Roll’d slows franchise expansion to focus on profitability

Roll’d has deliberately slowed franchise and store expansion despite reporting 12.04% comparable growth in FY26, putting stronger support systems and franchisee profitability ahead of a faster opening programme. The approach places the relationship between sales growth and sustainable store performance at the centre of its next stage of development.

Double-digit growth brings a sharper profit focus

In an interview published by QSR Media Australia on 31 August, Jarrod Montigue said Roll’d had increased comparable growth from 10.02% in FY25 to 12.04% in FY26. However, the business is concentrating on ensuring that stronger sales translate into better financial outcomes for stores and franchise partners.

Montigue, identified in the report as group operations manager for Australia and New Zealand, also said he had recently been promoted internally to General Manager – Franchising for Roll’d globally.

His assessment was that rising labour, food and construction costs were creating pressure on margins, making sales performance alone an insufficient measure of progress.

“The key question is whether we are actually growing profitably or simply buying growth,” he told QSR Media Australia.

That distinction is central to the strategy. Roll’d is not presenting slower expansion as a response to declining comparable performance. Instead, it is describing a deliberate decision to improve the foundations supporting its existing network while sales continue to grow.

Slower openings make room for network support

Montigue said the main trade-off had been deliberately slowing franchise and store growth in recent years to allow additional systems, structures and processes to be developed.

According to his account, this has helped stabilise the business, sharpen its operational focus and support improvements in franchise profitability. It has also given the Support Office time to recruit people with the capabilities needed for the next stage of growth.

“We are allocating the majority of our investment in building out people capability within our Support Office to enable growth,” he said.

The emphasis is therefore on the capacity to support expansion, rather than on expansion alone. For the Australian franchise community, the story offers a specific example of a brand choosing to strengthen the support behind its network before accelerating its footprint.

The research does not provide a revised store-opening target or a timetable for faster expansion. The reported commitment is to build the organisation’s ability to support growth, with key growth and revenue targets serving as measures over the following 12 months.

Operating costs come under review for FY27

Roll’d is conducting an extensive review of its operating model, with efficiency and productivity among its priorities. Montigue said the review was looking at ways to reduce labour costs, alongside separate scrutiny of supply chain and construction costs.

He identified the gap between sales growth and store profitability as a major focus through FY27. This puts the day-to-day economics of running a location alongside the cost of developing the network.

The scope matters: the work described is not confined to a single expense. It covers how stores operate, the costs flowing through the supply chain and the expense of construction.

However, the report does not quantify expected savings or identify specific operating changes already implemented through these reviews. It sets out management’s priorities rather than a completed cost-reduction programme. Nor does it disclose store-level profit figures against which the comparable growth results can be assessed.

Broader opportunities remain on the agenda

The slower pace of franchise and store expansion has not meant abandoning other growth opportunities. Montigue said his achievements included launching the Roll’d brand internationally and exploring revenue opportunities beyond traditional quick-service restaurant channels for franchise partners.

The interview did not name those additional revenue streams or provide details of their contribution. They remain part of the broader development picture, while profitability, support capability and operating efficiency are the clearly stated priorities.

Practical takeaway: Franchisees and prospective partners should assess sales momentum alongside operating costs, store profitability and the support available from a brand. Roll’d’s approach underlines why a growing top line and a growing footprint should not be treated as substitutes for sustainable store economics.