Gourmet burger company Grill’d has started rolling out the Grill’d Partner Program, an initiative that seeks to reward it’s best performing franchisees and staff members.

The company trialled the three year program at one of its restaurants last year, and it recruited another two candidates in April.  

Simon Crowe, founder, Grill’d explains the program is a way for the company to reward hard working franchisees and staff members.

“We recognise that the people running our restaurants are the most significant asset that the business has.

“This is a program we want for our high achievers and for very high potentials. In real terms this is a tap on the shoulder,” he says.

The program is invitational only, and candidates will be chosen based on how well they fare in their company reviews, which take place every six months.

According to Crowe, the program operates as follows:

• The candidate takes a five percent share in a particular restaurant on a low multiple
• They get a five percent profit share, which is paid out every six months
• They sell the five percent back to Grill’d after three years on a higher multiple

“In effect they own five percent of the restaurant and its ongoing profits.

“At the end of the three years they get a capital gain because we are buying back their five percent at a higher multiple than when they went into the business,” says Crowe. 

The summer sunset burger

Upon completion of the three year period, Crowe expects candidates will reap the financial benefits of the program.

“We have an estimate for one of our guys who is doing this now – we expect him to make an additional 200,000 in the three years,” he says.  

Crowe explains the program will prove beneficial for both franchisees/staff members and the company.  

“The higher the amount of money the program makes the more reflective that is of the success the franchisee or staff member has had in driving the business, which helps them and the company.”

What does Grill’d look for in a franchisee?

Two thirds of Grill’d restaurants are currently company owned and franchisees account for one third of the business.

Crowe is adamant Grill’d will always be comprised of both company-owned and franchised restaurants.

“Our challenge is to make sure we are not actually entirely company owned or franchised. Simply put we want to be a local business that delivers the Grill’d business consistently.

“We want to come across as a brand that is integrated into the local community rather than being perceived as an imposter in that community,” he explains. 

Crowe says three key “pillars” are considered when recruiting franchisees:

• Business acumen
• Life experience
• Their alignment to the Grill’d brand and it’s values

“The third one is really why we are interviewing franchise partners, because the first two can be assessed off a piece of paper.

“We want people with wisdom and life experience, who can lead a team and be the face of the brand in the local community,” he adds.

Grill’d restaurants have a modern feel 

This approach forms part of the company’s differentiation strategy, as Crowe believes other businesses tend to operate with one thing in mind – profit.

“If we can choose the right people to join our business then our brand is different.

“If everyone is aligned to the same journey we are doing something most other businesses aren’t – we are dealing with things from an emotional perspective not a rational one,” he says.

Site selection

While Crowe admits site selection can be challenging at times, Grill’d has developed a strategy that seems to be proving effective. 

“Every site we choose we choose without consideration of whether it is going to be company owned or franchised,” he says.  

Only once a site has been secured and thorough research has been undertaken will the company decide whether it will work best as a company owned or franchised restaurant. 

If Crowe and his team decide the restaurant will operate best as a franchise, the franchisee recruitment process will begin. 

Crowe says most of the company’s current franchisees are eager to take on another restaurant, and it’s expansion criteria document assists in the selection process.

“We will ask relative, approved, expandable franchisees and/or new franchise partners to put a submission into that site.

“We are really trying to align the best franchise partner with the site,” he adds.