the best AIRPORT DINING MAKING PINTEREST WORK FOR YOU
Focus On HEIDI CHOCOLATE expands on its success
w w w.fdf wor ld.c om • A p r il 2015
EDITOR’S COMMENT
MOVE AHEAD S P R I N G I S H E R E , a time of year to celebrate new
life and new beginnings. In this month’s issue of Food Drink & Franchise, we’re embracing the spirit of Spring as a time to take stock of our ambitions—a time to start planning our own new beginnings and strategizing what it will take to get to take business to the next level. We love a good burger, and here at FDF World we know that burgers are more than a good lunch—they can also be a building block of business success. So in this month’s Top 10 we’re looking at the most lucrative and profitable burger franchises, examining how the chains with the best overall numbers stack up on a store-by-store basis. Then in Marketing we’re building vision boards, learning secrets of consumer engagement from the most successful Pinterest accounts. Once we’ve reached success, it’s time for vacation—so we’re looking to the airports around the world with the best cuisine to keep us satisfied from takeoff to landing and beyond.
Enjoy the issue!
Sasha Orman Editor Sasha.Orman@fdfworld.com
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Features
CONTENTS
6 MARKETING
Making Pintrest Work for you
FRANCHISING
The World’s Best Airport Dining
12
22 TOP 10
Most Profitable Burger Franchises
64 Arcos Dorados
32 Heidi Chocolate COMPANY PROFILES EUROPE 32 Heidi Chocolate
CANADA 40 Dominos Pizza Canada
BRAZIL 52 SLC Agricola 64 Arcos Dorados
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SLC Agricola
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Dominos Pizza Canada 5
MARKETING
MAKING PINTREST WORK FOR YOU What can we learn from the most successful restaurant chains on Pinterest? Written by: SASHA ORMAN
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MARKETING
NOTHING BRINGS CONSUMERS and brands together like social media, and yet it has become a sprawling and expansive landscape. If you’re only focusing on Facebook and Twitter, chances are you’re not doing everything you can to maximize your outreach. The best way to learn is through
Involve Your Audience Directly
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April 2015
example, and one of the many good things about social media platforms like Pinterest is that there are plenty of examples to choose from. So let’s take a look at some of the most successful chains on Pinterest to see what they’re doing right and what we can learn from taking a closer look.
MAKING PINTEREST WORK FOR YOU
One of the most common mistakes that a brand can make on Pinterest— or any form of social media, for that matter—is viewing the medium as simply a way to talk at your consumer base. But simply posting a stream of content is not the same thing as engaging with fans, no matter how interesting your content is. Pinterest Business lists Caribou Coffee as one of its biggest case study success stories, citing in particular the coffee chain’s #InspireCaribou campaign. The campaign took advantage of Pinterest’s collaborative nature, asking followers to engage in a conversation about the brand’s next coffee
blend by pinning and tagging images they found inspiring. Pinners added inspiring images with the hashtag #InspireCaribou on Pinterest, and Caribou looked at the Pins to decipher what the new blend should be—notes of mango for an image of a tropical rainforest, a hint of smokiness and marshmallow for a picture of friends around a bonfire, silkiness for a picture of water running across pebbles. By collecting user inspiration with the launch of a new product and a dedicated interactive Pinterest board of its own, Caribou was able to make its Pinterest fan base feel like a true and real part of the brand’s creative process, ultimately creating bonds and strengthening brand loyalty. 9
MARKETING
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April 2015
MAKING PINTEREST WORK FOR YOU
Post Shareable Content
What does a brand post? You might post images of your best products, reasoning that there’s no reason to share anything that isn’t selling your products. But if that’s your line of thinking, you might be missing the point of what it means to be successful on Pinterest—unlike the transitive nature of a social media platform like Twitter, posts on Pinterest need to have more lasting interest. For this reason, it’s important to think of Pinterest not as a newswire so much as a way to a create a vision board of what your brand is all about. Panera Bread has been named one of the most successful fast casual brands on Pinterest, and it’s not hard to see why. The brand has almost 40,000 followers and apparently a 98 percent engagement rate on Pinterest, meaning that people are sharing or otherwise engaging with almost every pin the sandwich chain posts. One of the keys to that is that
Panera Bread is posting a lot more than just promotions—between sandwich promotions and instances of community involvement, the brand’s Pinterest boards are dedicated to visually engaging content from delicious healthy recipes and exercise tips to motivation inspiration and stress relieving crafts. You might ask why a sandwich chain would post recipes encouraging consumers to cook for themselves and eat at home, let alone any posts that are not directly food related. The answer is because Panera Bread is realistic in understanding that its consumers aren’t going to eat at Panera 24/7—its Pinterest board is about establishing a connection between Panera Bread and more conscious and healthful living. If all goes well—and it certainly seems like it has—Pinterest users who follow Panera will reach for a sandwich instead of a burger when they’re on the go. 11
FRANCHISING
The World’s Best Airport Dining Writ ten by: SASHA ORMAN
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April 2015
AIRPORTS ARE MORE than just conduits to shuttle travelers from one cultural experience to another. They’re also cultural hubs themselves, especially when it comes to food—the best airports use their unique position as a chance to showcase the best their city’s culture has to offer, while at the same time integrating familiar international flavors to help weary travelers feel more at home. These are some of the world’s best airports exceeding expectations and giving travelers a reason to check in early.
