice, to talk about the brand’s growing reach throughout the country, its continued expansion plans, and how the brand is capitalising on the healthy fast food trend. Top Juice started out as a fruit and vegetable shop in Double Bay, Sydney in 1989, with a goal of bringing top quality and freshness to juice. The brand has more than 60 stores throughout Australia, nearly double the number it had in 2015, and it uses fruit displayed in its stores in its menu, turning the freshest exotic fruit and vegetables into fruit salads, juices, smoothies and meals. QSR Media: Can you tell us more about your brand? Top Juice is a unique juice bar and healthy fast food concept, specialising in premium juices and smoothies, yoghurts, cut fruit and fruit salads, and garden salads made from fresh, natural ingredients. The brand launched in Sydney in 2008 with a juice bar in the CBD, but the origins of the business date 32

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Healthy fastfood is the growing sector for food retail, and it’s certainly apparent in the busy food courts of shopping centres.

back to our first fruit and vegetable shop. Today we have 70 successful company owned and franchised Top Juice stores in prime retail locations in NSW, ACT, Southeast Queensland and Victoria. Our years of experience sourcing premium fruits and vegetables, and our uncompromising commitment to quality and freshness make Top Juice the best. It’s what we do with this wonderful, natural, raw material that makes us different. We weave our magic to turn the freshest exotic fruit and vegetables into the best fruit salads, juices, smoothies and meals in Australia. The fruit that you see in our vibrant displays goes directly into your cup – we’re completely natural and free from preservatives. QSR Media: What differentiates your brand in the market? Our stores place an emphasis on creating enticing displays of fresh produce and beautifully presented product, and delivering a great customer experience every day. Top Juice satisfies the strong and growing demand for real food made from natural unprocessed ingredients.

QSR Media: What would you say are the challenges and opportunities you are currently facing in the industry? Healthy fast-food is the growing sector for food retail, and it’s certainly apparent in the busy food courts of shopping centres. Most food operators are now responding to customer expectations with updated ranges that offer healthier options. While we have seen increased competition across the board, we have been able to capitalise on this consumer trend and the demand for our products continues to grow. QSR Media: Any other big plans in the pipeline? The Top Juice store network has grown at a steady pace and this expansion will continue. Behind the scenes we operate a central kitchen and distribution model which supplies stores with everything they need. As the network has grown, the scale and capability of our fresh food production and supply chain has increased significantly. In 2017, we commenced consolidating production, warehousing, distribution and administration into new, much larger facilities in Sydney’s west in close proximity to the Sydney Markets. This represents a considerable investment in the future of the brand and will provide a strong foundation for continued growth. QSR Media: What would you like to tell the market about the direction of your brand? We see plenty of opportunity for good retailers who are tuned into what their customers want, and the QSR space is certainly no exception. We see Top Juice being at the forefront of the ‘healthy fast food’ movement. The brand has broad appeal and we are well placed to meet the growing demand for quality, fresh, and authentic food.

Co-published corporate profile

Maximise the possibilities of food delivery Detpak offers fit-for-purpose packaging solutions for various cuisines and optimised branding options.

etpak is part of the Detmold Group, which has been making brands shine since 1948. Today, the group is one of the largest manufacturers of paper and board packaging products globally. After almost 70 years, the head office remains

in South Australia, and the company is still owned and operated by the Detmold family. Since Detpak’s inception, it has been dedicated to packaging for the foodservice industry. QSR Media got in touch with Detpak to talk about the foodservice industry and the company’s plans within it. Tell us about some of your milestones. In 2017 Detpak launched a new series of hot cups – Coffee Origins Cup Gallery – with 5% of sales being directed to rural coffee growing communities around the world. The collection of paper hot cups feature imagery inspired by the architecture, textiles and traditions of coffee-producing nations. Detpak opened three new manufacturing plants overseas in 2016. New operations on a greenfield site in Manila, Philippines focusing on bag and wrap manufacture, a dedicated paper cup plant in Ho Chi Minh City, Vietnam, and operations for bags, cups, cartons and more in Mumbai, India, complements Detpak’s existing global strength and flexibility of supply for customers in numerous markets. What were some of the challenges you’ve encountered and how did you overcome them? Maintaining consistent product quality, supply and service levels during a period of growth is a challenge. We manage this

