Business Franchise Australia & New Zealand — May-June 2017

(Nora) #1
SNApShoT: F rA Nc h i s e r e tA i l B r A Nd s

fEATURE:


Food & Bever


Age


Franchise retail Brands
is establishing itself as
the home for growing
franchising brands within
the café, Bakery and
dessert and Quick service
restaurant segments. their
goal is to continue to build

iconic brands that people
trust and advocate.

Launched in 2016, Franchise Retail Brands
is primarily interested in small to medium
sized brands that have a long runway within
the sector. They are now the proud home of
brands such including New York Slice Pizza,
Hombre Street Food Cafe & Bar, 1582
Coffee, Crave Ice Creamery, The Dessert
House and Sabatini’s. They are also planning
to unveil several other brands in the Café
and Quick Service Restaurant markets as
they move towards an initial prospectus
offer this year. Franchise Retail Brands are
evolving their brands to be more relevant,
engaged, connected, and caring in the
Australian market.
Franchise Retail Brands accommodate
their network so as not to have overlapping
brands. That is, they do not want six café
brands which operate within a shopping mall
setting. Instead, they look for brands with
clear points of difference. In instances where
brands do share similar attributes, they

will have different target markets or run in
different environments.
Through the purchase of a Brisbane-based
coffee roasting facility, Franchise Retail
Brands has access to 1200 tonnes of coffee
each year. This allows them to leverage
supply chain operations to franchisees within
their network. Soon they will also have
a specialised bakery to supply a range of
both savoury and sweet baked goods. This
specially designed model gives Franchise
Retail Brands more power to survive and
grow in their industry.
Franchise Retail Brands invest in franchises
sure to show profitability, sustainable
growth, and a model that delivers underlying
profitability to both the franchisor and the
franchisee. The key to these outcomes is that
the business is not relying on new franchise
sales and fees alone. Instead, Franchise Retail
Brands have crafted their system to also
provide other valuable deliverables including
food items, sauces, coffees, as well as other
products. This design offers them more
flexibility and stability in a changing profit
environment.
For the brands, there are many advantages.
Franchise Retail Brands offer support
services from professional personnel that
brands wouldn’t otherwise have access to
outside of their network. They also assist
with marketing and promotional activities,
with increased traffic resulting from
opportunities for cross-promotion. This
reduces both marketing as administration
costs for the brands, resulting in big savings
and higher profit margins overall. Their

focus is on sharper brand position and
insight-driven marketing programs that
will concentrate on product customisation,
leading innovation, and more engagement.
As a parent company, Franchise Retail
Brands provides financial strength and
assistance to its brands in gaining new
sites in many centres. This also helps
their franchisees in gaining accreditation
with financial institutions. Synergies in
procurement of both sites and products
lead to lower costs. Franchise Retail Brands
offers heavily discounted coffee from their
roaster, again improving profitability. They
also remain focused on three keys to driving
shareholder value: new-unit development,
same-store sales growth and generating high
returns on invested capital.
Franchise Retail Brands aim to acquire
brands who will add to the earnings of all
brands within the network, so that any new
brand will be an overall benefit for the whole
group. This will either be through becoming
a customer of their existing brands, or by
offering a position in a new market that aids
in offsetting the cyclical nature of the Quick
Service Restaurants and Café segments.

Franchise Retail Brands are constantly
on the lookout for suitable applicants to
expand their brand networks. To enquire
about investing in Franchise Retail
Brands, or about plans for the upcoming
initial prospectus offer, contact them on:
07 3999 8950
[email protected]
http://www.frb.com.au

FranchisE rEtail branDs


groWing brands

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