Oporto finding the right franchise partners

Antonio Cerqueira opened his first Portuguese-style chicken restaurant in North Bondi in 1986. By 2005, the Oporto franchise had become one of Australia’s fastest-growing fast food franchises, with more than 85 stores in Australia and New Zealand. Now the company is planning to move further afield – but only when they’re absolutely sure they have the right partner.

“Some potential partners are better suited to our type of business than others, so we’re seeking out people who have the time and resources, as well as the operational knowledge,” says CEO, Jeff Fisher.

“In the United Kingdom, we’ve reached the agreement stage with three separate parties but, in doing the due diligence, realised they were not quite right for us. In each case, the exploration ended amicably. Internationally, you only get one chance and you have to get it right. Getting together with the wrong partner could damage the brand irreparably.”

Fisher is also conscious of the concerns of local fast food franchise partners.

“Inevitably, local franchises are going to be worried that the focus will be diverted from Australia,” he says. “It’s certainly easy to underestimate the time, resources and energy needed to move into another country. Setting up the supply chain, establishing the brand, recruiting and training new field staff…there’s no immediate return on all of that. So the franchisor needs to be able to reassure local franchisees that the local focus won’t be lost – that they won’t try to expand too quickly at the expense of local growth.

“We’ve learned an awful lot in the past two years through conducting due diligence and not moving ahead. When we do find the right partner, we’re sure to make a few mistakes, but not as many as we might have done without this experience.”