Pizza Capers founder Anthony Russo built something of a franchising empire over the years. Starting with one restaurant in Kenmore, he developed the business to over 120 international locations, before selling to the Retail Food Group for $30 million in 2012. Coming out of retirement, he has joined Gnocchi Gnocchi Brothers founders Ben Cleary-Corradini and Theo Roduner, and entered the business as “gnocchi whisperer” and hands-on investor. Russo told Inside Retail that he had mentored other
other businesses over the last few years, but he especially enjoyed working with Gnocchi Gnocchi Brothers, which currently has five locations across Queensland and New South Wales.
While there’s discussion surrounding how many Gnocchi Gnocchi Brothers spots there will be across the state, there are plans to build the gnocchi empire to about 20 locations by 2026.
“It became a job as well as a hobby, so I thought I should become more involved,” Russo said.
“The growth stage of a franchise is really my expertise, and I’ve developed some skills across the important parts of running a franchise, which I’m trying to pass on.”
Meanwhile, Cleary-Corradini said that Russo had “been in the trenches” already, and has already provided key insights as Gnocchi Gnocchi Brothers expands.
Mass appeal
Previously a food and wine importer, Cleary-Corradini worked closely with Roduner, a head chef at an Italian, fine dining restaurant for over 15 years.
Bonding over a love for Italian cuisine, the pair started selling fresh gnocchi at local markets. The strong lines and cult following quickly reinforced the fact that there might be something more to build on.
Cleary-Corradini and Roduner moved to a bricks-and-mortar location in Paddington, an inner city suburb of Brisbane, Queensland, which he said was Australia’s first gnoccheria. They made and sold fresh gnocchi at the same location but – as the venue became busier – production started interfering with service.
After discovering an offsite commercial kitchen in Everton Hills in Moreton Bay, Queensland, they were able to produce the product in larger quantities, while still maintaining quality control.
“We realised that we had a concept that’s replicable and with mass appeal,” Cleary-Corradini said.
“I like to think of it as a hybrid of a quick service restaurant and fast, casual dining. It’s a quality Italian pasta dish for under $20 and I think that’s really caught on.
Amid Covid-19 restrictions, they opened a location in Newtown, Sydney, but weren’t able to expand further as borders closed. He said they used the period to improve their product, and are now primed to expand across south east Queensland before moving across the country.
“The advice from our gnocchi whisperer Anthony was that it’s best to grow close before you grow further afield. You can build your brand, operate your supply chains and logistics more efficiently, and each of the stores can more easily support one another,” he said.
“Next year, we’ll get back down to Sydney and start building [our] territory there. We’ll start from the city, then go west, then go south. There’s very exciting times ahead.”
Replication en masse
According to Cleary-Corradini, there’s fierce internal debate about the scale of expansion. He and Roduner have conservative estimates of about 20-30 locations moving forward, while Anthony – who is more bullish – envisioned double that amount.
He added that towns across Brisbane – such as Toowoomba and Ipswich – were on the radar in terms of potential locations, as they have population density, great spending power and a lack of casual Italian offerings in the dining sector.
Beyond Queensland and New South Wales, he said they are looking at locations in Melbourne, which has a strong Italian community. But they want to do more research before moving in.
While there’s been external pressure to expand the offering from gnocchi to other items – like pizza and other pasta – he believes there’s a risk that they could lose their point of difference.
“We think that sticking to gnocchi – and educating people on the difference between our product and the packets you find at the supermarket – is the [right move].”
The right speed
Cleary-Corradini noted that future plans for Gnocchi Gnocchi Brothers include investment in the brand’s production capability, making enhancements to the branding and marketing strategy, and building a strong loyalty program.
“We have our [finger] on the pulse when it comes to real estate. By the end of the year, we want 3-4 more stores, and Anthony probably wants 12,’ he said.
“Next year we want to double that, and double it again in the year after. We want to grow at the right speed to build momentum.
“We don’t want to stagnate.”