The Australian QSR market has a chequered history with many US brands that have seen Australia as a land of opportunity and for good reason. A geographically large country that in some ways is similar to the US, with a growing population and affinity for fast food makes it attractive. It also helps that we are very dependent on cars as a mode of transportation, especially so in outer suburban new growth areas that are conducive to fast food & convenience with at times large distances to cover and a lack of options.
It’s no surprise then that US brand Firehouse Subs sees an opportunity now to enter the market here and fill a gap that has existed since Quiznos Subs left Australia in 2007. Subway as the dominant player in the sandwich category was never going to roll over for Quiznos and that’s exactly what happened. It also didn’t help that Quiznos shut up shop before it really had the opportunity to get a fold hold and convince Aussies it was a worthy alternative to Subway. So why is Firehouse Subs going to be different and why now?
I met Matthew Marshall the CEO for RFG (the master franchisor) for the Firehouse Subs brand in 2024, when he first told me about his plans for the brand. Geotech had worked with RFG previously on both Donut King & Gloria Jeans… two very mature brands that have been around for a long time. Matthew was impressed with the work we had done, and felt we could add a lot of value for the planned launch of the Firehouse Subs brand given our unique position in the Australian QSR/Fast casual food space working with many of Australia’s most recognizable brands on network planning strategies.
Matthew firmly believes they have the necessary experience and infrastructure to support a launch which is planned for 2025. The brand has over 1,300 stores globally and is owned by Restaurant Brands International (RBI) the same owners of Burger King, Popeyes and Tim Hortons donuts.
There is also a prevailing view that there is enough room for another operator to take on Subway that offers a vastly different product. In the US, the brand has an extensive menu that far exceeds what Subway offers in Australia. This includes hot subs with a variety of deli meats, hot chips, sides, desserts, thick shakes and drinks. Matthew has indicated that some of the products being offered in Australia will be curated to suit the local palate which is smart. The other important thing to note is that RFG will own & operate all of the stores opened in Australia initially, to make sure they are performing as expected and have been well received by the public before franchising.
Geotech has undertaken extensive research supported by our unique data including both (MasterCard Merchant Transaction & Mobile Device tracking data) to develop a strategic network plan identifying & prioritizing a number of potential locations RFG could consider for an initial rollout of Firehouse Subs stores. Once the brand opens enough stores, the logical next step is to develop a robust sales forecasting model to give increased comfort to the business (and potential) franchisees that the stores considered for opening have gone through a rigorous process to give them the best chance of success.
Geotech feels that there is a market for another operator in the casual dining space and if the right locations are sought Firehouse Subs has a unique enough product differentiation that could lend itself well to the Australian consumer.
For more information please contact Jeff Vassel the Global Business Development Manger [email protected] or +61 421 684 444
https://qsrmedia.com.au/franchising/news/firehouse-subs-launch-in-australia