How to revitalise a tarnished

franchised brand November 2010 Natalie Brennan Foodco National Services and Support Manager

How to revitalise a damaged brand Agenda • Who is Foodco • History of Dreamy Donuts • What we did when we bought DD • How we continue to revitalise the brand • Insights into the activities of all 3 brands Foodco Group Pty Ltd

• Foodco Group Pty Ltd (Foodco) commenced operation in in 1989 with Concept • Comprises over 340 franchise business retail outlets, trading through our three concepts in 5 countries • Franchise, licensed and company operations • Privately owned company • Experienced management group dedicated to providing training and support to our retail outlets in all key business areas • Flat management structure • Own coffee roasting and distribution arm • Top shelf brands – recognized by consumers with continued growth locally and internationally 348 Locations Worldwide

Muffin Break Bakery Cafes - 248 • Australia 177 • New Zealand 36 • United Kingdom 33 • Dubai 2

Jamaica Blue Cafes - 80 • Australia 63 • New Zealand 4 • 12 • Dubai 1

Dreamy Donuts – 20 • Australia 18 • New Zealand 2 History of Dreamy Donuts 2005 History of Dreamy Donuts 2006

Charlotte St Brisbane –Feb 2006 History of Dreamy Donuts 2006 Dreamy Donuts off to good start. Article from: Australasian Business Intelligence Article date: June 13, 2006 Dreamy Donuts spark frenzy •From: The Sunday Mail (Qld) •November 04, 2006 11:00PM History of Dreamy Donuts June 2007 History of Dreamy Donuts Aug – Dec 2007 History of Dreamy Donuts Oct 2007 History of Dreamy Donuts Oct 2007 One hole in Grant Weston's donut dream Josh Robertson From: The Courier-Mail November 25, 2007 11:00PM History of Dreamy Donuts Dec 2007 Feb 2008 – New Zealand History of Dreamy Donuts March, April 2008 History of Dreamy Donuts April 2008

Camping in the street for a Courier Mail Georgia Waters | April 29, 2008 - 5:02AM History of Dreamy Donuts May 2008

Dream run ends for ambitious start-up chain Franchise News and Events May 8, 2008

Dreamy Donuts - Receivers and Managers Appointed Posted Sun, 2008/05/25 - 04:46 by Deanne de Leeuw

Foodco purchases Dreamy Donuts from receivers on 22 July 2008 What did Foodco purchase?

• Incomplete Factory • A concept with no systems - supply chain, IT, training • Franchised system of 13 stores + 1 company + licensed territory in NZ 2 stores

Product Mix • 2% coffee • 2% cold beverage • 96% donuts What now?

Re-build relationships Suppliers Franchisees Customers

Re-build Brand Logo Look and Feel Marketing Suppliers – Donut product Franchisees and Staff Franchisees and Staff

• Uniforms Customers – Shop fits Customers – Shop fits Customers – Shop fits Customers - Offer

• Loyalty cards & Crockery • Increase the range of products Customers – On line Customers - Events Marketing – Logo Marketing – Imagery on shops Marketing – Store POS Marketing – Menu boards Marketing – Packaging and Crockery Marketing

• Donut cakes, Occasional donuts Marketing - Characters Marketing – Donut workshops PR – Guinness Book of Records PR – City to Surf PR – Local stores based PR – Editorial Social Media – Facebook and Guerrilla give aways Where are we now? 2+ years later • Of the original 15 stores (including NZ) – 2 sold to new owners – 3 original owners still in the system – 6 company stores – 2 stores closed • Plus – Finished the factory and improved quality – Opened 9 new stores – Increased the product range to include cold beverages, gelato. Coffee now 17% of range What's the Magic Bullet?

Challenges in current environment - Soft retail and investment market - Rentals in shopping centres expectations -Health focus - Concept needs to be more than one product

Integrated approach - In store -Media - Online/Offline - Continued new product launches - Local store activities Questions