Posts Tagged ‘Subway’

A juicy tale of international expansion

January 23, 2009

There is a nice little story in today’s Age about Australian juice bar chain, Boost, making a move into China.

boost-juice-cupBoost have been a big success down under with their flashy outlets and tasty drinks. While clearly (and openly) an adaptation of the California juice bars (such as Jamba), Boost has been very willing to take on internationalisation.

No doubt aware of the likelihood that they would eventually saturate the Australian market, and also of the scope to build a first-mover lead over other chains, the firm has sought growth across the globe, typically via master franchise arrangements.

It appears they now have stores in 12 countries (orange on map below) and have awarded master franchises in another six (they’re the green ones).

boost-juice-locations-map-world1

Sorry to harp on about it, but again we see little evidence of any strong home regional bias in expansion here. The firm will soon have stores on all of the inhabited continents. It certainly has not confined itself to the Asia-Pacific. Unlike most Aussie firms they haven’t even tackled NZ yet!

Expansion through franchising should, of course, be easier than through foreign direct investment, as the firm bears less direct risk. They can also tap into the adaptation expertise of other parties (local or international). In the UK, the Boost franchise is owned by Swiss multinational giant Nestlé. As noted in the story, Boost is working with an experienced US-based firm that has already taken the Subway and Gloria Jean’s brands into China.

So, where next for Boost?

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