THE LIST
BRANDS BROADEN
THEIR HORIZONS Regional Australia is calling ... savvy franchise chains are spotting the business potential beyond our capital cities.
I
t isn’t just the slower pace of life that tempts Aussies away from the metropolitan hubs; the cost of living, a community feel and better housing options are also on the wish list. And so population growth, well-sized locations and affordable rents are luring franchise brands, too. A franchise’s regional expansion provides the ideal solution for a tree- or sea-change (McDonald’s famously relies on new franchisees moving wherever the opportunity arises). And with firms recognising the demand for cityfavourites to join the regional heartland line-up, there’s a fresh enthusiasm for provincial postcodes. The Franchise Council of Australia, the sector’s peak body, has also heightened awareness of the coastal and interior towns ripe for new business. In 2019 the FCA
played matchmaker with a program linking regional cities to franchisors keen to explore new horizons. Greater Hamilton council in the Grampians, for example, has directly targeted the franchise sector, proclaiming itself a supportive administration and the area an agricultural region with a strong appetite for franchise brands. Various retail analysts are backing the regional trend; last year, reports pitched that suburban and regional shopping centres will drive a return to retail. Property firms are investing big bucks in building and refurbishing so-called “tier 2” sites with construction set to rival the flagship metro centres. So is the future regional? Certainly there is a diverse range of firms keen to extend their brand footprint into business-friendly districts across the country, such as the brands showcased here.
BURGER BUZZ
McDonald’s has a three-year, $500 million growth plan that includes better regional representation for the global
burger brand. The goal will be to have more than 1000 McDonald’s outlets open across Australia. Key growth corridors across the country are typical areas of development for the business, which owns two out of every three sites it operates. The fast-food giant has mastered the art of diversification with its store formats, but expect to see more of the freestanding stores and drive-throughs that form the basis of its business as it steps up expansion. Customer demand matched with site availability, suitable zoning, access to key roads, and population growth will be the blueprint for regional growth.
BIGGER BUBBLE
The Little Cha has Geelong, Newcastle and the Sunshine Coast marked up as potential growth spots for its bubble tea network. Already established in Taiwan, NSW and WA, the beverage business brings eastern flavours to Aussie consumers. The brand launched its first Australian site in 2017 and plans to open up to 30 stores by 2022.
FEB/APR 2020 | 20 | WWW.FRANCHISEBUSINESS.COM.AU
