Redefining the future - Leveraging digitisation and technology - Franchise Council of Australia
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ISSUE 64 EDITION 4 2020
Redefining
the future
Leveraging digitisation
and technology
Engaging customers
and franchisees
Post-pandemic
expansion strategies
Leadership and
business planning
the
ludes
YOB
Inc
20 M nce
20 celleing
E x
FCA ranchis ual
in F ds Ann
r
Awa
AUS $6.95 | NZ $7.95
9 772652 123000
ISSN 2652-1237
04
OFFICIAL JOURNAL OF THE FRANCHISE COUNCIL OF AUSTRALIA
Contents
2 A message from the CEO
4 Survey shows business optimism for 2021
6 Redefine your relationship with business systems
for a bright future
8 Transforming customer & community support in lockdown
2 10 Nurturing customer loyalty and trust through and
beyond 2020
15 Expansion in a pandemic:
finding opportunities for growth
20 Excellent foundations underpin success in 2020
22 Planning and preparing for business in the years ahead
25 Leadership from the rock versus the whole
8 28 Virtual brands in the dark
Confidently
30 Federal budget impacts on small business and workers
32 Employee underpayments: Why they happen
compliant
35 Responding to COVID-19 as One Team
38 Muffin Break leverages virtual technology
for training & development
39
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thefranchisereview | 1
A MESSAGE FROM THE CEO
“In the most difficult of circumstances, 2020
has seen both franchisees and franchisors
alike finding new opportunities and
creating success in the changed operating
environment, with some demonstrating
outstanding achievements.”
The restrictions and resulting tough • making submissions on specific In the most difficult of circumstances, The FCA engaged with regional
economic climate have demanded issues to various state government 2020 has seen both franchisees economic development officers
adaptability, determination and small business departments on business and franchisors alike finding new across Australia where councils are
innovation by all businesses and restrictions, exemptions, customer opportunities and creating success in seeking to attract new franchised
franchising has stood out as one of the registers and industrial relations the changed operating environment, businesses. Concurrently, a number
most resilient business models. The core of our advocacy has been with some demonstrating outstanding of franchisors advised their interest
However, many franchise businesses a concerted campaign of dialogue with achievements. in setting up in specific regions and
have been operating in the hardest-hit members to test government policy and The 2020 MYOB FCA Excellence attracting potential franchisees and
sectors – food and catering, hospitality, temporary regulatory changes, as well in Franchising Awards showcased business operators.
travel and home services – and have as to provide input on specific measures some of the franchisors, franchisees COVID-19 brought the program
relied heavily on the FCA for guidance, requested by members. and individuals who continue to make to a grinding halt but in 2021, the
support and advocacy. The FCA continues to respond to outstanding business contributions in focus will be on linking franchise
With 2021 looming larger, the FCA a high level of calls and emails from extraordinary circumstances. members, local government and
continues to focus on three key priorities: members seeking assistance or providing I congratulate winners and finalists on potential franchise operators to spark
1. supporting members with access feedback on these matters. their exemplary performances, resilience a new wave of franchise expansion to
to information, resources and support Feedback from FCA members, in the face of adversity, and continued the benefit of regional communities
through the transition from COVID-19 supported by a high level of membership contributions to their franchise systems across Australia.
After the trials and lockdowns and trading restrictions to renewal and retention (around 90%, plus and communities.
business reopening 15 new members since July 2020), is In the year ahead, we are determined National Franchise
tribulations of 2020, 2. advocating and representing the that they feel they have been supported, to get the FCA schedule of program Convention (August 2021)
most businesses are interests of members to all levels of listened to and represented through initiatives back on track, including: As with other national industry and
government on the issues, concerns and access to information and resources, and
cautiously looking needs of our members and the small government advocacy. Sustainability Forum
business conferences, NFC20 was
cancelled due to social distancing
towards a better business sector Concurrently, the FCA has continued (April 2021) requirements and bans on large
3. and through the media, enhancing to provide input on Franchising Code
year ahead. the standing and reputation of franchising of Conduct reforms, based on the input
Earlier in the year, the FCA announced gatherings. NFC21 will be held at the
FCA
a Sustainable Food Leadership Forum, Melbourne Convention and Exhibition
as the preferred model for small-medium of members on the negative impacts of
open to members and non-members Centre at Southbank in Melbourne in
business success, including highlighting specific measures.
looking for leadership, innovation, August next year instead of the usual
the resilience of franchise systems during With nearly 600,000 Australians
best practice and improved regulatory October timing.
the challenges of 2020. employed in franchise businesses and an
maintains
understanding of single use plastics, food Franchising and small business
The FCA has engaged deeply at all annual economic contribution of more
waste and recycling. leaders from across Australia
levels of government both informally and than $180 billion, franchising is vital to
The intention is to support businesses are expected to attend NFC21 to
formally in recent months, including: our national economy and it’s crucial that
in the food and hospitality sectors immerse themselves in a program
• facilitating COVID-safe business regulation is fair and effective for both
focus on
progress the implementation and scale of practical ideas and information at
recovery by emphasising the specific franchisors and franchisees and avoids
of sustainable practices, but as with the most comprehensive professional
assistance and regulatory changes unnecessary regulatory burden.
many initiatives the first forum had to be development event on the Franchise
needed by diverse business sectors The limitations on gatherings this year
postponed due to COVID-19. Council of Australia's annual calendar.
