Upstart Takes On Fast Food Giants

MEDIA RELEASE

03 NOVEMBER 2010

Upstart Takes On Fast Food Giants

Ever wondered why New Zealand, renowned for its natural food exports, has a fast-food industry dominated by American brands? So did James Tucker, an ambitious 31-year-old Aucklander whose business background includes the set-up and ownership of a dozen food and beverage businesses.

Tucker reasoned that if New Zealanders were offered a credible home-grown fast-food menu, they’d support it if convinced they could trust the integrity of the ingredients. In 2006 he linked with chef and co-founder Tim Benest to devise an original bill of fare, based on what they describe simply as “good, honest food”. Two years later, their Habitual Fix brand launched its made-while-you-watch sandwiches, wraps, pitas, salads and smoothies. The concept store at Beaumont Street in the Viaduct precinct was followed by a second outlet next to the Customhouse in the heart of Auckland’s CBD.

Opening just as the recession was beginning to bite may have scared off less confident entrepreneurs, but Tucker has already proved that you can thrive in any weather if you have “attitude” and you know how to create excitement around your brand.

Deftly exploiting opportunities offered by social media platforms such as Facebook and Twitter, and with “Yo Addicts!” texts announcing store openings with free food for the faithful, Tucker’s upstart company celebrates its second birthday this month. There are currently five franchised outlets in Auckland serving some 6000 “addicts” every week. In just two years, annual sales revenue has surpassed $3 million.

Investing $1.5 million in the construction of these stores is not for the faint-hearted, but Tucker prefers to focus on Habitual Fix’s human back-story. “While others were laying off staff, we were hiring,” he says matter-of-factly, as if refusing to subscribe to the recession. “So far we’ve employed more than 100, with a third of them coming off the dole and eager to work with us. We’ll be taking on more good people, with eight new stores opening nationwide within the next 12 months.

“Our youngest franchisee has just turned 21, and currently we have more than 2000 fans following us on Facebook and Twitter. We’ve recently opened stores at the Civic on Queen Street; Broadway, Newmarket; and at Sylvia Park, our first mall site.”

It hasn’t all been “smoothie sailing” for the company: complaints were laid against their downtown billboard depicting a banana flasher chasing a strawberry and a pear. After examining the objections, the Advertising Standards Authority commented that while the image was “somewhat lacking in taste, it did not reach the threshold to breach the Code of Ethics” and it ruled not to uphold the complaint. Meanwhile, edgy graphics on the Habitual Fix website could still provoke a raised eyebrow or two.

Why should Habitual Fix succeed when many others have tried and failed in this business? “For starters, we like to say we provide good food, fast,” Tucker explains. “We’re positioned between the price-driven fast-food franchises and quality café fare. We’re confident Habitual Fix has the right branding, menu and pricing to go international, and we’re working towards that goal as we roll out more stores nationally.”

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