Brumby’s leads the Australian franchise pack overseas

It won’t be long until you will be able to buy a bread roll in the shape of the Sydney Opera House in the United Arab Emirates (UAE) or in one of five other countries that make up the Gulf Co-Operation Council.

It’s just one of the ways the Brumby’s franchise will retain its Australian identity when its stores begin to roll out in the oil and infrastructure rich Gulf States.

“Of all the markets we have researched the Middle East is one of the few where we will not have to change our offer as the breads they have there are exactly the same as ours,” says Michael Sherlock, Brumby’s managing director.

While bacon will be definitely off the menu and more date flavours will be added to the range, you will still be able to buy a vegemite and cheese scroll. And Australia’s other most recognizable icon – the kangaroo – will hop into the Brumby’s logo in overseas markets.

Brumby’s decision to expand in the region follows extensive research on international markets including China and India.

According to Sherlock, factors driving the decision included population, wealth and the growth in the region. He cites examples of infrastructure developments taking place in Dubai, such as The Palm Islands, three of the largest man-made islands in the world being built in the shape of a date palm tree, and The World Island, a collection of man-made islands shaped into the continents of the world. And then there is the Dubai Marina, the world's largest man-made marina. The waterfront development will include 200 high rise buildings. Many of these buildings will contain supermarkets and food courts, a perfect place for a Brumby’s Bakery.

“Australian companies are really well placed to go into this market. We are so multi-cultured here. We sell bread from all the different cultures and provide a lot of variety. If you look at Europe, you find different bread in France to Italy, not like the variety we have here. Because we are Australian, we are also used to operating in a desert and in extreme climates. There is a lot of synergy.”

Sherlock says the Middle East will present sufficient challenges to launch Brumby’s in the international marketplace.

“We have been around for 30 years and have 320 stores. We open 35 per year. At the same time we close down stores, or relocate them. We have to keep moving ahead. In Australia we will continue to keep on opening 10 and relocating 5 each year.

“So this is the next frontier. If we want to expand we can buy another company, get involved in the supply chain, or expand internationally. The Brumby’s Board is looking ahead to the next 30 years, examining our opportunities while we keep our core business operating.”

Sherlock says that because of the structure of ownership in the Gulf States, Brumby’s will be franchising under master franchise agreements to different groups in different regions, depending on the political structure.

Brumby’s is also looking at South East Asia, China, India, the United States, England, Ireland and South Africa.

“We have negotiations under way in South Africa, a country with very similar conditions to Australia and New Zealand. It is becoming more politically stable and with 44 million people in a region half the size of Queensland we believe it is a good market. Sherlock says Brumby’s has done pre entry studies on China and India and is aware of what they will have to do in each case.

“China and India are the big ones, but we are keen to look at them after we have developed a successful formula outside of Australia and New Zealand.”