• bringing bad commercial leasing also forced a rethink of the Franchising
member
Forum and Legal Symposium, which were Providing a forum for businesses to NFC21 is being designed to offer
practices and landlord misconduct to
their attention and urging government successfully delivered as virtual events share problems, solutions and discuss attendees an unrivalled opportunity
intervention online. innovation is still an FCA priority and in to build their knowledge base, make
• reinforcing the need for fairness The FCA Legal Symposium in 2021, we propose to hold the first of a invaluable connections and find
support
in application of operating rules across November attracted almost 200 series of annual forums. solutions to their business challenges.
sectors, including highlighting disparity participants over the two day program, We look forward to sharing more
between public and private outdoor which included five plenary sessions, four
Regional Revitalisation information about these events with
workers blocks of six concurrent sessions and 23 Campaign you early in the new year.
• encouraging Federal Treasury roundtables. The FCA began a campaign in 2019 Whatever 2021 brings, the FCA will
and state governments to introduce Feedback has been very positive on to support regional revitalisation by strive to support the ongoing success
or continue support for struggling the legal program content and all sessions highlighting franchises as an efficient, of our members and more broadly
By Mary Aldred, businesses and workers facing were recorded and are being made innovative means of addressing service franchising and small business across
CEO, Franchise Council of Australia unemployment available to delegates. and small business ownership gaps. Australia. n
2 | thefranchisereview thefranchisereview | 3
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The Franchise Council of
Australia’s national survey
4% Fried Fried Fried Fried Fried Fried
of franchise businesses 16% Fried Fried Fried Fried Fried Fried
has shown 64 per cent
of respondents were
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conditions heading
into 2021 following Fried Fried Fried Fried Fried Fried
improved trading during
the September quarter,
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compared with the 12%
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previous three months.
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Survey 48%
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n Optimistic
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n Pessimistic
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Representatives of 109 Australian
franchise systems covering 15,649
closed across 34 franchise systems,
predominantly in the retail food (café)
back or cannot sustain their current high
levels of support for franchisees,” he said.
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franchised units and 2,012 company
operated units contributed to the “Pulse
category in the September 2020 quarter.
At the same time 174 new units were
The survey responses show
franchisors’ actions to assist their Fried Fried Fried Fried Fried Fried
Check” survey, undertaken by FRANdata
for the Franchise Council of Australia.
opened across 45 brands, predominantly in
retailing, pet care and home maintenance
franchisees focused on:
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“Franchise businesses have services. regulations and restrictions,
demonstrated incredible resilience Trading conditions remain tough, • assistance with accessing government
throughout the pandemic, and while it but franchising is showing resilience support programs
is pleasing to see increased optimism as
trading conditions improve, the recovery
and tenacity as franchisees continue to
benefit from strong and sustained support
• supporting franchisees with landlord
negotiations Fried Fried Fried Fried Fried Fried
will be a long haul and the survival of
thousands of franchisees will depend on
from franchisors, including 21.5 per cent
providing financial support to 100 per cent
• providing royalty reduction and
deferral programs, and Fried Fried Fried Fried Fried Fried
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sustained support,” said Franchise Council of their network • actions that monitor and support the
of Australia CEO, Mary Aldred. “Those franchise brands which well-being of franchisees.
Positive trading experiences in the enjoyed the greatest resilience in 2020 The greatest concerns in the September
September quarter continued to be most
apparent across the QSR, maintenance,
are ramping up their new store opening
programs,” said Darryn McAuliffe, CEO of
2020 quarter were the “wellness” of
franchisees & support staff (48 per cent), Fried Fried Fried Fried Fried Fresh We love an entrepreneur
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health and pet care related franchise
systems. Cafes, restaurants (sit-down),
FRANData.
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visit subway-franchise.com
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fitness clubs, lodging and child related positive, they are generally in non-food franchisee engagement and satisfaction
services proved less resilient. type franchises. The greatest number (36 per cent) and recruitment (34 per
The survey showed restrictions in of permanent closures are among food cent).
Victoria heavily impacted the trading
performance of many franchised
related businesses which unfortunately are
likely to deliver a high number of job losses.
The FCA will use the information
gathered to support ongoing submissions Fried Fried Fried Fried Fried Fried
businesses in the state.
95 franchised units were permanently
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4 | thefranchisereview
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How does digital adoption This is compounded by a lack Building and retaining
help franchises? optimism regarding the future among efficiency with modern
the small business community, echoed
The solutions on offer from digitisation tech tools
by the fact that 42 percent of businesses
can be grouped into five key areas: First of all, it’s important to remember
with between five and nine employees
1. Finding talent believe it will take more than 12 months to that digitisation is a journey.
Digital recruitment tools fine tune the recover from COVID-19. There are many tools currently
hunt for the right skillset and digitisation Franchisors and their advisors are best available to you, but it’s important to
removes geography as a requirement for placed to support franchisees embrace them in a considered manner
hire. SMEs who have adopted digital are The lack of confidence exhibited by to ensure that you retain efficiency along
eight times more likely to create jobs. small business means franchisors and the way. It’s counter-productive for you
In addition, remote working their business advisors have a great ability or your clients to implement any new
productivity drives growth: almost half to support their franchisees’ longevity. tools or workflows at the expense of
efficiency.
