16 minute read
CASUAL ENCOUNTERS
THE COFFEE EMPORIUM
Greg Erickson is general manager at premium cafe chain The Coffee Emporium, which has been in business nearly 30 years.
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HOW WILL CASUAL DINING CHANGE OVER THE NEXT 12–24 MONTHS? As confidence returns those who have survived will be looking to carve out their own unique style and also develop stronger online revenue streams. Over the next 12–24 months you’ll likely see menus become more creative with signature dishes and flavours taking centre stage.
HOW DO YOU DIFFERENTIATE YOURSELF IN THE SPACE? Quite simply, at The Coffee Emporium we take our coffee seriously. Our signature blend is overseen by the owners of the business and has been a closely guarded secret since 1991.
The very best beans are sourced, blended and roasted in Sydney before distribution to our franchises around the country. The coffee is fresh, and the baristas well trained.
The same goes for our food – we go fresh, not frozen, never skimp on ingredients and believe that quality control is an imperative. We are also flexible enough to allow our franchise partners to put their own personality into the business, as we know being part of a community truly matters.
HOW ARE DIGITAL AND DELIVERY AFFECTING YOUR BUSINESS? Online food delivery is a great addition to the mix for many of our franchises, while others have been reluctant to adopt online ordering and delivery options due to staff, timing and digital literacy issues. It comes down to what the franchise partner is comfortable with.
For those who have embraced digital it’s been a welcome addition to their income streams and they’ve been able to maximise takings during this challenging period.
HOW CAN FRANCHISEES MAKE THE MOST OF THEIR BUSINESS OPPORTUNITIES? Franchises really need to know and be part of their community. Joining local business centres, getting to know the council and being involved in local sports and charities are all an important part of developing both business and personal connections. Many businesses will allow a franchise to advertise direct to their staff and membership base via inclusion in newsletters and social media stories. In the end, everything is about relationships and the most successful franchises have warm and respectful relationships not only with customers, but local media and community leaders. WHAT'S NEW AND EXCITING IN THE MARKETPLACE? Covid-19 has forced Australian restaurants to be even more creative with their ingredients. International supply chains have been interrupted, which has allowed smaller Australian-owned and run suppliers to really show what they can do. For the first time in decades, we’ve been reminded of the brilliance and competitiveness of Australian products.
WHAT ARE YOUR 12-MONTH EXPANSION PLANS? The Coffee Emporium is currently negotiating a number of new sites and also plans to refresh existing sites in the near future. A retail offering is in development; watch this space!
WHAT IS THE BIGGEST CHALLENGE FACING YOUR BUSINESS AS WE HEAD INTO 2022 FY? There is still concern that Covid-19 could rear its head again and trigger another lockdown. We are working to future-proof the business (as much as is possible) by diversifying the retail offering and fine-tuning the online ordering systems.
WHEN WILL UNIT REVENUE RECOVER FROM THE PANDEMIC? Most of our franchises have already returned to pre-Covid sales figures while others are close behind. With a continuing increase in market confidence, adherence to advice from the Chief Medical Officer and a return to normal social activities we expect revenue to return to pre-Covid figures by early 2022. WHAT ARE YOU DOING TO INCREASE PROFIT MARGINS? Staffing is always an important consideration so we ensure our operations team works closely with franchise partners to ensure they create and manage rosters that work for the business. We also keep a close eye on the menu – what’s popular and not so popular across the franchises. With this information we regularly refresh the menu with fresh flavours while keeping the old favourites.
WHO IS YOUR CUSTOMER AND WHAT DO YOU SEE AS THE BIGGEST COMPETITION FOR THEIR DISCRETIONARY DOLLAR? Our customer base is very diverse, from young professionals to couples and families but the one thing they all share is a desire for quality and affordability. We offer both. The challenge is standing out in a sea of marketing and social media content!
THE SPORTING GLOBE, TGI FRIDAYS
James Sinclair is CEO and managing director of Signature Hospitality Group, which operates The Sporting Globe and TGI Fridays.
HOW WILL CASUAL DINING CHANGE OVER THE NEXT 12–24 MONTHS? Digital and online food delivery platforms were already gaining momentum pre-Covid; the last 12 months projected a trend that was probably going to happen over a couple of years in just months. Delivery will keep growing as this service evolves and consumers continue to value convenience.
We’ve been working on some exciting, different delivery initiatives designed to enhance customer experience even further, which we’ll look to roll out over the next year across both TGI Fridays and Sporting Globe.
