Pastacup, the WA fast food sensation, eyes a new challenge – where to grow next? The niche business has expanded to 16 stores around the Perth area, and its strict formula for success means it has almost fulfilled its potential in the region.
Pastacup boss Courtney Ryan explains.
“We have specific rules around locations for good returns and for franchisees to do well. We can probably only do three more stores in WA with existing franchisees keen to grow,” Courtney says.
So now he has turned his focus to the potential within Australia’s eastern states.
For Pastacup, interstate and New Zealand expansion is next
Courtney is working with local experts to find premium sites for the pasta meal business that has made its name providing quality food with convenience. Densely populated suburbs are the ideal setting for a Pastacup restaurant, however more central locations, at the right price, can also provide strategic advantages.
In the newly opened restaurant in East Perth, for example. Courtney insists it was too good a deal to miss.
“This was an existing restaurant and we could do a value-conscious fit out. This site allows us to cover the entire CBD via platform deliveries but without central city rates – it was a unique deal.
“We set franchisees up for a high chance of success because the weekly expenses are within our profit parameters,” he says.
Interstate, key locations targeted are Victoria, Queensland, and New Zealand.
Finding the right location is crucial to success
“Getting the right site takes time. The team and I are trying to de-risk for anyone coming in. As a starting point, we look for street front locations with parking, in an area with a reasonable population density.”
Rental costs and other specifics play a role in determining the best sites for the Pastacup model.
“We help franchisees make better choices in site selection, ensuring rents and outgoings remain within strict guidelines. We do our best to help everyone within the Pastacup team succeed, and ensure customers are ecstatic with our fresh food and service,” he says.
“The first step to success is putting the business in locations that people who like eating that kind of food will visit,” he says.
Building up a brand presence in a new suburb starts with providing exceptional value deals for customers, and then continual support and engagement with local community.
Locations need good foot traffic, he points out. While the advantages of third party platform ordering brings extra business, it’s countered by the commission these platforms charge.
“It’s hard to get the right deal, and we are always looking for the best outcome for our franchisee family. It’s not just about delivery fees; we ensure head office success aligns with franchisee success,” Courtney reveals.
Pastacup boss focuses on franchise support
The franchisor provides brand advertising and collaborates with franchisees over their local area marketing. This ensures it is specialised to each store.
The marketing for new interstate territories will follow the format that’s succeeded in WA as the Pastacup expansion heads east.
“I’m continuing to do the same marketing, making sure our product is extremely well priced, there are solid margins for franchisees,” Courtney says.
He believes the role of head office is to be fully focused on franchisee support. It is a philosophy that’s paying dividends.
“Our franchisees like the system, the product, the outgoings, and the earnings potential, as much as our customers love pasta!” Courtney says.
It’s a great starting point for further expansion of the Pastacup brand across Australia.