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First in best dressed – how to pick a market leader for your next franchise

Sarah Stowe

Australia’s franchising industry is estimated to contribute over $159 billion to the Australian economy, a revenue figure that is expected to remain static into 2015, growing slowly in the period 2015-2020.
The slow growing landscape of the franchising industry has been influenced by a slower Australian economy due to the global financial crisis, which has seen smaller franchise systems fail.
This has resulted in a more competitive landscape, with some franchises being forced to revisit their business model, some even changing products and processes that have been in place for years.
Food retail is a perfect example. With fast food chains like McDonald’s reporting declining profits in 2014, and alternative healthy fast food retailers taking almost a 13 per cent share of the market, traditional food chains have reacted by putting ‘healthy’ on their menu too.
The Wall Street Journal recently reported on the future of franchising, saying “Gen X and Gen Y have become weary of the “McDonaldization” of so many aspects of consumer life. They’re searching for something more than the tired old cookie-cutter experience most franchises provide”.
In other words, consumers aren’t after the same old same experience, they want to be offered something new and fresh all the time.

Innovation

The market leaders in franchising are the ones who don’t sit still. By continually improving and innovating their products and processes, they can stay relevant in the market and ahead of the competition.
Market leaders don’t simply put a green tick next to a product and call it healthy. They prove it. They go out of their way to seek out the freshest, locally grown ingredients, they hire nutritionists to evaluate their menus, and if chia seeds and goji berries are trending as the next super food, you can bet their menu is chocked full of them.
At Sumo Salad, they are so serious about being healthy; they grow lettuce on their walls! By installing hydroponic walls in its stores they take fresh, local ingredients to a whole new level, educating customers about the food journey and providing full transparency.
Luke Baylis, co-founder and managing director of Sumo Salad, says this is all part of a long-term plan to improve food procurement practices.
“We’re moving to free range chicken and ethical meats, we’re buying from local farms, we’re using local tradespeople, we’re doing all these things that engage the community and are fully aligned with our purpose and ethos” he said.
At Sumo, there is no such thing as “oh I’ll just have a salad”. Their menu includes gourmet salads, pastas, delicious wraps, slow cooked meats and soups, as well as fast options, barista coffees and cold pressed juices.
As market leaders in the healthy fast food category, Sumo Salad offer franchisees a unique opportunity to engage with consumers in new ways, providing them with healthy alternatives that are good for them, and good for the environment.
Their franchise model includes site finding and set-up, lease negotiation and in store design, full initial and ongoing training, operational support and high quality marketing.
So if you want to be part of a business that is leading the way in healthy eating- not following the lead of others, then click here to find out more about the benefits of owning a Sumo franchise, and what it takes to become part of the team.