Franchising: Award winner on a roll

By Graeme Kennedy

Friday 9th August 2002

Franchise Association Supreme Award winner Bakers Delight plans to increase its New Zealand chain of specialty stores from 32 to 150 within five years, regional recruitment manager Katia Addison says.

The spectacular growth will be driven by changing shopping habits as consumers seeking quality and freshness spend more with small independent owner-operators, Ms Addison said.

More outlets would open in the Waikato and Bay of Plenty next month and another eight were due to join the group by June to share in Australasian sales of more than $425 million and annual growth of 25%.

Bakers Delight has 450 stores in Australia and will open another 123 this year.

Ms Addison said the company also won the Franchise System of the Year in Australia and New Zealand for its procedures, support and documentation which makes entry into the business as simple as possible for a franchisee.

"We have a franchise model that works well," she said. "Franchisees as small business owners don't have to re-invent the wheel as it is all done for them, from staff training to the recipes and local marketing guides.

"They have to be a jack of all trades and we train them in how to run a Bakers Delight business."

Ms Addison said a franchise cost an average $350,000, which included $200,000 for equipment, $89,000 for site establishment, $20,000 working capital, a $7000 training fee and $5000 for marketing. Bakers Delight was started in Melbourne by Roger and Leslie Gillespie who built a chain of 15 stores before franchising 21 years ago.

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