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October 2017
TENNIS AUSTRALIA
Top10
FOOD FRANCHISES
SMART FOOD - How tech is transforming agriculture
FOREWORD DOES YOUR BUSINESS have room to grow? Are you thinking beyond the confines of your company’s reach? In this month’s issue of Food, Drink & Franchise we’re inspired by brands that are pushing the envelope and testing new solutions to be at the top of their game. We start the conversation with Kevin Hyde, Managing Director of Tim Hortons, who tells us how Canada’s favourite coffee franchise hopes to charm its way into the UK market. We’ll also be looking into the top 10 movers and shakers in food franchising who will inspire you to
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grow your business. Innovation and evolution are rife in the food and drink sector, and so we’ll also explore how the ‘smart food’ trend is disrupting the industry. From tech-inspired farming right through to fridges that warn you of sell-by dates, we’ll be telling you the technologies you need to know about to stay ahead of the curve. Finally, check out our exclusive interviews with the likes of SKYE Hotel Suites and Martin Preferred Foods. So, read on, enjoy, and be inspired to grow your business further. Enjoy the issue!
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CONTENTS CONTENTS
F E AT U R E S INSIGHT
06
Tim Hortons UK MD Kevin Hyde
TECHNOLOGY
14 Tammer Kamel, CEO of Quandl, on monetising data
50 Tennis Australia
TOP 10
22 Top 10 Largest food franchises in the usa
76
Allergen Bureau (Association)
30
YUM! Brands
CONTENTS
C O M PA N Y PROFILES CANADA 30 YUM! Brands
AUSTRALIA 50 Tennis Australia 66 SKYE Hotel Suits 76 Allergen Bureau (Association)
USA 82 Martin Preferred Foods
66 SKYE Hotel Suits
82
Martin Preferred Foods
INSIGHT
HOT PROSPECTS – the Canadian coffee shop targeting the UK W r i t t e n b y : LY N L E Y O R A M
Kevin Hydes, Chief Finance & Commercial Officer, Tim Hortons UK & Ireland explains how the friendly Canadian coffee shop giant plans to charm its way into the UK market‌
INSIGHT
THERE IS CERTAINLY no shortage of coffee shops in the UK and Ireland. It’s impossible to walk down any high street without passing several, and the market is dominated by well-known brands. The biggest three (Costa Coffee, Starbucks, and Caffé Nero) have 53% of all the outlets in the UK between them according to Allegra World Coffee’s Project Cafe2017 report. It is a tough proposition for a national coffee chain that is completely unknown in the UK to try and break into this overcrowded market. But Tim Hortons, Canada’s iconic coffee restaurant brand, is a little different. Founded in 1964 by professional ice hockey player Tim Horton, it has a cheerful retro logo, and red and white branding that reflects the era. Tim Horton wanted to create a friendly café where people would feel at home and it would seem he achieved that. The chain is an institution in its home country, and its customers are dedicated and loyal folks. The first UK restaurant opened in the centre of Glasgow in June. And that’s all there is for now. The company plans to focus on the key areas and 8
October 2017
conurbations where its research shows it has the greatest chance of success. Its Facebook page is full of posts asking when Tim Hortons will open a store in their locality. A second rollout is underway, with restaurants in Cardiff, Manchester and Belfast due to open before the end of the year, along with a second one in Glasgow. It seems that Edinburgh residents will have to wait for their franchise, whose parent company Restaurant Brands International Canada is headed by Clydebankborn David Clanahan, and is one of the world’s largest quick service restaurant companies. As well as Tim Hortons, the multinational also owns Burger King and a New Orleans-style chicken business called Popeyes. “I can’t confirm Edinburgh soon, but what I can say is that we will continue to open a store network around the Glasgow area,” says Hydes. Kevin Hydes joined Tim Hortons as its Chief Finance and Commercial Officer in July shortly after the Glasgow launch. “The first store was a rip-roaring success for us. We are right in the heart of the city just off one of the major routes to the railway
HOT PROSPECTS
According to figures released by Mintel Research, this is the biggest period of growth since 2008. From £2.4bn in 2011 to £3.4bn in 2016. It forecasts that the coffee shop market will grow another 29% in the next five years, jumping to £4.3bn.
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INSIGHT
Kevin Hydes, Chief Finance & Commercial Officer at Tim Hortons UK station. For the launch, people were camping out overnight. There were people who queued 15 hours to get hold of Tim’s coffee. For us it was phenomenal and gave us really great confidence in the brand.” Hydes acknowledges the challenge facing the company breaking into the marketplace. “We are operating in a competitive environment. British customers have a growing affection for out of home eating. And drinking. People really love great coffee.” The market is certainly growing. According to figures released by Mintel Research, this is the biggest period of growth since 2008. From £2.4bn in 2011 to £3.4bn in 2016. It forecasts that the coffee shop market will grow another 29% in the next five years, jumping to £4.3bn. One of the most successful markets in the UK, by 10
October 2017
“I love being part of building businesses, and I really believe in the products. I have worked in the coffee industry for some time so I think I am a fairly good judge of that”
HOT PROSPECTS
2030 coffee shops are expected to outnumber pubs. Soon, going for a flat white will be the equivalent of popping out for a quick half. The company plans to build its network as quickly as it possibly can. From a starting point of one outlet, it has a long way to go to catch up with the major players. In 2016, Costa had 2,121 outlets in the UK, Starbucks had 898 and Caffé Nero had 650. “Our proposition is relatively unique here - putting together the freshness of coffee and the freshness of prepared food. We serve a small cup of brewed coffee for £1.19 - you will struggle to find a better cup of coffee anywhere near that price anywhere else in the country.
We are really proud of that and we want to make sure we can bring that to more and more people.” Having worked for the Whitbread Group for around 17 years before moving to Costa Coffee, Hydes has plenty of experience when it comes to knowing his coffee. His last role at Costa involved working in international markets and bringing new territories to the Costa brand through either joint-ventures or franchising.
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HOT PROSPECTS
“The biggest three (Costa Coffee, Starbucks, and Caffé Nero) have 53% of all the outlets in the UK between them” – Kevin Hydes,Chief Finance & Commercial Officer at Tim Hortons UK “I love being part of building businesses, and I really believe in the products. I have worked in the coffee industry for some time so I think I am a fairly good judge of that. The thing that Tim Hortons is bringing that is different to the rest of the market in the UK is the variety of choice and freshness. That’s freshly prepared food made for you, such as sandwiches, or breakfast, or fresh-baked doughnuts that we cook throughout the day.” They are bringing the concepts behind Tim Hortons directly to the UK, with just a few adaptations. The coffee, the baked goods and the menu will be familiar to any Canadians. However, the odd change here and there has been made to reflect the difference in tastes. Brioche replaces the type of scone Canadians call biscuits for the breakfast sandwiches, for example. Recruitment and training are the two areas that the company focuses on. The managers and shift leaders for the new stores are already recruited and
in training so that once construction is finished on the stores, they already have the basic fundamentals. According to Hydes: “What makes us different is that we are not just a coffee shop, but a restaurant that offers great coffee and a fantastic range of foods. Also, our ability to serve products at speed, and the friendliness of our team members. “It’s not an easy thing running a coffee shop and restaurant and we have to make sure that we recognise and support them in the right way, because I want to make sure we get it right for the customer every time.” One aspect of the Tim Hortons concept in Canada that particularly interests Hydes is the way it has grown and developed there to become a part of the community and neighbourhood it serves. “That is something we are really keen to replicate here in the UK. It’s not just about selling and serving products, it’s about how we engage with the community.” 13
TECHNOLOGY
Smart Food
– how tech is transforming agriculture W r i t t e n b y : LY N L E Y O R A M
Technology is transforming the entire process of bringing food to our plates. The way we farm, distribute food and check for disease are all undergoing massive changes as agriculture gets smarter and smarter‌
TECHNOLOGY
TECHNOLOGY IS EVERYWHERE. Everything we interact with in our daily lives has been integrated with the digital world in some way, most likely throughout its production. Even down to what we eat. Farms growing crops and dairy producers are two segments that are particularly under pressure at the moment. Difficulties in recruiting seasonal workers, and pressures to reduce pesticides and chemicals for farmers, while an increasing demand for dairy products at ever lower prices, is putting a strain on production resources. However, recent advancements in technology could solve these problems. Professor Simon Pearson is the director of the Lincoln Institute of Agrifood Robotics (LIAT) at the University of Lincoln. Researchers here are collaborating with industry partners from across the agri-food chain to develop efficient, new robotic systems for farming and food production. Included among the university’s partners are major global names such as Nestlé, Tesco, Bakkavor, Bosch, Produce World Group and BOC. Robotics will be the next revolution in farming and food production according to Professor Pearson: “The food chain is worth £108bn GVA to the UK economy. It employs 3.8mn people and it represents 16
October 2017
SMART FOOD
THE KR QUANTEC PA CAN PERFORM PALLETISING TASKS QUICKLY AND PRECISELY, EVEN IN ICE-COLD TEMPERATURES.
