Burger Urge Franchise Pack 2014

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FRANCHISE INFORMATION PACK


THE BURGER URGE STORY Burger Urge was established in 2007, with the first store located in Fortitude Valley, Brisbane. It’s one of Australia’s original gourmet burger restaurants and since inception, has grown to 10 stores across South East Queensland - cementing its reputation as the gourmet burger chain of choice in Queensland. The backbone to the success of Burger Urge has been built off producing a cook to order product from fresh ingredients, to a high quality and consistent standard. This is combined with delivering fast and friendly service which has attracted a steady stream of loyal devotees, who are known to have the Taste Addiction.

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OUR STORY The Burger Urge brand represents fast, fresh, quality gourmet food, which is served in a distinctively vibrant, young and urban environment. This is reflective of each of the 10 store locations; Fortitude Valley, West End, University of Queensland St Lucia, Kelvin Grove, QUT Gardens Point, Salisbury, South Bank, Logan Hyperdome, Brisbane International Airport, and Griffith University Gold Coast. Leading the Burger Urge team are born and bred Brisbane based brothers, Sean and Colby Carthew. Sean has 14 years experience in the property industry, having worked as a commercial property valuer before moving into the food retail industry. In this field he undertook a wide variety of property based roles, gaining extensive experience in agency, residential and commercial valuation and development. Through a grounded understanding of Burger Urge’s business model, Sean has adapted these skills to the food retail industry through an in-depth understanding of food retail site selection, feasibility analysis, and commercial lease negotiation. Sean is also the driving force behind Burger Urge’s controversial and effective marketing campaigns, and is responsible for Burger Urge’s branding and styling. Sean is a results based, big picture thinker - traits that have ensured Burger Urge has achieved sustainable growth year on year since its foundation.

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OUR STORY Colby has over 15 years of hospitality management experience, including a variety of roles from the back-of-house kitchen operations, to front-of-house management. He has operated a number of cafés, restaurants, night clubs and bars over the course of his career and was part of Fel Bevaqua’s (Ex-CEO Domino’s) senior management team for 3 years. Colby is a process focused manager who understands Burger Urge from the bottom up. From the grind size used on the mince to make the patties, through to inventory management & portioning control, Colby has tested, experimented, and refined the internal processes and operating systems over a 7 year period. Being responsible for designing and approving kitchen layout designs, Colby ensures the most efficient processes are used from raw produce to plate. Burger Urge’s systems and procedures are a direct result of Colby’s dedication to obtaining the most efficient process and standardising tasks. Sean and Colby have passionately grown the company to where it is today, a Brisbane culinary landmark famous for fast & fresh gourmet burgers that are seriously addictive!

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THE TEAM Senior Management Team Burger Urge has an experienced and dedicated senior management team with a combined 28 years with the company. The team consists of: Sean & Colby Carthew – Joint Managing Directors Eyleen Hermes – Group Operations Manager Peter Kilroy – Group Marketing Manager Martin Peril – Retail Training & Development Manager Ray Villari – National Franchising Development Manager

Advisory Board & Appointment of Tom Potter In January, 2014, Burger Urge appointed Tom Potter (Ex-CEO and Founder of the Eagle Boys Pizza Chain) as Chairman of the BU Advisory Board. Tom has over 28 years experience in the retail food industry and is a graduate of Harvard University. Tom built Eagle Boys from 1 store in 1987 to over 250 successful outlets throughout Australia and New Zealand, before selling the company in 2007. Tom brings a wealth of experience and knowledge to the company and his advice will be critical to the strategic direction of Burger Urge over the next 3 - 5 year period.

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STORES

PROGRESS Our Progress So Far Burger Urge’s growth has been strategically managed, supported by tried and tested operational systems and procedures in order to ensure sustained and manageable growth.

Logan Hyperdome Brisbane International Airport South Bank Salisbury GrifFith University (Gold Coast)

A focus of the Burger Urge team, both in the past and the future, has been for every new Burger Urge store to be a resounding financial success. This ethos will further ensure continued growth and cement the financial success of this brand.

10

5

QUT

4

Kelvin Grove

3

UQ

2

West End

1

Fortitude ValLey

2007

2008

2009

2010

2011

2012

2013

2014

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THE FOOD Something For All Tastes The Burger Urge menu has something for all tastes, with a range of 17 gourmet beef, chicken, lamb and vegetarian burgers, as well as thick-cut potato and sweet potato chips. Recently traditional style thick shakes, wraps, buffalo wings, onion rings, boutique non alcoholic and alcoholic beverages were also added to the menu. Developed by four experienced Brisbane chefs over an extensive period, the menu has received numerous accolades and positive reviews by food critics, food review sites, bloggers and media publications all over the country. Unlike the more traditional fast food burger chains, all of our produce is of the highest quality and comes from Australian farms and local producers. Burger Urge uses top quality meats and sauces and its bread is baked fresh and delivered fresh 7 days a week, ensuring a consistently high quality customer experience.

