Q&A WITH FERGUSON PLARRE BAKEHOUSES
ON PRODUCTS:
What is your most popular bakery item and how many were sold in 2018?
The great Aussie classic meat pie! We make a variety of flavours and sizes and have been making them for over 100 years. We sold over 2 million of them last year.
How many kilos of flour does a franchisee stock at any one time?
None! We do all the baking for them. Interestingly, though, Ferguson Plarre spends more every year on fresh strawberries than we do on flour.
What happens to the leftover product?
We make use of leftovers in a range of ways:
1. New staff are encouraged to trial all products so if they haven’t tried something that is leftover, we encourage them to take it home and try it so they can discuss the flavours and quality with customers from their first-hand experience.
2. Some stores have a relationship with charity partners and will
offer leftover products to them.
3. Our main bakery provides any leftover products to the
Salvation Army.
ON STAFFING:
How many team members does a franchisee typically require?
Ten to 15 on the roster with two to six staff present at any one time depending on the store size and time of day.
What is the relevant modern award for bakeries?
This depends on a range of things. In Ferguson Plarre’s case, we operate under the Restaurants Award due to a high prevalence of dine-in consumption.
How are bakery staff trained?
A combination of instore and online training modules conducted by our training team. We also have a cultural competence program.
ON PREMISES:
What is the process for franchisees to find a site and secure a lease?
As franchisor we take on the head lease status with the landlord so we will control the site finding and negotiation process in conjunction with the franchisee.
What does the ideal site look like?
Our stores will tend to perform better in “fresh food” precincts in shopping centres or high street locations as we look for steady traffic flow of customers into our area throughout the day. Pending the requirements of the site we can utilise three models including kiosk, in-line or cafe.
What technical requirements are there for a bakery fitout?
As there is no baking or cooking required our stores are relatively easy to build and cost efficient so long as we can install our cool storage, display units and a coffee machine.
How long does it typically take from signing a lease to opening the doors on a greenfield bakery?
As the lease signing is normally at the same time as securing the franchisee’s commitment, it will be design and build that need to be completed from this stage. Typically this can take around six to eight weeks.
ON COSTS:
For a greenfield site, what capital investment is required in equipment?
Complete store build will vary pending format and size but starts from $260,000 up to $350,000.
What ratio of turnover would you expect a franchisee to spend on rent? And on wages?
Our network aims for 10 per cent for occupancy cost and between 25 and 35 per cent for wage to sales ratios, depending on the complexity of the store operations and product mix.
What are the monthly franchise fees and marketing levy?
We don’t charge either royalty or marketing fees.
ON GROWTH:
How many new bakeries do you plan to open in the next five years?
Between 25 and 35.
How many franchisees are multi-unit owners?
Currently we have seven.
What new business models are in the pipeline?
We are reviewing new locations in business parks/industrial zones as well as drive thru concepts and smaller “express” sites.