In this episode of Industry, Change Richard talks to Luke Baylist co-founder and CEO of Australia’s biggest health food chain: Sumo Salad. At one point for a long time, Sumo Salad had 92% brand awareness in the market as they were the first health food chain in Australia. Now after 16 years Luke Baylis has created Sumo Well which aims to combine fitness and food together.

How did Luke start out as an entrepreneur?

Going back to the beginning Luke says the beginning of his entrepreneurial career was not a ‘glamourous story’. In the early 2000s Luke and his best friend were living in Chicago working for an IT company. He was young, eating all the wrong foods and drinking and within 4 years he put on 50kg. He found that in America when you ate a salad it was almost the size of a table and it wasn’t healthy either! He realized he had no portion control, no healthy food options and was not exercising.

In Australia, he was used to living a fit and healthy lifestyle, so when he went back to Australia he was unrecognizable. Whilst trying to get back on track with being healthy he found it hard to make good nutritional choices as there was a lack of availability and it wasn’t affordable to eat healthy. Luke realized there was no culture in Australia that promotes nutritional food as something accessible and affordable and this is how the idea of Sumo Salad was formed.

Luke wanted to make a healthy food chain that turned a salad into a big healthy satisfying meal. He wanted to change Australia’s perception of healthy eating. They knew there was a demand for this and despite being shut down by investors they persisted with this idea to change the way Australia eats and creates a better option for people. In 16 years Sumo Salad grew to over 100 locations and was the first fresh and healthy food chain to make its mark in Australian food courts.

As a self-funded business they faced many challenges but they had to focus on getting good locations and trading in local communities to establish a following. They had $90 million in turnover and no real competitors because this was at a time before the wellness lifestyle was popular. However as the business grew, the competition grew at the same time. For the first 10 years, they withstood competitors and food courts were the main place they were franchised. However, over time the food court became less relevant for the consumer and cafe culture was adopted. Instinctively luke thought that if Sumo Salad did not adapt the business would die.

A change had to be made in order for Sumo Salad to sustain itself. Hence they took the move to shift their whole strategy and create Sumo Well that provides fresh and healthy grab and go options for Aussies. Luke strived to adapt to the fitness and wellness industry and he did so with a series of tests, a broadened network and thinking holistically about what the customer journey is now.

Most Sumo Salad customers were active in gyms or using personal trainers and Luke realized that Sumo Salad couldn’t grow if it was just a salad bar in shopping centers. In order to progress Luke needs to collaborate with like-minded brands and surround the customer with better options, hence Sumo Well was created to be the partner of choice for gyms, personal trainers and fitness leaders. This has broadened their network and sphere of work to partner with fitness professionals who care about their clients’ health and wellbeing.

What is the one thing that made Sumo Salad change? 

Luke said that constantly asking ‘but why’ was what helped him reframe the business. They kept asking this to refine their purpose to the point that they realized they don’t have to focus on a small niche. They can branch out to a bigger audience and the purpose is more powerful because it changes the way people eat and how they consume nutrition. Through reframing their purpose