WARM summer weather and the robust state of the local economy are two of the reasons behind a new front in the fight for Western Australians’ discretionary spend – and it’s all about the ice-cream.
Queensland-based ice-cream chain Cold Rock and American-owned Baskin Robbins are going head to head with their expansion plans into the state. Both companies have cited the current economic climate fostered by the resources boom, and the perceived extra disposable income of Western Australians, as reasons to increase their presence in the state’s ice-cream sector.
Cold Rock ice creamery has 100 franchises around the country, yet only two of them are in WA – at Fremantle and Hillarys Boat Harbour.
The chain was acquired by Melbourne-based Franchised Food Company in 2009, which also owns brands including Mr Whippy, Pretzel World and Nut Shack.
Franchised Food Company and Cold Rock managing director Stan Gordon said the previous owners of Cold Rock had failed to recognise WA as a lucrative market.
“Western Australia is a whole state that hasn’t been attended to and that is because my predecessor never saw it as a major market,” he said.
Mr Gordon said Cold Rock has already signed up franchisees for 24 WA stores it proposed to open over the next 12 to 18 months, ranging from Broome to WA’s South West.
Despite a small presence in WA, Mr Gordon said the state’s two Cold Rock stores were among the top 10 Cold Rock franchises in the country in terms of performance.
“The weather is warm, which lends itself to ice-cream consumption, the economy is very buoyant and people in WA seem to have disposable income,” he said.
Meanwhile, Dunkin Brands-owned ice-cream chain Baskin Robbins has also embarked on an expansion plan into WA, since taking over from licensee Allied Brands in October last year.
With 10 stores in the Perth metropolitan area and one in regional WA, the company plans to open 10 more franchises across the state by the end of this year.
Baskin Robbins Australia general manager Ian Martin said the company would focus initially on the regional ice-cream market.
“When we entered the market we identified the whole country was significantly underpenetrated for our brand and focused our attention in the initial period on the WA and north Queensland markets,” Mr Martin said.
“We think the climate and the retail environment is appropriate for us to enter that regional market.”
Sites earmarked for the new Baskin Robbins stores include ‘high street areas’ in Albany, Broome, Bunbury, Ellenbrook and North Perth.
Both Baskin Robbins and Cold Rock have some work ahead if they want to establish themselves among the bigger players in the WA ice-cream market.
Wendy’s has the largest ice-cream footprint in the state with 24 franchises.
However, Wendy’s CEO Rob McKay said the company preferred to grow the business of its existing franchises.
“It’s not about the volume of stores, it’s more about the best quality locations coupled with the best franchisees,” he said.
“This careful growth plan is balanced with a consolidation approach where we’re also focusing on growing the existing businesses we have in WA.”
Second to Wendy’s, Gelare has grown to 16 franchises across WA.
