Cold Rock Ice Creamery Warns Overseas Franchisors

Franchised Food Company Managing Director, Stan Gordon, warns overseas franchisors to be aware of the recruitment struggles they will face when they attempt to enter the Australian market. Franchise Food Company is owners of popular food brands including Cold Rock Ice Creamery , Nutshack, Pretzel World and Mr Whippy.

“Recruitment of suitable franchisees is the biggest issue currently facing franchisors in Australia,” says Gordon.

“Any outlet lives and dies on the strength of its operator and tier one franchisees are currently in short supply.

These comments were made in conjunction with recruitment issues the American based Kahala Franchising are currently facing with their Australian expansion of its Cold Stone ice cream chain.

“The last few years have been difficult for several operators in Australia and while the marketplace has room for competition, recruitment should be the key concern, not a secondary thought, of any new entrant,” says Gordon.

“Franchisees can’t simply be counter retailers, they need to have a passion for the product, be willing to work hard and have sound knowledge of their local market. It’s rare to find operators who hold all those qualities.”

According to Gordon, overseas brands such as Krispy Kreme, Starbucks and Baskin Robbins were examples of overseas brands failing to recognise that the Australian market were very savvy when it comes to their discretionary spending.

“Those brands all enjoyed an initial surge in popularity but ultimately failed to understand the Australian marketplace,” says Gordon.

“Imposing a product or experience that has worked overseas doesn’t necessarily resonate with Australian consumers. Tastes vary and it’s vital to respect that and modify your offering accordingly. Australia has a lot smaller population than the U.S. yet our retail market is already brimming with choice. Consumers here are very discerning and educated. They will vote with their feet elsewhere if they are taken for granted.”

According to the Managing Director, it took more than 15 years for Cold Rock Ice Creamery to open 100 stores in Australia. The ice cream franchises steady growth was due to the recruitment of strong franchisee partners that understood their local surroundings.