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FRANCHISING
Hong Kong International Airport Champion: Eastern Division Hong Kong International Airport is the winner of the 2015 World Airport Award for best airport dining, and it’s not hard to see why. A major travel hub for Most of Asia, as well as Australia and North America, the airport reflects some of the best of Chinese and pan-Asian dining from snacks to more upscale fare between its two terminals. In Terminal 1, Hui Lau Shan puts a fresh and healthy spin on dessert with treats like coconut milklaced mango pomelo sago (a type of mango pudding) while the dim sum
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April 2015
THE WORLD’S BEST AIRPORT DINING
at Maxim’s Jade Garden are a personal favorite of cronut magnate Dominique Ansel. Meanwhile in Terminal 2, Hung’s Delicacies has earned a Michelin star for must-try options like mixed noodles, flavorful marinated goose slices, and the intriguing and frequently recommended “vegetarian goose.” For diners Hong Kong International Airport isn’t hurting for quicker chain restaurant eats, either. The airport features a couple of supremely superb Japanese fast casual chains, Ajisen Ramen and katsu-centric Saboten, along with broader global mainstays from Popeye’s to Panopolis. 15
FRANCHISING
Changi Airport (Singapore) Eastern Division: Runner Up Singapore’s Changi Airport takes great pride in its highly regarded cuisine and culture, pointing out the thousands upon thousands of bottled bird’s nests, Nyonya dumplings, and Kueh Lapis cakes that visitors bring home from the airport’s gift shops every year. Just like souvenirs, the options at Changi Airport are plentiful and seemingly limitless, from halal certified curry joints to the usual fast food fare. Check out Kopitiam in Terminal 3, a unique night market-style food court filled with specialized stalls serving up anything and everything from braised duck and chili crabs to pastries. 16
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F E AT U R E A R T I C L E S H O R T E N E D H E A D L I N E
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FRANCHISING
Heathrow Airport (London) World Champion: Western Division
Around Heathrow In 80 Plates
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April 2015
You know you’re in a good spot when you can hit up a Gordon Ramsay restaurant on your layover. London’s Heathrow Airport is certainly not lacking in upscale fare—it’s so known for its cuisine that the airport published a full-length dining guide to help guests plan their arrivals and layover stops in style. Visitors have their pick of a la carte fine dining at Gordon Ramsay’s Plane Food, dining in the gorgeous restaurant space or taking their harissa-topped pulled pork sandwiches and rich butter chicken curry to go, while those seeking a luxurious experience can feast on seafood and champagne at Caviar House & Prunier Seafood Bar. Meanwhile the “grand brasserie” of Oriel French Restaurant & Bar offers stylish cocktails and upscale French cuisine, and The Three Bells puts a modern twist on drinks and pub fare.
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FRANCHISING
Rising Star: San Diego International Airport San Diego’s airport is currently noted as the busiest single runway airport in the world, in the largest metropolitan area not designated as an airline hub. But with the most recent Green Build expansion of Terminal 2 in 2013, the airport is a true up-andcomer in the world of both aviation and airport dining. Along with the addition of new runways, the airport’s expansion included the addition of a new food court highlighting the best of San Diego food and craft beer culture, from pulled pork and ribs at Phil’s BBQ to spring rolls and stir fry and warming soups from Thai staple Saffron. Then of course there’s a Stone Brewing Co. outlet, with a full tap list and selections picked straight from Stone World Bistro and Gardens. In Terminal 1, Craft Brews on 30th Street give travelers a taste of the city’s renowned North Park/South Park craft beer corridor. 20
April 2015
THE WORLD’S BEST AIRPORT DINING
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TOP 10
Written by: Sasha Orman
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TOP 10
THERE ARE HUNDREDS of franchises in the world, and for anyone considering going into business for themselves as a franchisee, that fact can be overwhelming. How do you decide which franchise to buy into? Which choice will bring you the most success? One popular plan is to just go with the franchise you like the most—but while you absolutely
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April 2015
must be enthusiastic about whichever choice you make, going with your gut alone isn’t always a recipe for the most success. Another way to go is to choose a franchise based on what’s the most profitable. This isn’t always a surefire plan either—the most profitable franchises can still vary in profitability from region to region, and there can be stark contrasts
M O S T P R O F I TA B L E B U R G E R F R A N C H I S E S
between overall profitability and individual sales from store to store. Nevertheless, it’s an important statistic to look into when weighing your options. Statistics and ranking company Statistic
Brain recently provided a ranking of the most profitable franchises broken down by overall and individual store sales. If your ultimate passion is burgers, you’ll want to invest in a burger joint that’s in it for the long haul—these ten fit the bill.