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TECHNOLOGY the UK’s largest manufacturing sector – bigger than the automotive and aerospace sectors combined – but it is currently experiencing a great deal of pressure. Innovation is absolutely key to easing this pressure and that is why so much of our research aims to find radical new ways of performing familiar tasks.” LIAT introduced its first agricultural robot to the farming world earlier this year. Thorvald is rather excitingly modelled on the Mars Rover, and looks more sci-fi than industrial with its square frame and iPod white chassis. It can be used to carry out items to
THE GLOBAL FOOD SAFETY TESTING MARKET WILL BE WORTH $17.72BN BY 2021 18
October 2017
workers in the fields – for example trays of plants. The robot is also designed to control weeds, using ultraviolet light to precisely kill off mildew as it runs over the crop rows at night. Making the robot sound like something even more out of Blade Runner than the English
SMART FOOD
countryside, Thorvald has recently been retrofitted with meteorological and soil monitoring instruments. A spokesperson for LIAT explains: “These measure high energy subatomic particles that are generated by cosmic rays when they enter the Earth’s atmosphere from both inside
TETRA PAK CIP an advanced automatic cleaning-in-place system used for cleaning process equipment
and outside our own Milky Way Galaxy.” For farmers, this all means that Thorvald is able to determine soil moisture accurately, so soil irrigation can be regulated properly. LIAT now has a grant to initiate production of the first fleet of these robots. Globally, the demand for dairy products is rising, and so is the demand for technologies to ensure safer and more efficient production and distribution, according to a 2017 report from Grand View Research. In 2016, the dairy processing equipment market was worth around $8.84bn. By 2025, that market is expected to expand to $14.84bn. Simon Sheppard has worked as a freelance project manager for all the big dairy processing suppliers. Based in Sweden, he is currently working in the spray drying sector (powdered milk), liquid/fresh milk, and also fruit juice. Sheppard has seen recent technology, mainly through the use of Programmable Logic Controllers (PLC), transform production and efficiencies across lines as well as greatly reducing waste and improving safety, making it possible to create longer and more complex supply chains. 19
TECHNOLOGY
AUTOMATING FARMING PROCESSES SUCH AS MONITORING CROPS IS BECOMING THE INDUSTRY NORM
“Through sophisticated software we can now trace batches of product from the tanker it gets delivered in right through to which milk carton it gets sent out of the factory in,” he says. “So, if there is a problem with the milk carton, in theory, there might be four or five tankers going into the one tank. You could trace back one carton to which piece of equipment it was processed on, which one in five tankers it came in on. There are samples from each tanker so you can identify the exact origin of the contamination.” Food safety concerns aren’t just limited to dairy. With improvements in this area it is increasingly possible for 20
October 2017
producers to reach markets around the globe. Market research firm Market Data Forecast predicts that the global food safety testing market will reach $17.72bn by 2021. This is growth of 7.6% CAGR from the $12.29bn it was worth in 2016. Driven by China and India, the Asia-Pacific market is expected to offer the greatest growth potential as improvements in testing technologies are made. Food packaging giant Tetra Pak has introduced a management information system called CIP – cleaning in place. “You don’t have to disassemble the whole factory; you can clean it while it’s still in production,” Sheppard says. “You can
SMART FOOD
track all the temperatures, and make sure that all the mix water is clear of all the cleaners used to clean the tanks and pipes. That’s very sophisticated now - it’s manipulation of data. You can capture all the real-time data, put it into trends, put it into marketing material, and look at efficiencies, scheduling, that sort of thing.” Sheppard cites, as an example, a new filling and carbonating line installed for Coca-Cola, where the data that was then available to its internal systems could streamline the profitability and change all the shift patterns, resulting in longer run times and shorter downtimes. “Wireless is now the buzzword,” continues Sheppard, “and discrete components like a valve or an instrument will now have some wireless technology, so the maintenance and interrogation of the instrument is done remotely and without the need for cabling. You can be limited with the data you can get through a cable, but with wireless you can absolutely have all the data out of the instruments. If it is a quality issue then this can be tracked, and transparently traced.” Back at the University of Lincoln, researchers are developing
“The food chain is worth £108bn GVA to the UK economy. It employs 3.8mn people and it represents the UK’s largest manufacturing sector” – Professor Simon Pearson, Director of the Lincoln Institute of Agri-food Robotics (LIAT) soft robotic grasping tools and manipulators for the handling of food, creating state-of-the-art 3D vision systems for use in the automated robotic harvesting of vegetables and in robotic weeding technologies. They are also working with external partners to create the first ‘robotic chef’ to work on large-scale food production. Called APRIL, the robotic chef can mix, load and cook ingredients like a professional, human chef. However, it can do this on an industrial scale using modern cooking and material handling technologies. Its creators expect APRIL to transform the way food will be manufactured, very, very soon.
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Top10
LARGEST food franchises in the US The fast food industry in the US is worth approximately $198.9bn dollars. By 2020, this figure is forecasted to exceed $223bn, but who are the biggest players? We reveal which chains have the most stores in the country Edited by: OLIVIA MINNOCK
TOP 10
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In 2016, BaskinRobbins brought home $47.5mn in revenues with 2,500 stores in its native US. The company used those profits to continue their international expansions and perform R&D on new flavours and innovations. For instance, the company recently unveiled its first and only ice cream vending machine in Japan. Notably, the machines are placed right in front of the toilets in an Aichi Prefecture service station. Baskin-Robbins is often branded as a dual co-op with another franchise on this list, Dunkin’ Donuts. Although growth has slowed for the core products of the franchise, the company is putting a renewed vigour into the marketing for its “BRight Choices� line of ice cream, meant for those looking for a lighter treat with no trans fat.
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The largest chicken franchise in the United States grosses an average of $942,000 per store annually, according to reports from QSR. As of 2013, KFC reported 4,900 total stores in the United States. Its sales tend to be strongest in Texas, Florida and California. As one of the first franchise chains in the United States to move internationally, KFC continues to increase its footprint abroad. This includes recent storefront openings in relatively remote locations such as Singapore, Bangladesh, Cambodia and Myanmar. It is also the largest chain of restaurants in China.
TOP 10 LARGEST FOOD FRANCHISES IN THE US
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Domino’s was the firstbndollar grossing chain on the list of top American franchisees as of 2006, a feat it has repeated numerous times up until the present. Innovations such as the Pizza Tracker, Domino’s Dining Rooms, mobile and online ordering sites, and unmanned pizza delivery keep the chain going even during the years in which it was ranked last in taste for all major pizza chains. Although American cities will not be the first to experience the delivery robots Domino’s has on the horizon, with the Netherlands and Germany holding that honour, rest assured they are coming soon. Domino’s currently has 5,480 stores across the United States.
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Revenues for the Yum Brands! premier burger chain totalled $1.15bn in 2016. Slumping sales were a problem in 2016, but 2017 is showing a rise in profitability, something that its 6,642 outlets in the United States are working towards diligently through its recent partnerships with marketing legends McGarryBowen. The chain is focusing more on the freshness and quality of its ingredients as a selling point. Notably, McGarryBowen ceased the use of “The Burger King” mascot in all Burger King advertisements. The character had been lampooned on many professional comedy shows for being scary to children. Burger King showcases its highest sales in New York, California and Florida.
