Food Franchises: HUNGRY FOR BUSINESS

Many Australian food franchisees say they chose to buy into the food industry because they believe it is recession proof. They may just be right. Let’s face it - everyone needs to eat - every body, every day!

Australia’s entreé to the world of franchising was dished-up in the early 1970s along with two all-beef patties, when the first set of golden arches appeared on the suburban landscape, changing it forever.

More than 40 years later, the franchising industry has expanded and evolved to cover a veritable smorgasbord of goods and services, however food-based businesses, the original players in the Australian franchising game, still remain top of the franchising food chain.

According to IBISWorld statistics, the four top businesses in the Australian Franchising industry are: McDonalds, KFC, Pizza Hut and RFG (Retail Food Group which represents Donut King, Brumby’s Bakery, Michel’s Patisserie and BBs coffee).

Faith Manning RFG’s National Sales Coordination Manager said the franchise enquiry line has been running hot since the start of 2010.

“Our leads are on the up and up - over 300 per cent compared to this time last year.”

RFG have recently added Bigs Dad’s Pies, and the New South Wales based Donuts, Coffees & Muffins, to their stable of franchises.

“I can certainly confirm there is a lot of growth in the food franchising industry and RFG is always on the lookout for further acquisitions,” Faith Manning said.

In fact, since the turn of this new century, food franchising seems to be in the throes of a feeding frenzy as brands grapple to become household names and consumers are faced with a myriad of choices.

As tastes conform to cultural and social trends, healthy, low-fat or low-carb options have infiltrated even the most ‘unhealthiest’ of the original fast food outlets.

During this first decade a plethora of ‘healthy fast food’ franchise opportunities have sprung up including Boost Juice, Grill’d, Healthy Habits, Nandos, Salsas, Spudbar, Subway, Trios and Urban Burger. Others are influenced by the multi-cultural society we live in and our proximity to Asia and the taste and health benefits of Asian cuisine including Go Sushi, Noodlebox, Sumo Salad and Wok Me.

Coffee is another huge sector that is here to stay as millions of us need to satisfy our caffeine addiction on a daily basis. Franchise opportunities to take advantage of this include: cafes, such as BBs, the Coffee Club, Gloria Jeans and Hudsons; mobile coffee vans such as Cafe2U, MuzzBuzz, and Lava Carts, and, in-office coffee outlets such as Xpresso Delight and more. Another player in the café game, threatening to unsettle the thrones of the coffee kings, is ‘chocolate’ themed cafes and lounges such as Theobroma, Chocolicious, The Chocolate Room, and the new kid - Chock Block, where hot chocolate rules and lattes are a ‘side order’.

Pizza also continues to perform strongly in the food arena. As society’s tastes are changing, and urbane consumers are no longer satisfied with simply a ‘Hawaiian’ or an ‘Aussie’ – the original players are having to ‘up their game’ as a new breed of gourmet pizza franchises including 800degrees, Crust, Eagle Boys, Hell Pizza, Pizza Cutters and Pizza Capers continue to drive the market forward with innovative toppings and techniques.

Bread, they say, is the ‘staff of life’, and with the bread market in Australia worth $2.75 billion, it’s no surprise then that bakery franchises, including Brumby’s, Baker’s Delight, Banjos, and Baker’s Club continue to bring in the dough!

The ice-cream business is another category that always has a steady stream of customers - from the very young to the very old - keen to lick their way through a cone or two. Key franchises in this sector include Cold Rock Ice Creamery, Wendy’s, Home Ice Cream, Trampoline Gelato, and of course Mr Whippy.

The list of food franchise categories and franchise options goes on and on. Business Franchise magazine has put together the following report, looking at some of the systems that are currently available, what’s news, and what’s happening in the world of food franchising.

Ali Baba
Ali Baba is currently giving away a free branded vehicle to new franchisees. Serving over 4 million Australians every year with the vision to expand to 400 outlets throughout Australia, franchisees have the chance to take up their share in the Mediterranean taste sensation. Ali Baba has launched new products including made-to-order crepes and pides in some stores which they are proving to be hugely appealing. Ali Baba also offers multi-franchise ownership opportunities!