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THE FOOD The Menu

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The Menu

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THE BRAND Shaping Who We Are In 2010, two senior ex-Clemenger advertising executives were engaged in an effort to help Burger Urge redefine and reposition the brand. After a detailed three month branding process, with two of Australia’s most respected advertising gurus, the Taste Addiction tagline was born. This Taste Addiction tagline directly relates to the moreish appeal of the Burger Urge menu and the fact that over 80% of revenue comes from regular, repeat customers. It also aligns with the edgy, urban vibe created through the progressive store fit-outs, and has a been a clear distinction for the brand from other more generic competitors in the quick service retail market. Having evolved with the Taste Addiction theme over time, Burger Urge stores now feature industrial & natural materials such as brick, timber, galvanized steel and cage lighting to name a few. This combined with softening finishes such hanging plants and planter box light fittings, as well as other unusual finishes such as vintage bicycles and graffiti art wall murals, give Burger Urge their distinct youthful, urban and modern feel that you see in store today.

themes and style elements that are representative of iconic aspects of the region it is located in, with the aim of making every Burge Urge store unique in its local catchment. These theming elements are carefully integrated with Burger Urge design principals and standard material specifications to ensure each store is consistent with the Burger Urge brand. Every time a customer steps foot in a Burger Urge store we expect their sensory expectations to be exceeded. To achieve this, Burger Urge concentrates on 4 key elements: • • • •

Product Customer Service Store Design Atmosphere

This has been critical to the retail success of Burger Urge and has been a focus of the company, since inception.

Each Burger Urge store design incorporates distinctive

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TARGET MARKET Our Customers Burger Urge’s brand focus is targeted towards the 18 to 35 youth and young professional market. Our branding, store design and marketing activities are primarily focused on capturing this market segment. Targeted marketing towards this demographic has ensured our customers can identify with and have ownership within the brand, which has direct results in capturing, retaining and growing our customer base. The advantage of having such an identifiable and interesting brand is that we have benefited from a flow on effect through other demographic market segments. As older demographics become more tech and food savvy, their tastes are altering, which has benefited the perception of quick service gourmet food offerings, such as Burger Urge. These demographics are now accepting that QSR is often a faster, more enjoyable and economical way to dine, in comparison to traditional restaurants of the past.

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POINT OF DIFFERENCE Home Delivery In March of 2014 Burger Urge became the first gourmet burger chain in Australia to offer home delivery. Always keen to innovate, this step forward has differentiated the brand from all competitors in the gourmet burger market, along with positioning the brand to exploit a segment of the market that up until now has been dominated by the franchised pizza chains. Burger Urge delivery stores have experienced an increase in turnover of between 15-20% upon the introduction of delivery. Furthermore, following the inclusion of delivery services, an increase in the number of dine-in customers in these locations has also been experienced. Burger Urge intends to offer this service across the network (subject to specific site constraints), as a clear point of difference to its competitors. By Christmas 2014 Burger Urge will have 15 delivery scooters on the road and will have implemented an advanced online ordering application that will further streamline the business and improve efficiency throughout existing franchise stores.

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OUR STORES A Snapshot Of Our First Five Stores:

Fortitude Valley Burger Urge was born and raised in a heritage listed 1800’s art deco building on Brunswick Street in Fortitude Valley, 2003. From this vantage, as Brisbane’s original gourmet burger bar, it has grown to become an institution, offering delicious burgers for its loyal fans who come back week after week to satisfy their urges. Following a refurbishment in 2011, the Fortitude Valley Store now sports the same branding and design themes as all other Burger Urge Stores and remains as the backbone to the Burger Urge success story.

West End Burger Urge West End opened in its prime location on the corner of Boundary and Vulture Streets in October 2009 with a party and performance by well known local band, Hey Geronimo. The team at West End has become a popular destination for locals, who today see it as a key staple within their neighbourhood.

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OUR STORES UQ St Lucia In 2011 Burger Urge was one of a handful of Brisbane food retailers approached by the University of Queensland (UQ) to tender for a store on campus. After preliminary discussions, the UQ Union picked Burger Urge over the other larger more well known contenders and the doors were open for business for the start of the 2011 year. The 130 seat venue has been embraced by the university community of both students and staff who each lunch time join the q line out the door to purchase one of the 2000 burgers that leave the kitched each and every week.

Kelvin Grove The doors opened of Burger Urge’s first franchised store in November 2012 by twin brothers and owner / operators, Varinder and Narinder Rishi. Before opening their own store Varinder managed the West End Burger Urge store and his brother Narinder, a qualified chef, worked in an aged care facility. Under their experienced eye, the Kelvin Grove store has quickly become one of the strongest performing Burger Urge Stores.

