What are the main stories making news in and around the franchise sector this week?

22 March 2023

Wendy's Burger Restaurants Coming 'back' to Australia.

In a major story all over mainstream news broadcasts in the recent week or so, the US-based Wendy's Burger chain has announced plans for expansion into the Australian market.

The chain has tried before, and previously exited the Australian market in the mid 1980's.

That announcement is significant enough as far as QSR entry context into the market is concerned, but it is made all the more impactful here because the name is already in use.

One brand not excited by the entry to the market is the Australian brand, Wendy's Milk Bar which has been operating in Australia since 1979.

It looks like this will play out over some time if the chain does indeed arrive. 

I heard one commentator saying he didn't think consumers would confuse the names being in two different food categories - I'm not so sure about that, so we'll have to wait and see how that goes.

Subway, a privately owned business, is exploring a sale  of the business.

It has hired JP Morgan according to reports from CNBC to help it explore the sale.

With 37,000+ stores globally, the chain could meet a valuation in the vicinity of $10Billion according to the report.

In a statement from the company it has outlined that;

“The management team remains committed to the future and will continue to execute against its multi-year transformation journey, which includes a focus on menu innovation, modernization of restaurants and improvements to its overall guest experience,”

And interestingly, again according to the same CNBC report;

The foundation for Subway co-founder Peter Buck, who died in November 2021,announced he left his 50% ownership to the organization, meaning it will soon be half-owned by a charity. It is unclear if that will impact a potential sale.

Once again, thanks to CNBC for this story.

Domino's Australia + NZ hiring 3,500 people with a new training platform

Domino's Australia and New Zealand will be hiring 3,500 people across the country to coincide with the launch of a new training platform 'Path to Excellence.'

The company describes it as;

"An app which offers a world of personal growth and professional development, delivered via a gamified experience that shows team members the pathway to growing themselves personally and professionally, and becoming part of the Company’s leadership development pathways."

The business currently has more than 20,000 team members.

According to Domino’s Global Head of People Development Matthew Kershaw, he explained that for many, a career at Domino’s is about more than just pizza and this new training platform will showcase how far a career at the Company can take you.

We have already seen this at Domino's where the ANZ CEO David Burness is an ex-deliver driver. And Don Meij, Group CEO and Managing Director also started as a delivery driver.

So, progressing through the ranks is already well-set in the DNA of the business.

Guzman Y Gomez 60 facts in 60 days

In a highly visible branding campaign, Mexican fresh fast-food provider Guzman Y Gomez has laid out it's market manifesto to consumers in a carefully executed campaign through social.

The brands website says, "At Guzman y Gomez there’s a great story behind everything we do, from our food to our people, our history to our merch.

We have spent the last couple of months uncovering the unbelievable and little-known GYG stories. For the next 60 days, we will be asking Australia Did You Know?"

Classic investment in brand building, we love this sort of stuff investing in positioning your franchise brand for your entire network long-term.

You can follow along yourself #GYGDidYouKnow and follow the action at@guzmanygomez (IG) and(tiktok) guzman y gomez.

Kiwi, Hell Pizza franchise chain launches in the Australian market

In an interesting development for the Australian market, Hell Pizza has launched last week opening it's first location in Brisbane.

According to the contact we received from brand representatives recently;

"HELL Pizza is one of New Zealand’s most successful and progressive quick-service restaurants, with 77 stores - known for a commitment to using premium, locally sourced ingredients that comply with high animal welfare standards - and already market-leading in Australia in this area in its first week."

It just feels like there is a position here.

They are clearly prepared to be more bold in their marketing than many will, and we suspect this will raise eyebrows in a brand like Crust Pizza that has positioned itself almost on its own in the premium pizza category. 

If you think you have a story for us, submit it to info@franchisebuyer.com.au