Inside Franchise Business - - Contents -

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.


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


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

en­sure ef­fi­ciency.

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.

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