Food on the go – Grill’d facts and figures

Full investment: initial investment is expected to range from approximately. $300,000 to $400,000 per store (exclud­ing 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 (excluding 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 and kitchen equip­ment), there is no upfront investment in stock and supplies.

Is this a turnkey operation? Yes.

Royalty fee: seven per cent of sales.

Marketing levy: three per cent

Term: five years followed by a further term of five years Renewal fee: Grill'd does not charge a renewal fee.

Lease: Grill'd holds the lease

Operating hours: typically Sunday to Thursday 11,30am to about 10pm, Friday and Saturday 11.30am to about 11 pm

Average customer spend: $15 to $17

This one-off franchise fee is charged to franchise partners to gain access to the Grill'd fast food franchise network and it allows Grill'd 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 Grill'd brand, purchasing power; ongoing training, operations and marketing support and access to Grill'd intellectual property and systems.

All training costs are included in the total establishment costs and the training required depends on the franchisee's previous experience. A six week training program that covers pre and post-store opening is available to all franchisees.

There are 10 burger franchise restaurants in the Grill'd network (plus 11 company owned) and several approved franchisees who will begin trading in early 2009. Next year's 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 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 Grill'd offer.

A loyalty scheme is under development, one that is focused around engaging community clubs.

This article appears courtesy of Franchising Magazine