Takeout and delivery now account for around 35% of sales, up from 20 to 25% before COVID-19, and the average store has annual sales of at least $ 3 million, compared to a forecast of around 2. $ 7 million. before the pandemic.
The chain, which maintains its beach vibe, generated sales of $ 80 million in 2021, up from $ 69 million in 2020, according to Retail Zoo’s annual accounts.
Store plans
“Today we have a healthy balance where no matter what the government decides to do, be it a partial or full foreclosure, the company is well positioned to be able to meet this challenge,†said Mr. Alani.
Retail Zoo’s ambitious store plans also reflect improved availability of attractive locations in CBD locations, high-end shopping malls and beachfront areas as discretionary retailers close their stores and banks shrink their footprint. commercial.
Betty’s Burgers recently opened or plans to open stores in several major locations previously occupied by banks, including Market Street in Sydney’s CBD, Elsternwick in central Melbourne and Glenferrie Road in Melbourne’s Malvern.
“We say that 150 to 200 stores is very achievable for us,†Mr. Alani said. “We’re only in 12-13 of the top 50 malls and there are lots of beaches and shopping streets – places definitely got easier to find.â€
While some brands in the $ 7 billion burger market struggled, Betty’s Burgers flourished in part thanks to support from Retail Zoo, which has approximately 650 stores owned and franchised under the Boost, Betty’s Burgers, Salsa’s Fresh brands. Mex and CIBO Espresso.
Betty’s Burgers General Manager, Troy McDonagh.
Retail Zoo, which is partly owned by Boost Juice founder Janine Allis and her husband Jeff Allis, generated $ 136 million in revenue from company-owned stores, royalties, franchise fees and discounts to suppliers in 2020.
Since Retail Zoo acquired Betty’s Burgers four years ago, the chain has improved the cost of goods and labor by 10% by sharing services such as IT and marketing with sister brands and by negotiating better prices for key inputs such as packaging and food distribution.
“The difference between us and other burger offerings that could have come and gone is that they didn’t have the benefit of having a big engine like Retail Zoo,†said McDonagh, who joined Betty’s Burgers two years ago after a 30-year career. in hospitality, including stays at Red Rooster, Gloria Jeans, Porto and MAdE.
Although business leaders fear the Morrison government’s four-phase exit plan from the pandemic will mean Australia will be isolated from the rest of the world until the end of 2022, Mr Alani says Retail Zoo is fine. positioned to succeed whether the economy remains locked in or open at the top.
“From a business perspective, we don’t care too much one way or another – if that means borders are locked, tourism is increasing, so that’s probably a good thing for our business.” , did he declare.
“In the first six months of COVID-19, we have made our business, especially Betty’s, robust, resilient and ready for whatever challenges we face,†he said.
“Full lockdown isn’t great, but partial lockdowns that we can handle quite well, and when people are able to do whatever they want it works exceptionally well for us, so no real worries about what the national cabinet decides to do. “
Bain Capital bought a major stake in Retail Zoo in 2014 for $ 185 million and attempted to sell or launch the business in 2019 for around $ 400 million.
Mr Alani declined to comment on the new IPO plans, saying it was the business of Retail Zoo and the other shareholders. Retail Zoo has reportedly appointed Goldman Sachs and UBS as co-leaders.
