GLOBAL EYE
BRAND BUSINESS The big stories in franchising that you need to read.
CAFE CHAINS ARE RATED TOP PERFORMING BRANDS Muffin Break and Jamaica Blue are the latest to list as high-performing brands through the Australian Franchise Rating Scale. Ratings are allocated after an independent and fact-based assessment across seven key categories designed to measure both transparency and performance. In achieving this strong (4 star) rating, both brands have been able to demonstrate a high level of transparency and a high level of franchise performance. Darryn McAuliffe, CEO of FRANdata, which reviewed the franchises, highlighted that Foodco is one of the first large franchise hospitality groups to understand the importance of having external independent assessment of its systems and processes. “The review team was particularly impressed with the positive financial impact a number of Foodco initiatives were delivering to franchisees,” he said. “Franchisees of both Foodco brands also enjoyed a superior level of support around business performance and compliance programs.” n
“THANKS BUT NO THANKS, SHARKS” Two years since turning down an offer on TV show Shark Tank, SpeedFit has tripled the size of its business, surging ahead with year-on-year double digit growth in Australia’s competitive fitness industry, and attracting lucrative medical investors from the Middle East. SpeedFit offers an alternative to high intensity, high impact activity with a workout tailored to individual needs, from people with disabilities to seniors, the injured and elite athletes. The business appeared on Shark Tank but rejected investment from Boost Juice founder Janine Allis and Dr Glen Richards. SpeedFit CEO and founder Matej Varhalik took a step back to set the business on a sustainable path, after realising the target of 15 studios in a short period of time was risky. As a result of the fine-tuning SpeedFit increased profit by 23.98 per cent but also decreased wages/cost of labour by 6.15 per cent. The business has also seen a 60 per cent growth in sales from $2.1 million to more than $3.5 million, with projections of $5 million this financial year. The brand’s performance and growth from five locations to 15 has attracted investment from the founders of a Middle Eastern private hospital medical empire, the Shetty family, who are also part of the Forbes 1000 international list. Neema and Sharad Shetty, who are based in Perth, came across SpeedFit as clients and were excited enough by the use of technology to fill a gap in the fitness market that they invested in an individual studio in Western Australia. The business model proved so effective the pair have now made a sizeable, but minority, investment in the parent company. n
US CHAIN LANDS IN AUSTRALIA
Massive US gym giant Planet Fitness is officially on its way Down Under, after the brand announced two new partnerships. The Planet Fitness Australia expansion is set to deliver a minimum of 35 new studios nationwide, significantly bolstering the chain’s global footprint. The latest development has been an enormous undertaking for the international conglomerate, which boasts more than 14 million members across all 50 US states, Canada and South America. The new Planet Fitness Australia venture will operate as a franchisee of the US business, with all sites to be owned and operated centrally. n
MOVING ON, MOVING IN Craveable Brands group CEO and director Brett Houldin has stepped down after five years with the umbrella group for three iconic Aussie brands, Red Rooster, Oporto and Chicken Treat. Experienced retail executive Karen Bozic (Caltex, Woolworths, Rebel Sport) took on the role of group chief at Craveable Brands in December. Seasoned franchisor and former MD of Fastway Couriers Australia Richard Thame is taking on the role of CEO at Snap Print & Design. Thame has more than 20 years’ experience in senior roles with big-name brands such as McDonald’s, Greater Union Cinemas and Thrifty Car Rental. n
GONGS AND AWARDS At the Australian and New Zealand Golden Bean Awards, the world’s largest coffee roasters’ competition, Zarraffa’s Coffee picked up six bronze medals. The chain utilises gas fired air roasters, harnessing a stream of hot air to roast the coffee beans, causing them to flow or to swirl, leaving clean, fresh and palatable coffee beans with the signature Zarraffa’s taste.
TECH TALK
A new ActionCOACH online portal provides business owners with detailed information and insights on their operation, better preparing them for future growth. It’s a boon for ActionCOACH clients, who can now set goals, track performance, identify trends and chart growth. The new portal sees business objectives and insights split into a series of easy-touse tabs, where owners can set specific goals over a five-year period.
FEB/APR 2020 | 12 | WWW.FRANCHISEBUSINESS.COM.AU