Winner: SmartCompany 2007 Award for Top Franchise sponsored by NAB
SmartCompany50 rank: 35
Revenue: $178 million
Growth: 38%
Founders: Paul Constantinou, 52
Based: Victoria
Employees: 1500
Industry: Accommodation, cafes and restaurants
Website: www.questapartments.com.au
Paul Constantinou realised while working in catering and hotel management that the extended stay business traveller was not being catered for.
Constantinou, who learnt the fundamentals of business in his parents' fish−and−chip shops as a child, in Melbourne in the 1960s, opened his first Quest property in Fitzroy, Melbourne in 1988.
Inspired by the McDonald's fast−food chain, he chose to franchise from the outset. "I looked at what was happening in America and it was all about leverage. If you wanted to grow you had to leverage." Franchising also appealed because he did not want to employ a large team.
Quest grew as it tapped the unmet demand for extended−stay accommodation for business travelers so there was no shortage of customers or potential franchisees. The difficulty was finding the right sites and investors to buy them. Constantinou's solution was to become a property developer himself.
He has created a chain of more than 100 franchised serviced apartment properties in Australia, New Zealand and Fiji in 19 years.
The market has matured and now understands the benefits of his product over a traditional hotel room.
In 2005 Quest adopted a live booking engine on the website, resulting in a 60% increase in online bookings. Revenue grew to $178 million this year, compared to $140 million last year. There are 108 franchises and Constantinou claims all are profitable.
