WORLD OF FRANCHISING

Franchise brands are on the move, expanding interstate, heading overseas and also extending the business model.

COMINGS AND GOINGS

GROWING, GROWING…

Mexican fast-food chain Zambrero has launched in the US with t wo outlets in New England and plans to t ake the business nationwide.

Zambrero is running the t wo initial restaurants itself but intends to grow its footprint across the US through development agents or franchisees.

Australian chicken franchise chain Oporto was set to open its f irst A sian outlet in Singapore as this magazine was going to press. It has partnered with a g lobal f inancial ser vices business Aura Group in Singapore with the goal of opening three outlets this year to be followed by 10 over the next five years.

There will be further A sian expansion in Sri L anka, Thailand and Vietnam with a t arget of 50 outlets across the region within 10 years.

Melbourne burger joint

Huxtaburger has introduced a s peedy food concept, HuxtaGO.

CEO Matt Fickling says the new format brings with it lower establishment costs for franchisees and allows the group to access real estate and areas around the country where it would not usually open, such as airports, transport hubs, highvolume CBD locations and shoppingcentre food galleries.

Australian bedroom retail specialist Forty Winks has hit a c entur y with its latest store in Chatswood, Sydney. It now has 100 stores across Australia.

Fast-food franchise chain Sushi Sushi is banking on its reputation for fresh, high-quality sushi by expanding into wholesaling. It will use its distribution centres for daily deliver y.

It expects wholesaling will contribute at least 10 to 15 p er cent of income within five years.

The Country Comfort hotel chain is expanding in regional Australia.

As well as seeking hotel owners, franchise manager Jeff Claxton is on a road trip to pin down locations in New South Wales and V ictoria.

Country Comfort is part of the Next Hotels & R esorts business.

Discount Drug Stores has opened Australia’s f irst drive-through pharmacy in the Australian C apital Territory. The drive-through pharmacy will offer customers a c lick and collect program, script collection, and e-commerce orders.

...GONE

Food and grocery delivery franchise Aussie Farmers Direct has closed after going into voluntary administration.

Almost 100 franchisees have been hit by the closure of a c ompany that began 13 years ago delivering fresh milk, cheese, bread and juice in Victoria.

Administrator Craig Shepard at KordaMentha says the business has struggled to compete and failed in attempts to recapitalise, partner or find a b uyer. “Unfortunately, it is not possible to continue trading and the business will s top immediately,” says Shepard.

DOWN BUT NOT OUT…

The Red Lea Group has gone into voluntar y administration, but its franchisee network of 22 stores is continuing to trade.

Red Lea distributed fresh and cooked chicken products to 28 specialty locations and supplied chicken products to supermarkets, specialty butchers, restaurants and hotels from its processing plant in Blacktown, west of Sydney.

According to the administrators, the sole director intends to submit a Deed of Company Arrangement that will cover outstanding employee entitlements (including unpaid superannuation, wages, annual leave, long-ser vice leave, pay in lieu of notice, and redundancy) in full and provide a return to unsecured creditors.

FAREWELLING FRANCHISING

Caltex is to pull out of franchising, revealing plans to take back its core business by mid 2020, a venture that will cost up to $120 million.

Its latest company report says reverting its retail to corporate control will lead to a more consistent customer experience, allow the business to roll out new platforms, standardise services and simplify supply arrangements.

At the end of December, Caltex franchisees ran 433 sites in the 810-strong network, with 314 company sites. Franchising has been an integral part of growing its retail business.

The company report acknowledges the significance of the decision for franchisees and has indicated it intends to work with them to manage the change, including the offer of transition support and employment opportunities for franchisees.

NEW TO FRANCHISING

Talbot Doors has granted its first franchise and has plans to sign up another four this year. The business is an automatic door installation and service company for the facility management industry.

More than 40 per cent of the industry’s revenue comes from maintenance services, and the firm has built relationships with large commercial enterprises including CBC, CBRE, CI Australia, JLL and Knight Frank.

Fixing broken doors and safeguarding security and safety is at the heart of the firm, which began trading in 1985. It has launched its own brand of automatic sliding and swing doors as well as trackless bifold gates. In 2013 it started making aluminium doors and frames.

Meanwhile, the increasing smart home trend provides further business opportunities, says Talbot Doors.

It is a franchise that suits individuals with a sound technical background and some electrical knowledge. It is planning to expand in New South Wales before extending across the broader eastern seaboard.

Investment in a new franchise territory starts from $139,000 for five years with one option to renew for a further five years.

FEELING GOOD

Convenience store chain 7-Eleven and Simply Cups have partnered to prevent 70 million cups entering landfill each year, and are urging Australians to join inn help save the environment.

CEO Angus McKay says 7-Eleven is committed to helping the community recycle 70 million cups each year, the equivalent to the number sold in-store. “Our goal is to change the way people think about recycling, and encourage other organisations and community members to get on board and install a Simply Cups bin in their workplace, park or school.”

Closed Loop’s Simply Cups founder Rob Pascoe says takeaway cups are lined with polyethylene that prevents liquids from seeping through. However, it also means the cups cannot undergo normal paper recycling.

Simply Cups has developed technology to remove the plastic lining from the cups so both materials can be processed.

Any brand of take-away coffee cup or Slurpee-style paperboard cup can handed in at 7-Eleven for recycling.