John Dory’s goal for 2019 was to open two new restaurants. This was exceeded, with six new restaurants opening, all of which are trading well. Two restaurants lost several months of trading because they were closed for protracted relocations. Both restaurants reopened late in the 2018 calendar year.
Franchise restaurant turnover increased by 4.6%, benefiting from new businesses. Turnover from existing restaurants declined by 4.0% largely due to the temporary restaurant closures referred to above.
Revenue increased ahead of restaurant turnovers due to lower franchise fee concessions. The operating margin declined due to additional operational costs incurred on restaurant openings during the year and overseas travel undertaken to investigate and secure alternative supply channels.
Franchisee profit margins remain under pressure and the focus for the year has therefore been on managing efficiencies within franchised restaurants. This included additional franchisee training on back-of-house controls and improved labour scheduling. The brand added four in-person training facilities across the country and improved modular training on the online training portals.
All John Dory’s restaurants have free Wi-Fi and 94% have kids’ play areas. The brand introduced a new restaurant design at 34 outlets, which was favourably received by franchisees and customers, and will be rolled out nationally.
The brand’s marketing strategy focused on core product advertising and limited-time promotions, which positively impacted restaurant turnover. Further marketing emphasis was on sponsoring local sports teams to expose the brand and franchisee restaurants in surrounding communities.
Sustainability remains a priority. The brand is mindful of its reliance on water, both fresh and in the sea, and expanded participation in clean-up operations of beaches, harbours and lagoons. John Dory’s cemented its relationship with the World Wildlife Fund (“WWF”) and SASSI, and partnered with the Two Oceans Aquarium. The brand remains committed to removing all plastic from its restaurants. Plastic straws were replaced with paper straws and all plastic bags and takeaway boxes were discontinued. Wooden chopsticks, which were previously packaged in plastic, are now covered with paper wraps. More detail is provided in the online sustainability supplement, available at www.spurcorporation.com/investors/results-centre.
The brand’s strategic intent is to be customers’ first choice family sit-down seafood restaurant, revered for its value offering, sustainably sourced products and excellent dining experience.
John Dory’s measures franchisee actions and performance against this intent.
To ensure that the brand achieves its strategic objectives, it applied a balanced scorecard approach and developed a blueprint detailing key areas that require focus for the brand to achieve the required growth. Task teams were put in place to develop an action list to achieve the required changes. The brand embarked on multiple franchisee assessments to ensure better implementation of John Dory’s strategy.