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TOP 10
10
Five Guys
Five Guys Burgers can be compared to an East Coast In-N-Out when it comes to the chain’s diehard fan base. The difference is that Five Guys is growing nationwide at a much more rapid rate—and better yet, it franchises. www.fiveguys.com
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Carl’s Jr
On the West Coast, CKE Restaurants offers Carl’s Jr, and potential franchisees looking for a chain would do well look into the burger chain. The macho branding and advertising routine means it’s not a chain for everyone—but with its recent innovations like pretzel buns and the all-natural burger, it’s doing something totally different from other brands and has built a strong fan base. www.carlsjr.com 26
April 2015
M O S T P R O F I TA B L E B U R G E R F R A N C H I S E S
8
Whataburger
Texas-based Whataburger is famous on a regional level for its burgers and condiments so delicious they’ve ended up on retail shelves. Its cult status is made clear by its finances—while the brand’s regional nature puts it further down the list based on overall 2014 sales, its individual store sales tell a different story. Stores on average bring in nearly $2 million. www.whataburger.com
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TOP 10
7
Hardee’s
While the West Coast is seeing growth for CKE’s Carl’s Jr. brand, the East Coast reps Hardee’s. But while Hardee’s on the whole has posted a higher profit than Carl’s Jr. don’t start packing your bags and searching for a new home in New York just yet—individual stores average $1.2 million compared to Carl’s Jr.’s $1.5 million. Neither is a number to scoff at, so you’re likely better off staying where you are and choosing what works for your region. www.hardees.com
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April 2015
M O S T P R O F I TA B L E B U R G E R F R A N C H I S E S
6
Dairy Queen
Dairy Queen is celebrating its 75th anniversary this year, and is overflowing with good will between the brand and consumers. It’s also enjoying a year of good profits, posting $2.3 billion overall. www.dairyqueen.com
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Jack in the Box
We still can’t believe that Jack in the Box is only regional, but the San Diego-based burger brand is growing and its profits should make it an appealing option for potential franchisees that want to help it grow further. The brand made more than $3 billion in 2014, splitting $1.4 million on average between locations. www.jackinthebox.com
Jack in the box meal deal
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TOP 10
4
Sonic Drive-In
Sonic Drive-In’s quirky comedic ad campaign is working—by the time the brand lands in each new location, consumers are salivating for Toaster cheeseburgers and tater tots. Each location pulls in roughly $1.1 million per location, making for total 2014 sales of almost $4 billion. www.sonicdrivein.com
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April 2015
M O S T P R O F I TA B L E B U R G E R F R A N C H I S E S
3
Burger King
Now we’re out of the regionals and into the Big Three. The leap in total 2014 sales is dramatic— Burger King pulled in nearly $8.6 billion over the last year. Average store sales are not as different, on the other hand. Each location takes in around $1.2 million.
2
Wendy’s
It’s a close race between Wendy’s and Burger King to claim a place among the most lucrative chains in the world. Wendy’s overall $8.6 billion sales just barely edge out its competitor. When it comes to store sales, on the other hand, there’s no competition. Wendy’s franchisees can expect almost $1.5 million.
www.bk.com
www.wendys.com
1
McDonald’s
Despite its comparative financial issues in recent years, McDonald’s remains on top—and if bold foodfocused changes continue under the guidance of new CEO Steve Easterbrook, McDonald’s may be able to expect a turnaround and growth in the near future. www.mcdonalds.com
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HEIDI CHOCOLATE replicating its success to a wider audience Written by: Sam Jermy Produced by: James Pepper
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H E I D I C H O C O L AT E
The premium chocolate brand is looking to enhance its presence in all of its export countries, especially the territories where it has experienced substantial success upon recent market entry
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March 2015
H
eidi Chocolate is looking forward to the next growth phase of its history, as the brand begins to strengthen its relationships with new and existing retailers across the globe. The company was originally set up as a non profit in 1994 by Swiss chocolatier and entrepreneur Jurg Läderach, whose family founded Confiseur Läderach, the famous producer of premium chocolate and confiserie products in Switzerland. Now the Heidi Chocolate brand is coming of age on its 21st anniversary since operations began, having a presence in nearly 50 countries across the world from Canada to China, with the bulk of business coming from within Europe. Testament to the success of the organisation is the fact Läderach decided to sell the business in 2013 as he had decided his mission for Heidi had been accomplished. The firm was bought out and is now owned by parent company KEX Confectionary, also owner of the Kandia and Niemetz Schwedenbomben brands. Franco Del Fabbro, Managing Director of Heidi Chocolate, said: “It has taken a lot of hard work over the years, where Heidi started out modestly with some old equipment from Switzerland. But today we have a turnover of approximately €18 million, 420 staff, and sales in nearly 50 countries with half of that turnover now coming from outside of Romania. It is
EUROPE
significant progress and an achievement to be proud of. “We continue to be an end-to-end business, where we purchase ingredients, manufacture and sell directly. We have a sales force that calls on the key customers and we distribute from our own warehouses to them inside Romania. For some countries we have exclusive deals with specific customers, so we deliver and manage the relationship directly through an export group team. Other countries we have an appointed exclusive distributor who deals with the local retail chain. “We are number two in the Romanian chocolate bar segment after Milka, which is a good position. However, you can only grow single digits a year depending on category and market condition. With exports, even though we are at a relatively
â‚Ź18m Turnover at Heidi chocolate
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H E I D I C H O C O L AT E early stage in our presence, we are experiencing growth in the region of 10-20 percent. So that is the driver of our overall growth and naturally impacts our strategy.”