through use of global standard quality systems like BRC and ISO combined with constant review and adjustments to our processes, aiming to be easy for our customers to do business with. How does your product differ from others in the market? Detpak offers rapid innovation through LaunchPad, our rapid innovation and prototyping centre, which can design and create packaging prototypes in a single day. Simply arrive with an idea and leave with a working model to test – without the months of waiting your industry can’t afford. It’s the best-kept competitive secret of some of the world’s best brands, creating over 2,500 new products a year. What are your plans for the next two to five years? Consolidating our commitment to Australian customers through the establishment of a state-of-the-art paper and board packaging facility in Adelaide, combining Detpak’s current bag and wrap facility with Custom Cartons and LaunchPad on a new greenfield site. What are the latest trends that will impact your business? The growth of the food delivery segment through technological advances that we have seen with the likes of Deliveroo, Foodora and Uber Eats. The ready-meals category is also an opportunity in light of increased consumer demand for convenience. What can you say about the takeaway food trend in foodservice? We see education being an important part of this. Many restaurants and cafés are entering the takeaway area for the first time, so advice on how best to present their food and maintain its integrity through fit-for-purpose packaging is going to be important.

Packaging for takeaway food

“The ready-meals category... is an opportunity in light of increased consumer demand for convenience.”

What do you think is the next step in the evolution of the Australian foodservice industry in terms of packaging? We see that being really responsible and acting sustainably in all its guises will continue to evolve. QSR MEDIA | annual 2017

interview: BAKERS DELIGHT QSR Media: What makes you excited about your position? Bakers Delight is a successful and loved brand, but what makes us excited is how much better we can be. QSR Media: What are your key business philosophies? In our business the only way to stay relevant and successful is to constantly delight your customers. To do that the people in the business, and in particular our franchisees, have to be delighted by what they do every day. As business leaders our challenge is to create that environment.

Bakers Delight’s new CEOs, Elise Gillespie and David Christie

Get to know the new CEOs behind Bakers Delight David Christie and Elise Gillespie are taking the reins in Australia’s biggest chain of bakeries.

fter 37 years, joint-CEOs and founders of Bakers Delight Roger and Lesley Gillespie are stepping down. Formally handing over the reins to daughter Elise and husband David Christie, Roger Gillespie said the international retail chain is set for new leadership, while keeping customer-centricity and family at its heart. “We are, and have always been a family business, so it makes sense to continue this tradition for future generations,” he said. “As with any business, there comes a time when it is right for new leadership. Both Lesley and I are so proud of what we have achieved over 37 years, and now we are ready to pass the baton to Elise and David.” “Elise and I have been actively involved in the Bakers Delight business for the past decade and what more could you want than to take over a business with an engaged, loyal customer base?,” said David Christie. “We have aggressive plans to grow the business, with the Gillespie Family vision for 2030 to grow store numbers to 800 in Australia, 400 in Canada and a further 150 across other markets

QSR MEDIA | annual 2017

The fundamentals of our business remain the same – delivering delight by baking fantastic bread from scratch every day.

including New Zealand.” “In our new role as joint-CEOs we have the challenge of continuing our award winning service and quality products, while driving change and reclaiming our position as Australia’s market leader in the bread and baked goods category. “While we have about 15% share of the bread market in Australia, we know that we need to be constantly demonstrating product and service innovation to stay ahead of the pack,” said Elise Gillespie. “The food retail market is increasingly competitive and shoppers have more choice than ever. Our challenge is not just about making better bread but finding new ways to delight our customers so we become a brand they all love to engage with on a regular basis,” she added. Roger and Lesley Gillespie will remain on the Bakers Delight board as founding directors, with Roger also chairman of the board. In addition, Aaron Gillespie will continue to oversee Canadian operations as president of Cobs Bread and a member of the board. QSR Media had a chance to talk to Bakers Delight’s new CEOs.

QSR Media: What three goals are you focused on? Growing the sales and profitability for our franchisees; leading and growing the bread category in Australia; and being the favourite bakery in every community. QSR Media: What long-term changes are you planning on? The fundamentals of our business remain the same – delivering delight by baking fantastic bread from scratch every day. But to grow in the future we need to be more focused on the needs of a younger generation of customers. And that means innovation in product, equipment, store fit-out and the way we communicate. QSR Media: What previous positions have prepared you for this one, and how? We’ve worked in this business from the ground up and spent most of our twenties in Canada opening and operating bakeries and new regions. We have a detailed understanding of, and respect for, what it takes to run successful bakeries. We led the Canadian business for two years as vice presidents alongside Elise’s brother Aaron and another colleague, John Gilson. Since 2012 we’ve been working in executive roles in the business in Australia, overseeing operations and support departments.