Redefine your
of the workforce will continue to work And that means not only putting out fires
remotely after coronavirus and nearly half and working to inform stakeholders of While COVID-19 has amplified the
of fully remote employees exhibit high the key stimulus and budgeting measures need to be able to work remotely,
discretionary effort. to guarantee cash flow, as many have it’s important that doing so doesn’t
come at the cost of improving your
relationship
2. Access to capital been focused on in recent months, but
in driving the digital adoption within margins through efficient process and
Cashflow has increased as digitising
your organisation that can reinvigorate technology.
payment processes leads to faster
Australia’s economy. But first, you need to make sure
payment times and fewer barriers to
you’re driving efficiency with the tools
with business
financial supports. For example, MYOB Research shows SMEs with advanced
levels of digital engagement are 50 you already have access to today. For
customers can be pre-approved for loans
percent more likely to grow revenue MYOB customers, that means using the
via in-product data analysis.
and earn 60 per cent more revenue per wealth of features and functions that
Further, there will be increased
enable the digitisation of your clients’
systems for a
customer demand for digital payment employee. Therefore, franchises are going
to play a critical role in increasing levels of businesses, and your own.
solutions. Australians are embracing
digital engagement, and MYOB aims to As an example, we’ve completely
contactless mobile payments as a result
play a critical role in helping you. rebuilt our MYOB Essentials solution
of COVID-19, used by 10.8 per cent - up
from the ground up, with your needs
bright future
from 7.1 per cent a year ago.
“While the learning curve has in mind, to create a powerful business
3. Efficient revenue generation and cost management solution. It will help you
of servicing benefits been steep, those who have
and your clients get an even greater
Digitised SMEs are 14 times more likely embraced it are set to come understanding of how their business is
to innovate by offering new products through the other side with performing and will create major time
or services as businesses have greater more robust and more flexible efficiencies for you, enabling you to
flexibility to adapt and lower the cost of get more done, provide more valuable
businesses.”
Article provided by diversification. insights and help your clients make
A Salesforce Deloitte Access
MYOB Economics report found small businesses
Software-as-a-Service (SaaS) better business decisions.
platforms have quickly replaced earlier Furthermore, our AccountRight
using Salesforce see 32 per cent more digital systems, creating a multi- solution is now available via your web
As we all know, 2020 has began, so helping as many businesses as and the degree to which their businesses leads and 26 per cent more deals. tiered environment when it comes to browser. This ensures a similar workflow
possible survive these changes has been were digitised or able to quickly become
been a tough year for a major focus for MYOB. digitised. And that can come in a lot of
4. Compliance costs digitisation. Where the most modernised and more seamless experience for
The time cost of compliance for business systems – inventory, point- accountants and bookkeepers working
the world, and it’s been a However, not only were 85 percent of forms – their ability for teams to work
SMEs is significant. Through automating of-sale, recordkeeping, time tracking across both of our SME products. It
SMEs in a state of unpreparedness for a from home, their ability to trade online or
uniquely challenging one disruption like a pandemic, they are also even simply to communicate easily and
repetitive tasks, such as multiple data and more -- are available to workers means users of both AccountRight and
entry, and improving accuracy, time spent anywhere, anytime, many small Essentials can take advantage of a new
for Australian franchise most at risk of the knock-on effects of effectively with their clients.
is greatly reduced. businesses find themselves caught in online reporting suite that early adopters
COVID-19.
owners. As a result, there are few operators – Why is digitisation important? MYOB product research demonstrates a hybrid state, between paper-based have described as game changing.
a 27 per cent time gain for SMEs using solutions, desktop systems and a few Finally, MYOB’s Practice Solutions have
Early on, we thought things couldn’t franchisees, franchisors and their advisors Well, from an economic perspective, accounting software. simple SaaS solutions. been providing users with remote access
get much worse than the bushfires alike – who’ve not had to show resilience, MYOB calculates that enhancing the
5. Cross-border e-commerce And while COVID-19 hasn’t created to their software for over a decade, so
that greeted the start of the year. Then tenacity and a willingness to adapt to digital capability of Australia’s 2.4 million
Research shows SMEs who have the demand for mobile, flexible business we’re no strangers to the demands of
March arrived and so did the full force of difficult circumstances in order to survive small businesses could increase SME
embraced digitisation are seven times more platforms, it has dramatically enhanced remote working or a flexible workforce.
COVID-19. in 2020. contribution to the Australian economy
likely to export and that digital interaction it. Changes we expected to occur over For advisors to franchises working
No one would have predicted all Plenty has been discussed already by 20.8 per cent, the equivalent of $33
with B2B customers is now twice as five to ten years have taken hold over a remotely, you can access MYOB
those months ago, just how significant about Government assistance, as well as billion.
important as traditional channels, jumping matter of months as the majority of the Accountants Enterprise or Accountants
an impact the pandemic was about strategies and tactics business owners In doing so, it will increase
more than 30 per cent since pre-COVID-19. business landscape was thrown into the Office from home, with minimal
to have on our lives, and how seismic can take on themselves to ensure long- employment opportunities for Australians
Our research throughout the COVID-19 remote work paradigm. disruption, using a VPN. n
the aftershocks would be for our term sustainability, but in this article we’re at a critical time for the country. It can
crisis has consistently shown that, while By dropping us in the deep end,
communities and our businesses. going to focus on digital adoption and also resolve existing challenges for small
Australian small businesses were why understanding it is important for businesses.
bigger businesses benefit from increased the pandemic has forced businesses Find out more
productivity through flexible working or to address issues that might previously
particularly vulnerable to an economic your business. A healthy digital ecosystem also For further information about how
faster adoption of online services and have been barriers to change. While the
downturn, many of them franchisees. Digital adoption has direct implications ensures the continued creation of MYOB can help your Franchise,
e-commerce by customers, 66 per cent learning curve has been steep, those who
These businesses are the engine room of for the future of franchisees. successful and effective homegrown contact Shehan DeSilva Business
of sole traders and 49 per cent of micro have embraced it are set to come through
our economy, and the employer of around There’s a direct correlation between technology companies, servicing the Development Manager – Franchise at
businesses saw no benefit afforded by the other side with more robust and more
4.7 million people before the pandemic a franchisee’s ability to continue trading needs of franchises. Shehan.desilva@myob.com
the pandemic. flexible businesses.