Heidi chocolate line
Position and strategy Not satisfied with resting on its laurels, Heidi Chocolate foresees double digit growth in the next five years. “We are not talking about 10.1 percent either.” del Fabbro said. “That growth is going to be achieved through holding and growing our position in Romania and most importantly establishing ourselves as a clearly recognised
EUROPE
international brand. The focus of the past few years was conquering new countries, now our focus is to solidify that presence to get a better foothold in order to thrive. “Overall business is solid, go to any big retail chain in Hungary or Poland and you will see our products properly displayed on the shelf. Other countries we have just entered; for example in the UK we started doing business with Asda at Christmas. “The cost of cocoa has sky-rocketed and with the British pound getting stronger, it compounds the problem and remains one of our challenges. We source cocoa from the Altimarkas and Barry Callebauts of this world as we are still too small to have a direct link with the actual bean production, but we are looking to implement a more direct supply chain from Africa in the future.” Heidi recognises that international expansion requires a more world-focused mind-set, but relationships such as the ones it has with Turkish hazelnut farmers and Moldovan walnut producers has already been in place for many years. Investment in future The future development of the company is clearly more towards the export market. Central to this is the intention to retain a high percentage of hand craftsmanship for its chocolate product. Bespoke hollow figurines and personalised chocolate bars are tailored for retailers and consumers, and Del Fabbro claims this is something their mass producing, multinational competitors have more
“The focus of the past few years was conquering new countries, now our focus is to solidify that presence to get a better foothold in order to thrive” – Franco del Fabbro, MD
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H E I D I C H O C O L AT E
Heidi chocolate meets Florentine 38
April 2015
trouble to achieve, if nothing because of the relatively small scale of each order. But expansion has necessitated cutting edge technology too. Del Fabbro said: “I was tasked by the board with creating a 2020 vision for the
EUROPE
company, outlining where we want to go in the next five years and what we need in order to get there. Part of our strategic plan was a big boost in technology and machinery investment. “Our capital expenditure this year is equal to that over the past three years. The single biggest investment has been the conching equipment, to further improve how the chocolate is made. The second was increasing capacity on specific product lines and the third was to upgrade certain areas and equipment facilities in order to obtain IFS certification by the middle of 2016.” Of course, in production especially there is constant training and there will be a need for that as Heidi receives newer technology. Many employees have served more than ten years, and retention is high. Alongside this, the company recently finalised the creation of the Heidi foundation which serves to help employees in need and offers a helping hand to worthy community projects. Looking forward, Del Fabbro believes the last challenge he faces every day is selecting what projects to pursue. “Enforcing some basic discipline is essential; we need to say for 2016 ‘these are the ten things we will be able to deliver and will make the difference,’ let’s not get distracted by appealing side projects or we may diverge from our strategic journey.” It is a nice situation to have, and Heidi Chocolate looks primed for more success in the years to come as it continues to grow internationally.
Company Information INDUSTRY
Food HEADQUARTERS
Romania FOUNDED
1994 EMPLOYEES
420 REVENUE
€18 million PRODUCTS/ SERVICES
Confectionery
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Domino’s Pizza
Canada
Merging Global Branding with Local Appeal Domino’s Pizza Canada President Michael Curran discusses growth, revamping, and inspiring a global brand with a local Canadian identity Written by: Sasha Orman
Produced by: Sean Bakke 41
DOMINO’S PIZZA CANADA
D
omino’s is a global leader in delivery and takeout pizza—but within its overarching structure are dozens of franchises striving to tailor the brand to the needs of their local neighborhoods. Domino’s Pizza Canada is one such franchise. Based in Windsor, Ontario, Domino’s Pizza Canada works hard every day to interpret the Domino’s brand in a way that represents true and authentic Canadian culture. Canadian Pride, Canadian Products Domino’s Pizza Canada may be a part of the Michigan-based 42
April 2015
Domino’s Pizza family, but it is also its own franchise entity—and it’s one that is fiercely proud of its roots and dedicated to the concept of being a Canadian operation. A major part of this includes sourcing Canadian products from Canadian vendors wherever possible. Most recently the franchise entered into a partnership with the exclusive right to use the Dairy Farmers of Canada’s iconic Blue Cow logo, signifying that Domino’s Pizza Canada uses only 100 percent Canadian cheese and dairy products from only Canadian dairy farmers. “We’re the only pizza company, and I believe the only fast food