Co-published corporate profile

Gelativo’s manufacturing plant

Taking ingredients from around the world to make desserts as healthy as they are delicious Gelativo puts a premium on the purity and rawness of their ingredients to offer the best possible desserts.

s a supplier of fat-free, glutenfree and dairy-free desserts to supermarkets and convenience stores like Woolworths, IGA, and Foodworks all around the country, gelativo’s insistence on ingredient quality speaks for itself. From the very start, the company has emphasised balancing nutrition with quality to create stunningly flavoured desserts that are ‘as healthy as they are delicious’. Gelativo takes pride in bringing innovation to the dessert market by using only fresh ingredients without the use of flavours, colours or preservatives to offer the freshest premium taste throughout its extensive range. The gelativo range also offers inclusive options for vegetarian and vegan diets as gelativo sorbets do not contain any animal products, while its gelato only contains fresh milk and cream but no other animal products. All gelativo products are also gluten free, suitable for coeliacs. The glucose used in all of its products is derived from maize. QSR Media sat down with the people behind gelativo to talk about the company’s history, the secret behind its innovation, and its plans for the future. Tell us about gelativo. Gelativo has been supplying supermarkets and convenience stores for 10 years with

mouth-watering sorbets that are fat-free and dairy-free, and a range of delicious gelato and frozen yoghurt flavours made with fresh milk and fresh cream. Gelativo products are made faithfully following traditional Italian recipes and using only the finest, freshest ingredients sourced from all corners of the globe, and has a variety of flavours to entice everyone’s senses. What makes gelativo different? Gelativo was created with one clear objective in mind: to find the purest and finest ingredients from around the world and craft them into the best possible gelato, sorbet, and frozen yoghurt. To achieve this we use ingredients in their rawest and most natural form combined with a passion for evoking pleasure and delight in every frozen bite. Our belief is that the less done to the ingredients the purer the result. All gelativo products are gluten free. What are your plans for the next two to five years? First, to expand our supermarket presence

Chocolate gelato

domestically and in Asia. Second, to partner with new customers and develop exciting new products for the QSR channel. Lastly, to continue to exceed the expectations of our customers and consumers. Tell us about some of your big milestones. We designed and built a new 5,000 squaremetre manufacturing plant in Melbourne with storage and distribution capabilities. We have also begun exporting to China and South Korea. What are the latest trends that you believe will impact your business? People are becoming more concerned about their health and have easier access to information about the products that they consume. Companies will be under increased pressure to deliver healthier products without compromising on taste and, as a result, will be turning to more natural ingredients. Gelativo is well positioned to leverage this trend as the brand is already delivering on these requirements.

“Gelativo products are made faithfully following traditional Italian recipes and using only the finest, freshest ingredients sourced from all corners of the globe, and has a variety of flavours to entice everyone’s senses.” QSR MEDIA | annual 2017

interview: SUMOSALAD eating and to tackle issues such as chronic disease as a result of poor nutritional choices. We want to encourage our customers to adopt a healthy lifestyle, and that translates into some very positive environmental impacts, but also very important benefits to our customer’s lives. We are very proud of the efforts we have made to improve our environmental and ethical impact. To be able to lead the industry in some aspects is really exciting for us.

SumoSalad brings its healthy food to hospitals, universities and other locations

Why SumoSalad is changing its location strategy To future-proof its business, the healthy eating chain is moving out of food courts and building new strategic partnerships.

SR Media caught up with and spoke to Luke Baylis, CEO of SumoSalad, to discuss the brand’s plans, the healthy food trend, and its new location strategy. SumoSalad first opened in Sydney in 2003. The brand quickly expanded to more than a hundred stores across Australia and in international locations in New Zealand, Singapore, United Arab Emirates, South America, and the USA. QSR Media: What’s new at SumoSalad? SumoSalad has been doing a lot of work on future proofing the business. We have been working hard to introduce a more comprehensive breakfast range, which is a significant milestone for us, as we can now target sites that can open early or that operate around the clock. This means, Sumo customers can go to an outlet and get healthy food for breakfast, lunch and even dinner, as opposed to food courts. At the same time, we are looking at developing a Sumo direct to consumer business. 36

QSR MEDIA | annual 2017

Sumo’s trade environment has changed dramatically from when the business was established in 2003.

