Case Study: Royal Stacks

Restaurant that started with a dream and a life changing burger

The Business: Royal Stacks

Royal Stacks is restaurant that started with a dream and a life changing burger. Many moons ago, the founder Dani was travelling the US and happened upon a burger that changed the path of his life – no, really.It was a burger so good, that he proceeded to try 30 more American burgers on his 34-day trip. From there, with an affinity for street royalty and a damn good burger, Royal Stacks was born. When they opened their first store on Collins Street in 2016, they took on a challenge to stand out within one of Melbourne’s vibrant hearts of retail, hospitality, and business. They were quite literally the small fish in a big pond! 

The Challenge

  • Finding good locations with appropriate rent and foot traffic
  • High cost of labour and increased scrutiny of payment of awards wages
  • Consistency in quality and replicating the flavour of the food
  • Ability to adapt the product offer based on changing trends
  • Increased pressure on profit margins and fierce competition

The Solution

DC Strategy developed the proposed strategy, Royal Stacks’ performance, position and future potential have been viewed through four lenses; investor perspectives, domestic and international industry trends and Royal Stacks’ current market position. These different perspectives provided a context for strategy development.

The Outcome

The proposed strategy aimed to deliver strong shareholder returns by extracting significant potential in the domestic business.
There are four key strategic themes:

  • Optimised current store portfolio and embed appropriate financial disciplines
  • Disciplined and targeted Victorian store rollout
  • Maximised online food ordering and delivery platform trend
  • Interstate expansion
  • Cleaned up existing ownership structure.

Where are they now?

Multiple Stores in Australia and China Revenue: $13 Million In mid-2019, they took on one of the boldest challenges yet – expanding the Royal Stacks kingdom into China. Their brand and ethos were embraced quickly, and they rolled out stores in Chongqing, Beijing, and Shenzhen.

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We help businesses of all sizes, from large corporations to sole traders, through a diverse team and nearly 40 years of experience.