CANADA
company able to use the Blue Cow logo,” says Michael Curran, President of Domino’s Pizza Canada. “We looked at this a couple of years ago. Some of our competitors were importing cheese from the US, and it could have reduced our costs of cheese products substantially in our stores—but we decided that we would fully support our Canadian dairy farmers. We made a commitment up front to always use 100 percent Canadian dairy cheese in our products.” While at this time Domino’s Pizza Canada is able to certify 100 percent Canadian-sourced
products when it comes to cheese and dairy, Domino’s is constantly improving and looking for ways to integrate more Canadian suppliers and vendors into its supply chain. It’s not a matter of cost savings or economics—it’s a matter of quality, consumer trust, and Canadian pride. Presently, 85 percent of Domino products are sourced in Canada. “I think as a Canadian company, we and our consumers—as well as our suppliers which are part of our consumer base—certainly believe that Canadian products are as good or better than anything we can source from anywhere around the world,” Curran explains. w w w. d o m i n o s . c a
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“We pride ourselves on our integrity and quality.�
Sun-brite Foods Inc. has been manufacturing Domino’s pizza sauces for more than 2 decades. Sun-Brite is the largest tomato processor in Canada. We process a wide variety of tomato products in a variety of can sizes, pouches, aseptic bulk tomatoes, premium pizza sauces, pasta sauces, and a variety of tomato concentrates. Our tomatoes are Canadian grown and packed within 24 hours of being harvested, at our Leamington, Ontario facility. Sun-Brite is the owner of two major brands in Canada, Unico and Primo. Primo is the largest Canadian owned brand in Canada of pasta. Our pasta is 100% Canadian durum. We mill and manufacture our pasta in our 150,000 sqft state of the art Toronto facility. Unico is the #1 brand for Mediterranean food products in Canada. Our product collection consists of premium olive oils, vinegars, marinades, olives, tomatoes and sauces, dried and canned beans, rice, pasta and many more specialty products. All distributed from our 200,000 sqft Vaughan facility. 1532 C o unt y R d. 34 | K in g s v ille , O n ta r io N0 p 2 G0 5 1 9.326.9033 | fa x 5 1 9 . 3 2 6 . 8 7 0 0 | S u n - b r ite . c o m
DOMINO’S PIZZA CANADA “Canadian dairy products have proven to be an outstanding product to use. Certainly our consumers understand that, if we are only using Canadian dairy products, they are the best product possible in the marketplace.” An Updated Look No matter how established and iconic your brand is, it’s important to stay fresh and relevant. With that concept in mind, Domino’s Pizza Canada—along with Domino’s franchisees spanning more than 12,000 restaurant locations across 78 countries worldwide—is in the
CANADA
midst of reimaging its stores. The aim of the rejuvenation process is to create a more modern atmosphere that will better engage today’s consumers and enhance the consumer experience. “We’ve upgraded our locations and opened up our kitchen so consumers can see the product being made,” says Curran, explaining a key feature of the franchise’s location upgrades that the brand refers to as Pizza Theatre. “In many of our stores now there is an ability to sit and consume our Domino’s pizza products, not simply just carry out or delivery—which
SUPPLIER PROFILE SUN – BRITE FOODS INC., PRIMO FOODS INC., UNICO INC. Sun - Brite Foods Inc. has been manufacturing Domino’s pizza sauce for more than 2 decades. Sun-Brite is the largest tomato processor in Canada. We process a wide variety of tomato products in a variety of can sizes, pouches, and aseptic bulk tomatoes, premium pizza sauces, pasta sauces, and a variety of tomato concentrates. Our tomatoes are Canadian grown and packed within 24 hours of being harvested, at our Leamington, Ontario facility. Sun-Brite is the owner of two major brands in Canada, Unico and Primo. Primo is the largest Canadian owned brand in Canada of pasta. Our pasta is 100% Canadian durum. We mill and manufacture our pasta in our 150,000sqft Toronto facility. Unico is the #1 brand for Mediterranean food products in Canada. Our product collection consists of premium olive oils, vinegars, marinades, olives, tomatoes and sauces, dried and canned beans, rice, pasta and many more specialty products. All distributed from our 200,000sqft Vaughan facility. Website: www.sun-brite.com www.primofoods.com www.unico.ca
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Food Service and Retail Available !
Processors of Fresh Vegetables
High quality, healthy, easy to use fresh food. Pride Pak Canada Ltd. was established in 1984 to service Canada’s growing trend for high quality, healthy, easy to use fresh food. We now proudly operate as Canada’s largest fresh fruit and vegetable processor from a state-of-the-art facility in Mississauga. In 2006 we opened our second facility Pride Pak Nfld. Ltd., which processes fresh fruit and vegetables for the Province of Newfoundland.
