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Franchising Magazine Nov/December 2012
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Franchising Magazine Nov/December 2012

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I was engaged to complete a rapid turnaround in a Sydney based franchise system. Within 18 months I completed an entire market and strategic review of the business and created a totally revised …

I was engaged to complete a rapid turnaround in a Sydney based franchise system. Within 18 months I completed an entire market and strategic review of the business and created a totally revised strategic platform and “go to market strategy”. This involved the comprehensive revaluation of the business model, menu, supply chain, operations, training systems, brand, and consumer segmentation. Other recommendations included exploration into new markets,innovations around social media and lower cost (shared) distribution strategies. Systematic board reporting evidences success to both Healthy Habits and the Group, via an increase in comparable sales and a significant reduction in losses.

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  • 1. 10 QUESTIONS THE FREEDOM FACTOR YOU MUST ASK INVESTING IN A LICENSED BUSINESSFranchising www.franchise.net.au Your essential guide to buying a franchise Nov/Dec 2012 VOL.25/No.6 State of the WORKING industry: CAPITAL FRANCHISING What you SURVEYS need to know Take the plunge Freeze factor Pool and spa THE BUSINESS opportunities OF ICE CREAM Healthy Habits AUS $6.95 NZ $7.95 The boss and the rebrandBE INSPIRED: MCDONALD’S, JIM’S, PRICELINE, AGL, BAKERS DELIGHT
  • 2. Inspire|InterviewGETTINGINTO ANEW HABIT M Sandwich chain errill Pereyra has set himself the task of redefining the franchised director, and we got a taste of how big the changes might be. Six months later and we Healthy Habits has chain of sandwich bars, Healthy had a sneak preview of the brand’s earthy Habits. The business was new look – a far cry from the bright, cheerful a brand new look. established 16 years ago by Victorian-based branding that Sampson built her business on. Sarah Stowe spoke Katherine Sampson but since 2009 it has been Now Pereyra is ready to launch the owned by the Dymocks Group. rebranded business with a new store in to managing Pereyra has been managing director for Melbourne and has 10 existing franchisees director Merrill a year, and in that time has set in motion a keen to adopt the new livery. fundamental re-brand and menu overhaul “These are exciting and challenging times,” Pereyra to find that he believes pares it back to its core Pereyra says. “Our website has launched out more values, serving healthy, affordable and fresh and we’re now testing products. The perfect takeaway food. scenario would be to take the menu and test it While he is new to the sandwich in three or four stores but we don’t have that market Pereyra comes with good fast food luxury. I have people helping me review the credentials: he has spent much of his career current results and what will work better with developing overseas sites for McDonald’s. the Healthy Habits business. Franchising first chatted to Pereyra a year “McDonald’s has 10 stores to do ago, when he took on the mantle of managing something like this, but three months into the10| FRANCHISING NOV/DEC 2012 WWW.FRANCHISE.NET.AU
  • 3. Interview | Inspirelaunch and we’ll review it. The option. Most meals come underboard is confident of the potential 2000 kilojoules.in the market.” Rather than offering fried Fundamental to the brand’s chicken as a sandwich or filling,success is meeting the growing the chicken will be baked.consumer demand for healthy Adopting alternative cookingmeals, and to ensure the menu fits methods produces efficienciesthe bill not just in appearance but and maintains the nutritionalnutritionally. aspects of the food – high-pressure Seventy percent of customers processing, power vacuum-sealingwant healthy but tasty food, under very low temperatures forPereyra says. “I hired a nutritionist earlyon to review the menus, pick out I hired a nutritionist early on to review thewhich were too high in sodium menus, pick out which were too high in sodiumfor instance, and that reallyhelped us.” for instance, and that really helped usSo what’s on instance, and there’s no need for extraction systems in-store. Pereyra has been schooled in the famous three-legged stoolthe menu? And Pereyra is banking on an principle beloved of McDonald’s –Franchisees believe more on the Australian twist to the menu to franchisor, franchisee and suppliermenu equates to more sales, says attract customers; spiced up dishes must all be profitable fromPereyra, but he believes less is are inspired by the natural flora of the relationship. Major supplymore. The offer has been fine- Australia, such as lemon myrtle contracts have been maintained,tuned: there are now five rather and pepperberry. “Hopefully the and the supply chain is nowthan 35 bread choices, and a spices will add a nice new edge,” driven by health rather than price.signature bread is a low sodium he says. But of course price is going to Looking for an organised business opportunity? Operating over 10 years Over 50 stores in Australia Global product sourcing Master franchises in 5 countries Intensive training and ongoing support Strong national marketing support including annual catalogue NEW SITES NOW AVAILABLE 2013 COLLECTION OF HOWARDS FAVOURITES SIMPLY ORGANISED NEW Products, Solutions & Clever Ideas Inside! hsw.com.au Australia New Zealand Singapore Spain Philippines Ireland hsw.com.au WWW.FRANCHISE.NET.AU NOV/DEC 2012 FRANCHISING | 11
