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The Finn Review - Issue 3

Interview with Eagle Boys founder, Tom Potter

Tom Potter founded Eagle Boys in 1986. Today his brand has expanded to an amazing 160 stores. Born in Bendigo in country Victoria, he is a knock-about bloke with an incredible entrepreneurial spirit.

Tom Potter has done it all. He's worked behind the counter in his pizza stores, and graduated from Harvard Business School. He learnt his business the old fashioned way - 'hands-on'. Tom was also smart enough to know that he had to expand his mind if he wanted to expand his business. He was kind enough to speak with me recently.

SF: G'day Tom, how many Eagle Boys stores do you have now?
TP: At the moment we have 160 stores operating.

SF: How many of these stores are company-owned?
TP: This figure can vary depending on market circumstances. We're at about 5% right now but we're looking at expanding on that in the future for strategic reasons.

SF: In Australia, how many Eagle Boys stores do you think can be viable?
TP: The consumption of the product has grown so much over the last ten years that the market we operate in has pretty much doubled. We're in a position where we think we can have 450-plus viable Eagle Boys stores in Australia. Not all of these will be the same, we've got a few business models under our brand. The flexibility of our brand is incredible. We want to be in small towns, we want to be in large cities, we want to be in airports. It's all about offering our product to people as easily as possible.

SF: There are various business models operating under the Eagle Boys brand - can you explain more about these?
TP: Aside from our standard model, we have micro-store models that go into towns with populations of 6000 people or less. We have full drive-through models that can handle sales up to $50 000 a week. We have our sporting stadium model which is operational in Suncorp Stadium and we're about to launch at the MCG and Sydney and Brisbane International airports. We're also building an Eagle Boys restaurant in Fiji that will seat about 160 people !

SF: Pizza chains have traditionally struggled in Victoria - why is that?
TP: Victoria is highly competitive and an extremely difficult market. We've got three country-based stores there at the moment that are performing really well. Most pizza chains have tried to grow in Victoria and the bottom line is they stuffed it up. We'll continue to carefully grow there but we're making sure we do it right. Keep an eye out for our drive-through operation that we'll be opening in Ballarat soon.

SF: Tell me more about your new drive-through model?
TP: We're offering pizza in-and-out in two minutes. It's the first of it's kind anywhere in the world.

SF: How have you set-up your head office support structure at Eagle Boys?
TP: We've got about 54 staff at head office. We've got IT, Operations, Marketing, Construction and Re-furb, and Franchise Development. The divisions are looked after by our Chief Financial Officer and our General Manager. I mainly focus on strategy and international development.

SF: Who do you admire most in franchising in Australia?
TP: Tim Hantke is a real stand-up operator. He's the ex-CEO from Snap Printing. I've had a lot of time for him over the years. Andrew Terry has been a friend of mine and a friend of franchising for more than 20 years now. He's the head of franchising at the University of New South Wales. John O'Brien from PoolWerx is a first-class operator. He's the type of bloke that gets up every morning and thinks outside the box.

SF: From your experience, what traits do you look for in franchise field staff such as business development managers?
TP: Each of these guys are strong in certain areas. Some will be strong in operations, some will be strong in IT, some in marketing. The most important thing is that they understand that, and the franchisees understand that.

SF: What common traits do your most successful franchisees share?
TP: The best franchisees are open to change. They also take responsibility for their own actions, and they understand that retail is a 'now' business - it can't wait, it's gotta be done now.

SF: And your least successful franchisees?
TP: These people blame everything and everyone else for whatever happens - they don't take responsibility. They're also lazy.

SF: How did you educate yourself on business and franchising?
TP: In the early days I brought in a franchise consulting company when I had just one store. I also spent a lot of time in America and observed what they were doing over there. I've also read a lot of books over the years. I would meet with experienced and successful people and ask a lot of questions - and listen to the answers. Often in a two hour meeting I'd tap into 20 years of mistakes. That's pretty valuable stuff.

SF: I understand you're a graduate of Harvard Business School - how does a bloke from Bendigo get to Harvard?
TP: In 1993 I went to Harvard and completed a three-year course. That expanded my mind from the size of a pea to the size of an elephant! I wanted to do certain things and that allowed me to understand how to get things done.

SF: What advice would you give to up-and-coming Franchisors?
TP: Sit down with people that have been there and done it. Ask for two hours of their time, ask a lot of questions, and listen !