PROUD MEMBERS OF
6768 Financial Drive
Mississauga, ON, L5N 7J6 CANADA
Phone 1-905-828-8280
Fax 1-905-828-8201
www.pridepak.com
DOMINO’S PIZZA CANADA had historically been the operating model for Domino’s.” By the end of this year, Curran states that Domino’s Pizza Canada will have about 60 percent of its stores reimaged to fit the new Pizza Theatre concept and model. Already the concept is showing signs of success, prompting positive reactions from both consumers and team members. “Our team members first and foremost really enjoy working in our new concept stores,” notes
CANADA
Curran. “They feel excited about the new work environment. Our franchisees are excited and we’ve had phenomenal feedback from our customers as well.” Driving Growth Throughout Canada Domino’s Pizza Canada is not a franchise content to stay remain static. This applies to its restaurant design, its consumer engagement, and also to its store growth and expansion. The franchise currently
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FOODSERVICE · JANITORIAL · PACKAGING
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C O N G R AT U L AT I ON S
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120 Sunrise Avenue Toronto, ON, Canada M4A 1B4 www.selectfoodproducts.com 1-800-699-8016 416-759-9316 “THE NAME BEHIND THE NAMES YOU KNOW ”
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DOMINO’S PIZZA CANADA
CANADA
has nearly 400 locations across every province in Canada and two territories—but within those provinces and territories there is plenty of room to grow, especially in Quebec. “We have a presence in Quebec, but that is an area within the country where we would like to focus on expanding our presence—we think that it’s an under-serviced market,” says Curran. “Over the next few years we would like to expand our presence into more of the cities in Quebec. Presently, we’re in Montreal, Quebec City and some of the suburban areas, but we would like to expand into other parts of Quebec within the next couple of years.” A native of Quebec, Curran understands that there are key points to successful growth in such regions, and these are points that Domino’s Pizza Canada is taking to heart in order to meet its end goal of becoming the pizza of choice for Quebec consumers. “Quebec’s a phenomenal market with incredible opportunities—but one of the issues that can be a challenge, and that most companies don’t spend enough time focusing on, is that if you are going to operate in Quebec you need to operate as a Quebec company,” he explains. “You need to have an independent operating base and localize your product.” But what does effective independent localization mean? At the heart of it all it’s about not taking your consumer base as a monolithic whole—to make an impact, a progressive brand
Michael Curran, President, Domino’s Pizza of Canada Ltd.
Jeff Kacmarek, Vice President of Marketing & New Product Development, Domino’s Pizza of Canada Ltd.
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DOMINO’S PIZZA CANADA
needs to look at the needs of individual regions and integrate those needs into a strategy that makes sense to the brand overall. “It’s a brand first and foremost—a promise of consistency,” says Curran, explaining that any 50
April 2015
localization still has to take place within what makes sense for Domino’s as a unified chain. “Then there is the localization consumers look for, where there’s an interest from consumers that make economic sense both from the
CANADA
consumer and the store operator. So parts of the country might have different product lines that you wouldn’t find across the country—in Quebec we have French fries because that’s something consumers like, but we don’t have that in the rest of Canada.” Through this type of smart localization within context, Domino’s Pizza Canada is able to maintain its brand integrity while meeting the unique needs of every region into which it expands. What’s Next for Domino’s Pizza Canada Moving into the future, Domino’s Pizza Canada is focusing on introducing exciting new products like the recent Parma Bites, as well as building new locations and finding growth opportunities as they come. “We don’t have a specific goal or mandate to open a certain number of stores, because my personal belief is that if we do a good job and our franchisees do a good job, the opportunities will be there,” says Curran. “The stores that are open are the result of consumers telling us they like our product, and so far that’s been a comfortable growth strategy.” But no matter what the future holds, the franchise’s first and foremost focus is on the people who keep it running every day, and it’s that support that sets Domino’s Pizza Canada apart. “Everything we do is what’s in the best interests of our customers and team members who work in our stores,” says Curran. “Within that environment, everything else takes care of itself.”
Company Information INDUSTRY
Pizza QSR and delivery HEADQUARTERS
Windsor, Ontario, Canada FOUNDED
1960 EMPLOYEES
20,000 REVENUE
Not Disclosed PRODUCTS/ SERVICES
Pizza QSR and delivery
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SLC AGRÍCOLA
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ecades have passed from the creation of the first industry of selfpropelling harvesters for grains in Brazil to achieving excellence in technology and quality in production today. This track record of accomplishments by SLC Group is due to SLC Agrícola. As a producer of agricultural commodities, the company is focused on producing cotton, soybeans and corn. It has 16 production units strategically located in six Brazilian states, totaling more than 282 thousand planted hectares in the crop year 2012/13. Additionally it has a commercial area at its head office in Porto Alegre, State of Rio Grande do Sul. Operating in the domestic and export markets, the SLC Agrícola brand is synonymous with high quality. Its expertise in the prospecting and purchase of lands in new agricultural borders is widely recognized. The purchase of lands with high production potential aims to capture the Brazilian real estate value to compete with the United States, China, India and Argentina.
Paiaguas farm, MT
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In addition to producing coffee, wheat, corn and sugar cane, SLC Agrícola is one of the largest producers of soybeans and cotton in the country. It accomplishes this using a business model based on a modern production system with high scale standardization of production units, cuttingedge technology, strict control of costs and social-environmental liability. OPERATING EFFICIENCY The company introduced modern management techniques derived from the industrial sector, bringing competitive advantages that support SLC Agrícola’s position in global agriculture. High productivity: Based on data from Conab and USDA, the company production of cotton and soybeans is higher than domestic and US averages. Such results are due to:
Soybeans
Soybean harvesting
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Knowledge grows
Brazil, the breadbasket of the world Brazil is already an agricultural powerhouse and the largest single market in Yara. To the challenge of feeding a growing world population, Yara provides nutritional solutions to increase the productivity of farming in Brazil. Fertilizers are essential to optimize performance, increase land use efficiency and mitigate emissions of greenhouse gases. Yara halved the emissions in its fertilizers production.