QSR Media: What can you say about the current healthy food trend in the industry today? There are many ‘healthy’ trends in the market that aren’t what they say they are, and as a result, many consumers are confused by which products are actually good for them. Our objective at Sumo is to simplify what health means, and allow each individual customer to personalise aspects within our menus, so, they can get the best health outcome possible. As a result, personalisation is becoming more prevalent in the healthy food industry, and we are using this to create a more innovative and sophisticated menu. QSR Media: Can you tell us more about your brand’s ethical and environmental effort? SumoSalad took a stand four years ago to put high welfare meats into our product mix, making us the first in the industry to do. We also made the move, many years ago, to environmentally friendly biodegradable packaging. At Sumo, our brand purpose is to change the way Australians view healthy

QSR Media: What are the challenges you are currently facing? Sumo’s trade environment has changed dramatically from when the business was established in 2003. Back then, food courts were the only place to go within a shopping centre and that’s why it was such a great opportunity for us to differentiate ourselves by offering healthy alternatives. As the industry has changed over the years, with the introduction of other healthy food outlets, it has seen less distinction between brand offerings, which has been a big challenge for us. As a result, Sumo is working on a new location strategy. As we announced in April, we will be progressively moving out of food courts and pursuing more strategic partnerships, like our partnership with Caltex, which will result in being able to open sites in hospitals, universities and other locations where we can service the growing consumer demand for healthier foods. QSR Media: What are your plans moving forward? It is Sumo’s objective to get healthy food to as many consumers as possible. To fulfil this purpose, we have been doing a lot of work to identify a range of channels, including our direct-to-consumer home delivery, opening outlets in non-traditional locations, and new strategic partnerships. We see Sumo’s growth taking a very different path to what it has done previously, so watch this space!

Co-published corporate profile

What your first class kitchen needs With a team of chefs and industry experts, Comcater guarantees to find the right solution for any quick service restaurant need.

s one of the largest suppliers to the Australian quick service restaurant and fast food markets, Comcater is dedicated to bringing high volume output, speedy service, consistency and space saving kitchen designs. Comcater discusses with QSR Media how its products are changing the way kitchens operate. Can you tell us about Comcater? Comcater is a wholly Australian owned and operated company and the market leader in the distribution of commercial food service equipment in Australia. It has been providing commercial kitchen equipment solutions to the quick service market for more than 30 years, proudly supplying equipment from the world’s leading manufacturers including RATIONAL, Frymaster, Garland, Lincoln, Alto Shaam, Cambro, Antunes, Menumaster and Vitamix. What do you offer QSRs? Comcater offers many solutions based on the customer’s needs. From full specification and kitchen fit-outs to finding niche products to suit a specific need. Comcater employs more than 20 qualified chefs, giving us the ability to work with our customers on new menu ideas and best practices within the kitchen. We love to engage with our QSR customers on menu development and keeping one step ahead of the game. After sales support is covered by a national spare parts department and our own in-house service team, which offers

Comcater’s range of products

a comprehensive planned maintenance program to keep our equipment performing in high-demand QSR environments. How do your products differ from others in the market? Comcater has built a thriving business based on a portfolio of equipment that is ‘first in class’ globally. By representing premium brands we are assured of consistent results. With years of experience and our own in-house service team, we can confidently stand by our products. We have been selling our equipment for more than 30 years. We know that the brands we represent last because we see them in the field 25 years on. What are your plans for the next two to five years? The QSR market is always expanding and growing. Our plan is to develop and strengthen the partnerships that we have and continue to find new partners. We are also continuously working with our suppliers globally to source new products and develop equipment to suit the QSR market and find the ‘next big thing’ for their business.

A rise in the use of accelerated cooking is also a major trend for QSRs. We have seen the growth in our Menumaster MXP ovens which combine microwave, convection and radiant technology. This sort of equipment reduces the time required to produce high turnover items in the same space you would need to have a toaster, salamander and microwave. How is technology changing the way kitchens operate? The future is moving towards the ability for people to remain connected to their restaurants even when they are not in the kitchen. Connected cooking means technology is being developed within equipment to enable the customer to check on performance and products being cooked using smart phones and apps. This frees up those people with multioutlets, who spend time between different sites but can’t afford to miss out on the essentials. Technology is always evolving and developing, and much like the mobile phone we are seeing advances in reducing the size and increasing the power of equipment.