6 | thefranchisereview thefranchisereview | 7
Taking a customer-centric approach to the JAX Shifting gears responding to different challenges related
with business priorities to COVID-19. This approach will be used to
Tyres & Auto business has always been a part of inform our response to future hurdles.
The onset of the COVID-19
our DNA. So, when the COVID-19 pandemic hit environment required us to quickly Innovating vehicle
Australia, supporting the community became a assess how we could adapt our unique
safety checks
operational model and utilise our long-
driving force for our team. Supported by our value standing retail and mechanical expertise The second wave of Victorian
proposition, we were able to use a combination to best support the community, our lockdowns presented a challenge and an
opportunity for the business to directly
team and suppliers through these
of measures, including remote and digital unprecedented times. respond to franchisees’ pain points and
technologies, to adapt our standard business With community lockdowns being address the major concern of losing touch
with our customer base.
processes and launch various initiatives to ensure implemented in various forms across
different states and regions, it was Knowing that idle vehicles could a remote drop-off and pick-up service. This is most evident in the way we
our franchisees could keep their businesses running important to ensure our business was present potential issues to our customers, Rather than introduce innovation for pivoted the methods we provided
the concept of a remote iteration of innovation’s sake, coming up with a customers with expert tyre and
and deliver peace of mind for Australian drivers. acting strategically and in the interests of
JAX Vehicle Inspections was developed, practical, effective solution that tailored mechanical servicing advice. In addition to
our 87-plus stores across the country.
Transforming
providing our customers with a existing products and services to meet JAX Video Vehicle Checks, we enhanced
A key element was to make a
preliminary visual diagnosis from the changing customer behaviours and needs our website offering by implementing an
considerable investment in digital
comfort of their own home. helped us to facilitate safe, value-added online chat function (powered by Podium),
channels so customers would understand
The service - a visual inspection community support. for customers to speak to stores directly
our business was continuing to operate
customer &
conducted by certified mechanical team As the COVID-19 situation escalated including outside of store opening hours.
as an essential service. A significant
members to identify vehicle issues – was in certain regions, we augmented these We have given our customers who were
portion of our marketing investment
offered in a complimentary initial pilot. After community support packages to respond browsing the JAX Tyres & Auto website
was channelled towards social media,
immediately getting endorsement from our to ever-changing circumstances with the ability to communicate with our expert
streaming television and digital so we
community
franchisees, our operations and marketing complimentary JAX Vehicle Inspections, teams, first via webchat then continuing
could maintain a connection with our
teams supported franchisees with scenario tyre puncture repairs and financial offers the conversation through text messages.
customers while they were at home.
mapping, role playing, training, sourcing for those most affected by the pandemic. Utilising this technology helped to
As lockdowns started to ease, we
a technology partner to deliver the video This initiated from the understanding that broaden the channel of communications
understood people may be under financial
many in the community were experiencing with customers, assured customers that
support in
stress and conscious of investing in function and then proceeding to roll out to
our Victorian customers. financial stress and uncertainty and we were available to provide our expert
mechanical services or a new set of tyres.
This form of remote service is a first that taking on a support role for the support outside of our tried-and-true face
By utilising our strategic partnerships
for the tyre retailing and automotive community during such challenging times to face methods and from an operational
with our suppliers, we were able to offer
mechanical servicing industry, bolstering could only enhance the long-term halo perspective, helped stores to work with
lockdown
customers competitive discounts on key
the company’s personalised digital effect with our brand and business. fewer staff members when needed.
products and after-lockdown bookings.
Not only did this support our franchisees’ experience offering and enhancing
the capabilities of its market-leading Changing how we The road ahead
business pipeline, it also helped to give
customers peace of mind when venturing eCommerce platform. delivered expert advice Finding ways to leverage market-
back on the roads. Whether it’s leveraging new leading technology hand-in-hand with our
Providing customer-centric technologies or tapping into the best- best-in-class retail and franchise expertise
By Steve Grossrieder Supporting our value add services in-class expertise within our franchise and taking an agile approach to business
Chief Executive Officer and Executive Director, franchise network We knew that introducing new network, we’re committed to delivering processes has proven to be a winning
technologies alone would not be enough premium retail service in increasingly formula for our business in the past few
The work our franchisees do on the
JAX Tyres & Auto to minimise the impacts to our business innovative and agile ways. months and will be vital to our business
frontline is integral to business success,
and to effectively support the local While taking this approach on a local strategy moving forwards.
regardless of the economic environment.
community through this crisis. level was helpful for our franchisees, the This has certainly been a ‘business as
During the pandemic, it was essential
Finding fresh ways for our store teams business also applied this mindset to unusual’ year and while some uncertainty
for us to work closely with our stores to
to provide above-and-beyond customer digital customer touch points to keep the remains over what the short-to-medium-
develop and implement processes and
service was of utmost importance. channels of communication with our expert term will look like for the JAX Tyres &
solutions that would support their day-to-
Another pivot we quickly realised was teams open during COVID-19 and further Auto business, I’m confident in our team’s
day to business.
important to our business response was funnel business through our network. ability to rise to any challenge. n
Having regular meetings was useful
in gaining a better understanding of how
each local market was behaving during
all stages of lockdown, particularly the
community reactions after the toughest
periods. Leveraging these insights at
a local and regional level informed our
national business response.
