US brands could fail: franchising expert

Sarah Stowe

Stan Gordon, managing director of Franchised Food Company (FFCo), has warned that plans to launch American food brands in Australia could be doomed to fail.

Multinational retailers wanting to roll out concepts that work in the US or Europe could find  that  the same format is unsuccessful in Australia, Gordon says.

Having been in multi-site retail franchising for over 15 years in three countries, I have seen brands come and go all with illusions of grandeur that each brand will have 30 or 40 stores, usually within 12 months, he said.

Once they encounter the Australian constraints of real estate and population numbers their plans are curtailed.

Gordon’s warning comes after the news that US global brand manager, NexCen Brands, will attempt to launch a number of US brands in Australia, including MaggieMoos, Pretzel Time, Marble Slab Creamery and Great American Cookies.

As a migrant of some 14 years to Australia and having tried to bring brands from overseas, I would caution companies such as NexCen that Australia is unique. The physiographics, demographics, wants, needs and aspirations do not mirror any other country, he said.

Gordon also advises that Australia’s food and health regulations are far more stringent than many overseas markets.

FFCo holds the interests and rights of Mr Whippy, Pretzel World and Cold Rock Ice Creamery.