8 FRANCHISES THAT DELIVER
Convenience is king as these businesses are proving.
As more and more businesses strive to stay relevant in an ever-changing marketplace, convenience is still king. Customers expect products and services when and where they need them.
More franchises are jumping on to the delivery bandwagon. Some companies have had experience with delivering while other are still finding their feet.
More franchises are jumping on to the delivery bandwagon. Some companies have had long experience with delivering while other are still finding their feet.
Here are eight franchise businesses that really deliver to their customers...
HOW IT WORKS: Red Rooster trialled with Menulog in 2014 and 2015 before launching their own delivery service nationally last year. Customers can order delivery through Red Rooster.com directly or via Menulog. Some customers still phone in orders, but using the online service is most popular, with 65 per cent of online orders being placed by smartphone. Orders can also be made through the Red Rooster App. Red Rooster owns the customer experience from the kitchen to the door, whether it is through Red Rooster.com or Menulog. The group has a fleet of 400 delivery vehicles across Australia.
COSTS TO EXPECT: Franchisees can expect costs on food, labour and motor vehicles as well as platform costs, including commission to core partners. As delivery becomes a part of the business, it is important to ensure costs are monitored as well as customer satisfaction. Red Rooster uses a rostering platform as well as GPS technology to ensure the teams can manage speed of delivery.
KWIK KOPY HOW IT WORKS:
Delivery plays a critical role in the Kwik Kopy service. Most customers need their job to be ready within only a couple of hours. Many Kwik Kopy franchises use their own vehicle, with some CBD locations opting to use a bike to get around the traffic. Where a delivery vehicle is not available, franchisees use courier services. Not only are deliveries critical to maintaining a high level of customer satisfaction, but they also help market services as delivery vehicles are fully branded.
COSTS TO EXPECT: Average annual costs for vehicles:
• Lease: $4800
• Rego/insurance: $1000
• Fuel/tolls: $5500
• Maintenance: $1150
CRUST GOURMET PIZZA
HOW IT WORKS: Delivery is an integral part of the Crust business, and has been part of the model since 2012. Franchisees employ delivery drivers, but some are starting to use third-party aggregators such as Deliveroo and Uber Eats. Crust has also implemented driver-tracking technology to help streamline the delivery process, and to ensure a fast and reliable end-to-end experience.
COSTS TO EXPECT: Delivery costs can include delivery driver wages, ongoing costs for the driver-tracking technology and mapping systems, which are now optional. A percentage also that goes to third-party aggregators, should a franchisee wish to engage them.
HOW IT WORKS: At Roll’d, customers use their smartphones or similar device to order. Orders are processed in-store for delivery via Deliveroo and/or Foodora, which pick up in a 15- to 20-minute timeframe.
COSTS TO EXPECT: Stores are credited every two weeks with the monetary exchange from Deliveroo and Foodora, which receive a 20 per cent commission of the sale price of orders. There are no other associated costs, and setup is free.
HOW IT WORKS: Couriers Please (CP) was founded in Brisbane in 1983 as a parcel delivery business. CP’s delivery network uses a “hub and spoke” model. A central depot (the hub) is set up from which radiate individual geographical areas (defined by the spokes). Parcels are collected from the dispatch point and delivered to the hub, where they are sorted and moved to the correct depot. Franchisees then pick up parcels to deliver to their designated area.
CP has just launched flexible delivery choices – a network of POP Stations (Pick your Own Parcel/Post your Own Parcel) at retail outlets or parcel lockers. Options include redirecting a parcel anywhere within the POP Station network or to an alternate address such as a neighbour.
COSTS TO EXPECT: Costs vary for a franchise in CP’s delivery network, but expect to buy an existing business from $5000 up to $200,000. Alternatively, an individual starting a new run will need to buy a van, which may cost $20,000 to $40,000. The signage cost for a CP-branded vehicle depends on the model and size of the van, but is typically between $3000 and $6000. Franchisees will also need to buy CP uniforms at $250 each.
Running costs include insurance, business registration, bookkeeping and wages, which differ depending on the franchisee. Additional ongoing costs for fuel and servicing also vary depending on the size of the individual run, the distance from the depot, the vehicle type and the service offer.
Veteran franchise Domino’s Pizza has introduced some key technological innovations in delivery, including a 20-minute service guarantee. Domino’s has a range of delivery vehicles including electric bikes (e-bikes), scooters, cars and robots.
New this year is its DRU Assist technology, which can be used both in the Domino’s app and on the website. Similar to Apple's Siri, DRU Assist has a virtual assistant that can help customers place orders. As well as speeding up the process, it can tell customers what’s new and help them get a deal on their pizza.
There are also plans to launch Domino’s Anywhere, a first in Australia, which will enable customers to drop a location pin using GPS locators so stores can deliver to parks, beaches and other locations without a specific street address.
HOW IT IS BEING TRIALLED: Multinational fried-chicken franchise KFC has just started trialling deliveries in Australia, with Foodora bringing delivery to the Manly KFC restaurant in Sydney. A further eight restaurants in various states are being planned. KFC Australia MD Nikki Lawson tells Inside Franchise Business that once KFC meets quality, operational and financial obligations during trial stage, it will be happy to roll out delivery nationally.
HOW IT IS BEING TRIALLED: Italian restaurant chain La Porchetta is trialling all aspects of home delivery. Customers will be able to order via the brand’s 1300ITALIAN number, on its website or via its app. Franchisees can run their own driver, or work with drivers provided by an external contractor. The brand uses drivertracking technology to ensure prompt delivery times and keep product quality at a premium. Orders go directly to La Porchetta’s point of sale and are scheduled into the tracking system for delivery. Each restaurant has a delivery captain whose job it is to
COSTS TO EXPECT: There are initial capital costs to buy equipment and technology. There are also ongoing driver and technology costs, as online portals and apps have transaction fees. However, the company says
these are more than offset by the increased business generated.