Bakers Delight targets 100 franchisees in 2011-12, but revenue growth likely to be low

Bakery franchise chain Bakers Delight has set an ambitious target of getting 100 new franchisees, after securing 35 new store owners in the first six months of the financial year.

However, the company’s revenue grow will be subdued, with global sales expected to rise just 2.8% to $587 million in the 2012 financial year, up from $571 million in 2010-11.

Bakers Delight, which has more than 700 outlets across Australia, New Zealand and Canada, is also expecting to add 50 new franchisees in Canada, as part of a plan to increase the number of bakers in that country from 70 to 150 by 2015. 

Gabby Kelly, Bakers Delight general manager for company growth, says the company is not targeting any specific regions or markets to increase its franchise footprint, instead pursuing an organic growth strategy.

“We are experiencing good growth across the board. In terms of the country, there isn’t one area that is significantly attracting more growth than anywhere else… We’re seeing a lift across the board,” Kelly says.

Adding 100 franchisees in a market where recruitment has become very difficult will be an impressive feat. But the company took on 70 new franchisees in the 2010-11 financial year, 50% more franchisees than in previous years.

One of Bakers Delight’s advantages appears to be its ability to target internal candidates, particularly through its manage-to-own program.

Kelly says internal franchisee recruits are running slightly higher than external numbers so far in the 2011-12 year.

While Bakers Delight has specifically gone after Gen Y franchisee recruits in recent years, Kelly says the company is focusing more on finding entrepreneurs that fit the organisation.

“We’re looking for people that are going to fit our organisation, and that’s really more behavioural than ‘You must have this degree’ or have worked in this particular field for 20 years.”