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BRAZIL
1) a cost structure and efficient operating cycle; 2) production technology, with high mechanization of the planting and harvesting process; 3) use of crop rotation system; 4) mastery of the direct planting technique; 5) and experience in correcting the chemical composition of soil and in selecting seeds. Moreover, SLC Agrícola expects that the introduction of genetically modified seeds will increase productivity and reduce production costs-particularly of pesticides. Strategic and diversified location: SLC Agrícola’s portfolio of assets is diversified, with its fourteen farms strategically located in six states of the Cerrado : Goiás, Mato Grosso, Maranhão, Mato Grosso do Sul, Bahia and Piauí. This type of localization reduces potential regional climate risks and the incidence of pests and diseases. Scale and Standardization: The company business model is based on the standardization of production on its several farms. This entails adapting
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physical facilities, productive infrastructure, equipment, an operating organizational chart, standardized administrative management and agricultural planning. Crop Rotation In addition to providing several benefits to the production process, the crop rotation system used on all of SLC AgrĂcola farms ensures reduction of fixed costs. The greater control over weeds, lower incidence of pests and diseases, and better use of machines and employees are only some of the productive benefits gained. Those crops also represent significant synergies, since the fertilizer leftover from one crop is reused on the next. Furthermore, pests and diseases are more easily controlled by means
Cotton plant ready for harvesting
Soybean production
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SLC AGRĂ?COLA of the natural rotation. Soil Management SLC AgrĂcola uses direct planting to reduce the loss of soil, water and nutrients to negligible levels. Production costs are reduced with direct planting by decreasing the operation of machines and preserving soil and nutrients. This reduces the need for heavy fertilization. Additionally, there is an increase in the productive potential of crops. RESEARCH AND TECHNOLOGY The information obtained from research conducted in the company and official research authorities is used to plan crops. Each of the 14 farms has a research unit. Among the most explored topics are:
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1) fertilization and soil management systems; 2) competition of other soybean growers; 3) cotton and corn hybrids; 4) planting seasons; 5) and assessment tests on the efficiency of fungicides, insecticides and herbicides. Those experiments simulate the actual conditions of crops and are conducted according to scientific criteria. 190 tests are conducted at SLC AgrĂcola every year. The area used to conduct the experiments is nearly 1,300 hectares. w w w. s l c a g r i c o l a . c o m . b r
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SLC AGRĂ?COLA
Cotton harvesting
cotton plant
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GROWTH STRATEGIES The company expansion strategy is to purchase new farms, enlarge the cultivation of the second crop and expand production via lease. By using a market analysis that accounts for size, soil quality, location, climate, altitude, topography, price per hectare, logistic development potential and documentation standards, SLC AgrĂcola will identify and purchase properties in the Brazilian Cerrado with high production potential and market price appreciation.
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Company Information INDUSTRY
Agricultural HEADQUARTERS
Porto Alegre, Rio Grande do Sul - Brazil E S TA B L I S H E D
1977 EMPLOYEES
2100 MANAGEMENT
President: Aurelio Pavinato
As for cultivation, favorable climate and mastery of technology makes the planting and harvesting of the second crop of cotton and corn favorable in the same crop year. This allows for enlarging the planting area, reducing the cost of the produced unit, and crop management technical benefits. The leasing of areas close to already established farms aims to enlarge the plantation area. This will make it possible to increase production by using the existing structure and to reduce fixed and production unit costs. Finally, it will lower demand for initial investment.
PRODUCTS/ SERVICES
Production of cotton, soybean, corn, coffee, wheat, corn seed and sugarcane
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ARCOS DORADOS
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epresenting McDonald’s brand in 20 countries in Latin America and the Caribbean, Arcos Dorados is the world’s largest brand franchise. It manages more than 2 thousand restaurants that, together, serve nearly 4.3 million customers every day. With the exclusive right to hold, operate and grant franchises of McDonald’s restaurants, the company works with an integrated system in which its collaborators hold a prominent position. With 90 thousand employees, Arcos Dorados is considered one of the largest employers in Latin America. In Brazil alone the company employs nearly 50 thousand workers in its more than 830 restaurants.
