Major Chains Have Big Growth Plans Under Way in WA
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Franchises • Major chains have big growth plans under way in WA • Franchises positive about economy, leasing market • Tough employment laws a potential problem • Businesses turn to technology and value adding to distinguish products Bullish franchises plan to expand Whether it’s burritos, car repairs or mortgage advice, a number of big franchises are targeting growth in 2018. ATRONS dining-in Mr Pickard said the they spoke to Business would be reopened within with a cold beer Watertown restaurant News. a month. Pwill be a key part aimed to put a modern Zambrero, wh ich Melbourne-based of the expansion strat- twist on the offering, entered the state in 2013, Bakers Delight joint-chief Matt Mckenzie egy for Bucking Bull in encouraging an increase already has 32 stores in executive, David Christie, [email protected] @Matt_Mckenzie_ Western Australia, as in the average spend per WA, with about eight said his company had the traditionally food person of about 50 per more in the pipeline for opened six new shops in court-focused business cent, to $18 a head, com- this year. Perth’s southern region moves into higher value pared with the traditional Zambrero general during the past 18 months. markets, according to food court. manager WA Steve Wad- Mr Christie said prod- Franchise Fusion manag- The availability of dingham said the local uct innovation was a ing director Troy Pickard. alcohol with a meal also market had been one major part of the strategy Bucking Bull is owned changed the dynamic, he of the strongest for the for the bakery to grow by Queensland-based said. company nationally, with in what was already an Aktivbrands, with former “We’ve created an plans to lift its presence established market, with Joondalup mayor Mr Pick- in-store atmosphere that’s to around 40 stores in the examples being its intro- ard’s Franchise Fusion the contemporary, that’s Aus- next 12 months. duction of an apple and WA master franchisee traliana, that we feel “We’re having demand cinnamon hot cross bun since August 2016. consumers are seeking,” from people wanting to in 2017 and new breads Mr Pickard said. give us properties and all targeted at health-con- Bucking Bull has fur- that sort of stuff, the busi- scious customers. There has been a ther growth plans in the ness is chasing us at the He said the company casual dining space. moment, which is a nice had a long-time rela- shift (in the market) away “We’re in negotiations place to be,” he said. tionship with its WA to roll-out dine-in stores Mr Waddingham said franchises, with the busi- from the food court model at Rayne Square, Garden the brand’s strengths ness’s first franchisee City and Karrinyup,” Mr were its philanthropic still running a bakery, towards a more casual Pickard said. emphasis, with a plate although some of those “It won’t be long before of food donated to originals were reach- dining experience - Troy Pickard you see Bucking Bull on developing countries ing the age where they main strip locations in for every plate sold, and wanted to exit. Fusion runs two outlets, Mt Hawthorn, in Leeder- strong focus on healthy Embracing technology including a new up-mar- ville, in Vincent, we’ll sit eating. for internal systems and ket outlet at Watertown alongside the destination “You’re not going to get keeping costs down were shopping centre in West brands.” asked if you want fries also focuses in the domes- Perth, while 12 are oper- He said one reason with that, and we’re not tic market. ated by sub-franchisees. for his confidence in the going to sell you a beer Mr Christie, who took “There’s a significant sector was the improved with it either, we una- over as joint chief executive shift that’s occurring in sales during the past six shamedly are wanting to a year ago from founders shopping centres,” Mr to nine months as the be a healthy option,” Mr (and in-laws) Roger and Pickard told Business economy recovered. Waddingham said. Lesley Gillespie, said one News. Franchisors for Mex- One potential opportu- positive economic trend “Bucking Bull has been ican quick-service nity would be in regional was that tenancy markets an established brand for restaurant Zambrero, areas, notably for home had shifted towards les- nearly 20 years, but there Bakers Delight, mechanic delivery, he said. sees, with landlords willing has been a shift (in the Auto Masters and finance While administrators to be more accommodat- market) away from the business Smartline Per- were appointed to stores ing, particularly in big new food court model towards sonal Mortgage Advisers in Mt Lawley, Subiaco and