Queensland based chain Burger Urge has bought the Urban Burger franchise and appointed Eagle Boys founder Tom Potter as chairman of the combined group.
Brothers Sean and Colby Carthew head up the Burger Urge business which began in 2007 with an outlet in Brisbane’s Fortitude Valley and is known for its controversial marketing campaigns.
The two businesses will be merged, with the Urban Burger franchisees converting to the Burger Urge brand and model. The pair has plans for 40 Burger Urge outlets by December 2016.
Sean Carthew told Franchising “We think we can offer a lot to existing franchisees by converting them to our model. It doesn’t make sense to have them competing.”
The intellectual property and processes of the acquired business will be shelved. The Burger Urge team of eight support staff will be boosted with an increased head count in both the operations and marketing departments.
The Burger Urge outlet at Queensland University of Technology, below
MOVING INTO FRANCHISING
The appointment of franchise-experienced Potter formalises an ongoing business relationship – the former pizza chief has been advising Burger Urge for the past six years. Bringing Potter into the group will help the company develop its relatively new franchise outlets.
The brothers expect good corporate governance to be an outcome of the new structure; an advisory board will be set up in December 2014 and this is expected to bring in specialists across marketing, finance and accounting, and operations.
“Someone like Tom overseeing can help bring people together,” Sean said. “We hope to replicate his success.”
Potter told Franchising the Eagle Boys business really took off once a board was appointed – but this didn’t happen until there were more than 40 stores in the chain.
He said his role will be strategic. “Initially it was just mentoring, now it’s about putting in quality procedures and protocols and long term strategies, site selection criteria…things that 10 to 12 store chains will often lack.”
Potter believes the Burger Urge chain is a viable competitor to the Grill’d franchise and allows franchisees to maximise their profits.
“There are two points of difference, the price of the product, which is about 30 percent lower, and the size and scale of the model (about half the size) which means substantially better rents.”