Concept Eight signed 28 new franchises and built 18 stores last year to make calendar year 2025 a stellar 12 months.
The multi-brand business has another 10 sites under construction, and has signed a further eight franchisees so far in 2026.
Grant Lee, Concept Eight CEO, told Franchise Executives he is confident further franchisee sign-ups this year will be in double-figures.
“That’s over 50 in two years, a record for us. It’s been a massive effort from the team,” Lee said.
“What is pleasing is that more than half of the new signings are to existing franchise partners, a real endorsement of our business.”
The majority of the growth is in with the Noodle Box business, with South Seoul, Pattysmiths Burgers, Huxtaburger and Acai Bros also in the mix.
Franchisee profitability is an important driver
Lee believes a number of factors have been crucial to growth.
He described the expansion as being “on an absolute roll” due to a mix of factors.
“The number one reason is the profitability of the network. Franchisees have the confidence to invest in a second, third, fourth, or seventh franchise,” he said. “They are seeing some really great returns.”
A multi-brand strategy is also key.
“We are now seeing MUMBOs [multi-unit, multi-business operators] in our network,” Lee said.
The MUMBO model allows Concept Eight to add stores to locations already saturated by one brand.
“We’ve proved to franchise partners this doesn’t cannibalise sales. Noodle Box has about five per cent share of the Asian category, we believe. So with South Seoul we are trying to steal market share from other brands, not Noodle Box,” he said.
Concept Eight’s virtual brand strategy has also paid off, with like-for-like sales growth in double digits for the last two years and expected to follow the same trajectory this year.
The virtual brand strategy has enabled the franchisor to have 500 brands operating from 170 locations.
Lee also pointed to a doubling of total store sales in four years, with an established executive team and format diversity contributing to success.
“We have kept all of our talent; the executive team has been together almost eight years,” he said.
“Growth creates opportunities for the team and we’ve promoted from within, and added new roles.”
Drive-through model proving successful
Concept Eight is opening its third Noodle Box drive-through, its second in Perth, encouraged by the revenue achieved so far from the model.
The flagship brand is also taking up mall space in Adelaide, the first time it has been in a shopping mall in 15 years.
“We stick to strip shopping but we are exploring this,” Lee said.
Another route the business is taking is opening its first dine-in restaurant in Richmond, Melbourne.
The big format restaurant, serving alcohol and seating 50 people, channels a traditional Chinese restaurant experience rather than a QSR.
“We see people seeking experience as well as convenience. This a global trend, and it’s a great niche if you can do it, so it’s super exciting for us,” Lee said.
The company-owned operation will open in April.
Typically Concept Eight’s brands operate in 100sqm or less however confidence in sales growth has led to expansion with new formats.
“The percent of sales to rent can be a lot higher than five years ago,” he said.
“Locations are not a problem – our average site sales increased so we are prepared to go into larger sites, and take on a drive-through or a dine in at about 150sqm,” Lee revealed.
“We’ve achieved a lot with a small team and we are growing fast.”