Aroma Cafe
Aroma Cafe is a family owned, fresh food and quality coffee franchise with 30 cafes in WA, 12 in SA and now six in Victoria. Established in Perth in 1996, the brand’s expansion included opening cafes in education outlets in Victoria earlier this year. With the assistance of its high quality 100 per cent Arabica coffee blend, now roasted daily in-house, Aroma Café is passionate about providing its customers with the highest quality food, coffee and service.

Aromas
Aromas offers franchisees thorough initial training outlining the brand, the industry and required skills to operate a café/restaurant, plus constant support from head office and a team who is consistently aware of the trends of tea and coffee around the world. The brand has been successful for 28 years, housing award winning tea and coffee blends, roasting and packing their own tea and coffee beans in-house to ensure customers receive an outstanding, quality product.

Bakers Delight
Bakers Delight, Australia’s most successful bakery franchise business, was established in 1980 as a single bakery and now boasts over 650 bakeries across Australia/New Zealand and over 700 worldwide, employing more than 15,000 people, serving 2.5 million regular customers per week throughout Australia, New Zealand, and Canada. Through its bakery network, the company donates approximately $143 million in bread to charities each year.

Big Dad’s Pies
Big Dad’s Pies sell a range of quality bakery products including the famous ‘big’ Dad’s steak pie which is ‘larger than average’.
The gourmet pie selection is complemented in store by a range of sausage rolls, pastries and a selection of cakes and slices –
The beauty of the Big Dad’s Pies system lies in the consistency of quality product and the ease of operation at store level.

Bucking Bull Roast & Grill
Bucking Bull is a unique fast food franchise with stores located in shopping centre food courts across Australia. Bucking Bull’s success is attributed to two essential business principles. Firstly – always providing customers with exceptional quality and choice at affordable prices. Secondly – helping franchise owners reach their goals by providing coaching and support in key business management issues and a continuous training program.

Cafe2U
Cafe2U’s ‘acceleration package’ fast-tracks a new business to reach a level of daily sales modelled to be over the breakeven point to cover the investment in the franchise. The franchisee will be taking home $500 a day for the first two weeks, with a daily business schedule constructed with a Franchisee Development Manager whose sole focus is to accelerate the development of the new business.

Cappuccino Xpress
Cappuccino Xpress mobile coffee business currently have new franchise territories available offering: flexible hours; high profit margins; loyal, appreciative customer base; exclusive operating territory; business expansion opportunities; no debtors, 100 per cent cash business; no franchise renewal fees; and great start-up and ongoing assistance. Cappuccino Xpress supports their franchisees by: establishing your initial customer base; arranging the best suppliers and the best prices and providing you with full training and back up support

Choc Block
The first of a new, stylish kiosk-type food and beverage concept called Choc Block was recently launched at Karrinyup Shopping Centre- just north of Perth. Choc Block is sure to delight the palates of discerning food and beverage lovers who can choose from such scrumptious delights as pancakes with chocolate drizzle along with fruits or ice cream as options, mouth-watering hand-made chocolates, sensuous hot and cold beverages, plus coffee, cakes and soft drinks.

The Chocolate Room
The Chocolate Room is an Australian owned and operated franchise system. The team at head office provides full assistance including site selection, fit out, staff selection, training and ongoing support. The response to the chocolate room concept has been overwhelming - customers love the total chocolate experience - the drinks, the food, the atmosphere - the chocolates! The Chocolate Room continues to develop and grow and now offers a range of savoury items.

Choclicious
Choclicious house of chocolate and café has been operating since 2005 with manufacturing and wholesale chocolate operations since 1993. As a manufacturer of their own chocolates, Choclicious has a distinct advantage. Choclicious has three models, the original being the full menu café and chocolate shop offering exceptional hot chocolates made with real chocolate and coffees as well as meals and cakes. Choclicious provides extensive training and has opportunities in Melbourne, Sydney and Brisbane.

