Concept Eight signs 27 franchise deals as sales rebound

AI spending rose to $10,000 a month from $2,000.

Concept Eight Pty Ltd. signed 27 franchise deals and lease agreements and built 21 restaurants in the past 12 months, as the quick-service restaurant (QSR) group expanded its network and lifted like-for-like sales from the previous year.

“We also got like-for-like sales back towards double-digit growth after slipping back to single-digit growth last year following three years of double-digit growth,” Concept Eight CEO Grant Lee told QSR Media. He did not provide the exact figures.

The company, which owns, operates, and franchises brands including Noodle Box, Wokinabox, Pattysmiths, Huxtaburger, Acai Bros, and South Seoul, opened most of the restaurants with existing franchise partners, he said.

“At the same time, we are focused on harnessing all the changes that artificial intelligence (AI) is creating to improve productivity and reduce costs,” he said in an emailed reply to questions.

AI investment has risen to $10,000 from $2,000 a month, and the company plans to use the technology to improve labour efficiency over the next three to five years.

The company is expanding as franchise operators face pressure from inflation, cost-of-living concerns, wage growth, government debt, and workplace and energy policy changes.

Lee, who will be at the QSR Media Conference & Awards 2026 powered by Red Bull in Sydney on 12 October, said franchise profitability remains under pressure despite stronger sales.

He said higher energy costs, wage increases, cost-of-goods inflation, more frequent employee retirement contribution payments, environmental policies, and minimum pay requirements for delivery drivers could affect margins.

He also cited the loss of surcharge revenue from electronic fund transfer at point-of-sale.

Consumer spending patterns have also shifted, Lee said. “Value meals used to represent a small percentage of all meals eaten at our restaurants, but they are now over 30%,” he pointed out.

Lee said Concept Eight is focused on adapting to AI, changing customer habits, and weak economic conditions through faster decision-making and execution.