Supply problems licked

BASKIN Robbins’ global brand manager took over the franchise’s Australian operations four months ago with plans to introduce new management structures, following a major breakdown with its Australian franchise licence holder last year.

Dunkin Brands assumed control after Allied Brands went into administration, amid reports Allied failed to adequately manage the ice cream stores, misspent advertising dollars, provided insufficient training, development and support for franchisees, and oversaw worsening supply chain issues – the ice cream was running out.

But US-based Dunkin’ stepped in four months ago and established a management base in Brisbane for the Baskin Robbins brand, naming Ian Martin as the general manager of the Australian operations, with global chief executive Nigel Travis touring Australia in early March in an effort to re-establish the brand.

While Allied was all about running a top-down franchise system, the approach of Dunkin’ will be markedly different, according to Mr Travis.

“We used to sell franchises and I have tried to move our company to much more of an operations culture, where we support franchises rather than just selling them,” Mr Travis told WA Business News.

“Philosophically we have made a real leap in how we run the business,” he added in reference to his focus on ‘engagement’.

Mr Travis said building a franchise empire was no longer about selling as many stores as possible, and for Baskin Robbins it had been about engaging everyone – from the people who scoop the ice cream, to the people who own the stores and the Australian management.

“With a franchise you have the same challenge as a corporate. We have to get our restaurant managers engaged and their crew engaged and that means getting the right management for the franchisees,” he said.

“It is about communication, understanding their problems, and having the right people on the ground and leading them.”

Touring Queensland, New South Wales and WA was one way of doing this, but more importantly was about restoring franchisees faith in the brand.

Top of the agenda was solving the supply chain issues (the global parent company brought out its top supply chain experts).

“We have pretty sophisticated supply chain management, so we just brought the people who look after the rest of the world and brought them into this operation,” Mr Travis said.

By fixing those problems and establishing its marketing support base, Dunkin’ hopes to grow its franchise base in Australia.

“There is no doubt that the more training you do and the more guidance you give, franchisees grow in confidence,” Mr Travis said.

There are 87 Baskin Robbins stores in Australia currently, nine of those in WA, and Dunkin’ hopes to add 200 to that figure within three years. The best way to do that is by getting existing franchisees to open another store.

Mr Travis said US Dunkin’ franchisees had, on average, 5.6 stores; the number in Australia is considerably lower.

“I think at the moment it is 1.1 stores per franchisee, we would like to expand that. There is a big opportunity in supporting and helping to grow our existing franchisees,” he said.

“If you can get people to understand the brand opening more stores, that is the best way of developing.”

According to Mr Travis, franchisee confidence in the Baskin Robbins brand is regaining strength, with some franchisees expressing an interest in opening new stores.