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As the largest donut and coffee producing franchiser in the United States, Dunkin’ Donuts continues to innovate in its market. One of its most successful transitions into modern pastries was the removal of trans fats from their entire menu, replacing them with a mix of cottonseed, palm and soybean oil. In 2016, Dunkin’ Donuts grossed $828.9mn over 7,256 locations in the United States. All of its stores are still completely owned and operated by franchisees, and its highest sales are currently in New York, New Jersey and Massachusetts.
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October 2017
5
Hunt Brothers has 7,300 locations around the United States as of the end of 2016. Unlike many of the other listings here, Hunt Brothers primarily focuses its locations on fuel stations and convenience stores instead of standalone storefronts. Franchisees tend to build in rural areas, and the company has no franchise fees. Hunt Brothers also has a considerable presence in NASCAR racing, currently partnering with JR Motorsports, Stewart-Haas Racing and Kevin Harvick Incorporated.
TOP 10 LARGEST FOOD FRANCHISES IN THE US
4
Under the Yum Brands! umbrella along with other top US franchises Burger King and KFC, Pizza Hut continues to cultivate a space for itself in the world of pizza. 2016 saw the company net an income of $1.619bn, holding total assets of $5.478bn and a total equity of $5.656bn. Even with these stellar numbers, Pizza Hut suffers from a lack of growth since 2015 and its US outlets dropped by 41 to 7,822. However, its marketing continues to innovate, using relevant celebrities and new technologies to bring its new concoctions to the forefront. In January 2017 it announced that it would boost store numbers in the US to 11,000. The chain continues to put resources into its Natural Pizza concept and build on its proprietary mobile SMS system for placing orders conveniently online.
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Starbucks is third on the list of total stores in the United States with 10,138 locations currently. Profits stand at $19.16bn as of 2015, of which profits in the United States exceeded $5.24bn. Unlike many of the other entries on this list, Starbucks has never had a problem with changing health trends. Its marketing initiatives and practices such as bringing in beans from remote locations, bolster its marketability across the world. With 238,000 total employees, total assets of $12.45bn and total equity of $5.82bn, it does not seem that any challenger Globally, will be eclipsing Starbucks made Starbucks in the $19.6bn ‘bucks’ in coffee market any time soon.
2015.
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2
As of 2015, profits for McDonald’s stand at $25.413bn in the United States alone. The chain is the largest hamburger franchiser in the United States with 13,813 locations. Only one franchiser in total has more storefronts in the United States, but that franchise pales in comparison to McDonald’s in total sales. McDonald’s continues to stand at the forefront of marketing in its industry as well, with campaigns tying in the most popular movies, video games and TV shows.
McDonalds’ 2015 US profits were over
$25.4bn 28
October 2017
TOP 10 LARGEST FOOD FRANCHISES IN THE US
1
Subway is the largest franchiser in the United States with 26,887 locations. Its highest sales are in Florida, California and Texas. It is also currently the biggest operator of restaurants in the world. However, the Subway brand may be falling victim to overexpansion in recent years. Although $11.9bn in US revenues is nothing to sneeze at, its per-store revenue falls far behind that of McDonald’s and Starbucks.
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and the
Brands
CHANGING TASTES OF
CANADA
Written by: Nell Walker Produced by: Aquarius Rougely
Yum! Brands is making its mark on
Canada with extensive expansion of its KFC, Pizza Hut and Taco Bell chains. In three exclusive interviews with these brands, we find out how this enormous success has been achieved
T
he US-based fast food powerhouse that is Yum! Brands is taking the industry by storm as it aggressively expands across the globe.
A Fortune 500 company, Yum! owns KFC, Pizza Hut, and Taco Bell, currently operating 43,500 restaurants in 135 nations. The business opens an astonishing six new restaurants per day worldwide; the growth Yum! enjoys is extraordinary, with 50% of its profits earned from outside the US as of 2016, ensuring that the three food brands and their umbrella company are establishing a firm global footprint in every location. One nation Yum! has its sights set firmly on is Canada, where the fast food industry is booming and millennials are demanding more and more choice. Yum! strives towards a culture of not only swift expansion but a fun and energetic environment for workers and customers alike, knowing that its reputation as a vast and dynamic business is a large element of what allows it to grow at its current rate. We spoke exclusively to members of the Canadian KFC, Pizza Hut, and Taco Bell teams to find out how and why these brands are penetrating Canada so successfully.
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Yum! Brands Restaurant Support Center
FOOD AND DRINK
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YUM! BRANDS
FOOD AND DRINK
KFC
KFC fits into Yum! Brands’ global vision by focusing extensively on growth and expansion. Nazia Millwala, Director of Development for KFC Canada, has been with the business for 11 years in various roles, many of them in the Middle East and North Africa. She joined the Canadian arm of the business three years ago, and is in charge of franchising, restaurant design, and spearheads the ambitious expansion plans KFC has. “My team has been focused on three core areas,” Millwala explains. “One is franchising. We’ve put a lot of high value on having great franchisees, and it’s
Nazia Millwala Director of Development, KFC Canada
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FOOD AND DRINK
critical for us to have some very committed and energized partners to join us on this journey. So as we move to revitalize our brand, we have injected new franchise partners who share our vision. “The second area is our revitalization and bold restaurant growth agenda. Like any business in Canada, we’ve spent a lot of time analyzing and understanding our current estate to the point where we have great success stories and know where more work is needed. We have a very ambitious goal to grow to 800 stores, and we truly believe we can do it because there’s enough demand for our brand – so how do we find the right opportunities
to make sure that happens? “The third area is design. As we upgrade, relocate, and bring in new stores, it’s critical we have design that does a good job of representing our brand. Our recently launched design package includes signature elements like the red and white candy stripe, as well as wooden accents to represent our hand-crafted values – these show what the brand stands for.” These key focus areas were the result of looking hard at the 650 restaurants KFC already has in Canada. Using that data, competitor and industry information and leveraging sophisticated tools, the business devised the best
“Canadians have the appetite for our fingerlicking good chicken, so it’s about how we grow aggressively and expand in the right places” – Nazia Millwala, Director of Development, KFC Canada
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YUM! BRANDS
strategies and began the process of implementing the findings. “We thought, ‘how do we inject freshness back into the brand and bring it alive?’,” explains Millwala. “Nothing was lacking, but we needed to take things to the next level; upgrade stores, improve locations, and ultimately deliver a better experience to the guests. We truly believe we can achieve 800 restaurants in Canada, but the question is
how quickly can we do this?” Guest experience is vital to KFC, as it is the customer that dictates the brand’s direction. The brand is using its connection to consumers to decide where it opens new restaurants, how the seating is arranged to be optimally social, and expanding sales channels such as delivery that enable Canadians to enjoy KFC in their own homes. “Our customers are asking, and we’re making sure we find
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Inside KFC
opportunities to deliver the best experience in any way we can,” says Millwala. “The responses we’re getting have been very encouraging, and of course that is reflected in our growing sales numbers. Our employees and franchisees are energized and responding positively as well, which gives us confidence that we’re on the right track.” KFC’s expansion goals align perfectly with those of Yum! Brands, with its ambitious plans to grow and expand the footprint, “and
that’s very exciting for our brand in and out of Canada,” says Millwala. “Canadians have the appetite for our finger-licking good chicken, so it’s about how we grow aggressively and expand in the right places. If we could grow to 800 stores tomorrow, we would find a way to do it.”
