{"id":42419,"date":"2023-02-27T14:52:56","date_gmt":"2023-02-27T01:52:56","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=42419"},"modified":"2023-02-27T14:52:56","modified_gmt":"2023-02-27T01:52:56","slug":"us-giant-bringing-hundreds-of-stores-to-oz","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/us-giant-bringing-hundreds-of-stores-to-oz\/","title":{"rendered":"US giant bringing \u2018hundreds\u2019 of stores to Oz"},"content":{"rendered":"

PHOTO: One of America\u2019s most popular fast food chains has announced ambitious plans to bring \u201chundreds\u201d of restaurants Down Under. SUPPLIED<\/strong><\/p>\n

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US fast food giant Wendy\u2019s has announced it plans to roll out \u201chundreds\u201d of stores in Australia in the not-too-distant future.<\/p>\n<\/div>\n

Speaking exclusively to the\u00a0Australian Financial Review<\/a><\/i>, Wendy\u2019s chief development officer Abigail Pringle said she was convinced there was an appetite for the chain\u2019s signature burgers, fries and frosty desserts Down Under.<\/p>\n

\u201cWe believe Australia is a lucrative market for long-term growth,\u201d Ms Pringle told the publication.<\/p>\n

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\u201cWe think that the Australian market could be hundreds of restaurants.\u201d<\/p>\n

It\u2019s still early days, and details are scant, but Ms Pringle hinted at possible plans for the company to buy up land and build restaurants before handing over to local franchisees.<\/p>\n

She added that it was crucial to find the correct local partner and the right franchise model, which could come in the form of an established food group that already operates other chains, or a family office.<\/p>\n

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\"Wendy\u2019s<\/div>\n

Wendy\u2019s is one of America\u2019s favourite fast food joints. Picture: Saul Loeb\/AFP<\/strong><\/em><\/div>\n

At the moment, Wendy\u2019s has around 7000 restaurants around the world, including in the US and Canada as well as Ireland and the UK, where it relaunched in 2021 after a two-decade pause following two previous launches.<\/p>\n

But it won\u2019t necessarily be an easy task to break into the Aussie market \u2013 especially given we already have so many American fast food chains, and given we\u2019re lurching ever closer to a recession as the cost of living crisis forces families to tighten their belts and cut back on luxuries, like dining out.<\/p>\n

According to Queensland University of Technology retail expert Gary Mortimer, the tough economic times facing Aussie families at the moment made the move more of a gamble than it would be ordinarily<\/p>\n

\u201cIt\u2019s quite an interesting time to contemplate entering Australia,\u201d Dr Mortimer said.<\/p>\n

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\u201cThey\u2019re saying it won\u2019t be another year to 18 months before we start seeing stores around, but if you look at hospitality, restaurant and cafe sales since June last year, they\u2019ve really flatlined to about $5 billion a month now.<\/p>\n

\u201cThey\u2019re not up or down, they\u2019re just flatlining, and [during downturns] what traditionally happens is people stop eating out as much, and shift to either eating in, or to value offers like McDonald\u2019s and Hungry Jacks value meals, not premium burgers, so the economics is quite interesting.\u201d<\/p>\n

However, he added that American chains often succeeded in Australia due to the novelty factor.<\/p>\n

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There could soon be \u2018hundreds\u2019 of Wendy\u2019s restaurants in Australia. Picture: Bruce Bennett\/Getty Images\/AFP<\/strong><\/em><\/div>\n

\u201cThere\u2019s a sense of novelty and uniqueness \u2013 many of us have probably travelled to the States, and if not, we\u2019ve seen some of these brands on sitcoms and movies, so having that strong brand awareness is quite helpful,\u201d Dr Mortimer said, pointing to the successful Australian launch of the Carl\u2019s Jr chain as proof of our obsession with American fast food joints.<\/p>\n

\u201cWhen you think of Carl\u2019s Jr, I think there are around 30 stores in Australia now, so with American brands, where there is that recognition, they tend to succeed.\u201d<\/p>\n

But it\u2019s not always smooth sailing for these brands, even for major ones that are already well-known and loved.<\/p>\n

It took Taco Bell three attempts to break into the local market \u2013 in 1981 and 1997 before finally nailing it in 2019.<\/p>\n

It was a similar story for Wendy\u2019s itself in the UK, with the chain relaunching in 2021 after leaving the market in 2001 as a result of skyrocketing operating costs.<\/p>\n

Dr Mortimer said Taco Bell\u2019s struggle to gain a footing in Australia was a \u201cgood example\u201d of what could go wrong for new brands attempting to enter the market, and added that dietary shifts posed yet another challenge for Wendy\u2019s.<\/p>\n

\u201cWe do seem to be moving away from big burgers and chips to lighter meals, and that\u2019s evident in the growth of places like Roll\u2019d that offers much lighter Vietnamese meals \u2013 that franchise has done quite well, and if you look at any shopping centre food court, there\u2019s Thai, sushi and salads \u2013 lots of options other than burgers,\u201d he said.<\/p>\n

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\"Cinnabon<\/div>\n

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\u201cAustralia also has access to pretty amazing fresh produce, so we do expect better quality, and we\u2019ve seen a rise in the growth of premium burger joints operating in Australia [as a result].<\/p>\n

READ MORE VIA NEWS.COM.AU<\/a><\/p>\n

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