What are the latest trends that you believe will impact your business? One of the biggest challenges facing any kitchen is space. We are constantly being challenged to find new solutions for equipment that can combine the tasks of multiple items and reduce the footprint.

Frymaster deep-fryer

QSR MEDIA | annual 2017

event coverage: roundtable

Experts discuss the importance of digital in food service

racle Hospitality, in partnership with QSR Media, hosted a roundtable discussion at the Rialto Towers in Melbourne, Victoria. Ciara Clancy, director of Australian Foodservice at The NPD Group, explored the opportunities emerging in the foodservice industry as more companies adopt digital platforms to engage their consumers. As trends like home delivery continue to grow, it is becoming increasingly crucial for restaurants to embrace digital options to secure the future of their businesses.

QSR MEDIA | annual 2017

interview: MISSCHU with diners on a daily basis for any occasion. Our price and quality is a key market difference; we want to let people eat fresh healthy food as often as they want, so we have prices that encourage this. We are also a brand that offers a restaurant concept and express concept with the same menu and prices, so our model can suit many operating environments. We also offer speciality house drinks such as our Spiced Blood Orange Gin & Tonic with a select cocktail list, Vietnamese beers, and a range of wines. We hope to include this soon in our delivery service. Saigon Lane’s Vietnamese food is the fusion of MissChu and Saigon Street

MissChu lives on in brand offspring Saigon Lane Saigon Lane is the fusion of Vietnamese food chains MissChu and Saigon Street, offering an expansion on the existing menus of its parents.

aigon Lane is the little brother of the Bali institution Saigon Street by restaurateur Aki Kotzamichalis. Created in partnership with Robert Clifford from Alto Cibum hospitality consultancy, Saigon Lane serves up authentic Vietnamese dishes from a menu that has been created under the direction of Phil Davenport – ex-head chef of Bali’s Ku De Ta. The brand offers a range of light and healthy sharing dishes including green rice fried tiger prawns and Vietnamese chicken coleslaw salad with roasted peanuts, while the restaurants’ bars offer crafted cocktails, including two signature blends on tap. Saigon Lane has two restaurants in Bondi and Glebe, as well as two tuckshops in Sydney CBD and Darlinghurst to cater for customers looking for food on the go. Scooters deliver across Sydney, rewarding repeat customers with free dishes. QSR Media got in touch with the people behind newcomer Saigon Lane to talk about its launch, vegan additions to its authentic Vietnamese menu, and its plans for the future. 40

QSR MEDIA | annual 2017

We felt that we could refresh the product and re-engage with the loyal MissChu regulars who value fast, fresh Vietnamese food.

QSR Media: Can you tell us more about Saigon Lane? Saigon Lane is the brother of successful Bali restaurant Saigon Street. Restaurateurs Aki Kotzamichalis and Rob Clifford identified an opportunity to add value to the four Sydney locations previously operated as MissChu. We felt that we could refresh the product and re-engage with the loyal MissChu regulars who value fast, fresh Vietnamese food. With the same great locations, the same dedicated chefs and amazing staff, as well as an enhanced menu, Saigon Lane is proud to be the new home of Miss Chu’s amazing food. There is no doubt her passion and cheeky attitude live on in Saigon Lane’s delicious, unique dishes. QSR Media: What differentiates it in the market? Saigon Lane is a fun brand that seeks to appeal to a broad cross section of diners. We value authentic flavours, fresh on-site cooking, healthy menu items, and fun and vibrant environments. Our goal is to engage

QSR Media: How has Saigon Lane been received so far? Response to the new brand and menu items has been outstanding. We still have a good demand for traditional favourites such as the rice paper rolls and pho; however our new salads have been particularly popular. QSR Media: What would you say are your current challenges and opportunities? We have been listening to our customers who are keen to see more vegan items, and as a result we’ve added a number of new menu items. We think that demand for fast healthy food will continue to grow as people become more health conscious. People are also seeking more authentic dining experiences with complex flavours and fresh ingredients. We have created the Saigon Lane values around these facts. QSR Media: What would you like to tell the market about the direction of your brand? We are aiming to open more stores. Our stores will not be franchised but company-run, as we want to control the guest experience as we grow. We will continue to grow our online presence and focus on growth through our online ordering platform. We have also received interest from the US and UK, so we will be investigating those opportunities. However, we are conscious of growing too fast.

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DEFROST, REHEAT, BAKE & BROWN TO CULINARY PERFECTION For your nearest Dealer, call 1800 035 327 or visit www.comcater.com.au

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