From left: Federal Shadow Minister for Small Business, Bruce Billson, Tasty Trucks ambassador Bec Carter and founder Colin Lear at the ‘Vanchise’ launch
Tasty Trucks has been serving morning tea and lunches to workers across Melbourne every day for the past 22 years. Now there are plans to drive the business into every state and territory in Australia through a revised franchise model.
Founder Colin Lear told Franchising, "About five years ago we started franchising and did it in-house with employees converting to the franchise model. It was very successful and we’ve still got 12 of the original 28 who signed up for the three year contract.
"We made a deliberate decision to regroup when the economy slowed down and have refocused the model. The mechanics are a bit more simple, and it’s commission-based."
The Tasty Trucks ‘Vanchising’ offer was unveiled by Federal Shadow Minister for Small Business, Competition Policy and Consumer Affairs, the Hon Bruce Billson, on Monday, October 17.
Franchisees rent a fully stocked vehicle for $93 per business day, pay for fuel and a 5 percent service fee, and make commission on their turnover.
The franchisee fee starts at $10,000 and goes up to $30,000, dependent on the last three months turnover.
Lear says "It’s a profitable business to start with. We convert the more mature client lists into franchises."
When a franchisee buys into the system they start with a list of customer appointments at certain times of day. Although the franchise is territory based logistics have an impact on the client list. There is crossover between the franchisees' rounds, with one franchisee serving morning tea at one business, and a fellow franchisee delivering lunch.
Key to the business are the food processing, production-line facility and depot in Ferntree Gully, and distribution depot in Tullamarine.
The 64 vans serve 15,000 customers daily and there are plans to build up to 80 vans across Melbourne while expanding interstate over the next two years.
Lear agrees the investment in the logistical back-up to service businesses across Australia will be significant.
“We will be looking for joint ventures with existing businesses," he explains.