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MCDONALD’S IN BRAZIL Present in 23 states and in the Federal District, half of the sales revenue is generated out of the southeastern region between São Paulo and Rio de Janeiro. The first McDonald’s in Brazil opened in 1979 in the Copacabana neighborhood of Rio de Janeiro. Two years later, the first restaurant of the chain opened in the state of São Paulo, in the heart of Avenida Paulista. These openings were followed by a series of other firsts: Drive-Thru, franchised restaurant outside the Rio-São Paulo axis in Brasília, Ronald McDonald house, and Nutritional Guide, in 1994. Maintaining the brand cornerstones, in 2007 all of the restaurants in Latin America started to be operated by Arcos Dorados. According to its Vice President of Operations, Rogério Barreira, “at Arcos Dourados, we work every day to accomplish our mission of serving quality food, always providing a unique experience based on our values. The management of the supply chain, for example, is one of the key factors to our success”. STANDARDS The company meets all of the food quality and safety requirements set by McDonald’s Corporate, building up long standing relationships with ingredient providers. Through the development of local suppliers, Arcos Dorados
Vice-President, Rogério Barreira
Director of Supply Chain, Celso Cruz
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ARCOS DORADOS can meet demanding quality standards, like safety and consistency of products, in compliance with internationally-recognized food manufacturing practices. One example is the quality of the protein. Celso Cruz, Director of Supply Chain says: “McDonald’s has adhered to the MSC [Marine Stewardship Council] seal that controls the legal and responsible fishing production chain, based on environmentally healthy standards.” Beef is another prominent point in the food safety program. Raw materials come from pastures where the climate and soil are perfect, meeting the highest quality standards required by the company. “Contrary to many rumors, we use 100 percent beef. Furthermore, the quality of the burgers is not only related to the origin of the animal, but also to the care it receives,” adds Cruz. Arcos Dorados is a member of the Sustainable Livestock Breeding Work Group (GTPS), an association of representatives
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from different segments of the Brazilian bovine cattle value chain. Proteins are not the only products used by the chain certified by globally recognized institutions. Coffee is also in this select group and bears the seal of Rainforest Alliance – an entity created to strengthen coffee producers, training them in methods to increase production and protect soil health. Through the “Open Doors” program, Arcos Dorados invites customers into its restaurant kitchens to inspect processes and products, as if they were members of the McDonald’s team. The vice president reaffirms the importance of this relationship. “It is the opportunity the customer has to feel the experience and confirm the quality of our food and, especially, of our service,” he stresses.
“The Open Doors program is the opportunity the customer has to feel the experience and confirm the quality of our food and, especially, of our service”
MENU ITEMS Sandwiches
Beef sandwiches
Bic Mac
Chicken sandwiches
Mc Chicken
Fish sandwiches
Mc Fish
– Vice-President, Rogério Barreira
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ARCOS DORADOS
MENU ITEMS Sides, snacks and desserts
Mc Fries
Salads
Sunday
Mc Café
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WORKPLACE AND PROFESSIONAL TRAINING Recently, the Great Place to Work ranking named Arcos Dorados the fourth best in Latin America. The results are based on surveys conducted with more than 3.5 million collaborators in 2,200 companies across the region. Among the top companies in the ranking, Arcos Dorados has the largest number of workers in Latin America, in addition to providing the most first-jobs for youth. The company invests around 14 million USD every year in training. This takes place at Corporative University--McDonald’s “university,” Regional Training Centers under the University coordination, and its own restaurants. In 2012, the University was granted the important LEED seal – a certification for buildings that comply with the national enterprise’s commitment to sustainability. This was achieved the same year the institution celebrated 15 years of operation. In this same period, Arcos Dorados accepted more than 15,800 students from 15 Latin American countries who were trained in one of three business areas covered by McDonald’s University. In addition to teaching leadership, business and operating excellence, the company also plans to expand strategic partnerships to offer post-graduation studies. These include MBA’s and other business programs in partnership with renowned institutions like FGV, FIA, Universidad
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McDonald’s University was renovated in 2012 and its new structure got the LEED seal
“Contrary to many rumors, we use 100% beef. Furthermore: the quality of the burgers is not only related to the origin of the animal, but also to the care it receives” – Director of Supply Chain, Celso Cruz
McDonald’s University offers various qualification and leadership courses
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ARCOS DORADOS
McDonald’s University’s lounge
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ARCOS DORADOS
McDonald’s of Riviera de São Lourenço, the first restaurant in the country to receive a LEED seal
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de Morón, SENAC and Harvard. The Training Center offers several programs for managers like Operating Excellence, Consolidation of Companies and Management of People. These are conducted in 84 Training Center restaurants (RCE) in countries where Arcos Dorados operates. SOCIAL AND ENVIRONMENTAL RESPONSIBILITY Employees are always involved and encouraged to take part in initiatives that show the company’s social responsibility. One of these is the “Good Neighbor Tournament.” This initiative fosters team solidary and activity beneficial to the communities surrounding the restaurants. In 2013, it reached more than 6,700 local actions. In terms of sustainability, just over five years ago, Arcos Dorados opened its first ecological McDonald’s. The restaurant, located on the beautiful Riviera de São Lourenço, in Bertioga, was built with recyclable material following special methods. Cruz admits that the green restaurant is a great achievement. “The cool thing about it is that in addition to the recycled construction materials, other equipment and materials from the region were used, not to mention the automatic systems of air conditioning and use of rainwater,” he stresses.
Company Information HEADQUARTERS
Barueri, São Paulo - Brazil EMPLOYEES
90.000 E S TA B L I S H E D
Arcos Dourados in Brazil since 2007 / McDonald’s in Brazil since 1979 PRODUCTS / SERVICES
Fast Food Service MANAGEMENT
Arcos Dorados: Woods Staton Arcos Dourados Brazil: José Valledor REVENUE
In 2013, the company net sales in Latin America exceeded USD 4.03 billion. Arcos Dourados Brazil obtained in 2013 sales revenue of USD 643 million
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