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O'Briens
franchising business model has flourished in Ireland over
the last decade. The Irish owned-franchise O'Briens has
dominated high street locations and generated millions
of euro in turnover. The man behind this remarkable success
story is Brody Sweeney. |
| Brody
firmly believes in the franchise business model, "Establishing the basic model is the vital ingredient.
A good franchising arrangement is like a marriage in which
both sides will benefit if they work together". He
identifies the three key elements of successful franchise
as a good concept, a good retail location and a good operator.
A certain degree of flexibility with regard to the formula
is also important."
The target market for O'Briens is young,
white-collar worker.
"Our target market is the 18-35 year olds, high disposable
income, with a passion for healthy food, and for choice
whether they are from the centre of Singapore, Limerick, Copenhagen
or Chicago."
O'Briens successful formula means that their
top selling outlets - Dublin Airport, Blanchardstown
and Manchester Airport have a turnover in excess of €1million.
The Dublin Airport outlet is believed to have sales of over €1.5
million per annum, while the newly opened Heathrow Airport
is said to have surpassed Dublin Airport in its first three
months of comparative sales.
Brody
opened his first O'Briens in 1988. After opening
four shops he franchised out his first outlet in 1994. He
is now overseeing an ambitious
€ 6million expansion plan, under which aims to open 400 outlets
in Britain, and two flagship stores per year by 2008.
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| How
has O'Briens grown from a store in
Great George's Street in 1988 to a thriving 230 stores
across four continents? |
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Through
learning and perfecting the business |
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Through
managing the transition from an established Irish brand
to an international one |
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Through
a lucrative deal with SSP (Select Service Partner) in
1998, a member of the world-wide Compass Group, which
employs 170,000 people in the food and catering industry
(Compass owns 40 per cent of all food outlets in British
airports and 80 per cent of food outlets in railway stations
there). |
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Through
signing a
- £3 million deal with an Australian partner in 1998.
- £5 million deal with Master Franchisee from Singapore
for the Asian market in 1999.
- deal with Master Franchisee from Scandinavia in 2003
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| How It All Began... |
| Brody
opened his first O'Briens Irish Sandwich
Bar in Great George's Street in 1988. He wanted a name
that was intrinsically Irish, as from the outset he had plans
to franchise the concept in other countries. He eventually
picked the name from a local telephone directory.
"I dreamt it up to take it abroad, so I needed to
have a name that would have an Irish twang to it."
Brody's experience in franchising began through his
involvement with a British printing business, Prontoprint,
the Irish license was held by his father.
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| Learning From Mistakes |
| The
location of Brody's first store was
not suited to selling sandwiches and performed poorly, but
the second was a roaring success. He borrowed heavily to open
a third outlet but it was a complete disaster as there was
simply no appetite for his product in that location. He lost
almost £100,000 on the store and it nearly brought down
the entire chain. "I made a dog's dinner of it
at the start. Lack of experience was really the bottom line."
But Brody was able to learn from his many mistakes, and
at each step he could refine the O'Briens concept.
His theory was simple. Sandwiches were the biggest single
sector of the fast food market but there was no dominant
chain. "That was the opportunity, to put a brand name
on a sandwich" ...and he did just that.
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| Building the Brand |
| From
the start O'Briens marketing and public
relations strategy has been aggressive. From the International
Photography Competition which began in 1997, to the S.O.S.,
Send O'Briens Sandwiches radio campaign in 2001 and O'Briens
new healthy lifestyle "Guilt Free Food" campaign
in 2003 O'Briens have used many different avenues to
enhance brand awareness.
Successful franchise sales from the start made massive inroads
in building the brand. O'Briens cluster approach to
large cities to gain critical mass for the brand has made
O'Briens the market leader in Scotland and Ireland.
The first franchises were opened in Dublin and Brody quickly
noticed the impact that each new business had on the existing
locations. "As soon as you opened a new outlet all
the existing stores saw a 2 to 3 percent jump in their business."
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| Healthy Lifestyle |
| O'Briens benefits from the general move
towards a healthier lifestyle among consumers, and Brody believes
this gives business a crucial advantage into the future. "We
are offering fast food which is fun and good for you."
O'Briens "Guilt Free Food" Campaign ...features
a Calorie Counter which lists the fat and calorie content
of O'Briens breads, meats, cheeses, fish, hot drinks,
salads, sauces. O'Briens know that with today's
busy lifestyles more and more people are relying on fast
foods and convenience foods for many of their meals. It is
important that as these kinds of foods make up a large proportion
of our diets that we should be given information on how to
incorporate healthy options into the diet.
"It is important that people become better informed
about what they eat, that they understand the health risks
associated with the food choices they make. In practical
terms in order to do this they need practical information
about which foods to choose in order to be healthy - this
calorie counter is an ideal tool for this," states
Brody.
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| A Man with His Vision of the Future |
Brody
plans to open 1,000 franchises worldwide by 2008. He believes
O'Briens will then have reached
the critical mass needed to generate both the necessary supplier
discounts and brand awareness to become the number one sandwich
store
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O'Briens had a turnover of €65
million in 2002.
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| O'BRIENS: |
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O'Briens
Irish Sandwich Bars is the market leader in Ireland and
Scotland and is expanding worldwide |
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CEO,
Brody Sweeney, opened the first O'Briens
in Dublin in 1988. Over the last fifteen years, he and
his team have successfully opened more than 230 franchises
in Ireland, UK, the USA, Australia, Netherlands, Singapore
and Malaysia. |
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O'Briens
has recently signed an agreement with Master Franchisee
Jesper Andresen (Ex-CEO McDonalds in
Denmark) to open stores in Scandinavia. |
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O'Briens
latest venture in autumn 2003 is into India and Taiwan,
opening stores in New Dehli and Taipei. |
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One
of six finalits in the British Franchisor
of the Year 2003, O'Briens won Franchisee of the
Year in 2001. |
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Nominated
one of the UK's best sandwich bars
by the Sunday Times Style Magazine in 2000, O'Briens
has won many franchise awards including Irish Franchisor
of the Year. |
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At
the British Sandwich Association Awards 2001, O'Briens
Irish Sandwich Bars beat off stiff competition from across
the industry to win Sandwich Marketeer of the Year. O'Briens
was chosen by the judges for the quality of its overall
marketing strategy. |
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The
O'Briens concept facilitates the development
of one, then a series of retail stores, in tandem with
bulk catering opportunities, particularly within the local
business community. O'Briens also offers the chance
to site mobile sandwich and coffee counters in large office
blocks, acting as an "in house café". |
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Although
well known for its sandwiches and healthy option WrapposTM,
its coffee sales have tripled over the
past two years, with a choice of cappuccinos, espressos,
caffe lattes and mochas. Fresh soups, snacks, crisps and
a wide range of soft drinks also make up the O'Briens
product portfolio. |
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O'Briens
was one of the official sponsors of the 2003 Special
Olympic World Summer Games, the biggest
sporting event in 2003, which took place in Dublin, Ireland. |
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O'Briens
Irish Sandwich Bars Ltd is a member of the British Franchise
Association, International Franchise
Association and the Irish Franchise Association. The International
head office is based in Dublin, Ireland, with support offices
in Scotland, England, North America, Australia and Asia. |
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