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YUM! BRANDS
Pizza Hut
Pizza Hut truly owns the world’s fast food pizza market, but has experienced particular buzz in Canada in recent years, having reached over 400 locations already. Tatiana Carrascal, General Manager of Pizza Hut Canada, has two decades of marketing experience behind her and is on the front line of the incredible demand the brand is currently enjoying. Carrascal attributes part of the accelerated growth to Pizza
Hut’s delco model – the delivery/ carry-out restaurant footprint – which proves very cost-effective because as well as having a smaller restaurant footprint, franchisees are offered a lower bill and a higher return on investment. “It makes us very attractive partners,” she explains. “The delco model allows us to build in convenient locations and in more places around the country, so that we can serve our customers better. We have high growth
FOOD AND DRINK
Tatiana Carrascal General Manager, Pizza Hut Canada
expectations and growth incentives for this model, and we expect to build between 100 and 200 in the next three to five years.” Pizza Hut seeks out strategic mergers and acquisitions in order to expand too, which is a swift way of acquiring real estate that already exists and morphing it into a new restaurant, but it is the products themselves which are driving innovation in order to fuel Pizza
“Canadians are looking for affordable dining options, and we know that offering good value for money is driving growth in this market” – Tatiana Carrascal, General Manager, Pizza Hut Canada
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YUM! BRANDS Supreme Lover
Hut’s increasing footprint. “All the products we offer are based on consumer research,” says Carrascal, highlighting the brand’s reliance on the customer to grow in the right direction. “Our philosophy is that we listen to them first. Special items like WingStreet wings and Stuffed Crust pizza drive significant sales for us, and we pride ourselves on defining the pizza industry especially through our unique pan pizza. We like to be the original creators of different food offerings. We’re known for and have a legacy of product innovation.” In order to acquire this information, Pizza Hut works hard to communicate with its consumers via feedback acquired through customer surveys, and it analysis that data every single week: “There are incentives for them to fill out the surveys,
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FOOD AND DRINK
Follow us!
PizzaHut TripleTreat Box
and they know we are actually utilizing their feedback. Then we use those extensive answers to fill our pipeline of innovation and strategy.” Pizza Hut keeps its appeal relevant and exciting in Canada by maintaining the legacy it has already worked to achieve alongside adjusting it to meet the evolving industry needs and consumer market. Pizza is everevolving and becoming more digitally-driven, so Pizza Hut is focused on value-driven initiatives to cements its appeal. “Canadians are looking for affordable and convenient eating options, and we know that offering good value for money is driving growth in this market,” says Carrascal. “We pay close attention to our online platform, as more and more consumers are accessing it, and this provides new growth opportunities for us.” Canada is particularly special to Pizza Hut with good reason: “They
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YUM! BRANDS
Canadian
Chicken Caesar
Veggie Lovers
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October 2017
love our unique food offerings,” Carrascal explains, “and we’re very appreciative of the response we continue to get from our customers. In Canada we do see tremendous opportunity to accelerate the growth we’ve already seen, we’re just making it bigger and faster through mergers and acquisitions alongside organic franchisee growth.” In these ways, Pizza Hut’s vision aligns perfectly with Yum!’s desire to expand aggressively in Canada, and Carrascal is thrilled to be a part of the tight-knit umbrella brand: “We’re very excited to be part of this family of brands with leveraged opportunities,” she states. “It definitely provides us a bigger spectrum to grow. The role that we as Pizza Hut play in the broader spectrum is primarily driving growth and restaurant openings in new markets, and we have a larger opportunity alongside KFC and Taco Bell.”
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YUM! BRANDS
Taco Bell
Taco Bell, which has the smallest footprint of Yum!’s brands, is growing at a rapid level and holds a firm belief in a big dream: to make Taco Bell a 700-strong restaurant brand in Canada. Veronica Castillo, Director of Marketing and R&D for Taco Bell Canada, has been with the company for four years. Her role is focused on strategy within Canada, working on food innovation, communication strategies, development, and design to bring Taco Bell’s best concepts to life. She explains how Taco Bell is able to hold such high hopes for its own expansion. “The Taco Bell brand is on fire today. It’s been growing for the past six years both in sales and transactions. In 2017, we have achieved record sales with double digit growth. It’s amazing, and part of that success is attributed to our innovation that highly resonates with our target.” Castillo continues: “The innovation we bring to Canada is unique. For example, we have the Double Layer taco, the Naked Chicken Chalupa,
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and most recently the Cheetos Crunchwrap Sliders – unique innovation that help set us apart from our competitors. We select the best innovation for Canada based on in-depth consumer insights, so we make sure that when we launch new products, we create campaigns that truly resonate with our fans.” Exploration is in Taco Bell’s DNA; it isn’t afraid to take risks with its innovation and campaigns. To insert itself into the cultural conversations that consumers value, it uses some
FOOD AND DRINK
Follow us! extraordinary methods, such as offering an Airbnb ‘SteakCation’ in Ontario last year to celebrate the launch of the Steak Doubledilla – a campaign which generated 422mn impressions. “We’ve found fans truly understand the brand which help us validate new concepts, ideas, strategies, and products,” says Castillo. “We launched Mas Nation, an advisory board comprised of Taco Bell Fans, and it acts as a great forum to gauge anything we bring to life, with fans
Veronica Castillo
Director of Marketing and R&D, Taco Bell Canada
“Mexican food is trending in Canada, because millennials love it, and this is adding to our ability to strongly drive growth” – Veronica Castillo, Director of Marketing and R&D, Taco Bell Canada
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YUM! BRANDS
truly championing and supporting our brand. We’re also reaching a lot to social channels, and we really engage in conversations with fans to understand what they want.” Consumers are rewarded not only with the innovative meal options they request, but a focus on the social aspect of food. “We want to bring people together,” Castillo says. “We want to create assets that are really inviting, to drive conversations and
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make people happy to stay longer in our restaurants. We’re truly evolving.” It is this wealth of offerings that has given Taco Bell Canada the confidence to aspire to such massive expansion across the country. With a solid foundation, Taco Bell already boasts nearly 200 locations. By 2022, the goal is that Canada will house 100 new stores. “We have pretty much reset the business focusing on building
FOOD AND DRINK
strong foundation over the past five years,” explains Castillo. “It’s a growing business with a strong financial model, strong menu, improved operations, and amazing restaurant concepts, and a driving force now is expanding the Taco Bell standalones across Canada. We just recently opened our first standalone in 2017 in Saskatoon, so we feel we have the foundation to continue growing. We have a brand that our fans love, and a lifestyle brand that no-one else can offer.” Taco Bell is now in 29 countries, recently launching in China, India, and Brazil. These nations are now priorities alongside Canada, and Canada is considered to currently be at a critical stage of rapid expansion. “In the last six years, we’ve grown the brand 40%, so that tells you the potential we have,” says Castillo. “Everything that we’ve done resonates so well with our target, and we track that against Yum!’s goals. Mexican food is trending in Canada, because millennials love it, and this is adding to our ability
to strongly drive growth. We have what it takes, and we are at this point engaging investors to really help us with our growth strategy.”
A world with more Yum!
Yum!’s slogan – a world with more Yum! – is more appropriate than ever as the business spreads across the globe. It enhances its attractiveness to millennials by focusing on corporate responsibility alongside allowing its consumers to be a part of the business by listening to them and adjusting accordingly. All three of Yum!’s brands fit naturally into its vision and work hard not only to maintain it but develop it, and Canada is set to benefit from the care and passion KFC, Pizza Hut, and Taco Bell have for pleasing their audience.
