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The US ice-cream chain Ben & Jerry's has announced its entrance to the Australian market with claims it has adapted its business model to avoid the failures of other US companies such as Krispy Kreme, Baskin Robbins, Starbucks, Midas, Quiznos, Borders, etc etc.
Brand manager Johnny Hammond says the franchise model has been tweaked for the Australian retailing environment which, given our relative higher cost of labour and higher retail rents, is very different to other markets such as the US where Ben & Jerry's has an established presence. SMH
Unilever, the owner of Ben and Jerry’s, is a multinational conglomerate that markets soaps, personal care products, detergents and food products.
The Australian government and the Franchise Council of Australia applaud overseas investors. But hang on; franchising pundits tell us that Australian franchisee capital is responsible for growing any franchise brand operating in Australia.
Ben & Jerry’s is said to have 500 stores worldwide compared to the troubled Dunkins' Baskin Robbins brand with 5,000. Now if that holds proportionally the newcomer could expect to grow to massive Australian network of 9 stores.
Now that might seem a ridiculous comparison until potential investors consider, as example, Ben & Jerry’s dismal growth in Canada and at a time when viable levels of discretionary spending weren’t in question.