ON A SCROLL

ON A SCROLL LEADERSHIP

When US bakery giant Cinnabon announced it was heading Down Under, the internet went into meltdown.

By Nick Hall

Social media was littered with love for the hot scroll concept, which had staked its claim on gooey and gluttonous. But it wasn’t going to be easy to bring the flavours to life in Australia.

In Seattle, where Cinnabon originated, the cool climate lends itself well to the fresh baked franchise market. A menu rich in sweet, cinnamon flavours captured the attention of the north-west US market, but as many franchisors have learned, the Aussie consumer is far more cautious. “In the early days, no one trusts the brand, you don’t have the history so it’s very hard to convince someone that the brand will work,” says Gaurav Bansal, director of Cinnabon Australia franchisor The Bansal Group.

“Once that challenge is done, the second issue is supply chain. You can only order so much, you always have an expiry date on your supply chain. It takes two or so months to get the local supplies onside before they look at supplying to you.”

For Bansal, Cinnabon was a brand he had always admired. He knew the offering had potential, but navigating the difficulties of staffing and baking fresh daily had kept him from taking the leap. It wasn’t until he went through a similar experience with fellow US chain Carl’s Jr. that he understood how to tackle the bakery business.

INTERNATIONAL EXPERIENCE

Bansal acquired the Australian rights to Carl’s Jr. back in 2016, launching a series of restaurants across south-east Queensland. Bringing the international chain Down Under wasn’t easy, but in just under two years Bansal had amassed a Carl’s Jr. network of seven outlets, eventually being crowned International Developer of the Year from Carl’s Jr. parent company CKE Restaurants.

“Obviously with opening seven restaurants in Queensland, there was no other competitor,” Bansal says.

“With the sales we did and the stability we have, it was really hard work paying off.”

But the budding businessman wasn’t done there.

After a few years focused on the Carl’s Jr. burger business, Bansal revisited the Cinnabon experiment, taking the lessons he’d learned and applying them to the all-new venture.

“I realised it all came down to cost of goods,” he says.

“With Cinnabon, the model has been successful all over the world because it’s a very low-cost format. Cost of goods for a scroll is sitting around 20 per cent, so it will be a high margin model, as compared to other QSR brands where your sales are high, but your cost of goods is also high.” Bansal approached the international chain and to his surprise, the iconic bakery business jumped at the chance. Now, less than a year after announcing plans to bring Cinnabon Down Under, Bansal is basking in the glory of another international accomplishment.

CINNABON AUSTRALIA OPENING

In December, Cinnabon Australia threw open the doors to its inaugural outlet. More than 1400 fans eagerly waited outside the Toombul, Brisbane store, keen to catch a glimpse of the fresh scroll baking in action.

The outlet didn’t disappoint. Queues poured in across opening weekend, which Gaurav put down to a perfect storm of positive promotion, brand recognition and a healthy dose of nostalgia.

“The response was overwhelming, from both locals and people who travelled hundreds of kilometres to get their hands on a Cinnabon on opening weekend,” he reveals.

“I think it’s a nostalgia brand for many people who’ve tried it while travelling and never forgotten the taste. They’ve waited a long time to be able to taste Cinnabon back home, there’s also nothing else like it in Australia.”

It’s true: no other brand on the domestic franchise market offers a hot scroll product, baked fresh every 30 minutes. It’s an interesting premise, but one that has seemingly captured the hearts of the Aussie public, who are screaming out for a Cinnabon to open near them. “We knew there was a gap in the Australian market for an indulgence brand where Cinnabon sits, but we’re amazed by the fan base around the country begging us to open in their city and their huge love for this brand,” Bansal says.

EXPANSION

Nationwide expansion is certainly on the cards for Cinnabon, with interest already being explored across the country, but it’s a bigger job than you might think.

For Gaurav, the franchisor role is a new concept. He’s served as a licensee and franchisee before, but steering an entire international chain and finding the right partners to lead the growth is a new challenge in its own right.

“We want to please Cinnabon fans all over Australia and roll into every state. We’re doing our best but it’s a huge job for every store and we want to make sure we get every opening perfect. There’s much to plan so we will take the time to do it right,” he says.

“The demand to move interstate is huge and that’s our goal for the coming years, to be Australia-wide.”

Things are kicking off, however. Cinnabon opened its second Brisbane bakery in January, with fans eagerly anticipating an interstate announcement at any time.

“We have a couple more planned for Queensland this year, but the wheels are also in motion for Sydney and Melbourne and we hope very much to be there in 2020.”

It’s a long way off the 50-store goal Bansal revealed last year, but if things keep going the way they have been, the future is looking sweeter than ever for the hot scroll business. n