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Taking the regional franchise route

Sarah Stowe

Andrew Castle knows the fast food industry inside out. At the age of 28, he has already clocked up 15 years of industry experience.

The young entrepreneur started working at McDonald’s at the age of 13, where he successfully worked his way up the management ladder.

Andrew had always dreamed of owning his own business, and invested in his first Oporto franchise at just 20.

He purchased a second Oporto outlet in the regional city of Tamworth five years ago, and acknowledges the experience hasn’t been without its challenges.

1. LAUNCHING INTO A NEW MARKET

“Initially much of the town hadn’t even heard of Oporto. We have gradually overcome this by telling the Oporto story, promoting that Oporto is an Australian business (which is important in regional Australia), and ensuring that when new customers come through the door they are met by great customer service and receive an outstanding product.

“Word spreads very quickly in a regional city, so if you are serving a fresh, quality product at a good price and delivering great customer service people will return, and in turn word will get out and more people will come in for the experience.

While the business is tracking well among locals, Andrew continues to leverage local area marketing to build brand recognition and draw customers to his store.

“I am involved in the Chamber of Commerce and Junior Chamber of Commerce and Lions Clubs and the store sponsors numerous sporting clubs and organisations – you certainly need to be involved in the city,” he says.

2. TRANSPORTATION ISSUES

“Getting our stock to Tamworth has always been a hurdle as often transport breaks down, there is slow lead times from time of order to time of receiving and it can take a long time to get replacement stock if items are missed.

“This is particularly hard being that all of our products are delivered fresh, and are not frozen so we can’t carry much of a buffer. We have to manage the relationship with suppliers carefully and ensure that they understand our situation and the importance of our stock arriving on time,” he explains.

BUSINESS IS BOOMING 

The business has grown by over 110 percent since opening five years ago, and Andrew believes the outlet will leverage off new developments in the area.

“A large Woolworths and Dan Murphy’s liquor outlet is scheduled to open next year right next door to my business, with construction to begin very shortly.

“I see this as a very big positive for my business and the city as a whole. I certainly see a very bright future for my business and I would like to open further outlets in the region and continue to employ many local residents,” he says.

WHY OPORTO?

Andrew says he opted for the Oporto brand for a number of reasons:

  • It is an Australian Company
  • It has a unique brand concept – all our products are delivered fresh and cooked fresh
  • Oporto has provided a lot of opportunities for brand growth and store expansion
  • The company’s operating procedures are similar to that of McDonalds, so I needed very little conversion training

“I decided on a franchise so that I would have the support and guidance of a franchisor, as opposed to going out in the market solo,” he adds.

BUSY DAYS, LONG HOURS

Andrew was surprised by the amount of work that goes on behind the scenes to ensure the smooth running of the store.

“The list is endless and includes managing the day-to day-operations, stock, staff management, suppliers and creditors.

“On any given day I liaise with the Oporto support office in regards to any questions or issues that may arise, work on marketing plans and more,” he adds.

Andrew’s day typically starts at around 4am, where he attends to administrative tasks associated with the business.

“I always check the previous day’s data – everything from sales and labour costs to the speed of service reports.

“I also review any emails that have come through and action any outstanding issues from the previous day,” he says.

Andrew has recently taken a step back from the business, handing more of the day-to-day, operational responsibilities over to his management team.

“Historically I worked in the store seven days per week, however I have recently reduced the amount of time that I spend in the business.

“This has certainly enabled me to look at the bigger picture of operating a business, and instead of worrying about the little day to day items,” he explains.

TRAINING AND DUE DILIGENCE THE KEY TO SUCCESS

Andrew says prior experience in the fast food industry definitely makes the transition process much easier for new franchisees.

“Coming from within the fast food industry makes a very big difference as you don’t have to learn about the day-to-day operation of the business.

“I attended six weeks of training as opposed to the standard 12, and the training mainly covered how to prepare the Oporto products,” he adds.

Having said that, he advises new franchisees seek out additional training. “I would recommend some external training such as bookkeeping/accounting or small business management.”

Andrew also stresses the importance of research. “Certainly do your homework, spend time with existing franchisees to see what their entire day involves and ask questions,” he says.

FRANCHISING: A LIFE CHANGER

“Owning a franchise has been the single largest change in my life. At times it can be tough and very stressful, and other times there are a lot of positives and rewards from it.

“I take immense pride in my business and get a lot of satisfaction and enjoyment out of owning my own business,” Andrew says.