Snack systems delivering dough

Russell Emmerson
November 26, 2012
National Features

STAN Gordon is a man with a healthy appetite.

But don’t talk to him about meals – it’s snacks he wants.

Gordon already owns the franchises behind Mr Whippy, Cold Rock, Pretzel World and Nut Shack, and says he is on track to buy two more systems before the end of the first quarter next year.

His shopping list has one key element, aside from viability.

“Our products are internet-proof,” he says.

“You can’t buy them on the internet and Australia Post can’t deliver them – and we are bringing smiles to the faces of our customers.”

The business growth “won’t make you a Frank Lowy”, he says, but the desire for comforting treats during times of conservatism is likely to produce “a good living”.

He won’t disclose the identities of the systems he is looking at but makes a distinction between “meals” and “snacks and treats”.

To that end, he has investigated yoghurt products but dismissed hamburgers – and won’t touch yoghurt-based systems until he sees some consolidation in the market.

But he is hungry for more.

Business owners often start up a business and then use franchising to grow beyond their first or second store – a strategy that builds high overheads that can crush a business before it has achieved critical mass, he says.

The more mature businesses have stretched past that limit to have a well-oiled system where administrative costs are carried by a healthy, extensive retail network.

“We wouldn’t be looking at five to 10 store systems, it’s too small,” he says.

“We’d like 20-plus stores and we are already looking at several of them.”