  • 4. Inspire|Interview will come as the brand grows its existing franchisees to ensure footprint. there is a good financial return. But for now, with a new menu The franchisor is contributing and a new look, the focus is on nearly 40 percent of the refit consolidating the message and costs for franchisees already in building up customer loyalty. The the network. The tight budgets lunchtime hours of 11am to 3pm also mean there is negotiation remain the major source of sales. with shopping centres’ over their I want my franchisees to understand we came up with a new brand and a new menu, but what happens when the customer walks in? Will they come back? “Based on the rebrand stringent refit demands which investment, we know we need to can influence the level and type bring in x number of customers, of lighting, in-store counters etc. be an issue; it doesn’t make sense and this should flow to the bottom Many landlords are requiring to sell items costing above $10. line. It’s better to be upfront so more elaborate works that will And this is a challenge. Although franchisees know what target we affect the ROI. the sandwich bar chain has are aiming at,” says Pereyra. Pereyra is hoping the tough benefited from the resources at The aim has been to bring retail environment is softening the hand in the Dymocks Group, it investment down to under shopping centres’ approach. still lacks the economies of scale $300,000 for new stores and to While 50 percent of the that directly affect costs; these effect a low-cost rebrand for business is already committed to12| FRANCHISING NOV/DEC 2012 WWW.FRANCHISE.NET.AU
  • 5. Inspire|Interview the rebrand, Pereyra says, these initial options, at the same time tightening refits will be used as examples to inspire A QUICK BITE efficiencies. The developments have the remaining outlets. been grounded in customer research. There are other plans for the system, The new Healthy Habits And that’s not over yet. In 12 months once any glitches in the new model have • Theme: sophisticated, fun, modern there will be more surveys conducted been smoothed over and the re-brand is Australia with an ecological edge “to see what really happened,” he earning its keep. • Earthy palette reflects Australian says. “We try to be transparent with landscape franchisees, we don’t have all the Looking ahead • Orange and white branded answers but can go back to change and Pereyra has his sights set on alternative uniforms do things better. We’re small enough to models, broadening the locations and • Branded feature walls make mistakes and then change them. the set-up to appeal to a variety of high • Slimmed down menu with local It’s execution, not brand and menu, that volume takeaway dining markets. flavours effect the change. For instance, street front concepts, • Improved training and operations “I want my franchisees to understand hospitals, universities, schools – perhaps we came up with a new brand and a even a link with the bookstore side of the need a walk-in fridge, you can use three new menu, but what happens when the parent company. Designs on the table commercial fridges,” Pereyra points out. customer walks in? Will they come back? include sandwich bars with a create- The rebrand has been born out of “We will keep evolving. There your-own juice bar element, all packed a desire to create an affordable, more are no expectations that it won’t be into a neat 50 sq m footprint. “You don’t compact menu with creative yet healthy challenging.” F Healthy Habits will be building its brand We try to be transparent with franchisees, we awareness through a variety of channels, including the sponsorship it has secured don’t have all the answers but can go back to for the Sandwich Championships with change and do things better. We’re small enough the aim of targeting the kids’ market, and introducing the youngest generation to the to make mistakes and then change them practice of making a healthy sandwich. MAKE Harmoniq is revolutionary sales, accounting and business management BUSINESS software from Micronet Systems. It’s simple, powerful, and extremely Customisation MORE flexible and is the first product of its type that can be truly personalised to PERSONAL. suit the way you want your business and your people to work, every time. Michelle just... tailored her own screen and customised her dashboard. A product from For information about our Franchise Solutions visit www.harmoniq.biz or call (02) 9542 200014| FRANCHISING NOV/DEC 2012 WWW.FRANCHISE.NET.AU