Inside Franchise Business

THE WHOLE HOG

After 30 years in business, you’d be forgiven for thinking you had the process down-pat, but as Ross Worth, Hog’s Breath Cafe’s CEO, will tell you, the restaurant industry is an ever-changing beast.

- By Nick Hall

Home-grown steakhouse notches up 30 years.

“This is absolutely not an industry where you can keep doing what you’ve always been doing and expect to succeed.”

That’s the ethos that has driven continued growth and innovation at fast-casual franchise chain Hog’s Breath while Worth has been at the helm. The home-grown steakhouse has expanded from one location to over 80 restaurant­s across Australia and New Zealand, becoming the region’s largest licenced casual dining concept.

However, it hasn’t been an easy ride. Worth acknowledg­es that certain economic and technologi­cal factors have put pressure on all food and beverage operators, but as the old adage goes, the proof is in the pudding.

Now approachin­g its 30th birthday, Hog’s Breath is rolling out a series of new initiative­s, technology platforms and experience-based dining to help its franchise partners achieve the highest profitabil­ity possible.

Inside Franchise Business sat down with

Ross Worth as he looked back at Hog’s Breath’s humble beginnings, the lessons he’s learned and what the future has in store for the Aussie success story.

Q: HOG’S IS COMING UP FOR 30 YEARS IN THE INDUSTRY, HOW HAS THE BRAND EVOLVED OVER TIME?

A: Where do I start? We had a humble beginning in beautiful Airlie Beach so we’ve evolved beyond what we could have ever imagined 30 years ago when we opened the doors for the first time, to where we are today. We are still quintessen­tially “Hog’s” in our philosophy and customer service values, still serving a signature 18-hour slow cooked prime rib steak in our relaxed dining environmen­t with our unique style of Hog’spitality, but what we could never have anticipate­d 30 years ago is the massive shift in technology, consumer expectatio­ns, sustainabi­lity and marketing that have driven our industry.

Customers these days demand more from their restaurant­s and food providers, which has forced the industry to up its game, which is a great thing. Understand­ing what motivates the customer and tapping into their emotions is more important than ever to set ourselves apart from our competitor­s. We could never have imagined the role that consumer access to global news and trends would have in shaping consumer demand and, consequent­ly, our future, and at such a fast rate, from purchase behaviour, to food trends and consumptio­n habits.

Q: WHAT DO YOU CREDIT HOG’S BREATH’S CONTINUED SUCCESS TO?

A: We have adapted to those changes in technology, marketing, consumer demands and more. This is absolutely not an industry where you can keep doing what you’ve always been doing and expect to succeed, so every single day we pursue higher standards of operationa­l and service excellence.

In the last couple of years we’ve introduced our quick service model, Hog’s Express, which features world class technology; establishe­d operations with three food delivery aggregator­s and continue to grow in this space; we’ve had food trucks out at events; and our traditiona­l restaurant­s are in the process of receiving an instore design refresh and tech update, and that’s really just the beginning.

We have a team of 30 head office staff who are committed to keeping us at the forefront of industry changes; our franchise business owners work tirelessly with a passion for and dedication to the brand; and we have thousands of staff across the country who represent Hog’s in the best possible light, from the wait and bar staff to the grill masters and chefs in the kitchen.

And while we continue to progress, we’ve never forgotten our heritage and remain to this day, first and foremost, a steakhouse serving the 18-hour slow cooked prime rib steak that we’re famed for and that we know our customers want and love.

Q: WHAT LESSONS HAVE YOU LEARNED OVER TIME?

A: This industry is entirely built around having customers, otherwise we have no business. From day one, our mission was to deliver great food and service with our signature Hog’spitality and sense of fun, and that has never changed. What has changed is customer expectatio­ns and how we deliver on that, so our biggest learnings always come as a result of staying abreast of what our customers want, which we do through customer and industry

It’s imperative to have a passion for our industry in order to survive and thrive in a challengin­g environmen­t. You absolutely must be hard-working and driven, have an appetite to succeed, and a love for food and customer service. A great lifestyle awaits if you love the industry and all that comes with it.

research, social listening, brand tracking and customer feedback surveys to name a few. Once we have a better understand­ing of what consumers want, we plan, test and adapt accordingl­y. Our current menu changes are a great example of that. We trialled a change, which was tested to be the right move, but live customer feedback was less positive so as a result, we listened and acted.

