Soul Origin has just gone international! The healthy fast food chain has launched in New Zealand as part of a long-term growth strategy.
Hao Quach, Soul Origin co-founder, says the business has been eyeing up the New Zealand market for some time.
“We have a strong and sustainable business in Australia, which has given us time to do due diligence on the New Zealand market. There is enormous potential; Kiwis & Australians both are united for a love of good food and great coffee. And our offer is a standout in the market, no-one else is doing what we do.”
Hao believes the brand’s ‘made today, gone today’ motto, and its excellent coffee and food offer, will serve it well in New Zealand.
First Soul Origin opens internationally
The brand opened its first store at Auckland Airport’s domestic terminal in August, showcasing a new contemporary design.
A second store opened in September in the city’s Manawa Bay Shopping Centre, and there’s a third location already signed up. Early next year Soul Origin will land in Auckland Airport’s international terminal.
The high volume of passenger traffic at airport terminals delivers a great branding opportunity for Soul Origin. Last year more than 673,000 Aussies visited Auckland so the chain can leverage brand recognition.
Soul Origin’s team has a disciplined approach to site selection, targeting top-performing shopping centres and CBD locations.
Nick Patrick, head of development, says “Once we’ve grown a base of stores, we’ll be looking at other cities on the North Island over the next two to three years – Palmerston, Hamilton, Wellington.”
After that Soul Origin will head to New Zealand’s South Island.
Nick says “What has put us in good stead, is that we don’t compromise on site selection. New Zealand is not enormous, and the population is spread out; we have to be patient.”
Soul Origin partnered with some existing franchise partners to set up a New Zealand structure.
“It is great to see their vote of confidence in partnering with us to open up a new market,” Nick says.
Adapting to suit the market
The international business shares many similarities with the domestic base; however Soul Origin has adapted where necessary. It has a partnership with a local coffee roaster to produce a different roast to accommodate local market preferences. There are menu adaptations too.
Hao says the business is always looking ahead and building the New Zealand business will help the team identify future markets that can be strategic opportunities for Soul Origin.
“We’re always on the lookout for growth; looking for the right partner and the right situation,” he says. “It’s important to stick to our principles and find markets where we can support franchise partners and keep the supply chain intact.
“We’d ironed out a lot of challenges in the New Zealand marketplace before we landed there; elements like supplies, training, and the currency exchange.”
Soul Origin also recognised the need to allow more time for property development.
“We knew we would need longer lead times, so our locations and plans were locked away 12 months before we opened,” Nick explains.
International expansion boosts Soul Origin brand
The expansion has been strategically planned and has proved seamless.
Hao says “We are disciplined in business and New Zealand’s proximity and time zones allow us more frequent visits to set up for success. It is an opportunity to learn the challenges of trading offshore before we go further afield.”
“The international expansion is a proud moment for our team and franchise partners. It provides opportunities, they can see the strength of the brand, the team can gain great career experience working in the international field.
“Being able to develop and attract talent is a great thing,” he adds. “Growth enables us to redeploy revenue to create opportunities for partners and team members to step up, to move sideways, or continue doing what they love.
“We always bring franchisees on the journey, so we shared the strategy and that in our view this would strengthen our brand. Having more consumers aware of our products will grow their investments,” Hao says.
More opportunities for growth
Soul Origin will continue to reinvest in new projects, in a disciplined fashion, he says.
There are already a number of store models: grab-and go kiosks ideal for transport hubs, universities and hospitals; larger models work well in neighbourhood areas, and larger shopping centres.
As Soul Origin grows its new international market at a measured pace, in Australia there are regional cities packed with potential for growth.
The business draws comparisons to when they first launched in Perth, with a population of 2.5 million, six years ago. It now has 20 stores.
New Zealand has double the population but a more fragmented market than Perth. However, the spread of competing brands in the New Zealand market shows there is plenty of depth in the market.
Hao says “Expanding internationally is an opportunity to delight more customers and create more opportunities for teams and franchise partners.
“We will focus on opportunities that align with our philosophy. We want to develop supplier and team relationships and share the Soul Origin love and passion for food and coffee.”