Bakery franchise Pie Face has signed an agreement to retail a range of hot pastry products in approximately 80 On The Run convenience stores in South Australia.
Initially, the line will include a core range of nine products, including meat pies, sausage rolls and new products developed specifically for the grab-and-go customer.
The two-year deal is expected to result in initial unit volumes exceeding 1 million units per annum, but may be expanded into additional lines. The deal does not preclude Pie Face from franchising or operating its core retail stores in Adelaide.
Pie Face had recently commissioned a new 3000sq m HCAPP-accredited Central Kitchen Facility in Rosehill, Sydney, which the brand’s commercial manager Andrew Lyme said has ample capacity to handle the additional business.
“The company has been focused on the supply chain side of business in an effort to increase production efficiencies and allow the business to become a lower cost, premium bakery supplier to our national retail network,” he said.
“These types of value-adding licensing and supply deals should enable the company to reach these goals sooner. We are hopeful of announcing similar types of win/win arrangements during 2014.”
Pie Face launched in Sydney in 2003 and now has 87 stores across Australia, the United States and New Zealand, with plans for entry into the Middle East and additional international markets in the next 12-24 months.