With Covid-19 and social distancing changing consumer behaviour, premiumisation will occur with consumers willing to pay for better experiences across casual dining. I believe there’ll be greater appreciation for exceptional customer service and higher spend as people reward themselves when celebrating and connecting with friends and family.
HOW DO YOU DIFFERENTIATE YOURSELF IN THE SPACE? We’re still strong believers that having well-trained, highly engaged people is the foundation to standing out.
From running limited time offers, constantly trialling new food and beverage items to looking at new technologies to support our offering, we’re constantly refining the vision for our “fitout of the future”.
HOW ARE DIGITAL AND DELIVERY AFFECTING YOUR BUSINESS? Digital ordering has offered a positive option for guests to order ahead for pick-up or dine in. It provides convenience to order when they want and to transact easily. It also provides incredible insights for us to better understand what people want and when, so we can plan our offerings.
Delivery continues to grow and we’ve been working for some years to ensure a quality delivery offering, and our future restaurants are designed with this in mind. Presently, the cost of delivery platforms is high when benchmarked internationally, but we’re seeing direct delivery options such as DoorDash Drive coming to market, creating a more viable model.
HOW CAN FRANCHISEES MAKE THE MOST OF THEIR BUSINESS OPPORTUNITIES? By placing a strong emphasis on training and retaining the best people; focusing on growth in direct takeaway and delivery with loyal guests; investing and reinvesting in technology and quality fitouts to differentiate their business from competitors.
WHAT'S HAPPENING IN YOUR BUSINESS REGARDING LOCATIONS AND RENT? Brands are looking for sites outside shopping centres on the high street postCovid, in part because centres have not yet created strong delivery access. We plan to have both centre sites and high street sites across Australia.
Rental levels for new sites in the market are holding rather than growing or declining. Post- Covid the pressure is on landlords to lower annual rent increases to reflect lower inflation.
WHAT ARE YOUR EXPANSION PLANS FOR 2022 AND BEYOND? We have big plans to achieve 30 Sporting Globe and 30 TGI Fridays nationally by 2024 (20 per cent annual growth). Most of this will be defensively targeted towards NSW and Queensland.
WHAT IS THE BIGGEST CHALLENGE FACING YOUR BUSINESS AS WE HEAD INTO 2022 FY? Our industry is facing a skills crisis with a dire lack of experienced hospitality talent due to last year, including many talented visa holders being forced to leave the country. We, along with industry bodies and industry friends, will continue to call on the government to quickly and safely bring back foreign workers to support our industry and economic recovery.
We have a strong recruitment drive underway to fill vacancies nationwide, from managerial and chef roles to casual and part-time host roles, and anticipate we’ll fill these as things progress and some sense of industry stability returns, particularly in Victoria, in the second half of the year.
As part of our recruitment efforts, we’re pleased to offer a warm, team-oriented culture with many tenured staff, clear career growth trajectories (with many of our team going on to own their own franchise business), training opportunities, sign-on bonuses for some roles, additional holiday as well as entry to a new industry with training and support for those looking to try out hospitality.
WHEN WILL UNIT REVENUE RECOVER FROM THE PANDEMIC? Ours has already recovered with the exception of Melbourne CBD, with sales up to 20 per cent higher than pre-Covid in some markets around Australia.
ARE CAPACITY CONSTRAINTS CONTINUING TO IMPACT YOUR FRANCHISEES’ BUSINESSES? Yes, at peak times it’s challenging, but we’re managing bookings and have still achieved required revenues.
WHAT ARE YOU DOING TO INCREASE PROFIT MARGINS? We have a strong procurement strategy benefitting from our network growth and good planning around products that experience pricing fluctuation. As we innovate and develop products, our guests are willing to pay for this, and we’ve successfully passed on any increases.
WHO IS YOUR CUSTOMER AND WHAT DO YOU SEE AS THE BIGGEST COMPETITION FOR THEIR DISCRETIONARY DOLLAR? At Sporting Globe, our core customers are 25 to 40-year-old middle to high income earners. They’ll spend more not being able to travel.
TGI Fridays has two key groups: families with toddler and school-aged children; and 25 to 35-year-olds.
LA PORCHETTA
CEO Sam Nania heads up the Italian casual dining restaurant, famed for its pizza and pasta, which started out in 1985.
Sam says business is picking up after the hit from Covid lockdowns last year.
“While we saw a significant shift in casual dining over the previous 12 months, we are now seeing growing consumer confidence reflected in increased in-house dining and we fully expect this to continue.”