As an example, the foundation of JAX
Zero Contact Service, (social distancing
and hygiene measures implemented
in-store for customer and team health
and safety) was formed in accordance
with the World Health Organisation
and Australian government alignments
and the proactive response from our
franchisees. This early collaboration set
up a robust dialogue that proved useful to
8 | thefranchisereview thefranchisereview | 9
TFR: What have been the key
strategic outcomes you’ve been looking
to achieve through your customer
engagement activities throughout the
pandemic?
CC: Just letting people know they
could still access our products was
a basic but huge focus. Once we’d
achieved that, increased retention was
the main goal - that’s where our ability
Nurturing
to keep customer experiences personal,
provide great service and ultimately
deliver incredible food comes in.
Despite the severity of the situation,
customer
the fact that as an essential business
we could remain open gave us an
opportunity to address two strategic ever before and that’s really worked. how can we continue to put a smile on
goals - growing brand awareness and That’s happened across all channels, people’s faces during this period? - and
loyalty and trust
acquiring new customers. With several physical and digital. then using what he had to hand to do
important campaigns planned for this As I said earlier, we’re all about just that. All I’ve done is encourage
period we decided to keep all marketing making people smile and the most it and helped to make sure as many
plans in place and the results of that successful engagements have been people saw it as possible! As a concept
through and
have been incredible. when we’ve done just that. Social and through execution it ticks so many
Customer engagement played a role media has been a key place to interact strategic boxes but at the end of the day
that because it was important to give and engage with our customers and it’s very authentic and lots of fun. I think
a great experience to those new to the our Corona-OKE song parody series people can see that and that’s why they
beyond 2020
brand and convert them to long term has been something that’s had a huge have responded so well to it.
customers. response from customers new and old. After the initial video the response
For our franchisees, the strategy has We’ve also worked hard to was huge and we realised we had
been all about support - providing them communicate with and reward our most something that could really work we
with everything we can in order to help loyal customers and through our loyalty put some structure around it but really
them to thrive in a difficult period. programme continued to surprise and it’s just Steve coming up with ideas
delight through this period with content and going off and creating this with his
For 120 years, Fergusson Plarre Bakehouses has been and giveaways such as a free coffee or family.
free samples of our latest products such The response has been amazing
putting a smile on people’s faces through their fresh- as our plant-based range, which were – people just love it and demanded it
baked pastries and sweets. As Australia faced the well loved by our customers. It’s been returned for lockdown 2.0. The videos
important to thank our loyal customers have collectively had millions of views,
challenges and uncertainty the COVID-19 pandemic for their amazing support and keep them with the Mary Poppins parody receiving
in 2020, the brand’s commitment delivering on and up to date with the latest information. over 3 million views on TikTok
TFR: You mentioned one aspect of alone. Steve had a live segment on
communicating this ethos has been central to maintaining your engagement has been CEO Steve Channel 9’s Today show and he’s been
and growing customer loyalty and trust. The Franchise Plarre’s Corona-OK karaoke videos stopped in the street a few times now.
through social media. Can you share
Review spoke to Chris Cotton, Head of Marketing at how this idea came about, the strategy
We’ve even had people emailing and
asking for personalised birthday video
Ferguson Plarre Bakehouses to find out more. behind it and the customer response to messages for loved ones!
this. We’ve finished the Corona-OKE series
The Franchise Review (TFR): Operationally is where there has CC: I wish I could say that this was a now in line with the end of the second
How has Ferguson Plarre’s customer been change, with new channels such clever marketing strategy I put together lockdown here in Melbourne but Steve
engagement changed as a result of the as delivery emerging and existing but but I can’t! This was simply our CEO will be back at Christmas for some
pandemic? underutilised channels (for us) such as Steve looking at the problem in hand - festive fun.
Chris Cotton, Head of Marketing, our website becoming so much more
Ferguson Plarre Bakehouses (CC): At important. We’ve had to translate
a strategic level it hasn’t really changed that trust in our offering to those
at all. This period has simply convinced channels and had to listen to what our TFR: Can you please share some
us the path we had set out was the right customers needed during this time, examples of Ferguson Plarre’s
one – genuinely loving your customers, quickly adapting our product range to successful customer engagement
trying to understand them as best you suit. throughout COVID-19?
can and then helping them to love you Our franchisees are our customers too CC: I think where we have been really
by being authentic and putting a smile and with their stores facing significant successful is with our key seasonal
on their face with every interaction. challenges, the change there has really campaigns. Seasonal events such
We’re a trusted brand and people been all about frequency and format of as Mother’s Day or Halloween were
rely on us to provide happiness through communication. Here we’ve employed definitely different this year but we
food. We realised very quickly that in video and digital communications as realised that our customers still wanted
such a difficult time we had a role to play well as the usual face-to-face work to to celebrate and were using them as
by doing just that and if anything, our disseminate vital information and ensure a distraction from the drudgery of
customer engagement simply dialled up that we have supported everyone to the lockdown. So rather than ignore them
the smiles. best of our ability. we’ve tried to make them bigger than
10 | thefranchisereview thefranchisereview | 11
TFR: What are the key engagement
channels you’ve used and why?
CC: Omnichannel is really important
for most businesses but because of the
demographic spread of our customer
segments it’s vital for us. That means
our customer engagement work exists
across pretty much every channel
there is. We’ve even used delivery
aggregators’ bags as a channel with
personalised notes to bring that feeling
you get in a store to someone’s home
– recreating the experience they have
missed by not being physically in a
Ferguson Plarre store.