CHOOKS fresh & tasty
CHOOKS fresh & tasty is a takeaway chicken franchise with a  difference as it sells both fried and barbecued chicken. Founded in 1991, CHOOKS strives to provide a unique and fulfilling franchising experience. CHOOKS is a proud company that values and promotes a relationship with franchisees akin to a family unit. It has a 24/7 Encouragement Centre available to support every store. Strong long-term relationships with suppliers maintain the high standard of product while providing effective buying power for franchisees.
 
The Coffee Club
The Coffee Club is Australia’s largest home-grown café group with 273 stores across Australia, New Zealand and Thailand, serving more than 40 million cups of coffee every year and employing more than 6,000 staff. The Coffee Club experience is taking off overseas, with four cafes in Thailand and 26 in New Zealand and plans to appoint master franchisees in Hong Kong, Singapore, New Caledonia and Dubai. Its unique support system provides outstanding training, innovative marketing and hands-on operational support to its franchisees.

Cold Rock Ice Creamery/Pretzel World
Australia’s first Cold Rock Ice Creamery and Pretzel World dual outlet, recently opened in Hobart. Cold Rock and Pretzel World are owned by Franchised Food Company (FFCo). Cold Rock allows customers to add ‘mix ins’ such as fruit and lollies to ice-cream. Pretzel World offers 97 per cent fat free, soft-hand-rolled pretzels with a variety of sweet and savoury toppings. Combining Cold Rock with Pretzel World allows the ice cream brand to avoid winter sales troughs, offer more products and trade for longer.

Crust Gourmet Pizza Bars
Crust Gourmet Pizza Bars launched in 2001 with a single store in Annandale, Sydney, and has since grown to 48 stores across NSW, VIC and QLD. From day one, Crust has been committed to offering customers a higher quality and healthier choice. It was one of the first pizza chains to provide independently tested nutritional details on its top selling pizzas, both online and in store, serving gluten-free bases and earning the Heart Foundation tick of approval.

Eagle Boys Pizza
Capitalising on the latest in technology and design, Eagle Boys Pizza has begun rolling out its biggest store design makeover in its 23 year history. For the customer, the new store design sees space maximised in the waiting area, additional customer seating and repositioned menu boards. Eagle Boys Pizza is one of Australia’s largest pizza makers and is 100 per cent Australian-owned. It operates 303 franchised stores throughout Australia and employs more than 4,000 staff.

Gloria Jeans
Australian-owned Gloria Jean’s Coffees is one of the most loved specialty coffee retailers, with approximately 460 coffee houses serving an estimated 5 million guests each month. The success of the company’s franchise system has earned it a place in BRW’s top 30 fastest growing franchises in Australia for six consecutive years.
Gloria Jean’s Coffees secret is a strong vision, leading-edge systems and training, and a supportive team who work collaboratively with franchise partners.

Grill’d
The Grill’d concept delivers a healthy burger experience unlike any other. The Grill’d franchise opportunity is one of a proven business model with a real competitive advantage and strong consumer appeal. The Grill’d senior management and ownership team is professional and reputable, with extensive marketing, retail and sales experience across small, medium and large sized businesses. Great importance is placed on branding, teamwork, customer service and a strong culture that sets Grill’d apart from competitors.

Hudsons Coffee
Hudsons Coffee received results from a franchisee satisfaction survey, conducted by independent research consultancy Franchise Relationships Institute, indicating 95 per cent of Hudsons Coffee franchisees find running their store interesting, enjoyable and satisfying. Hudsons Coffee has a total of 32 franchisees and 66 stores nationally with plans to expand further in certain areas including business districts, airports, hospitals and regional areas.

La Porchetta
La Porchetta has recently introduced a host of new initiatives to position the company for strong growth into the next decade. For the franchisee that means greater marketing support for their local restaurant, with up-to-the-minute reference guides and templates, stronger brand positioning and a larger, dedicated support team. There are also new IT initiatives plus new menus and service ideas.

