BRANDS BROADEN THEIR

Regional Australia is calling ... savvy franchise chains are spotting the business potential beyond our capital cities. BRANDS BROADEN THEIR HORIZONS

It 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.

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. BURGER BUZZ

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. BIGGER BUBBLE

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“Regional areas work really well for us,” says Neil Welsh, the Touch Up Guys national franchise manager. The mobile paint and bumper repairs franchise has been servicing Aussie vehicles for nearly 30 years and has more than 60 franchisees operating throughout Australia.

“The Queensland coast is well covered up to Mackay,” says Welsh, but there are plenty of opportunities across the country. Ballarat, Bendigo, Shepparton and Mildura in Victoria, Wagga Wagga in NSW – and further afield, Darwin, Alice Springs, Broome and Albany are high on the list.

The franchise is targeting motivated individuals who are personable, and love a hands-on role. Extensive technical and business skills training and ongoing mentoring mean no experience is required. SHINY CARS

Aussie fibreglass swimming pool builder Narellan Pools is looking for regional franchisees.

Peter Baily, chief operating officer, says, “We already have a lot of areas covered and they are some of our best performing territories. We find competition to be less in regional areas and many of our franchisees have done a great job building their reputation and market share.

“We work hard on delivering a great client experience and this works especially well in regional areas where word of mouth is more powerful.”

Baily says the community aspect plays a key role in building business.

“Our franchisees get involved in their local communities and people tend to support businesses that support the community.” Key opportunities are on the Capricorn Coast and Tasmania, in.Ballarat, Mildura, Warrnambool and Mount Isa. DIVE RIGHT IN

OPEN SPACE Country head of IWG (International Workplace Group) Damien Sheehan says, “By 2030, it is predicted that up to 30 per cent of all commercial real estate will be flexible workspace, while flexible working is estimated to increase the total economic output in Australia by an estimated $122 billion.”

IWG alone helps millions of people in 1000 cities across more than 120 countries find collaborative work spaces.

In Australia the firm’s geographical targets include the regions surrounding Sydney such as the Hunter and Wollongong, as well as Penrith and Nowra; the growth corridors north and south of Brisbane, Townsville and Cairns; the Mornington Peninsula, Albury-Wodonga and Mildura.

The business is targeting investors who can commit to three or more locations over the next four to six years. Andersens Flooring is one brand that knows the value of regional representation. Andersens started in the Queensland Lockyer Valley town of Gatton more than 60 years ago and now has almost half of its network spread across rural areas in Queensland and northern NSW.

Network development manager Dean Lightfoot says, “We see great opportunity in the southern states to expand the brand. I currently have three applicants for regional areas from Port Macquarie and down to Shepparton, which we are very excited about.”

There are plans for eight new stores to open and the franchise has its sights set on eastern seaboard development south of Newcastle and into South Australia.

There’s a definite trend to more rural regions because of housing affordability challenges, Lightfoot reports. Popular locations are within four hours drive of capital cities. COUNTRY HERITAGE

MyFirstGym’s new master franchisee has circled Cairns to northern NSW on the map, and is tasked with developing this Queensland regional growth for the newbie fitness model geared up for small kids’ activities.

Martin Roller will help co-founder Dan Newton reach his goal of 40 outlets across Queensland and NSW by 2025.

Newton says, “MyFirstGym now has area developers across five Australian states, and we’re very confident in the high-quality team we have in place. We have a wealth of experience within the group, with high credibility and incredible track records across different industries and sectors.” ACTIVE ANKLE-BITERS

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