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grand slam The
GAME
Written by: John O’Hanlon Produced by: Justin Nelson
TENNIS AUSTRALIA
Craig Tiley, the CEO of Tennis Australia, in a rare interview, talks at large about his leadership approach, his vision for the organisation he heads, and the potential tennis has to capture the imagination of a new generation
W
hy does tennis fascinate? What lies behind its soaring popularity? Clearly it has a lot to do with the game’s gladiatorial nature; the spectacle of individual athletes contending for the big prizes and kudos of the top tournaments. At that level you could hardly call it a team sport, but as we have slowly begun to realise, star players only arise if there’s the right infrastructure - if children can get involved early on, and young people access good facilities and coaching. Craig Tiley doesn’t seem to mind that he never made the big time as a player, having been a bit long in the tooth when he started playing in his native South Africa – at just 12! “I had coaches that were very passionate about coaching and teaching and I learned as much about the passion as the
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technique,” he admits. “I was not a good enough tennis player to make a career of it but I didn’t mind that because I learned so many other things.” Well, you don’t get to captain the national Davis Cup team if you aren’t a mean player: that and the ‘other things’ he picked up about tennis are part of what makes him perhaps the highest profile leader in the sport today. The Australian Open, with its 112-year history, starts the tennis year with a bang in January. Tiley has been running this event as Tournament Director since 2007 and since 2013 has combined this with the role of CEO of Tennis Australia (TA), the national governing body for the sport comparable to the Lawn Tennis Association in the UK. His path has not involved filling in too many
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Cardio Tennis
application forms, something he puts down to three principles he has embraced: “First, remember you are going to meet the same people at different points in your career and theirs, so treat them as you have them treat you. Second, the easiest way to get something done is to work extremely hard at
it. Third, be persistent.” His habit is to form a mental picture of his goals – as coach of the University of Illinois University tennis team he pictured holding up the National Collegiate Athletic Association (NCAA) trophy and being called to the White House, both of which came to pass. Later on he
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TENNIS AUSTRALIA
was to receive the US National Coach of the Year award also. The picture that grew in his mind after he joined TA as Director of Tennis was visionary. “I saw an Australian Open that looked like one of the world’s best entertainment events as well as a major sporting event.” The kind of event that Disney might envisage, he thought. It’s not a textbook approach to management, but a logical one that has served him well, and that vision is what he has worked towards. Remember, he is persistent. “This job is one where you cannot work in the shadows. It is very open and transparent. People read and hear about the decisions you are making.” The stresses and the pressures of the job are accentuated because of its public nature. It helps that Australia is mad about tennis. Tennis is the number one participation sport there. The Open draws around 550 players with about 450 full-time staff and 9,000 part-time staff employed by TA during the Open. Globally, it
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is followed by more than a billion fans. A lot of bucks stop at the CEO’s desk. “I am proud that the Australian Open is considered the most successful and biggest sporting event in Australia, and is right up there globally.” It is increasingly considered the benchmark for other events, an achievement he puts down to extraordinary teamwork. “My job as a leader is putting a good multinational team together. I am truly proud of these people.” Transforming the Open Let’s look at the facts. In Tiley’s four years at the helm, TA’s revenues have more than doubled, from AU$150mn to more than $350mn. This accelerated growth was achieved partly, he admits, by unlocking much value that had been created in previous years, but most of it has been down to a bolder style. “We have taken some big risks because we knew there could be big rewards,” he says. The biggest risk was to reinvent the organisation. The first step
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was to buy back the broadcasting rights for the Australian Open from domestic media rights partner Channel 7. Now TA is the only one of the four Slam organisers to bring its broadcasting in-house. “We started to control end to end production of our content, so we could make decisions on how it was going to be distributed globally. That unlocked the potential of all our national and global media rights partners, because now we could customise that content very specifically to those markets, whether
language, who is playing, or time of play.” This at once allowed TA to optimise its financial return. The cost of the rights buyout was recouped inside of two years. International broadcasters were happy to pay TA handsomely to receive fully-customised content which they don’t have the luxury of getting anywhere else. With many businesses moving to outsource non-core activities, it’s a different model, but bringing expertise in-house allows TA to control and monetise media rights, sponsorship, supply rights and add
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http://www.clubspark.com.au
London
Melbourne
value and innovation via entertainment. It goes further than insourcing – for example, an R&D centre has been set up to coordinate with all Australian universities on innovations that can boost the bottom line. Tiley, a ‘citizen of the world’ himself, has gone international to hire the best commercial, media rights and entertainment people. “I have specifically designed the leadership teams around a very international model. We have looked out rather than in.” The transformation of TA from being a tennis federation into a midsize ASX-listed business, which is not only a tennis business but also an entertainment business, is in full progress. With production and broadcasting brought under control, the way is open to bring in wider entertainment events focused on music, kids, and food. The last of these is a no brainer in Melbourne, which has a strong culinary culture. “We brought in some of the best chefs and the best restaurants and put them right on site,” Tiley says. “We know that if you add music you are going to draw a big market so we have become a music promoter, with 80-plus bands and acts.” Of course all
Craig Tiley, CEO Craig Tiley is recognised as one of Australia’s most innovative and forward thinking chief executives. His charismatic and passionate nature together with his business acumen has leveraged him to the forefront of sports administration and the leader behind Australia’s largest and most successful international sporting event. Tiley has been Tournament Director of the Australian Open since 2006 and was appointed CEO of Tennis Australia (TA) in 2013. His relationship with the playing group and relentless focus on improvement has transformed the Australian Open into the players’ favourite Grand Slam and Australia’s favourite sporting event, bringing 728,000 people through the gates annually, delivering more than AU$300mn in direct economic benefit to Australia and reaching a global audience of more than 350mn.
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POULTRY PALACE
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Phone +61 2 66521112 Email craig@sportsmarketing.com.au Go to www.sportsmarketing.com.au
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“I have specifically DESIGNED THE LEADERSHIP TEAMS around a very international model” – Craig Tiley, CEO that can’t be done in-house, so music promoters are brought in. Delaware North has been delivering catering services since 2013, and companies like Nickelodeon and, yes, Disney, ensure that the entertainment is a fit for the younger fans. “We know that if we don’t introduce kids before the age of 15 to tennis they may never engage with it,” adds Tiley. The principal asset Rapid growth in revenues has allowed Tiley to increase headcount without breaching his vow never to increase the employment cost by more than 14% of total revenue. He’s seen too many top-heavy sports federations. With a diverse and multicultural workforce of around 450, he has a refreshing approach to maximising productivity and job satisfaction. Inclusion, diversity and equal opportunities are more than
buzzwords: Tiley is a global advocate for opportunities for women and ensuring inequity in pay and gender is brought to an end. “We are one of the few organisations outside the UN that has adopted the Women’s Economic Empowerment principles. The UN devised a test to monitor gender equity around pay, performance and opportunity. Tennis Australia was the pilot organisation in Australia and Southeast Asia, and we helped to get six or seven other organisations to join us in pilots.” Working conditions at TA are illuminating. In place of maternity leave both men and women may take time off and return to the same job. There are rewards for taking annual leave, as Tiley adds: “In Australia everyone gets four weeks’ leave. I want our people to take their leave and get a break, so if they take their four weeks within
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SPORT
12 months they get an extra week.” One day a year the workplace stops and the time is devoted to health and wellbeing with dentists, skin and eye doctors coming on site and lectures and workshops on things like depression and stress. On top of that, there are generous bonuses for performance – needless to say a high proportion of staff qualify. Clock-watching is a thing of the past. Working from home is allowed in many circumstances - the organisation will pay set up and maintenance costs to equip the employee’s home with all the devices and connectivity to intranets and website business portals they need. A key aspect of this transformation is the growth of the popularity of the Australian Open overseas, particularly in China. Tiley explains: “To ensure that we fully embrace the opportunities of global growth we have opened up several international offices including in Europe and Hong Kong which will allow us to focus on engaging local markets and
forming strong strategic and commercial partnerships.” Growing the game This year there were no Australians left after the first week of Wimbledon, but Craig Tiley is not despondent. The tradition speaks for itself and that evening he was at the annual TA barbecue celebrating 30 years since Pat Cash took the title and 50 since John Newcombe’s success. “The challenge today is there are many more nations playing the sport
“I am proud that the AUSTRALIAN OPEN is considered the MOST SUCCESSFUL AND BIGGEST SPORTING EVENT IN AUSTRALIA, and is right up there globally” – Craig Tiley, CEO
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TENNIS AUSTRALIA
Tennis Australia Ann West - Head FitBit of Integrity and Compliance
Jacquie Mangan General Counsel
Anna Caple - General Manager Performance
Darren Pearce Director of Media and Communications
David Roberts - Chief Operating Officer
Paul Cammack - Director of Participation
Richard Heaselgrave Commercial Director
Tom Larner - Director of Events and Facilities
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and tennis is competing with many other activities for good talent. We have to do well in these events and provide the kids with aspiration to choose tennis as their sport. It is great non-contact exercise, highly social, attracts girls and boys alike. These are great values but we haven’t been very good at taking away the barriers. One of these is access to facilities and their cost. Second, the governance of tennis worldwide is very complicated. Third, I don’t think we are doing enough innovation. Those are three things we absolutely have to resolve or we’ll become
a sport of low participation and dwindling relevance.” Tennis is well behind when it comes to data capture and analysis. It needs to take lessons from retail and use technology to find out about its consumers and what they want, just as they do in the shopping Sport. “If we can do that we can adjust our programmes and products to suit them. We need to match today’s technology and behaviours so you can use your mobile phone to book a court, communicate with your partner, pay direct, show up and have the gate open for you.”
