GrillÍd – serving up: healthy burgers
Facts and figures:
Full investment: initial investment is expected to range from approx. $300,000 to $400,000 per store (exc GST). This investment delivers a turn-key franchise operation, including costs such as outlet selection and complete shop fit-out, equipment, working capital, initial administration and security deposits.
Franchise fee: $50,000 (exc GST)
Working capital: approx $10,000 but cost will be dependent on a number of factors including the store size, location and condition
How much is invested in stock/supplies: While there is a significant investment in equipment. (cooking/kitchen equipment), there is no upfront investment in stock and supplies
Is this a turnkey operation? Yes
Royalty fee: seven percent, marketing levy: three percent
Term: five years followed by a further term of five years
Renewal fee: GrillÍd does not charge a renewal fee.
Lease: GrillÍd holds the lease
Operating hours: typically Sunday to Thursday 11.30am to about 10.00pm, Friday and Saturday 11.30am to about 11.00pm
Average customer spend: $15 – $17
This one-off franchise fee is charged to franchise partners to gain access to the GrillÍd network and it allows GrillÍd to recover costs such as selection, recruitment and training. Payable weekly by all franchisees the marketing and royalty fees ensure the provision of ongoing operational support and marketing of the GrillÍd brand, purchasing power; ongoing training, operations and marketing support and access to GrillÍd intellectual property and systems. All training costs are included in the total establishment costs and the training required depends on franchiseeÍs previous experience. A six week training program that covers pre and post store opening is available to all franchisees. There are 10 franchised restaurants in the GrillÍd network (plus 11 company owned) and several approved franchisees who will begin trading in early 2009.
The 2009 target is for 45 restaurants (about 25 franchised and 20 company owned). The on site preparation is simple as patties and spreads are prepared offsite to our trademark recipes. Bread is made by a traditional baker and is delivered to stores daily, along with all other fresh ingredients which are then prepared onsite. This helps to keep food and labour costs down and ensures consistency of the GrillÍd offer. A loyalty scheme is under development, one that is focused around engaging community clubs.
Chooks Fresh and Tasty – serving up barbecued and fried chicken, burgers and snacks, sides and chips
Facts and figures:
Full investment: it costs about $350,000 including GST to fully set up a new store.
Franchise fee: $45000 Working capital: between $15,000 and $30,000. How much is invested in stock/supplies: $8,000.
Is this a turnkey operation? Yes
Royaltyfee: four percent, marketing levy: four percent
Term: five years with two options of five years.
Renewal fee: $45,000 at the end of 15 year period.
Lease: the franchisor holds the head lease and provides each of its franchisees with a licence to occupy.
Operating hours: all Chooks stores are open every day except Christmas Day, from 11 am – 8.30 pm.
Average customer spend: $10.30.
What does the franchisee get for the royalty fee and marketing levy? From each, one per cent goes to local area marketing. The franchisee gets supervision and support, use of brand and system and quarterly franchise conferences. Training is included in the franchise fee and runs for eight weeks full time in-store at the Chooks training centre in Stirling. This includes training on practical aspects of running a store, culture of the group, intranet, management and back office, insurance, customer service, technical specifications, cleaning and maintenance, OSH and risk management, HR, LAM and ongoing relationships.
Chooks negotiates the best price to the franchisee and there are rebates payable to the franchisor which enhances the income of the system to enable the franchisor to provide service, research and development and sustain the system. There are 37 franchises in the system; the target is 40 franchises by the end of 2009. The Chooks fresh & tasty Supporters Card program has helped Chooks stores to become integrated into their local areas and has encouraged customer loyalty amongst locals with financial support for community groups as the incentive. Eighty five per cent of food preparation is done on-site.