TFR: How have you measured the
success of customer engagement
activities throughout the pandemic?
CC: The ultimate measurement of
any customer engagement activity is
revenue and it’s no surprise we’ve kept
an eye on that!
Our formal measurement of
consumer customer engagement
happens twice a year through a major
piece of research. This has just kicked
off again and will allow us to really
understand if our brand awareness has
shifted the way we think it has, how this
period has changed our customers and
the way they feel about the work we’ve
done during this period.
We’ve seen growth in engagement TFR: While much of your customer TFR: Finally, how do you
metrics across all our channels, social engagement has been focussed on see customer relationships and
media, loyalty programmes and website putting a smile on people’s faces, you’ve engagement evolving as we look to the
engagement metrics and anecdotal also been in the position of needing to future and a COVID-normal?
positive feedback from customers in let customers know there was a positive CC: I think we’ll see businesses taking
store and through customer service COVID case at one of your stores. Can it more seriously because the brands
channels so the expectation is we have you share how you did this? that have been successful are those
performed well. CC: The key thing here was being that have a deeper relationship with
With our franchisees, one of the prepared. As a Victorian business that their customers. A lot of businesses,
measurements of their engagement is remained open during the lockdown especially food businesses have relied
the Top Franchise Awards delivered by periods we were aware that this could on impulse, people just being there,
At Rest supporting small
research agency 10 Thousand Feet. The happen and a lot of work has been done and then struggled when the pandemic
process for that is based on research to ensure both the bakery itself and all our has taken those people away from their
from our franchisees directly and with stores are operating within strict safety physical store.
business, is a big deal to us.
a 90 per cent participation rate and a guidelines. That planning included how we For many franchise systems this
ranking of #1 food franchise in Australia would communicate with our customers. may mean an ongoing change in the
we’re fairly confident our activities have Businesses have a responsibility to their location the product or service is
been a success. customers to make them aware of an issue delivered and how they talk to their
TFR: In the uncertainty of the such as this and that was our key objective customers– i.e., direct to home rather
pandemic, building and maintaining – just making sure that the people who than in a food court and that will force
brand trust are an important part of any needed to know did. We used all the a change to the way customers are For more than 20 years we’ve been
customer engagement strategy. How direct channels we had access to, social, engaged. For a brand to be successful helping Australian businesses take care 1.7 million members have their
have you done this at Ferguson Plarre? email and the media. it will increasingly have to become a
of their employees’ super. super with Rest
CC: I’m really lucky because I’ve The advice I’d give to other franchise destination (physically or digitally) and
been working with Ferguson Plarre systems when communicating is simply customer engagement plays a huge role
for eight months, but they have been to act quickly and be as open and honest in making that happen. That’s why 1 in 7 Australians have their 200,000 contributing employers
building and maintaining brand trust as you can be. Also, if you don’t have As a business with an engaged and super with Rest.
for 120 years. It’s now our responsibility the resource in-house then work with dedicated following we’re lucky but
to keep deepening that relationship to a trusted PR agency. We work with having seen just how important it really $54 billion funds under management
help grow the business and so we can Sidekick Communications and they’ve is we’re accelerating our ‘out of store’
rely on it again when we really need it. been amazingly helpful in dealing with the activity. Home delivery, our website,
That means continuing to understand media during the pandemic. digital communication and loyalty
our customer, creating great products The response from our customers was plans are all being enhanced. This Learn more at
that we know the customer wants, a direct result of the trust and relationships will ensure every point of interaction
providing great customer experiences https://rest.com.au/employer
we’ve built over 120 years – constructive, works in unison and we increase the
and communicating effectively. supportive and positive. personalisation of the service. n
Product issued by Retail Employees Superannuation Pty Limited. Consider if it is appropriate for you
and read the PDS available at rest.com.au/pds before deciding to join or stay.
12 | thefranchisereview
Expansion in
a pandemic:
finding
opportunities
for growth
In a year where businesses
across Australia have faced
unprecedented challenges,
the franchise sector has
demonstrated its capacity
for resilience and innovation,
and time and again, new
directions for growth have
been found. Some, like Mail
Boxes Etc (MBE) Australia
and Shoebox Books have
added new services and
franchise models to the
Roll’d focuses
and as the numbers of those moving to
mix and others, such as regional areas continues to grow, ‘non-
Roll’d, are reshaping their
on regional
metro’ hospitality is set to reap the benefits.
expansion plans with a Roll’d founder and CEO, Bao Hoang,
and suburban
believes that regional areas are a huge
focus outside CBD areas. opportunity for the fast-casual Vietnamese
Poolwerx is growing
growth
street eats brand.