TENNIS AUSTRALIA
In fact, both TA and the UK’s Lawn Tennis Association (LTA) have accessed technology that can do that through a company called SportLabs. 400 clubs in Australia trialled it last year, he says, and recorded an average 30% increase in revenues as a result The right equipment helps access too. “We have to look at balls and strings and racquets, and formats too. We can now have equipment to even it out so we can enjoy it better.” Rather like a golf handicap, he agrees, but achieved through modified equipment. A modified tennis format branded as Hot Shots is now played in 75% of Australian schools as part of their PE programme. It can be set up on any surface, and uses three types of ball and a choice of net and racquets geared to the player’s level. Around 3,000 Australian children are playing this variant of tennis, Tiley says, of whom many will progress to the competition game as they get older – though Hot Shots is very popular among adults too.
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Tiley is impatient to see less convoluted, more collaborative global governance in tennis, and does all he can to promote it. For now though, TA is developing as a benchmark for the rest. The Australian Open is different from the other Grand Slams in that its venue Melbourne Park is owned by the State of Victoria which invests in its development, with TA paying a percentage of revenues. It’s a good deal for the state as during the 20-year current agreement period from 2016 to 2036, it’s estimated that the economic impact will amount to more than $6bn. That makes the current investment of $1bn in redeveloping Melbourne Park very good value for the state - it has provided the site with three stadiums with retractable roofs, 50 tennis courts and a site that can manage 85,000 people a day. “We had a million people this year,” says Tiley. “We are building a new function centre, a new broadcast centre, a new player area that is under construction now and we are putting in another 5,000-seat court
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in the precinct.” An eight story administrative centre, Tennis HQ, has already been constructed as part of the current redevelopment that will complete in 2021. When he took on the top job at TA, Tiley sat down with his senior executives to set down the values of the organisation - the formula he had brought with him fitted perfectly: “Excellence: every time I do anything it has to be first class. Loyalty: to your cause and to each other. Teamwork: do it together as a team. Humility: keep your ego in check.” His coaching background was doubtless as
good a preparation for running a successful business as any MBA, he concludes. “In any leadership role your attitude should be that you can’t know everything, so surround yourself with people who know more than you do. My job is to provide them with a pathway so they can excel.”
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ROOM SERVICE SKYE Hotel Suites is Crown Group’s first foray into the boutique luxury hotel business. Director Wayne Taranto tells Niki Waldegrave how the brand inspires and invigorates the soul
Written by: Niki Waldegrave Produced by: Justin Nelson
S K Y E H O T E L S U I T E S ( PA RT O F C R O W N G R O U P H O L D I N G S )
E
xpanding its high-end luxury living, Crown Group has launched its new five-star offering, SKYE Hotel Suites, in bustling western Sydney suburb, Parramatta. The flagship Arc development – which is mixed use, so one portion residential, the other, hotel – is an architectural masterpiece. Designed by Koichi Takada Architects and Allen Jack + Cottier in a 28-storey luxury residential and commercial development known as Parramatta’s ‘Vertical Village’, it boasts 519 apartments and 72 luxury studios, one and two-bedroom hotel-style suites. All are furnished with bespoke fittings and it also has a stateof-the-art fitness centre, resort-style pool and sauna, conference room facilities, alfresco dining and a retail piazza. The bar on level 26 will provide 270-degree views of Sydney’s skyline and the base of the building offers old world charm as, when excavating, they discovered the
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archaeological space of the Wheat Sheaf Hotel from the 1840s. As well as an underlying convict hut, wheelwright’s workshop and 1,400 artefacts ranging from plates, medicine bottles, old cutlery, bottles and glassware that were used in the actual pub, they discovered – and restored – the old cellar. Inspired, Director of Hotels and Suites, Wayne Taranto, persuaded Crown Group CEO, Iwan Sunito, to operate a traditionalbased restaurant within the complex, paying homage to its roost. Husk & Vine, a modern Australian-style menu, with Mediterranean and Middle Eastern influence, opened in June. “We’ve got the original planks of the hotel cellar which sits right next to the archaeological space,” explains Taranto. “The name came about with the husk being the core of the ingredient and referring to the old Wheat Sheaf Hotel, the correlation between wheat and husk. “And the Vine came about from
H O S P I TA L I T Y
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S K Y E H O T E L S U I T E S ( PA RT O F C R O W N G R O U P H O L D I N G S )
H O S P I TA L I T Y
having a very boutique wine list that complimented the food that we’re offering in the menu.” Foodies flock in to sample delights from ambassador chef Stephen Seckold, formerly of Flying Fish, while locals and historians are seduced by the heritage centre that has been created on-site. “The plan is that over time, we’d like to showcase and glass canvas some of the artefacts,” he adds. “Not only in the heritage centre, but in our lobby and our common areas of the building.” The suburb, which was recently named the most liveable in NSW and is forecast to grow in population by 40% by 2031, has a strong community. So much so, that when building was in the final stages, an elderly local walked into the lobby, handed the concierge team a key and said, “you may need this”. Taranto, says concierge asked him what it’s for, and the man said he was handed this key through generations, and was aware it opened an old hotel in Parramatta,
Wayne Taranto, Director of Hotels and Suites
but didn’t know where it was. “He said, ‘when I heard that you’d found this hotel, I knew that this is it, the actual key that opened the entry to the door of that hotel’. He was right, it fits the original door of the Wheat Sheaf.” Taranto was poached from Accor, where he was general manager, by Crown Group CEO, Iwan Sunito, with the mandate to establish the hotel group, establish the brand, SKYE, and launch the first hotel. He’s been involved from concept to launch, and engaged influential Sydney
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S K Y E H O T E L S U I T E S ( PA RT O F C R O W N G R O U P H O L D I N G S )
We achieved some amazing financial milestones and made the top 25 golf courses in the country – Wayne Taranto, Director of Hotels and Suites 72
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designer Nic Graham (behind from QT Hotels) and hospitality consultancy SITE, who interpreted the archaeological space to convert the old world into the new world. The complex has been heaving during its first few months, and Taranto aims to keep the momentum going. With a capacity of around 200, large rooms can be broken down into smaller ones. And a gigantic space hovers above the beautiful courtyard, which overlooks the pool deck – perfect for conferences and weddings. Primarily catering to the corporate market Monday to Thursday, weekend clientele is very much driven by leisure, events and activities happening in the local area. A stone’s throw from Olympic Park and ANZ Stadium, it’s a no brainer for those wanting something more luxurious than Airbnb when going to see upcoming concerts such as Ed Sheeran and Bruno Mars or sports matches such as the Bledisloe Cup. SKYE is also introducing and
H O S P I TA L I T Y
$100mn Annual revenue at Skye Hotel Suites
(part of Crown Group Holdings)
pioneering new technology, including intuitive tablets, which guests can use for free anywhere in the hotel, and the SkyeHotels app, which includes the ability to upload a mobile key, access the car park, hotel facilities and see what’s happening in the local area. “Some people like a traditional check-in,” he explains, “but others like that seamless experience
like with airlines where it’s all via kiosk, and you can download your boarding pass to your phone and go straight to the gate. “We’re applying that same principle to the hotel for those who are time poor and like to go straight to their room.” The plan is to add three more
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S K Y E H O T E L S U I T E S ( PA RT O F C R O W N G R O U P H O L D I N G S )
Some people like a traditional check-in, but others like that seamless experience like with airlines where it’s all via kiosk, and you can download your boarding pass to your phone and go straight to the gate – Wayne Taranto
central locations by 2020 – 73 luxury apartments on Clarence Street, so a prime CBD location – and the third property, 95 apartments and a 500 feet auditorium in Green Square, Botany Road.
