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 Pie Face
17 Jul 2006
 Article PDF (
111KB)
Pie Face is an Australian food retailer and manufacturer founded by Wayne Homschek and Betty Fong. Pie Face specialises in gourmet savoury/sweet pies, healthy wraps and desserts such as their delicious and decadent brownies. Like their stores, each pie has its own personality and a face to identify the flavours within.
The first Pie Face was opened in July 2003 in Waverley Street Mall, Bondi Junction. In December 2004, a second Pie Face store was opened in Kings Cross as a 24-hour operation, and was quickly adopted as an iconic brand in the eyes of locals and partygoers alike.
Since then the Pie Face “Have me Now!” (hot pies, wraps, and desserts) and its “Take me Home!!!” (cold pies for parties, functions and events) products have been enthusiastically received by the market and have led to strong growth and a rapid expansion into shopping centres and shopping strips.
The Challenge
The early success of Pie Face was the foundation for a national expansion as a combined network of company-owned and franchised locations. With capital and human resource restraints realising the opportunity in the market proved difficult.
The key challenges for Pie Face in its second phase of growth were:
- Developing the organisational structure, systems and processes to manage and drive future
growth
Developing a business model which allowed rapid growth with low capital requirements
Establishing a centralised production facility that would handle the product needs of a growing network
Developing a business model which was attractive and provided the necessary support to the owner-operators
Key to Expansion: Refining the concept and selecting the right business format for network expansion.
The Solution
Franchising was identified early as a strategy to enable Pie Face’s next phase of growth, and provided an opportunity to address the key challenges. Being familiar with DC Strategy’s (DCS) success with companies such as Boost Juice, Healthy Habits, and Grill’d, Wayne Homschek engaged DCS to address these issues and develop the Pie Face franchise system and growth strategy.
An in-depth economic analysis was conducted to determine the desired retail and business format and to assist Pie Face in identifying the appropriate manufacturing margins. DC also developed the commercial and operational policies to manage the growth, the framework for screening and recruiting franchisees and the Pie Face Operations Manual. The strategy was communicated throughout the project to the board and shareholders of the Pie Face group.
The Outcomes
The franchise system and network development process have provided the foundation necessary for Pie Face to tackle its next phase of growth.
The core outcomes of the franchise program development included:
- Identification of the required head office structure to support the growing network
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Development of a business model which allowed rapid growth with low capital requirements
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Board and investor presentation to ensure unilateral support and understanding
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Establishment of the necessary remuneration and manufacturing business models
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Development of the commercial policies to manage the Pie Face business model in the future
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A formalised and structured franchise recruitment and screening process
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Development of the operational policies and guidelines
Consistency and an Iconic Brand: Success in the food retail space is all about a consistent offering and a brand customers can easily identify.
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