PIE FACE ANNOUNCES NEW DOMESTIC AND
INTERNATIONAL GROWTH STRATEGY
As part of a three pronged global growth plan, Pie Face Australia has today
announced its intention to ramp up its Australian operations, led by its Managing
Director, Kevin Waite.
Pie Face Australia has recently completed a strategic overview of the business and
opportunities in Australia, led by the new management team including Kevin
Waite (Managing Director), David Ovens (Acting Global Chief Marketing
Officer), Scott Baird (National Marketing Manager) and Faith Manning (Head of
Franchising Development). The team brings a wealth of experience to the
Australian business from brands such as (Steers South Africa, Debonairs Pizza
South Africa, Brumby's Australia, Yum Brands, Australia; Taco Bell, USA, Big W
Australia, Ribs and Rumps, Australia and more). The Company has worked with a
number of advisers on its new strategy including Mark Bayliss (ex QSRH and
Burger King NZ), Blaze (Market Research) and Retail Oasis (Asset Strategy).
The new Global Growth Strategy has three core strategic planks:
1) The Franchising business in Australia, led by Kevin Waite, MD.
2) The Wholesaling business in Australia (for which the company has recently
entered into key contracts with On The Run in Adelaide and Supplair (Jetstar
Domestic and International), managed by Andrew Lyme and led by Kevin Waite,
MD.
3) The expansion of the International business, managed by Andrew Lyme,
Commercial Manger and led by Wayne Homschek, global CEO.
A key strategic pillar to both the domestic and international businesses is the fact
that the company and each of its international partners will own its own product
supply chain in the market in which it operates. This strategy creates access to both
the retail and wholesale sales channels, enabling the Company to drive maximum
economies of scale from its 'central kitchen' supply chain structure, facilitate speed
to market and allow it to offer its franchisee network a truly superior quality 'best
in category' product in each geography at competitive prices, which, over time, will
provide the Company a sustainable competitive advantage. Further to this the
Company has also completed an extensive review of its quality positioning and is
confident of the potential this will have in elevating consumer perceptions around
all aspects of both food and coffee offers and separating the brand from local
competitors.
In that context, the Company will be exiting a number of its Company owned
stores in Australia to allow it to focus on the growth of its franchising activities and
further strengthening of its supply chain capability. The Company intends to grow
the Australian network through franchising in the future and is targeting modest
growth in the next 12-18 months, followed by expanded growth in 2016 and
beyond. Ultimately the Company is targeting a franchise store network exceeding
200 stores across metro and regional Australia and a wholesale business greater
than 20% of total revenue per annum.
The Pie Face International business continues to gather momentum, announcing its
most recent Territories to be licensed in South Korea and the Philippines. As
outlined (by Andrew Lyme, Commercial Manager) these international deals
involve each partner establishing a 'CKF' (central kitchen facility) and agreeing a
roll out schedule of stores over a fixed term. The company receives an up-front
Territory Fee, a royalty on sales and a per store fee on each store opened.
This follows previous agreements reached in New Zealand, the Middle East (UAE,
Saudi Arabia, Kuwait, Qatar and Bahrain), and Singapore/Malaysia. The Company
is also in negotiation with other major international markets and is optimistic of
closing these negotiations in the coming months.
In total, these agreements call for greater than 350 stores to be opened outside
Australia over the next 8 years.
For More Information:
Pie Face
Kevin Waite, Pie Face Aust. MD – kevinw@pieface.com.au
Wayne Homschek, Pie Face International CEO – wayne@pieface.com.au
Andrew Lyme, Pie Face Aust. Commercial Manager – Andrew@pieface.com.au