Services franchising may be booming, but the traditional home of the industry – the food retailing sector – is finding new niche areas.
Services franchising may be booming, but the traditional home of the industry – the food retailing sector – is finding new niche areas.
In Western Australia, for example, several companies have forged ahead with expansion plans.
The Kebab Company managing director Patti Fritz, who bought the business with a partner in early 2006, says the current focus is on building a strong base.
The company is planning to open 10 new stores in WA over the next two years, three of which are currently in lease negotiations.
Kebab Co is considering aligning itself with a co-brand and has also received an expression of interest from the Middle East, but is pursuing its domestic growth plans for now.
Despite a chronic shortage of bakers, Brumby’s Bakeries has opened four new stores in WA in the past few months, and has a further three stores scheduled to open in the next quarter.
The chain will open its 50th store in WA in May and is also preparing to launch a new convenience store model.
Brumby’s WA master franchisee David Bothworth said the new concept, called Brumby’s Go, would be introduced in WA in the next 12 months, with stores to be located in central city areas.
Fast food company Bucking Beef has also expanded its operations by pursuing a growth strategy outside WA.
The company was established in WA in 1999, but has targeted the Queensland market since 2002.
Bucking Beef managing director Stuart Beechen said the company had responded to local conditions.
“Basically, there’s not enough growth in shopping centres or shopping centre redevelopment in Perth, therefore we had to think of ourselves as a national company and then on a state-by-state basis,” he said.
“We targeted Queensland because the demographics and people are very similar to WA and therefore we’re able to translate our model directly from Perth to Brisbane.”
Bucking Beef has eight stores in Perth and 13 in Queensland, having achieved 82 per cent growth in revenue in Queensland since 2004.
A new entrant in the market is the WA-founded Mini Pancake Company, which recently granted its first master franchisee in Albany.
The MPC master store will open at the Dog Rock Shopping Centre, with the franchisee to have the rights to the South West.
Mini Pancake Company franchisor Andrew Croft, who emigrated from the UK with his business model in place, said the culture in Australia was better suited to franchising.
Mr Croft said it would be easier to proceed with the company’s growth plans with a master franchisee established.
“It’s a relatively low-cost product for the franchisee, with a good profit margin in it,” he said.
“They don’t have to turn over a million dollars to make a wage.”
Joondalup and Armadale are currently being considered for MPC outlets, while inquiries from the eastern states have also been strong.
