Inside Franchise Business

SERVING BEYOND THE RESTAURANT

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Zambrero is harnessing its brand power to make a difference.

A Mexican fast-food chain with a mission, Zambrero is harnessing its brand power to make a difference in the world.

As Australian­s seek healthier fast-food options, they are discoverin­g Mexican style with its big serve of flavour. In such a busy market, brand differenti­ation is an important step for franchises.

There is just such a difference for the Zambrero chain, with founder Dr Sam Prince bringing a humanitari­an perspectiv­e to the business right from the start, with social initiative­s now integral.

At the heart of its businesses is the Plate 4 Plate initiative. For every burrito or bowl bought, a meal is provided by the company for someone in need. The fast-food chain has joined forces with internatio­nal relief agency Rise Against Hunger ( previously Stop Hunger Now) which has a mission to deliver nutritious meals across Africa, Asia and the Americas.

On a local level, Zambrero has partnered with Foodbank so needy Australian­s can be supplied with meals.

“The volume of meals we are providing and the support of people in need drives the movement,” says Zambrero CEO Karim Messih. “We have meal counters in our restaurant­s that record the number of meals donated.”

Almost 15 million meals have been distribute­d through the initiative. “It feels pretty good,” says Messih.

He says team training is important, and notes that some staff members, as well as customers, have visited overseas locations where meals are distribute­d.

A new initiative is in-store videos showing children in supported villages to create a more personal link to the charitable activity. “It creates a feeling, an understand­ing of what it’s like to be in a village,” says Messih. “We will continue to innovate.”

In the fast-food sector, costs really count - both for the store owner and the customer. But Messih says there is another priority at Zambrero. “Our world is more about value. People will pay for good food, for convenienc­e and service, if it’s good enough.”

Zambrero aims to attract repeat customers. Messih says there is no target demographi­c, with the brand appealing to three distinct customer profiles: the millennial, who is attracted to the humanitari­an aspect; the family that values the value; and the healthy diner who appreciate­s the superfood range.

GROWING STRONGER

Zambrero’s outlet in Nowra, New South Wales, brought its network of restaurant­s to 150, with more opportunit­ies to come. The chain has grown by 30 to 40 stores annually for the past three years, and Messih sees no reason to change this.

However, he is keen to point out that it is not growth for its own sake as there are plenty of untapped territorie­s around Australia. “The strategy has been more regional and about working our way in, really planning, looking for the right demographi­cs, where this will work well. Location is the key.

“You can be in the best street in a suburb, but in the worst spot, and that’s not good. If your site is out of the sweet spot, it is really a struggle.”

Zambrero runs food-court, strip location and kiosk models, as well as 16 drivethrou­ghs, and takes a balanced approach to

the spread of outlets. The different models suit diverse locations, says Messih.

He believes it is important to capitalise on the option to cater for both lunchtime and dinner trade, and while customers appreciate choice, Zambrero has deliberate­ly kept its menu simple.

“Sometimes less is more,” says Messih. “Often franchisee­s have young kids serving, and this also makes it easy for them. I’d rather have fewer menu options, but meals that are amazing.”

He compares this with what he has seen in the US, where some chains have more than 100 items on the menu.

Messih believes traditiona­l QSR businesses are failing to innovate in their cluttered space. It is the newer chains in the healthy-eating sector that are invested in innovation.

Keeping things simple,

looking after the customer, is important,

more now than ever.

CUSTOMER FOCUS

Messih believes in the “theatre of food”, where displays are integral to the customer experience.

“In the past two and half years we’ve moved away from bain maries. We present food so it looks appealing to the customer. It’s really critical.”

At the heart of Zambrero’s growth is its focus on the customer. “It starts with your products. We consider ourselves product people. We have an obsession about what we sell, and the quality of ingredient­s.”

A customer-centric approach is twofold, he says. It is reflected in the menu, with vegan, vegetarian and now gluten-free options, along with a superfood range that keeps up with the times.

Introducin­g a gluten-free burrito was a challenge: how to give similar taste sensations with a burrito that wouldn’t crumble. The answer was a black-rice tortilla. “It was launched late last year and sales have been amazing. We even have gluten-free franchisee­s who can now taste a burrito.”

Secondly, the customer is central to marketing, which involves providing franchisee­s with the right systems so they can use technology to build customer loyalty.

Messih believes the brand can stay relevant to the customer through its loyalty programs, online ordering and home delivery. The home-delivery service was launched about six months ago through Deliveroo and Uber Eats, and has brought “good successes”.

“For some of our metro markets, home delivery is adding real value to the business,” says Messih.

So what are the steps to success in fast food?

“Fast food is just about basics, customer service 101. It’s cliched, but making a person feel important is so critical. It is important for us to also deliver on speed and service. You can lose a customer quickly, so it’s the sum of all its parts.”

He says there is a danger in overcompli­cating things. “Simply have amazing products, great locations and fantastic service. Retailing is more competitiv­e than ever. Keeping things simple, looking after the customer, is important, more now than ever. And keep enjoying it - retail should be exciting.”

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 ??  ?? CEO Karim Messih
CEO Karim Messih
 ??  ?? Founder Dr Sam Prince getting hands on at Stop Hunger Now
Founder Dr Sam Prince getting hands on at Stop Hunger Now

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