“We want to continue serving fresh,
through a combination of healthy Vietnamese food to more and
converting independent Vietnamese food brand, Roll’d, will more Australians, and that means looking
place a heavy focus on expanding outside beyond the CBD and localised suburbs into
stores to the brand and metropolitan Melbourne, Sydney and regional areas that may have limited healthy
multi-unit growth, while Brisbane and look to establish stores in takeaway options,” said Hoang.
suburban and regional Australia as part of The Roll’d business model has also
City Cave and Snap its growth strategy. adapted to a changing hospitality landscape
Fitness have looked to The brand has announced eight through innovations including the Roll’d
new store openings across Australia by Runner (Roll’d’s food truck) and Roll’d Meal
expand their businesses to Christmas, with many located beyond Box which have kept the brand vital and
meet a renewed demand Brisbane, Sydney and Melbourne CBD, and directional during the pandemic, and in
concentrated on areas such as Elonora, doing so have enabled Roll’d to open 5 new
for wellness and fitness QLD; Adelaide, SA; Canberra, ACT; and stores, maintain jobs and stimulate growth.
services. The Franchise Fremantle, WA. The brand now envisions a future where
The strategy is guided by research that new store locations are less reliant on foot
Review looks at how each suggests that many Australians, specifically traffic, but rather focus on various delivery
of these brands have found those in major cities, will swap the busy inner- methods including the Roll’d Run, the Roll’d
Runner, traditional delivery drivers, with
opportunities to grow city life for a sea change of greener pastures
and somewhere a little more spacious. drone delivery planned to come within the
during COVID-19. Similarly, domestic travel is said to boom next five years.
14 | thefranchisereview thefranchisereview | 15
MBE looks Shoebox Books
to three tier launches
growth expanded
plan franchise model
For Mail Boxes Etc (MBE) Australia, For one of Australia’s largest
the pandemic has seen a noticeable shift bookkeeping franchises, 2020 has been a
in operations, with the pack and ship year of finding opportunities in adversity
component of the business growing in for franchisees.
comparison with the franchise’s mailbox Moving quickly to develop unique
and printing services. JobKeeper packages for franchisees to
“We’ve actually come through COVID offer to clients helped Shoebox Books
relatively unscathed, because we have franchisee’s achieve overall growth of
been classed as an essential business 27.91 per cent in revenue.
mainly around the shipping and courier The brand has also opened five further
and logistics side of the business,” said companies,” said Treloar. In Australia, MBE is now providing franchise locations during COVID and has franchisees over the last few months. both as an upgrade for eligible existing
MBE CEO Clayton Treloar. “We also don’t need as much room franchisees with three offerings: a kiosk now launched its Shoebox Books & Tax “After so many qualified and skilled franchisees for an additional cost of
While printing has historically for a store that focusses on the pack and (with the first of these sold in North franchise to provide both bookkeeping workers found themselves unemployed, $36,000 plus GST and as a model for new
accounted for 70-80 per cent of ship as opposed to the printing side of Sydney at the beginning of 2020), an and tax services for franchisees to offer we made the decision to target this franchisees, with a special offer of $59,990
business, this year pack and ship has the business.” MBE hub of up to a 50 square metre their clients. particular type of person and really try to + GST for the first ten franchisees to join as
increased from 10-20 per of business to This is reflected in MBE’s most recent footprint and the full MBE centre, which It’s an offering that has been on the reach this market. Reviewing our enquiry Shoebox Books & Tax.
around 30 per cent of business across store opening in Port Macquarie, the can have a footprint up to 120 square radar for a while, but COVID moved its rate and quality of leads, we’d definitely “We are very excited to announce that
the board. brand’s 40th Australian store, which is metres. launch further up the priority list. say it’s been a win, win…increased number we have our first three Shoebox Books & Tax
There has also been a noticeable located in premises that are smaller than It’s the hub model, with a cheaper “With the COVID pandemic here in of leads with a fantastic trend of high- franchisees starting their training in January
change in the way customers interact the typical MBE site. entry level and the opportunity to more Australia impacting so many businesses, quality,” Coad said. 2021. These current franchise owners have
with the centres during COVID, with “MBE is an international franchise with quickly grow a profitable centre as well with redundancies and extremely qualified “We also made note that with a qualified and have jumped at the chance to
contactless and online service jumping 2500 locations worldwide, so I’ve also as the potential to expand at a later workers having no control of their work-life lot of people working from home and up-skill and increase their own growth, so
from around 80 per cent to 95 per cent been reaching out to other countries to date, that’s proving most attractive to balance, it was a no brainer!” said Shoebox businesses having to restructure due to we have hit the ground running and are
of business. find out how they’ve grown. One of the prospective franchisees – and there has Books Co-founder Yvette Coad of the the ‘new landscape’, dipping our toes only looking forward,” said Coad.
The result has been a change in success stories is Malaysia where they’ve been a substantial increase in enquiries launch. further into the finance and accounting “Introducing our new tax franchise model
both the strategy for site selection and grown up to 100 MBE centres in a short over the COVID period. And while Shoebox Books was unsure industry was only beneficial to the only expands our network growth strategy,
expansion. period of time by focussing more on the “We were already laying a foundation about what franchise enquiries would look Shoebox network.” enabling the Shoebox brand to further
“We’re not even looking at busy high pack and ship side of the business and for three different levels of MBE centre like during COVID, the Shoebox Books The new franchise model will enable service Australian businesses and clients.
street locations anymore. We’re looking the size of the store and therefore the and the COVID period has really Franchise Manager has had numerous franchisees to offer a 360-degree “It’s been a ride, but we’ve really
at easy access for couriers and shipping profitability of the business,” said Treloar. propelled us forward,” Treloar said. conversations with high-quality potential experience for clients and is being offered advanced in 2020.”
City Cave goes for growth Financial edge
On the funding front, City Cave
The blueprint has included new special team-building activities (including encourages potential franchisees to
marketing initiatives, bringing more Zoom wine and cheese nights) and research their own funding avenues.
franchisee recruitment specialists networking events to boost morale and However, it can provide details of finance
into the fold, and ramping up support allay any pandemic-related concerns. brokers that existing franchisees have
services for centres. “When people are scared, leaders and used and it supports applicants as
brands need to step up,” Hassell says. required.