HOW DO YOU DIFFERENTIATE YOURSELF IN THE SPACE? We remain true to our promise to provide the eat live love Italian experience and we remain local and community focused.
HOW ARE DIGITAL AND DELIVERY AFFECTING YOUR BUSINESS? Aggregators have an impact on our business and in the last 12 months this grew; however it’s important to acknowledge the opportunities they provide for increased sales. As a brand, we focus on our online ordering system to mitigate the impact of delivery and takeaway commissions.
HOW CAN FRANCHISEES MAKE THE MOST OF THEIR BUSINESS OPPORTUNITIES? Remaining true to our core values is a key pillar to our success. Understanding the evolving market and changing consumer expectations is vital. The casual dining market will continue to evolve and our franchisees work hard to provide consistency, while being agile when required. Reaching our customers where they are is also very important and we have a strong focus on social media marketing to increase market share.
WHAT’S NEW AND EXCITING IN THE MARKETPLACE? We’re launching a new loyalty program and app that allows us to maintain our brand values and provide increased value for our strong, loyal customer base.
WHAT’S HAPPENING IN YOUR BUSINESS IN REGIONAL AUSTRALIA? Our plan is to open more sites in regional Australia and we’re looking for suitable sites and quality people. While our regional restaurants experienced international tourism losses, local patronage has been exceptional and we are very well positioned for growth.
WHAT ARE YOUR EXPANSION PLANS FOR 2022 AND BEYOND? Our current focus is on supporting our franchisees as we emerge from an exceptional year. At the same time, our plan for the next three years includes the rollout of a new, hybrid model. WHAT IS THE BIGGEST CHALLENGE FACING YOUR BUSINESS AS WE HEAD INTO 2022 FY? The availability of labour is our biggest challenge right now and we know that’s an industry-wide issue. The hospitality and casual dining sector has been heavily impacted by a shortage of staff.
WHEN WILL UNIT REVENUE RECOVER FROM THE PANDEMIC? That depends on the units and whether or not they closed. In our situation, the majority of our restaurants continued to trade through delivery and takeaway models. Our menu and agility allowed us to bounce back quicker than most. We were fortunate in this regard and our thoughts are with those that couldn’t adapt and were required to close.
ARE CAPACITY CONSTRAINTS CONTINUING TO HAVE AN IMPACT ON YOUR FRANCHISEES’ BUSINESSES? We are in the most part a large format model with large footprints, and this enabled our franchisees to fully comply with capacity restrictions, with the added benefit of delivery and takeaway supporting the businesses cash flow.
WHAT ARE YOU DOING TO INCREASE PROFIT MARGINS? We’re focusing on key areas such as operational efficiency and labour management to maximise efficiency. We continually strive to reduce our cost of goods and, most importantly, we focus on the customer and building increased retention and frequency.
WHO IS YOUR CUSTOMER AND WHAT DO YOU SEE AS THE BIGGEST COMPETITION FOR THEIR DISCRETIONARY DOLLAR? We have a diverse customer base, however our primary customers are mum and dad in their mid to late 30s with their two children. Large format operators along with local pizza shops remain our strongest competition, however our focus on providing excellent service, a great customer experience and value has meant we continue to maintain and grow their customer loyalty.
MOTTO MOTTO
A fledgling franchise, this Japanese restaurant bridges the gap between casual dining and fine dining, according to Matt Fickling, chief operating officer.
WHAT ARE CONSUMERS LOOKING FOR IN THE CASUAL DINING SPACE POST-COVID? Customers are looking for more – safety, value and convenience. Our guests get more value with us: a premium Wagyu beef pork belly, salmon, king fish, prawn or sashimi tuna dish for around the price of a standard at their local burger joint. Our customers get the convenience of ordering at the table, on our rewards-based My Motto membership app and shortly through takeaway ordering kiosks to make things quick, convenient, contactless and safe.
HOW DO YOU DIFFERENTIATE YOURSELF IN THE SPACE? The concept of “more” – we give our customers higher quality and a bigger range than other casual dining brands. More premium Australian ingredients and a unique menu.
IN WHAT WAYS ARE YOUR OPERATIONS DIFFERENT NOW TO PRE-2020? There’s a renewed focus on our customer touch points: the ability to “order to table”, quick and easy online ordering and our revamped My Motto membership. We’ve completely reinvigorated our membership platform and how it connects into our service ecosystem in our restaurants and online to create value for our customers. We’ve grown our membership base to about 5000 members per restaurant. WHAT INNOVATIONS/TECH DEVELOPMENTS ARE COMING UP IN THE NEXT YEAR? My Motto membership will be tailored for each member instead of the traditional QSR “one size fits all” approach. We’ll add takeaway ordering kiosks into certain restaurants, with the ability to take away and use external seating or order quickly and skip the queue. We’re implementing brand new inventory software and a customised business intelligence system to drive performance and lower costs.
