Franchise fee discounts at Pie Face to boost multi-unit ownership

By Sarah Stowe | 29 Oct 2015 View comments

Fast food chain Pie Face is looking to multi-unit growth and has announced an incentive for its franchisees to add stores to their existing business.

Sal El-Houli, national retail operations manager, told Franchising "Our aim is to get as many of our existing franchise partners as possible to grow their store portfolio, given they are already competent within our network. We want to make that transition for them as smooth as possible and there’s no better way to do this than by contributing real dollars to their bottom line."

There are 84 outlets in the network and seven franchisees are currently multi-store owners.

What's on offer for existing franchisees is a royalty discount scheme:

  • one store: six percent
  • two stores: five percent
  • three stores: four percent
  • four or more stores: three percent

El-Houli said "Food retailing is highly competitive and through these initiatives we are looking to make the proposition of becoming a multi-store owner a far more compelling one for our franchise partners."

This announcement follows the franchisor’s food rebate scheme that has been up to five percent for franchisees this year and has recently increased to seven percent for those that meet the relevant targets. 

There's also been a reduction in wholesale prices for core products, such as savoury pies, over the past 12 months.

The company's primary goal is "to continue being proactive and innovative around all initiatives we continue to work on that positively impact the profitability of our franchise partners," said El-Houli.

The company is expanding overseas – the New Zealand market opened a few months ago, and the group recently signed a deal with the Middle East. There are other territories in the pipeline.