Mad Mex
Mad Mex Fresh Mexican Grill recently opened its 7th Australian location in Castle Towers Shopping Centre. The fully licensed location offers Mad Mex’s healthy choice of tacos, burritos, fajitas and quesadillas filled with freshly grilled or slow-cooked meats and black beans complimented with market-fresh produce, hand-made salsas and guacamole. Mad Mex Fresh Mexican Grill features a fully customisable menu, allowing patrons to individualise choices to suit their tastes.

Muzz Buzz
Muzz Buzz drive thru coffee is one of Australia’s fastest growing retail franchising brands. They have a proven and successful business model and are rapidly expanding across Australia and internationally. Muzz Buzz franchisees enjoy the lifestyle and financial benefits of running their own businesses while retaining the option to operate stores under staff management if they choose. Franchisees also have the option to acquire multiple franchises and become a multi-site operator.

Nandos
Nando’s fast-casual dining concept is unique and creates an equally distinctive customer experience. The experience as a franchisee is also characteristic of their family-like spirit. The Nando’s team helps choose and negotiate site locations and rental deals to get restaurants up and running. Franchisees are provided with training that covers human resources, operations, administration and marketing, and receive ongoing guidance and feedback on growing their business.

Oporto
Oporto opened its first store in North Bondi in 1986, stunning the locals taste buds, with its unique flavour profile. It quickly gained a growing army of fans, establishing the first franchised store in 1995. Today Oporto has over 130 stores in Australia, New Zealand, UK and China and serves over 13 million customers per year. Oporto’s mouth watering menu consists of famous grilled chicken burgers, legendary wraps, chargrilled chicken, salads and more.

Outback Jacks
Outback Jacks Bar & Grill is an exciting fully licensed, family style restaurant franchise, specialising in relaxed, casual dining and premium quality steaks. With the largest selection of steaks on a menu anywhere in the world, their concept provides wide market appeal.
Their first store opened only 4 years ago and with proven systems Outback Jacks has rapidly expanded to 20 stores in prime locations throughout Australia and are expecting to double in 2010.

Pizza Capers
Australia's largest and fastest growing gourmet pizza brand, Pizza Capers, is renowned as one of the leading innovators in the industry.
The franchise prides itself on its healthy and delicious menu, which includes pizzas, risottos, pastas and salads. Almost a decade ago, the brand pioneered the industry's first gluten free pizzas. Over 98 per cent of items on the menu contain less than 10 per cent fat. The new 97 per cent fat free pizza range is an Australian first.

Pizzacutters
Pizzacutters is about the whole experience, from the minute you walk into the store till the time you eat your last bite of one of their delicious gourmet pizzas. Pizzacutters believe they are truly a cut above the rest - from their unique menu to their vibrant website and touch screen Point of Sale system. By becoming part of their network, you will be able to take advantage of their proven systems and become part of a recognised brand.

Pretzos
Pretzos sells a great range of yummy baked snack sensations plus a range of pizza, hot dogs and other baked treats. The food model and business mantra is a ‘Baked not Fried’ proposition to market and the majority of the food is prepared daily and fresh at each store.
With 13 stores already established in WA, Pretzos is currently expanding to the eastern states, where there are some fantastic site opportunities available for consideration.

Salsa’s
Salsa’s Fresh Mex Grill offers a fresh take on traditional Mexican food. Salsa’s is backed by one of Australia’s best-known and respected fast food franchises – Boost Juice Bars. Through this partnership, Salsa’s has access to Boost’s administrational, marketing and support services. This has enabled Salsa’s to grow by 300 per cent in a mere six months. Currently there are 12 stores across Victoria, New South Wales and Queensland, with plans for another 20 by the end of 2010.

se7en Gourmet Takeaway
se7en Gourmet Takeaway is a re-invigoration of the classic Aussie takeaway shop - with a whole lot more style, sophistication, variety and value. se7en is all about innovation, high-end delicious gourmet takeaway meals and cheeky fun. The se7en brand is dedicated to: the environment; nutrition; rewards for loyal customers; and creating and maintaining a positive work environment. se7en is designed to thrive in a broad range of locations from food courts to outdoor dining precincts.

