A challenge in the catering world

“We work at a pace of 15 to 20 restaurant openings every year. In 2008, 18 new establishments opened their doors.” This observation from Luc Thibaud, Vice-President of Quick’s France Operations conveys the sound health of the fast food giant. Indeed, the hamburger market is fairly dynamic. “All analysts confirm that there is a significant growth potential in this domain,” he continues.
The group’s franchising model is interesting for investors for a variety of reasons. “Compared with other types of franchises, we are not in the category requiring a high level of investments for a restaurant opening. As well as this, given the importance and history of our structure, we offer a particularly interesting and motivating business challenge for someone wishing to embark on this type of adventure,” considers the company Manager.
A double advantage that no doubt partially explains the many requests received by Quick for restaurant takeovers or openings. The model offered to franchisees is lease management with investment. Quick wishes to maintain complete control over its network by remaining either the owners of franchised premises or else holders of the rental contract. “Generally, it is the company that takes charge of looking for premises. It is rare that a franchisee will propose a location on his own bat,” asserts Luc Thibaud. The budget required from the franchisee is 750,000 euros, including 25% that must represent personal capital – standard acquisition conditions on the franchising market. The entire costs for the use of the premises, including dining room decorations and kitchen installations, come under the franchisee’s responsibility. Quick nevertheless meets the costs of the building structure itself.
The group’s franchising offers are mainly aimed at former freelance salespeople or else experienced managers with sufficient liquid funds, wishing to follow a new career direction. “We expect candidates to be capable of managing a team of around forty and to display proven qualities in management or business development,” sums up Luc Thibaud.
For the franchising of existing restaurants, priority is given to franchisees who have already proven their mettle within the Quick network, or company managers who have demonstrated their expertise in operational management or head office positions. “Selected candidates also benefit from privileges that are not commonly available in other structures,” adds the manager. At the end of the 12-year period over which a contract extends, each franchisee is paid a bonus to the value of the franchise’s turnover over this period.
Quick’s expansion strategy primarily targets urban units with a population higher than 40,000 inhabitants. “But this logic is not an absolute rule. Before deciding where to set up, we naturally study possible locations, in terms of the property market and other indicators with an impact on the profitability of the future restaurant,” explains Luc Thibaud. Quick’s rate of presence in towns with over 100,000 inhabitants is almost 100%. But the group does not exclude the possibility of future openings in these large urban centres.
The recent economic downtown has somewhat altered the brand name’s development. But the company has reacted quickly by applying a general policy of lowering prices and redefining the details of its offer. Since April 2009, Quick has launched a range of special-price products. This strategy has been compounded by price cuts resulting from the reduction of VAT for the catering industry. “It is crucial that we show that we are making an effort and that we prove that we understand the concerns of our clients,” Luc Thibaud confides.
Countering criticisms targeted at the nutritional value of its products, the manager recalls that “all products, as well as our suppliers, are carefully selected, and our level of requirements is often higher than in other areas of catering”. Quick has moreover undertaken a certain number of measures to increase nutritional advantages for consumers. Lighter sauces. Fresh fruit juices. Clients are systematically informed of the number of daily calories represented by the products. The manager adds that clients are no longer given “extra salt for fries, as we seek to set them an example and urge them to adopt the right dietary reflexes”.