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OUR STORES QUT Gardens Point The fifth Burger Urge store opened at QUT Gardens Point in February 2013 to coincide with the start of the university year. This store (the third university based store) is the only dine in restaurant in the new food and sciences precinct at QUT. Securing the site was a major win for Burger Urge as they beat out many larger competitors in the tender process and has cemented a strong platform with our target demographic.

BU HQ In late 2013, Burger Urge HQ was founded in New Farm. With 400m2 and workspace for over 20 employees, this head office has become the perfect base for day to day management operations, along with our in-house creative marketing team.

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MARKETING

The Clive Palmer Burger - 2014 QLD statewide coverage, TRIPLE M’s Breakfast Show

How We Sell Ourselves

“Win a Weekend In Hell” Campaign - 2013 National media coverage on Channel 7’s Today Tonight National media coverage on Channel 10’s Wake Up National radio coverage, various stations Various internet news and blogging websites

Burger Urge Political Party, Australian Federal Election (Warwick Capper Candidate) - 2013 National media coverage on Channel 9’s The Today Show National radio coverage, various stations Various internet news and blogging websites

The Burger Urge team are passionate about our product, our brand and the lasting impression we leave with our customers. At Burger Urge we are not all about following a “would you like fries with that” template - we are proud of our unconventional, outof-the-box approach to marketing. We are focused on implementing our Taste Addiction marketing campaigns which target the addictive nature of our burgers, reveal our humorous side, showcase our food and yes, sometimes shock people. Burger Urge is extremely conscious that marketing and advertising drives sales growth. We’re even more aware of the high cost of advertising and ensuring we achieve the best ‘bang for our buck’ when it comes to our marketing and advertising dollar. Burger Urge is proud to say we are the most controversial food retail brand in the nation, with our campaigns regularly gaining national and state-wide media coverage across a variety of mediums for minimal cost outlay. Examples of these include:

“Get Intimate” Condom Campaign (20,000 Condoms) - 2012 QLD statewide radio coverage, various stations including 4BC interview Various internet news and blogging websites

“Welcome Home Kevin Rudd, We Still Love You!” - 2012 National coverage various television nightly news bulletins Various internet news and blogging websites

“Taste Addiction” Syringe Pen Mail Out (20,000 pens) - 2012 National coverage on the ABC’s The Gruen Transfer QLD statewide radio coverage, various stations including 4BC interview Various internet news and blogging websites Channel 10 News

Vote 1 Burger Urge Campaign, QLD State Election 2010 & 2012 Various local Brisbane print media publications Various internet news and blogging websites

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EXPANSION Franchise Partners Over our 7 year history, the Burger Urge team has built: • A highly popular, well recognised product and brand • Tried and tested operating systems and procedures • A financially sound and successful business model Compared to other food retail franchises, Burger Urge franchise partners benefit from the following: • Lowest capital investment in the food retail sector • Lowest franchise fees and royalty payments in the sector • A favorable return on investment and a short capital investment payback period • A product that is NOT a fad concept • Being part of a company that has experience sustained growth, year on year for the entire 7 years of operation • A debt-free franchisor • A limited time “ground floor” opportunity • Investment in a company at the beginning of its high growth phase

Burger Urge franchise partners also receive: • Extensive up-front operational and business training • Fully developed operating systems and procedures • Ongoing management support • Full support from an in-house creative marketing and advertising team • Turnkey store fit-out, set up, ready for trade The Burger Urge team are heavily focused on recruiting only the best key franchise partners who are passionate about food retail, motivated and customer focused.

Varinder and Narinder Rishi - Kelvin Grove Franchise Partners

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EXPANSION Franchise Investment Particulars

Forecast Total Capital Investment: • $250k to $350k + GST • Initial Franchise Fee: $30,000 + GST

NB: An investment range can only be provided at this stage, as the total investment is dependent on store size, existing store conditions and fit-out requirements. The above cost range is for a greenfield site and is inclusive of the initial franchise fee and working capital. Lower capital investment costs can be achieved in certain cicumstances. ie. restaurant conversions.

Ongoing franchisor training support, monitoring and mentoring Creative and cost effective marketing campaigns to establish and maintain brand awareness and drive sales growth Creative new product line introductions that drive sales growth

Fixed Ongoing Costs: • Franchise Royalty: 6% of turnover • Marketing Contribution: 2% of turnover

Franchisor Support Burger Urge Franchise model is a proven financial and operational system, where franchise partners receive the following: •

6 weeks upfront in-store operational training and business training including staffing, rostering, business financials, stock ordering etc.

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CONTACT US Contact If you would like to become a key Burger Urge franchise partner, then register your interest with Burger Urge via one of the following contact methods:

Website: http://www.burgerurge.com.au/franchises Email: franchising@burgerurge.com.au Ray Villari National Franchise Development Manager Mobile: 0409 760 169

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