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“We’d like to become a global group,” adds Taranto. “We have two more great sites and moving forward, our focus will be the east coast of Australia, and then to branch out overseas
H O S P I TA L I T Y
and take SKYE Hotels global.” Taranto says he’s formed some “incredible friendships” in his 24-year hospitality career, and recalls his proudest achievement in 2010 when he was managing Rydges Capricorn Resort in Yeppoon, Central Queensland. “We achieved some amazing financial milestones and made the top 25 golf courses in the country,” he says. “We won a raft of awards and I eventually left because I received a promotion back here in Sydney.
“There was a five kilometre stretch of road leading in and out of the resort and when I left, they gave me a guard of honour the whole way to farewell me out of the resort for the last time. I’ll never forget that as long as I live.”
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MEMBERS WORKING TOGETHER FOR THE BETTER OF THE FOOD INDUSTRY Written by: Ray Murphy
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ALLERGEN BUREAU
The key is to success is members working together precompetitively for the betterment of the food industry The Allergen Bureau is a wonderful example of cooperation amongst competitors in the food industry, with national and multi-national food manufacturing and marketing companies, suppliers, importers, exporters, retailers and consumer groups sharing information on managing the risks of food allergens in industry in the interests of consumers. The Members of the Allergen Bureau include icons of the food industry in Australia and New Zealand – and globally - who have given the Allergen Bureau the strong foundation upon which it has built its reputation with business, food industry groups and government food authorities. However, food allergen issues have to be managed as an industry and it is very important for small to medium food manufacturing and retailing businesses to add their voice to the Allergen Bureau. Small to medium businesses and other large businesses in the food
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industry involved in manufacturing, supply or sales involving food allergens, are encouraged to join the Allergen Bureau. See our list of Full and Associate Members HERE. The Allergen Bureau Working Groups provide a collaborative approach to addressing allergen issues at the pre-competitive stage. Following on from the success of the Allergen Labelling Exemptions Working Group, several Working Groups have been identified to help take forward key areas of development. These Working Groups, and the responsible Allergen Bureau Director, are: • VITAL Phase 1 – Risk Review (Kirsten Grinter, Nestle Australia Ltd) • VITAL Phase 2 – Risk Communication (Labelling) (Julie Newlands, Unilever Australia Ltd) • VITAL Phase 3 – Certification (Robin Sherlock, DTS-FACTa) • Cross-contact risk review anomalies (Kirsten Grinter, Nestle Australia Ltd)
FOOD & BEVERAGE
Kirsten Grinter President
Kirsten has been involved with the Allergen Bureau since its inception in 2005. Kirsten’s experience with allergen issues from manufacturing, regulation and through to contact with consumer groups gives her a unique perspective with regard to the needs of the food industry and the allergic community. Kirsten considers that working in partnership for a whole of industry approach is the key to driving allergen management initiatives and key for the industry to remain a competitive and successful food industry globally. Her current role is as Regulatory and Scientific Affairs Manager Nestlé where she has responsibility for a team of people who together manage regulatory and scientific affairs across the vast Oceania Business.
Robin Sherlock
VP & Honorary Treasurer
Rob has a background in medical laboratory science and has more than 25 years’ experience in clinical microbiology and food science. She has had extensive experience in the area of food allergen analysis and brings a broad knowledge of the food industry – as well as the analytical issues – to her role as a Director. Her role within The Allergen Bureau includes collaborating with the VITAL Scientific Expert Panel to further ensure that key allergen management decisions within the Allergen Bureau are shaped and supported by the best available science. Rob is Technical Manager of FACTA (DTS Food Laboratories), a NATA accredited allergen testing facility which provides analysis, allergen management training, risk assessment tools and consultation around allergen control within food manufacturing, food service and associated supply industries.
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ALLERGEN BUREAU
Dr. Tom Lewis Chief Executive
Tom was part of the initial industry working group that conceived the idea for a pre-competitive industry group to address food allergen management issues in Australia and New Zealand that was to become the Allergen Bureau. Tom was central to the establishment of Allergen Bureau, which called on his communication, project management and facilitation skills combined with his knowledge and understanding of the Australian food industry. Through his consultancy business, RDS Partners, Tom has provided executive services to the Allergen Bureau since it was first formed in 2005. Tom is drawn to roles that involve assisting organisations and industry sectors work together to imagine and achieve shared objectives – with a particular interest in working alongside regional food producers and manufacturers.
Georgina Christensen VITAL Coordinator
Georgina Christensen is the VITAL Coordinator for the Allergen Bureau and has been in this part-time role for nine years. This position was created to meet the increasing demand for information and support for the VITAL Program managed by the Allergen Bureau. In this role, Georgina answers enquiries from the local and international food industry about implementing the VITAL Program and develops support materials for the VITAL Program. Georgina has extensive experience in the food industry, including in food regulations and also in product development and quality assurance positions with multi-national food companies. Georgina is passionate about clear and consistent allergen labelling on food products to assist those with a food allergy to make informed food choices.
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FOOD & BEVERAGE
Allergen Bureau Working Groups are resourced and lead by Allergen Bureau member company volunteers and an Allergen Bureau director provides support to each Working Group. Participation on a Working Group links you in with a range of enthusiastic, diverse and passionate food industry people from across our broad stakeholder groups. Global influence and growth The growth in the incidence of food allergens is an international phenomena. The Allergen Bureau draws on and disseminates information from all over the world on food regulations and the latest scientific research on food allergens including emerging food allergens. While originally an organisation
representing the ANZ food industry, international promotion and acceptance of Allergen Bureau initiatives has seen a number of international organisations support us through membership. In addition, the VITAL Program, VITAL Online and the science of the VSEP has seen even greater international collaboration and utilisation of Allergen Bureau resources. VITAL Training Providers provide another link to the global food industry.
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A traditional family business
revolutionized to succeed in the 21st century Written by: Stuart Hodge Produced by: Tom Venturo
MARTIN PREFERRED FOODS
Martin Preferred Foods is now in its third generation of family ownership,
and over the course of the past seven decades, it has evolved through innovation, ingenuity, and good old fashioned hard work, into a processing powerhouse for customized meat and poultry products
T
he story of Martin Preferred Foods began completely by accident, in wartime America. Melvin and Israel Tapick were delivery boys for their mother’s corner store in Houston, Texas, back in 1944 and their job was to deliver to restaurants downtown and in the surrounding area. One day approaching Thanksgiving that year, they made a delivery to a customer who was a chef at a local eatery, and he asked if they
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could procure some freshly killed turkeys for the upcoming holiday. Although the two young men’s stock-in-trade was very much canned goods, they did not want to let their customer down and promised to find him some turkeys. With no real idea of how they were actually going to do that, they asked around the local neighborhood, and were pointed in the direction of someone who raised turkeys. Melvin and Israel bought the turkeys alive and took them back to the yard behind the store without any idea of what to do next. Under further instruction from a helpful neighbor, the audacious pair set about slaughtering and defeathering the birds. It took an entire day, but when they were done they had some nicely dressed turkeys which they were ready to return to the man at the restaurant. They had no idea how much they should be charging but the chef, exemplifying the spirit of the time, said he’d pay what they were worth. When he did, the pair realized that they made more profit on that one transaction than they had in a week
FOOD AND DRINK
“Our niche is based on the specialization and value-added processes we can bring to customers” – Jeffrey Tapick , COO and President
MARTIN PREFERRED FOODS
Martin Preferred Foods distribution hub of selling canned goods. From that moment on, the Tapick brothers decided to get into the business of sourcing and selling fresh poultry. Within a couple of years, with turkeys and chicken and other poultry items like fresh eggs, the pair were in business and had established a brand new processing plant where they slaughtered chickens and turkeys. What is even more remarkable is that Martin Preferred Foods has continued to grow and be successful, and it remains a Tapick-owned family business to this day, now in its 73rd
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year and under the third generation of family ownership. Melvin’s son, Michael Tapick, remains at the helm as the company’s CEO and Chairman, having worked in the business since his childhood, and having led the company since Melvin’s untimely passing in 1978. Michael’s wife, Betty, also works in the business, in a position she has held since the 1980s. Both of Michael and Betty’s children work in the business, with daughter Lisa positioned in the accounting department, while son Jeffrey serves as the company’s President and
FOOD AND DRINK
Chief Operating Officer. Meanwhile, Melvin’s wife Helen Tapick Lerner, the matriarch of the business, visits the company weekly to keep a watchful eye on the company’s progress. Centerpiece providers Since those humble beginnings, the company has gone from strength to strength, but what exactly is it the company actually does almost three-quarters of a century later? “At our roots we’re a meat, chicken and specialty grocery company,” says current President and COO Jeffrey
Tapick, grandson of Melvin. “We provide center-of-the-plate proteins, and by that I mean beef, chicken, lamb and pork and specialty groceries which can be anything from imported and domestic cheeses, charcuterie, caviar, pate, hors d’oeuvres, desserts – things that are truly unique, special, exquisite and difficult to source. “We provide those items to food service and retail customers in Texas and all over the country. Our niche is based on the customization and value-added processes we can bring to customers.
