How Chozen Noodle finds success in pursuing a multi-channel strategy
Founder Matthew Kirby also shares his insights on enduring in a tough market.
Despite launching a year before the 2008 financial crisis, Chozen Noodle was able to thrive by pursuing a road less travelled by his counterparts: going to motorways and travel locations through corporate franchising.
“It started to grow once we got out of the high street,” founder and CEO Matthew Kirby told QSR Media in an exclusive interview. “We got to a point where we were spending more time on an independent franchisee than we were on one of our franchise partners like Roadchef.”
Kirby ended up doing more franchising deals of this kind, partnering with Moto and Co-op.
“Developing those franchise channels enables us to grow pretty quickly,” he added.
The decision has since paid off, with 25 Chozen Noodle sites (three of which remain on the high street), along with 10 outlets courtesy of their sister concept Chow Asian Kitchen.
Towards certainty in the market
Kirby is no stranger to tough times in the market, having been through the recession of the 90s. But this time, he says, is the most challenging market he has seen for the past two decades.
“Uncertainty is what the issue is, and it creates conflict with customers and with staff members - that’s the big difference and that’s why I think it’s tougher this time around. This is why you end up with the CVAs (company voluntary agreements) and so forth because [operators] look at it and realise that the things they could do - they can’t anymore,” he explained.
Uncertainty, in this case, comes in the form of Brexit. Kirby says the industry has another 12 months to “shake out.”
“I think that once we get certainty in the market, and people know what they need to do, I think that will make it easier...But I do feel that, you know, although the economy isn't officially in recession, hospitality is in recession,” he said.
Having a flexible concept
But whilst he awaits what will happen, he remains laser-focussed on ensuring growth for his concepts.
His next calculated move: Doubling down on Chozen’s corporate franchising strategy whilst exploring more channels or opportunities where they can supply their products.
“Our plan is to not do any more high street sites or certainly limit [the amount]. The [corporate] franchising will continue; I think we’ll grow our base of partners. Our existing partners will grow their sites; they're doing additional sites,” he said.
Pubs and universities are also being explored by Kirby and his team, adding that the likes of Wagamama and itsu have paved the rise of Asian cuisine in the multi-site space.
“There are countless people out there who want an Asian offer...It’s a flexible footprint for our concept, which I think is a strength,” he said.
Kirby says they “just done a deal” with cruise line company Carnival, where they will be supplying products for a new boat, along with their expertise.
“We know it's not going to be [for] a ‘Chozen’; it's going to be called something else because they don't have brands on boats,” he explained, adding he’s not “precious” about branding. “I would much rather be on that boat supplying our product [and] supplying our expertise and have a channel that way.”
On product development, Chozen take their time, with ideas and products being developed for six months. On examining trends, Kirby prefers going to market halls instead of reading research reports.
“We’re not trying to be trendsetters. We’re just trying to do what the customer wants,” he said.
