Australian Franchise News – 16-07-10
Eagle Boys Pizza has confirmed it has its sights set on topping Domino’s Pizza as Australia’s largest pizza maker, with the launch of an aggressive store opening strategy capitalising on double-digit sales growth during the past financial year.
Despite reports of a sluggish retail market, Eagle Boys Pizza recorded a 15.4% increase in sales during the past 12 months on the back of a menu overhaul and the opening of more than 40 additional stores.
Sales at Eagle Boys Pizza’s 315 stores across the country have resulted in total network sales growth during the past three years of 43.2% and company 2009/10 EBITDA grew 28%.
During 2009-10, the company also overtook Pizza Hut to become Australia’s second largest pizza maker by opening its 300th store in Australia.
Eagle Boys Pizza Managing Director Todd Clayton said high levels of inquiries from potential franchisees and underrepresentation in key capital cities meant the company would continue to roll out a high number of new stores in the coming years.
He said Eagle Boys expected to open 46 new stores in 2010-11 – almost one new store a week – with a focus on the Sydney and Adelaide markets the company has only recently entered.
“Our continued focus on quality ingredients, better value pizzas and innovation, coupled with our aggressive store roll out means more and more Australians will be able to enjoy Eagle Boys. And for international brands Domino’s and Pizza Hut, it means watch out, we’re coming!” he said.
Mr Clayton said product innovation coupled with business technology applications and new store openings would remain the key catalysts for growth in the year ahead.
“Responding to the growing sophistication of Australians’ pizza palate, earlier this year we launched the biggest menu overhaul in our 23-year history. This saw 31 new menu items, including a 92.7% fat free Lighter Choices pizza range, premium pizzas, side dishes, desserts and kids menu,” he said.
By driving the category with product innovation, comparable stores get the full advantage with average transaction values (or basket size) increasing on average by 8% across the 2009 /10 year and hitting 18% at its highest peak.
“This has helped reposition Eagle Boys Pizza as a pizza maker with a broader offering, ranging from traditional and premium pizzas, through to pastas, sides and desserts. In fact our premium pizzas now account for more than 23% of pizza sales, which is further evidence of the shifting taste buds of Australians.
“Recent brand tracking research has also demonstrated that we have not only encouraged Eagle Boys customers to visit us more often, but we are also gaining market share against the other major pizza chains.
“Interestingly, the research also confirmed anecdotal reports that customers are now less likely to purchase from Eagle Boys with coupon, preferring to purchase from us because of our quality and value based brand proposition.”
Mr Clayton said Eagle Boys was focussed on embracing business technology and addition product innovation during the next 12 months to further drive sales.
“Our online ordering platform already generates about 14% of our sales and this has been achieved with little promotion. As we work towards launching and promoting a more integrated system we expect online orders to account for a fifth of our sales by this time next year.”
Eagle Boys Pizza is one of Australia’s largest pizza makers and is 100 per cent Australian-owned. It operates more than 315 franchised stores throughout Queensland, New South Wales, Victoria, South Australia, Western Australia, the ACT and the Northern Territory, employing more than 4,000 staff and making more than 17 million pizzas a year.
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