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“Specialty items are the ones which are too insignificant for the broad line distributors in our industry to bother with, but we have the procurement specialization and the connections around the country and around the world to source the finest of these products and have expert teams whose job it is to do exactly that. “On the custom, center-of-the-plate protein side, we’re doing a range of things which add value to our meat and poultry products and there are a range of services that we provide. Our artisanal craft butchers cut chicken, steak and pork to whatever specifications the customer wants but where we really excel is in our custom-marinated proteins. “Houston is a hotbed of Tex Mex cuisine, and Fajitas in particular are an item that our culinary experts and research and development team have spent a lot of time perfecting. Our R&D department has developed processes for improving the taste, texture, bite, flavor, and cooked yields of our meat and chicken – all of which represent the value-added elements we provide through our
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Meat Plant Overview
products. Further, with our processing capabilities and world-class food safety and quality protocols, we can ensure the highest standards of food safety and product consistency for chains that have multiple locations by eliminating variability from restaurant to restaurant. “We try to make it easier for our customers to run their operations by saying ‘let us focus on the back of the house with your products’ so that you can focus on the front of the house,
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customers and menu. Let us be the ones to take the risk, the labor and inconsistency out of your kitchen.” At the center of Martin Preferred Foods’ operations is a philosophy of respect which is supplemented by a triumvirate of key principles which ensure the company’s employees recognize their order of priorities. “Safety is number one, our most important thing,” insists Tapick. “We go to great lengths to instill safety around our culture in every way.
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CKN Plant Overview
We want everyone going home at night in the same safe condition they arrived at for work that morning. That’s work safety and also food safety – there’s nothing more important than maintaining that. We want to have the safest possible products and a safe environment so the culture of the company really puts that first and foremost. “The second principle we embrace is that of quality – the idea that we can only provide value to our
customers if we can ensure quality in both the products we provide and the services that we deliver. If there’s inconsistency, anything that becomes questionable about our quality, then the value proposition that we represent is eroded. “We take safety first, then quality and the third thing is efficiency. Efficiency to us means working smarter, not harder, finding new ways to do our jobs by constantly improving and innovating, having
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Operations - Z, Mike, Jeff
“Isequidu citistes nis et rem doluptatem velit mi, utem doluptin nimil es et et audit alit estibus et dellaborum” – Name, Position
“When you think about my grandfather and great uncle, if they’d just said ‘I’m sorry Mr. Customer, we don’t sell turkeys, we just sell canned goods’ then this company would never have been born” – Jeffrey Tapick , COO and President
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Tapick in discussion with members of the inside sales team
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the humility to recognize that we can always be learning new and improved ways to do things, and I think that’s a fundamental part of our culture.” Also key to that culture Tapick speaks of, is a desire from all of the company’s employees to ensure the company stays ahead of the curve and adapts to stay competitive or gain an advantage on competitors. And that’s not something new, it’s something that has always been part of Martin Preferred Foods’ identity. Tapick says: “When you think about my grandfather and great uncle, they had to think outside the box. If they’d just said ‘I’m sorry Mr Customer, we don’t sell turkeys, we just sell canned goods,’ then this company would never have been born. “To give another example of innovation, in the 1950s, the norm in Texas was to sell whole chickens. My grandfather though, went to New York City, and he walked into a grocery store and lo-and-behold that store was not just selling whole chickens, but also chicken parts that had been cut up into legs, thighs and breasts and sold separately. He thought
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Jeffrey Tapick President and Chief Operating Officer As a third-generation leader and owner of the company, Jeff Tapick is proud and grateful of the business success and legacy he inherited from his parents and grandparents. Jeff approaches his role as president and chief operating officer with openness and enthusiasm; a dose of modesty and humility; and an unwavering commitment to constantly improve the company’s performance and results. He believes strongly that his foremost obligation is to his family, and he is motivated by his mission to cultivate and grow the Tapick family’s business assets so they may be passed on for the benefit of future generations to come. Jeff and his wife Rebecca became the first husband/wife duo to concurrently earn M.B.A.’s in Family Business from the Coles College of Business at Kennesaw State University. Applying the knowledge they gained in that program, Jeff and Rebecca spearheaded the creation of a Tapick family council and the adoption of a family statement of values, a family mission statement, and the newly created Advisory Board.
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“For 73 years
we’ve been doing something right, and we want to keep doing it for at least another 73 years” – Jeffrey Tapick , COO and President
right
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‘what a brilliant idea, why didn’t I think of that?’ and he went back to Texas and started doing it. “So he became the first and only supplier in Houston who was cutting up and selling chicken parts, and our company soon became the largest chicken supplier to all of the retail stores in the city.” And Tapick says the company’s growth over the last seven or eight years, during which time it has doubled in size into one which turned nearly US$200mm last year, is also due to some ingenuity and clever thinking. Diversifying Before the financial crisis, Martin Preferred Foods was supplying to mainly white tablecloth establishments such as high-end restaurants, hotels and country clubs throughout the state of Texas. But in 2008, when the crisis hit, fewer people were looking to spend high dollars on food, and sales slumped throughout that segment of the industry. Tapick says: “Rather than just staying with the customer segment that we’d always serviced, my father Michael had the ingenuity to say: ‘You know, we’ve developed some great capabilities in processing meat and chicken and selling highquality specialty products to this one customer segment… we could leverage all of that culinary and processing expertise and go offer similar high-quality products to more of the mid-and-lower market type customers that were not as badly impacted by the
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Mike and Jeff Tapick -
financial crisis. People are still eating out, they’re just not spending as much on food’. “He looked at customers who were in that chain business segment or in the fast-casual segment, and they were still doing fine, so my father led the company to develop an entire line of marinated products utilizing our same culinary strengths and our same core capabilities. “When we look back at the last seven or eight years, we’ve doubled the size of the company by essentially expanding
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Tapicks - (from left to right) Jeff, Lisa, Helen
our products into these new customer segments, taking those marinated proteins in those new categories. It wasn’t just a small idea, it was revolutionary in terms of the way the company was conducting its business.” And Martin Preferred Foods, rather than looking to just be swallowed up by a multinational as many independent businesses in the food industry have been, is instead looking to continue the success that it’s had since it was founded back in 1944. Tapick concludes: “As a familyowned and operated business,
we’re taking the long-term view. We want to grow and grow responsibly. We’ve enjoyed great quick growth over the last seven years but now we want to make sure that we’re doing it in a way that ensures that we will be here for a long time to come. “The perspective of our company is: for 73 years we’ve been doing something right, and we want to keep doing it right for at least another 73 years.”
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