Case Study: Royal Stacks
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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.
Getting Started
We are here to help you
We help businesses of all sizes, from large corporations to sole traders, through a diverse team and nearly 40 years of experience.
Recent Franchises
"Franchising is a serious commitment and DCS guided us through our economic modeling, feasibility assessment, legal documentation, and lead generation work. They truly become an extension of your business as you seek to put everything in place to build a sustainable model that will generate returns for your new partners and your brand. DCS helped bring on our first franchisee and ensured he was the right steward for our brand. I can’t recommend DC Strategy highly enough!"
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"When DC Strategy came in to meet the board at the time, the noise was taken away. Once they had been convinced by the expert this is what you need to do and this is how you need to approach it and from thereon we never looked back. "
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"DC Strategy took great care to understand our brand while developing our franchise system. They have worked closely with us to ensure we create a franchise system that reflects our passion in the Rosa Mexicano brand and their deep understanding of the franchise system made a significant contribution. I highly recommend them to anyone looking to establish a franchise network. "
Company Summary
38+ Years of Experience
+2,100 Franchise Locations
$2 Billion in Enterprise Value
For the past four decades, the team at DC Strategy has provided quality franchise consultation and legal counsel to our clients. We are advocates for the interests of our franchisor clients around the world. If you are considering purchasing a franchise, we provide personalised representation to help guide you through this process one step at a time.
Whether you’re in Australia, the United States, China, or some other country, we’ve got intermediaries near you with expertise in franchising within your sector. No other firm has appointed as many franchises as DC Strategy.
Getting Started
We are here to help you
We help businesses of all sizes, from large corporations to sole traders, through a diverse team and nearly 40 years of experience.
Contact Information
Call:
1300 682 657
Email:
online@dcstrategy.com
