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Serving up peace, love and ice cream at Ben & Jerry’s

Sarah Stowe

Why does Australia need another ice cream chain? The answer, according to Ben & Jerry’s Australian brand manager Jonny Hammond, is the delicious chunks and swirls — such as chocolate, fudge, cookies and walnuts — mixed in with the ice cream.

The identifying ingredients in any Ben & Jerry’s product not only serve to add distinction and bite to a spoonful of ice cream, they add to the all-important rich flavour characteristic of the brand. The cause of the taste sensation in every bite is co-founder Ben Cohen, who has no sense of smell and consequently a very developed sense of mouth feel; he ensured the textures of chunks contrasted with the creaminess of the ice cream. “The chunks and swirls make the best ice cream,” agrees Hammond.

Yet the emergence of the iconic brand in Australia isn’t just about the taste. Social justice and community involvement, the brand advocates insist, are absolutely key to the implementation and promotion of the business. Rod Young, executive director of consultancy firm DC Strategy, told the gathering of potential franchisees at the Sydney launch that “It’s important to understand the social mission aspect of this business.”

 

How did it all start?

Ben and Jerry’s ice cream began in 1978 in the US when Ben Cohen and Jerry Greenfield set up a homemade ice cream parlour in a converted gas station in Burlington, Vermont. The name soon became synonomous with imaginatively named chunky ice cream and a sense of fun. Jerry Greenfield has said “If it’s not fun, why do it?” This ethos has been at the heart of their business for more than 30 years. But it’s been matched by a commitment to social values which saw them awarded Social Entrepreneurs Of The Year status by 1984, and most recently the Martin Luther award.

 

The alliance of ice cream and corporate social responsibility extends beyond the confines of international offices and employees, it becomes part and parcel of any franchisee’s investment in the business.

When it comes to the selection process, sharing the values and commitment to social responsibility rates highly, Hammond says. The ideal candidates are people who can leave the office and work in the community, because that is what is expected of franchisees.

So who is the ideal scoop shop franchisee? Jonny Hammond describes them as “18-35 year old cool hunters or flavour explorers”. Young is keen to stress that incoming franchisees should be looking to build an asset, but that requires hard work. Yes, the franchisor has a clear strategy, and supports the brand. Yes, the franchisor works closely with franchise owners and is looking to understand franchisees’ business. But he challenges franchisees: “How will you crystallise value? Ben & Jerry’s can’t provide a guarantee of profit. We’re looking for some amazing people. People experienced in food service, who understand how tough it is. There are a lot of nights and weekends required.”

Other key attributes are honesty, integrity and humility. The recruiters are looking for team leaders. “We want people who want to jump over the counter and embrace their customers. The x factor — people who can deliver customer experience,” says Young.

 

Aussie expansion

When the brand launched its first retail outlet in Australia in the coastal Sydney suburb of Manly, it was the first step in a national footprint for the Scoop Shops. A year and four company-owned stores later, the Sydney, Melbourne and Brisbane unveiling of the franchise operation has set the ball in motion for further expansion.

 

Nick Prohasky, general manager of the Ben & Jerry’s Australian operation, says “As a franchise it’s not dependent on opening stores to survive. So we won’t rush into opening, it’s all about bringing the brand experience to the customers. The essence is a 360 degree brand experience, and we’re looking for brand beacon locations. It will be a controlled and measured rollout. We’re about to open a fifth store. We know how to do it.”

While Prohasky sees expansion across the country, the pattern of growth will be shaped by the quality of both franchisees and sites.

He’s not looking for saturation, but he says, “There will be as many Ben & Jerry stores as we can open in fantastic sites.”

The iconic Manly site has generated good business for Ben & Jerry’s, putting it on the global map. Prohasky expects three more outlets to be opened in New South Wales before next summer.

 

What will it cost?

The investment range is $350,000 to $500,000 for a full turnkey operation. This includes the franchise fee, fit out, equipment, legal costs, admin set up costs, training and initial store launch marketing campaign.

 

Franchisees will be paying annual fees: six percent royalty, two percent marketing plus a two percent local area marketing fee. Turnover is expected to be $750,000 to $1.2 million, and perhaps higher in some higher density tourist locations such as Circular Quay, St Kilda or Surfers Paradise. Of course there are labour costs to consider, as these have a big impact on the franchisee’s ability to make money.

In such a cyclical trade, flexible staffing is essential. In Manly, the core sales stuff are sufficient to run the business in winter but in summer, additional transient workers join the team to cope with demand. Hours of opening can be customised, but the standard 12 hours of operation are 10 to 10 and 10 to 11 on weekends.

Compliance is a critical component of any franchise system, particularly when it comes to food, and consistency in Ben & Jerry’s ice cream is maintained by importing the product from the US. Ice cream cakes and coffee will also be on the menu across the Scoop Shop counters.

Brand awareness is increased through the selling of ice cream pints in numerous outlets — from upmarket grocery stores and supermarkets to cinemas. The product is widely available in some suburbs. But is this ready access to the brand in supermarket shelves creating too much competition for the ice cream shops? The Aussie team thinks not, claiming there has been no impact on the retail business which caters for a different sales situation. Young adds it “reflects back familiarity of the brand”. It’s a brand that espouses humour and social commitment, all tied up in the catchphrase “peace, love and ice cream”.