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GLOBAL EYE
BRAND BUSINESS
The big stories in franchising that you need to read.
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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 CAFE CHAINS ARE RATED TOP PERFORMING BRANDS
“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
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 US CHAIN LANDS IN AUSTRALIA
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 MOVING ON, MOVING IN
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.
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. TECH TALK
SMASHING RECORDS, EXPANDING STORES
THE SPORTING GLOBE Aussie bar and casual dining franchise The Sporting Globe is approaching an expansion milestone with a monster three-storey venue in Melbourne taking the store-count to 15.
David Sinclair, The Sporting Globe franchise recruitment manager, said, “We see our focus as a competitive advantage, we know what we are and we know what we want to be: the best place to catch the game, Australia’s number one sports bar and grill. This has helped us clearly navigate the market and continue to innovate.”
Over the last 12 months, The Sporting Globe has invested heavily in new technology, boosting customer experience and franchisee performance. n
TACO BELL Just after launching an inaugural outlet in NSW, global icon Taco Bell has gone full speed ahead on its next Aussie endeavour. When the Tex-Mex giant unveiled the maiden Melbourne Taco Bell restaurant it enlisted a city icon to get the message across, with fans treated to a world-first “tram-thru”.
Fans waiting eagerly outside Tram Stop #51 on Route 78 had their orders taken, before boarding the purple, Taco Bell-emblazoned locomotive. Meals were prepared fresh as the journey continued, then delivered hot as the tram ground to a halt outside the new Melbourne Taco Bell restaurant. n
CHICKEN TREAT For the first time in its over 40-year history, Western Australian icon Chicken Treat landed in Melbourne partnering with delivery platform Deliveroo. The new concept is a purely delivery-only kitchen, operated through Deliveroo’s recently announced “Editions” marketplace. The Collingwood site launched in October and houses 35 partner brands, offering low-cost “dark-kitchen” options.
Mimma Battista, Chicken Treat’s CEO, said that by launching a corporate storefront initially, the chain can better measure the potential for future expansion. n
BEN & JERRY’S The Ben & Jerry’s tenth anniversary mark kicks off in 2020, with three new franchised scoop shops set to steer the celebrations as the franchise embarks on its biggest year to date.
Among the three new developments is the opening of the much-anticipated Burwood Brickworks outlet. Aiming to be the most sustainable shopping centre in the world and the first to achieve the “Living Building Challenge”, the mixed-use urban village is the perfect fit for the modern ice cream parlour, which has always championed social and environmental justice, according
THE BURRITO BAR New restaurant openings are currently being planned across Melbourne, Sydney, Brisbane, Gold Coast and regional Australia for Mexican-inspired chain The Burrito Bar. Burrito Bar general manager Shaun Butcher said, “We will also be launching our app in the first half of the year and an exciting new menu to further expand on our diverse food and beverage offering.” Fresh off announcing a renewed focus on franchisee profitability and growth, the food franchise has also smashed its singleday sales record. n
to Sean Farrell, Ben & Jerry’s national retail manager.
“We are constantly looking at our supply chain and thinking about where we can do better, starting with the changes that will have the biggest impact.” n
I’ve been very fortunate. In another role I would not have been able to do the things I’ve done, open clubs while in a corporate job, innovate the things I see are needed, and be creative. That’s what I tell a lot of young guys in the business – I’m no different from anyone, I took the opportunities.
Andy Peat, Snap Fitness
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