WHY IS THIS A GOOD BRAND FOR FRANCHISEES? Our state of the art central production kitchen reduces the need for skilled labour in our restaurants. A team of chefs prepare our ingredients to eliminate complexity, ensure ease of operations and training, secure product consistency and increase barriers for competition.
Our executive chef specialises in Japanese fine dining, having worked across the top restaurants in Ginza, Tokyo, and leads one of Australia’s most awarded Japanese restaurants, Sono.
Our national supply chain manager is dedicated to ensuring availability, quality, consistency and competitive market pricing for all products.
Our COO and national operations manager have a unique perspective, having experience in franchisee operations and as a franchisor. n
A READY-MADE BUSINESS, INSTANT INCOME:
WHY NETWORK PACIFIC STRATA MANAGEMENT ATTRACTS FINANCE PROFESSIONALS
Across Australia, there are already around 270,000 Owners Corporations, also known as strata communities or body corporates depending on the state. Over the next 15-25 years, experts are predicting more than 10 percent annual growth. As most Owners Corporations choose to have their assets professionally managed, Network Pacific Strata Management is set to expand. As a result, new franchising opportunities are opening up for customer-focused professionals with an interest in property and finance.
WHAT IS STRATA MANAGEMENT?
The majority of Australia’s apartments, townhouses and commercial buildings are based on a shared common property ownership model. Purchasers gain a share of the common areas such as lifts, foyers, gardens, pools and car parks. They are also automatic members of the Owners Corporation, which is legally responsible for overseeing the maintenance and overall management of the common property. This includes financial management, insurance, record keeping and compliance with various laws and regulations.
Network Pacific Strata Management launched in 1994 and offered its first strata management franchise in 2015. The company is now one of Australia’s largest and most successful strata management organisations, with offices in Victoria, Queensland, Europe and South East Asia.
It has achieved ISO9001 quality assurance certification and a Google star rating of 4.4.
A READY-MADE BUSINESS WITH INSTANT INCOME
“We’re currently managing $6.5 billion worth of assets on behalf of 23,000 clients,” says Stephen Briffa, Managing Director of Network Pacific Group of Companies.
“Franchisees manage the common property of owners’ corporations,” he explains. “Network Pacific Strata Management franchisees walk straight into a ready-made business. We’ve been managing the properties for five or six years so we’ve settled most of the issues.
“They also start earning a contracted income right away, even while they’re completing their 13-week induction training. They are getting a secure portfolio income from day one.
Franchisees need to have excellent communication skills and be good admin coordinators, he says. “This is all about relationship-based contracts. We look for business experience, that’s critical. “
There’s no limit to how far the business can go as franchisees can bring in new properties to their portfolio.
While the individual growth opportunities are boundless, there are limited opportunities to buy into Network Pacific Strata Management. “We only offer a limited number of franchise a year because of the resources we put into supporting franchisees. We’re not interested in being a large Franchise Group, what we want are quality franchisees,” says Stephen Briffa. want are quality franchisees,” says Briffa.
To find out more about the exclusive opportunities to join Network Pacific Strata Management visit the
www.networkpacificstratafranchise.com.au
It could be the first step to a new, fulfilling and profitable career. For a confidential discussion contact Colin Crawford at Wollermann Franchise Developments 0425 838 800 or FREECALL 1300 249 276 for further information.
We are franchising our award-winning owners corporations portfolio
Winner of the 2019 Annual REA (AREA) Excellence Award for Game Changer of the YearSTEPHEN BRIFFA, MANAGING DIRECTOR, REIV Owners Corporation Manager of the Year – 2017, 2018, 2019WELCOMES NEW FRANCHISEES MIN AND SELINA.
Do you have management experience? Are you a ‘people person’ with an eye for detail?
If the answer is yes, you are the candidate we are looking for. Contact us for further information today.
• Earn income from day one
• Proven award-winning systems • No selling required • Be an owners corporations manager • Owners corporations agreements in place • Forty year franchise term • Comprehensive training provided
For further information visit our website:
www.networkpacificstratafranchise.com.au
or contact Colin Crawford on 0425 838 800 or Gary Lay on 0407 526 431 at Wollermann Franchise Developments FREECALL 1300 249 276