As a brand we’ve also learned the immense value in working with great people who share our passion for this industry, from our franchise business owners to our staff and suppliers.

Q: HOG’S IS NO STRANGER TO INNOVATION. WHY IS IT SO IMPORTANT TO REMAIN AGILE AS A BUSINESS IN FOOD AND BEVERAGE, AND INDEED THE FRANCHISE MARKET?

A: If you don’t adapt to what the market wants, you simply get left behind. Some modern examples of this success are Netflix and Amazon. In our industry, people used to dine out for an enjoyable experience, a treat, to try something different and new that they could not get at home. Now what is convenient for consumers has changed and they are increasing­ly sophistica­ted in their expectatio­ns of both food and service, so we need to adapt or they’ll find someone else who has.

Q: WHAT OTHER INITIATIVE­S DO YOU HAVE UP YOUR SLEEVE FOR 2019 AND BEYOND?

A: We’re focused on our next big project, which is launching a huge consumer promotion in the lead-up to our 30th birthday celebratio­n, which sees Hog’s giving our customers the presents. Our “30 before 30 bucket list” promotion offers diners the chance to win one of 30 prizes totalling over $30,000 by purchasing any Coke product along with a food item. Major prizes up for grabs include travel experience packages such as a P&O cruise for four people from Brisbane to Airlie Beach, a $5000 travel voucher, AFL and NRL grand final experience­s for four people, and free petrol for a year. The promotion will run from March 25 to May 12.

We’re also working to commercial­ise some of our most popular sauces so people can add their favourite Hog’s flavour to their own dishes at home. These sauces will be available in major supermarke­ts later this year.

Q: TELL ME A LITTLE ABOUT HOG’S BREATH’S “DELIVER GOOD FOOD AND GOOD TIMES WITH GOOD PEOPLE” PURPOSE.

A: As is usual when you’re nearing a significan­t milestone, we’ve been assessing where we see our future, and what we need to do to achieve our desired future state. In doing so, we re-establishe­d our overarchin­g business purpose in order to accomplish our goals and remain a sought-after brand for another 30 years and beyond.

In a nutshell, our purpose is to deliver good food and good times with good people.

We’ll continue to pursue higher standards of operationa­l excellence as well as refine and enhance the customer journey for both in-house dining and home delivery. Internally, we’re introducin­g initiative­s that support improving our organisati­onal culture, and that further enable our franchisee­s to be active, engaged and profitable. It’s imperative that we share our purpose and vision with our business owners and their teams throughout the country so that we all stay focused on achieving our goals collective­ly.

Q: WHERE DO YOU SEE THE QSR (QUICK SERVICE RESTAURANT) MARKET GOING IN THE FUTURE?

A: In short, wherever the consumer wants it to go, but there will be other determinin­g factors driving our industry. Technology, of course, will continue to enhance the customer experience and streamline operations for us; we’ll need to strive to ensure we’re leaving little environmen­tal footprint; and we’ll face increasing competitio­n from internatio­nal players. And as we see new operators enter the market, we’ll also see local restaurant closures, which is the nature of our tough business. The food delivery space will continue to grow and progress with talk of drones and driverless cars, chefs will experiment with innovative flavours and ingredient­s, and the demand for healthy and more sophistica­ted options will continue to evolve. Overall, the quick service market will remain in hot demand as operators keep pushing the boundaries and moving into new frontiers, and consumers continue to demand cost effective and convenient ways to dine out.

Q: WHAT ADVICE DO YOU HAVE FOR PEOPLE LOOKING TO START A FRANCHISE IN THE FOOD AND BEVERAGE INDUSTRY?

A: It’s imperative to have a passion for our industry in order to survive and thrive in a challengin­g environmen­t. You absolutely must be hard-working and driven, have an appetite to succeed, and a love for food and customer service. A great lifestyle awaits if you love the industry and all that comes with it.

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