Floating on air As part of the latest expansion Some franchisees also involve
Launched in 2016, City Cave now phase, City Cave franchisees Kathy Rees third-party investors, while access to
has 12 centres, with five more in COVID- (Ipswich and Springfield) and Damian equipment loans is an option. Hassell
In a world where COVID-19 has forced safe locations set to open their doors Coppolecchia (Beenleigh and Everton says City Cave’s efforts to keep
many businesses to shut down or scale by the end of 2020 – one each in Park) will become the group’s first multi- improving its forecasting and business
back, City Cave is pursuing an ambitious Springfield, Toowoomba and Everton unit operators. planning has helped applicants get
growth strategy. Park in Queensland; Broadway in NSW; Hassell says while City Cave is eager funding across the line. He adds that he
Rather than succumbing to the and Queenstown in New Zealand. A to bring in new franchisees, they have to and his business partner Tim Butters
pandemic, the franchise group is playing combination of float therapy (using be the right fit. Part of the recruitment are “obsessed with their franchisees’
to its strengths during the health crisis and sensory deprivation to achieve deep criteria is that prospective franchisees profitability”. “Everyone who joins City
ensuing recession – providing wellness relaxation), infrared saunas (detoxifying must embrace one or more of the Cave has invested in us and we take that
and healing services to its customer target the body) and massages (relieving tired brand’s four key values – collaboration, very seriously. We really do appreciate and 200 in Europe. banging, screaming and yelling
group of athletes, CEOs (Completely muscles) has quickly won over female empathy, abundance and balance. “We all of the love that people put into our Although COVID-19 has been a that we’re here and we’re going to
Exhausted and Overworked) and hippies. and male customers, while interest from want people to have the same ethos as brand.” blessing in disguise for City Cave, Hassell grow. We’ve worked really hard and
“We’ve pressed the accelerator, we’ve potential franchisees has been strong. us,” says Hassell, who adds that about City Cave’s long-term goal is to open baulks at suggestions that the franchise COVID-19 has been an eye opener and
worked harder and we’ve found solutions,” During COVID-19, Hassell says City 80 percent of current franchisees started 150 City Cave centres in Australia, 40 in system is an “overnight success”. a way to expose our brand further and
says co-founder Jeremy Hassell. Cave has remained positive and initiated out as customers. New Zealand, 1500 in the United States “We’ve been here for four years, wider.”
16 | thefranchisereview thefranchisereview | 17Poolwerx
makes a Centrally manage your
splash with
acquisition
Virtual Brands with Redcat
and multi-
unit growth
strategy
Acquiring independent stores has
been a key plank of the Poolwerx growth
strategy during 2020.
With the pool servicing franchise
already utilising this strategy in its activity through the pandemic. which speaks to the resilience of our
expansion in the United States of America, “It’s a perfect match for independents business model, even in the midst of a
Poolwerx has in recent months acquired who are looking at succession planning recession.
five independent stores to join the brand in or thinking of retiring. In all of these “The home service industry has proven
Baulkham Hills in New South Wales, Kings acquisitions, we’re helping long term time and time again to be recession-
Park and Hampstead Gardens in South industry veterans with their exit strategy, resistant and this has become particularly
Australia, with another two due to open on allowing them to hand over their business evident during COVID-19. Our franchise
New Zealand’s North Island. gracefully knowing their staff and clients partners have continued to evolve their
A further six new retail locations are will be looked after and their life’s work businesses as the needs of their clients
also set to open in the coming months will be honoured,” said Poolwerx founder shift and change. From the introduction
across New South Wales, Western and CEO, John O’Brien. of contact-free services to click and
Australia and Queensland, all of which are “I’m also buoyed to see our existing collect services, they have shown an
existing franchise partners growing their franchise partners continue to grow their unwavering sense of resilience resulting in
pool servicing empire following a boom in business and open new retail locations, healthy bottom lines.”
Multi-unit gym
franchisee
opens eighth
site during
pandemic
The COVID pandemic and business
restrictions have hit the fitness industry
hard during 2020.
In this unprecedented operating
environment, Snap Fitness multi-unit
franchisee, Tudor Vasile, has not only
overcome the challenges of keeping his
clubs running but has also launched a
brand-new club in Queensland. constantly switching between excitement – our members’ trust is everything to us
The Karalee club in Brisbane is the and fear.” and in turn it’s our obligation to ensure
eighth site Vasile has opened with the The seasoned franchisee is well versed their health and safety when they come in
brand since 2013 but opening this year
was a unique experience.
in the importance of creating quality
facilities to deliver a positive workout
our doors,” said Vasile.
“We’re going into a market where
www.redcat.com.au/virtual-brands
“Snap Fitness have supported me environment for members and building everyone’s telling you we’re in a recession
throughout the whole journey, from a strong and passionate team to support and business confidence isn’t quite there,
choosing the location, helping my people to achieve their fitness goals, but what I’m noticing is people are now
marketing strategy, designing the floor but COVID meant there were additional taking their health and fitness seriously,” FRANCHISES
plan and sourcing the right equipment,” considerations when opening in Karalee. he said, noting plans for three more clubs
Vasile said. RESTAURANTS
Providing a safe and clean, COVID- in the pipeline.
“But opening a new club during safe, environment has also been “That information motivates me to CAFÉS
the COVID-19 outbreak was still one paramount. move forward and gives me confidence
big rollercoaster. My emotions were “At the end of the day, it’s about trust to grow and open more clubs.” n
18 | thefranchisereviewYou can also read