Souvlakihut
Souvlakihut is an innovative and unique casual Greek restaurant concept founded by the Fotiadis brothers in the Melbourne suburb of Hillside in 2004. Offering a range of fresh, tasty and authentic Greek cuisine made with only the freshest vegetables, best quality meat fillets and flame grilled seafood, Souvlakihut takes a healthy approach to affordable family dining. The company has grown to 36 franchises in less than five years, and the target is to more than double this by the end of 2010.

Spudbar
Spudbar, the baked potato specialist, has launched a new menu that has turned the volume right up on flavour and gourmet combinations. A survey of Spudbar’s loyal customers showed they wanted more diverse recipes, bolder flavours and more meat. The result is a menu packing a real flavour rush. “What customers want is a gourmet/epicurean take on the traditional baked spud and that’s what we’ve created,” says CEO, Kirsten Roberts.

SumoSalad
SumoSalad is Australia’s healthy answer to fast food and is the country’s fastest growing retail franchise. Winning the NRA food retailer of the year for two years running, SumoSalad has become famous for revolutionizing the healthy fast-food industry by inspiring Australians to replace fatty foods with more nutritious choices. SumoSalad is forging a path of continued expansion. Currently there are over 70 stores trading throughout Australia, with 2 stores in Dubai, 1 in the UK and 1 in New Zealand.

Taco Bill
Taco Bill is the longest established Mexican restaurant family in the country, having survived and prospered for over 40 years. As Taco Bill's popularity increased, the company attracted interest from many people wanting to establish their own Taco Bill business and the current franchising network developed. Taco Bill’s success is based on sound basic principles of providing its valued customers with interesting, high quality food, a fun atmosphere and excellent value for money.

Tasty Thai
Thai food is one of the fastest growing food trends in Australia, and Tasty Thai has entered the market with an aim to become the first global Thai restaurant brand. Tasty Thai has opened three stores in Melbourne in its first year of operation, offering an authentic and healthy product in a quick service or restaurant format. Clean modern design and a fully systemised operating system ensure franchisees will find running the business pleasurable and profitable.

Trios
Store refurbishments and remodelling are some of the exciting marketing initiatives recently launched by Trios. Trios has positioned itself as the ‘people’s brand’ and as such, is listening to the customer in every facet of the business. Trios are now presenting their strong brand name via a range of different store models. New franchisees can entertain a cafe-style model, or a food court model, restaurant or even an express kiosk, perfect for high traffic areas like airports and universities.

Villa & Hut
Villa & Hut is one of the fastest growing independent café brands in Australia specialising in crisp salads, warm, grilled foccacias, blended smoothies and shakes, fresh squeezed juices, gourmet soups, chai's, coffee's and herbal teas. The unique element is that most products are actually available for sale, either directly from the café, or from one of their stores - from the chairs and tables you sit on, to the music you listen to, and the beans in your coffee!

Wendy’s
Wendy’s has grown a successful franchise brand on the back of a deliciously simple strategy: give people what they want, and make it fun. It’s an uncomplicated approach backed by a serious, results-driven business. Established 30 years ago, Wendy’s has 300 stores across Australia and New Zealand. An important part of the strategy has also been to continually look for ways to improve and, their Shake ‘n’ Dog promotion has long been one of Wendy’s best sellers.

Wok Me
Wok Me is a Brisbane-based healthy fast food franchise serving a delicious, tasty and low-fat range of Asian cuisine including noodles, rice and sushi. The restaurants provide dine-in, take-away and home or office delivery service. With all their noodle meals cooked without oil, sauces made on site, fresh ingredients delivered daily and meals studied closely by a nutritionist – Wok Me is a new approach to fast food and is expanding by the minute with 12 new stores opening this year.

Xpresso Delight
Xpresso Delight transplants the café experience right into the workplace. The system works by franchisees installing Swiss made, fully automatic coffee machines into businesses free of charge, with clients simply charged a ‘per cup’ rate to enjoy 100 per cent gourmet Arabica coffee conveniently at work. Franchises start at just $64,400 and because of Xpresso Delight’s unique passive income system, franchisees can earn a full week’s wage while only working one day per week!