[Business Travelogue] Surf’n’fries: From French Fries to Chickens, from Hospitality to Franchise, from Rijeka to Walmart

Andrija Čolak and Denis Polić, with their brand Surf’n’fries, are currently recovering from the business pandemic. At one point, the pandemic closed every one of the 54 stores in over 20 countries where the Rijeka entrepreneurial duo’s franchise operates.

However, even during recovery, they made a ‘quantum leap’. Last autumn, SNF entered the American retail chain Walmart and opened the first of approximately 300 planned sales locations in the USA in Dallas. For this, the ‘masters of fries’ had to make many changes, such as expanding the menu to a so-called ‘full menu’ – from breakfast to chicken burgers to desserts. They even changed the name because ‘Surf’ in America implies fish products, so due to positioning in the ‘chicken’ segment, the ‘surfing chicken’ was created, or SURFIN’ CHICKEN.

– The perspective is to create a national chain in America. This is a very high goal; however, it is not impossible. We will see, everything is still fresh, and there is that moment where the brand has a different name, etc., so we will have to make some strategic decisions in the future that will certainly be very challenging – Andrija Čolak tells us. The brand name is indeed one of the strategic dilemmas, and for now, the most likely shift is towards a division into fixed stores under the Surfin’ Chicken brand and mobile S’N’F sales points.

To become global franchisers, Čolak and Polić had to give up hospitality and close the sales point in Rijeka, from which everything started. Now they only have a seasonal facility there, which operated during Advent, and, according to Polić, they are looking for a franchisee for Rijeka. They have also returned to the domestic market through a delivery platform, but that was just a test for the American market.

– The goal was to see customer reactions to our chicken burgers. Namely, due to the menu expansion for the USA in the ‘Full Menu’, we had to develop new products in the midst of the pandemic and lockdown, so delivery platforms were an excellent way to get feedback. Overall, the feedback was very good, although we had to simplify the recipes for the American market – explains Čolak.

Did they regret the shift from hospitality to franchising?

– Of course not, although at times we did wonder ‘what was this for’, but fortunately, those moments were not decisive. Franchising has really opened up perspectives for us regarding many things, and we have created an incredible amount of useful experiences and contacts and gained invaluable knowledge. Ultimately, in a way, we have opened doors for all other brands in Croatia and beyond towards the franchise business model and the possibility of scaling the concept through franchising – Čolak responds.

After all, with the knowledge gained from launching his own franchise, he opened a parallel business. This summer, he founded Colak Franchise Consulting Group, confirming his position as a consultant for franchise business. His advice has been incorporated into the launch of franchises such as La Canntine (self-service kiosks with cannabis products), CityPala (tourist application, website, and brochure with local recommendations), Friendly Fire (e-sport arenas at about ten locations), Mobia (selling mobile accessories and other electronic devices at 19 locations, including one in Koper and Munich), Gastro fish market Brač (nine locations in Dalmatia and one in Vienna).

In the last two years, Andrija Čolak has participated in the creation of over 25 new franchises in Croatia, some of which are already franchising internationally and growing:

– I am particularly proud of CFCG because I believe it is creating a new, very healthy industry in Croatia and the region, considering we have clients from neighboring countries. I believe it was crucial for someone to emerge who would first create knowledge through experience and then share it with others to start building a very powerful economic branch that has hardly existed until now and has the potential to influence the GDP share of the entire country – Čolak says.

As for the core business, SNF’s franchises employed about 200 people with revenues of 4-5 million euros in years without a pandemic. They are currently recovering from the pandemic and are very happy about the successful tourist season in Croatia, and a franchisee from Germany recorded higher turnover last year than in 2019, so a significant recovery and upswing are already being felt in some markets.

Čolak and Polić are also working on a new brand diversification through a product that would be sold in retail channels such as stores, gas stations, etc., but for now, they are keeping the details secret.

– We still cannot say what it is about, but we are again following the same model of a creative approach to the product that everyone buys, different packaging, design, interaction with the customer, etc.

In the meantime, new locations are about to open in the United Kingdom (mainly in stadiums), and one in Germany, while in the USA, the development of other formats such as Drive Through is planned, with 12 more locations opening, and 50 in the signing phase. The Rijeka duo plans to open over 300 locations in the next five years just in Walmart,

And then the sky is the limit.