SumoSalad recently launched a brand new store concept, and CEO and co-founder Luke Baylis has his sights firmly set on continued local and international expansion.

Baylis has established a three year business plan for the brand, and notes overall performance is positive.

“We’ve had three-and-a-half years of like for like growth which has been great, especially in an environment where we’ve had the GFC and a lot of our competitors have dealt with significant decline in that food court space, so it shows that we’re definitely building a lot of market share,” he says.

THE NEED TO DIFFERENTIATE

The business was originally established 11 years ago as a means of filling the gap in a market otherwise populated by unhealthy food chains, and Baylis notes the healthy fast food market has matured in that time.   

“It has become more and more crowded, not only with new entrants but people such as McDonald’s, KFC and Subway are putting forward healthier alternatives.

“When the major fast food giants try to push healthy foods they are doing it to sell more hamburgers, whereas we are doing it to actually fulfil a need in society – there’s a lot of integrity behind it,” he says. 

The need to clearly differentiate SumoSalad from its competitors, as well as address the stereotype that food courts are filled with unhealthy food options, is a key focus for the brand.

“When people walk into a food court the general perception is that the food is highly processed – we needed to find a way to be a bit of a shining light in the food court,” says Baylis.

THE NEW STORE FORMAT

This is how the idea behind the new concept store, which includes real lettuce and fresh herbs growing out of the walls, came about.

“We’ve got such a great connection with our produce and Aussie farmers and we wanted to find a way to really showcase that.

“We decided it would be a good idea to actually grow the produce in store so people could come down and interact with it – they can pull the leaves off the wall and eat them while they are waiting for their meal,” Baylis explains.

There is also a focus on breaking down the barriers between front and back of house, enabling customers to view the cooking and preparation processes firsthand. 

“We are bringing all of our back of house forward so it’s really maximising not just the experiential side of the business but also the transparency of what we do – people can watch on as the fresh free range chicken is being grilled in front of them and things like that.”

Baylis is passionate about educating consumers about SumoSalad’s produce philosophy – namely that fresh, locally grown as opposed to genetically modified fruit and vegetables from overseas are at the forefront.  

“We have been going out to local farms to source produce – we’re not just trying to ship stuff over from China or far distances, we engage with our local community and local farmers.

“It’s really easy for us to tell this story because its stuff we are already doing within our core business, it’s just a matter or really communicating it and letting customers engage with it a little bit more,” he adds.

The new store Sydney CBD store, which opened its doors in May, has been well received so far, and additional sites are in the works. “We’re going to do a lot more of them,” Baylis says. 

THE THREE YEAR PLAN

There’s a new focus on opening sites outside of the shopping centres and malls SumoSalad has traditionally played in, says Baylis. 

“Over the last couple of years we’ve refined a lot of our different store formats and we’re actively rolling these out,” he explains.

“It offers a great opportunity for us to take on locations outside of major shopping centres as well. We’re not looking to reduce our presence within shopping centres by any means but we are looking to build a higher ratio of stores external to shopping centres.”

SumoSalad recently entered the South American market with a store in Sao Paolo, Brazil, and a Los Angeles opening is scheduled for around the end of September; however Baylis says local expansion is still very much on his radar.

“The majority of our focus is within the domestic market – we believe we can get to 400 stores within Australia.

“We’re certainly not trying to achieve that within three years but we believe we could easily double our store count and take it to between 230 and 250 within that period,” he adds.

New stores are set to open across Australia in the coming months, including in Brisbane, Strathpine and the Melbourne CBD.

TEAMWORK: THE KEY TO SUCCESS

Baylis believes business success, either as a franchisee or franchisor, is achieved when you devote the time to recruiting a great team. 

“I think it all comes down to getting the right team around you – if you surround yourself with good people things are a lot easier to execute, plan for and predict,” he says.

“Our business really transformed itself when we took a step back and reassessed its future needs, as well as the people that we required to fulfil those needs.”

Baylis explains SumoSalad has deployed a series of different strategies over the years, and notes they change depending on the business cycle.

“Our current strategy is very much around creating a really strong culture within the business where people are really passionate about the brand and really pumped to come to work, put forward ideas and be better at their jobs,” he says.

PRE-INVESTMENT CHECKLIST

Baylis offers a series of tips for potential franchisees looking to invest in a business. 

“I always recommend that they go and speak with a lot of existing franchisees, not only the best performers but those who might not be tracking as well – it gives a good balance perspective on the opportunity.”

He says it’s important they conduct proper legal and financial due diligence, and physically work in a store before they invest.

“I heavily recommend people roll their sleeves up and work in a store or franchise – you get a true indication of what a business is going to be like in the future if you’re actually hands on within the business.

“There’s nothing worse than making a huge financial commitment and then turning back and realising you hate what you are doing,” Bayliss adds.  

He also advises franchisees come to realise that in all businesses and all things in life, you get out what you put in.

“It’s important people understand that if they put in a huge effort and really give it their best shot then its more than likely that the business will have a greater chance of success, whereas if they go in there looking for a passive investment then generally they won’t maximise the opportunity.”