Business Franchise Australia

FRANCHISE RETAIL BRANDS SET FOR $20M GROWTH

Brisbane-based retail group, Franchise Retail Brands, is set for an impressive expansion across the Eastern seaboard this year as the group launches four new concept brands in the hospitality sector, with plans for at least two more in the coming months.

Joining the recent acquisitions of New York Slice and Hombre Street Food Café & Bar, Franchise Retail Brands adds 1582, Sabatini’s, Crave and Dessert House to its portfolio – with more to come as the group aims to raise $20M to float on the stock market in the first quarter of FY 17/18.

Franchise Retail Brands Managing Director Sean Corbin, who has significant investment in the group, said that at present they have 50 shareholders and are tracking well ahead of the group’s goals.

“We’ve had a stronger than expected capital raise of late that has allowed us to move forward, and with the right team in place and a strict hospitality-only policy, we’re in a solid position to grow Franchise Retail Brands,” he said.

“Food and coffee is a growth area in Australia, in particular the QSR franchise market, and unlike other retail offerings that can be replicated online – hospitality is protected, thus providing us with appreciable room to expand.”

Mr Corbin said that the group had seen significant growth in the past eight months, with plans to add a further five brands by the time they float.

“We launched in August 2016 with four new concept brands, all of which are embracing the quick-service hospitality model that continues to drive positive returns as Australians demand efficient service and affordable menus with a focus on healthier offerings and trend-food specific dining,” Mr Corbin said.

“Dessert House and Crave both focus on the fast-casual dessert niche which shows no sign of slowing down, while Sabatini’s provides a relaxed dine-in restaurant offering in fringe suburbs with an expansive menu to appeal to the masses.

“Similarly, Australians’ continued obsession with coffee will be further satisfied by our 1582 chain’s boutique roastery, currently producing up to 12,000 tonnes of coffee per year.”

Mr Corbin said that Franchise Retail Brands hoped to open at least two stores per new brand this year in the Eastern states of Australia, as well as growing its flagship acquisitions, Hombre Street Food Café & Bar and New York Slice.

“We plan to bring in some exciting new ideas to evolve the Hombre franchise, including a new menu that provides both healthy offerings and Mexican classics – as well as cocktails and a new tequila bar,” Mr Corbin said.

“Further, New York Slice is also set for substantial growth with goals of increasing underlying revenue and market share, which could include up to 10 new stores this year.

Mr Corbin said that Franchise Retail Brands has designed its model to leverage supply-chain operations to franchisees within the network, and hoped to establish itself as “home” for growing brands.

For more information on Franchise Retail Brands, visit: http://frb.com.au/