developments. a more casual dining also expressed optimism Leederville in late 2017, Mr experience.” in the WA market when Waddingham said they Continued on page 4 2 | businessnews.com.au businessnews.com.au | 3 CHARGING ON: Bucking Bull master franchisee Troy Pickard at the franchise’s new store in Watertown. Photos: Attila Csaszar 2 | businessnews.com.au businessnews.com.au | 3 Bullish franchises plan to expand From page 2 Coffee roaster and cafe franchise Jamaica Blue, which is owned by Foodco Group, continues to expand its presence in WA as part of a national strat- egy, according to general BIG PLANS manager Drew Eide, with three new cafes opening Current number in the west last year. of stores Planned growth in 12-18 months “The cafe industry is in a fragmented state at the 70 moment,” Mr Eide said. “There’s been an explosion of strong new 32 independent cafes, for example. “We’ve also seen 78 changes to the way people shop with the introduction of urban 14 entertainment quarters instead of traditional retail zones. 44 “ Establ i shed a nd well-respected brands 0 5 10 like Jamaica Blue need to persistently evolve and innovate to stay relevant.” Multinational fast food chains are also getting $ investment planned in on the action, with m from 2017-2020 McDonald’s planning to 150 spend about $150 million in the four years to 2020 on new stores and refurbish- ments, while KFC added to acquire 5 WA new stores in Byford and $ Kwinana last year. m KFCs in 2017 ASX-listed Collins 18.2 Foods, which controls the lion’s share of KFC franchises in Australia, WA state manager signs of life in the market. after 20 years in the mort- and had exceeded expec- bought five stores from Michael Theseira said “In terms of our prior- gage broking, financial tations, while he wasn’t another franchisee for $18 the past three years had ities for the coming year, planning and conveyanc- yet ready to commit to million. been slower, although the it is growth but it’s not ing market. a specific number of business had maintained growth for growth’s sake; Resolve managing franchises. More than meals market share. it’s sustainable growth. director Don Crellin said He said he was seeing It isn’t just food outlets He said the company “We want to bring on he felt the franchising good reason to be opti- planning expansion. would aim to add another quality people. structure was the best mistic about where the In finance, Smart- five to 10 franchises in “(We’ll) be a little more model to support the busi- state’s economy was head- line Personal Mortgage the year ahead, compared aggressive in our recruit- ness’s growth because it ing, although he wanted Advisers grew consider- with just a couple in 2017. ment strategy, not at the allowed controlled expan- to take a long-term view ably towards the end of “We’re reasonably expense of quality.” sion and would harness beyond cycles. the boom, rocketing up happy with settlements, A new player in the the entrepreneurship of It would be more impor- the BNiQ Search Engine and we’re expecting 2018 finance franchise field franchisees. tant to get the right people list of franchises to sixth to be a better year, a busier is ABN Group subsidiary Mr Crellin said the as franchisees who work place, with 70 franchises year,” Mr Theseira said. Resolve Finance, which pipeline of potential for the model, Mr Crellin in WA (see page 26). “We’re seeing some will embrace franchising franchisees was strong said. 4 | businessnews.com.au businessnews.com.au | 5 GROWTH: Zambrero is planning to add new stores. In the motor vehicle He said it was impor- technical and diagnostic number of franchises, focused, with multina- market, Auto Masters tant to ensure the equipment required now although the company tional sandwich maker business development business had a presence to service newer cars,” he did not respond to multi- Subway well ahead of the and marketing manager in residential areas and said. ple enquiries. pack on 156 stores. Carl Meyers said the car more industrial spaces, On the other hand, Mr Two cleaning busi- Bakers Delight, McDon- service and repair busi- where people worked, to Meyers said many people nesses, Jani-King and ald’s, Dome and Red ness was still growing. make it as easy as possible were unhappy with deal- CleanTastic, rank second Rooster are also in the “We’re going to expand, for customers. ership service, which he and third. top 10. probably another four Auto Masters hit a niche believed contributed to The highest levels of Other industries are branches this year in WA,” in the market between growing market share for the list are dominated by represented, too. Mr Meyers told Business smaller workshops and Auto Masters.