KFC results reflect healthy eating disconnect, says researcher
posted on 17th April 2018
Strong results from Restaurant Brands announced yesterday reflect increased performance from its KFC business. This might seem surprising at a time when the focus for many restaurant chains is on healthy eating, but a researcher is suggesting that while New Zealanders are becoming more concerned about their food choices, this isn't always reflected in the choices they make at point of sale. While millennial consumers expect certain standards of brands in terms of ethical practices and animal rights, their shopping decisions don't always match up.
'When we looked at shopping logs, haul videos and weekly transactional spend, we saw a very different story play out,' wrote TRA research consultant Jeremy McDonnell in an article based on the study.
'What we saw was that millennials will often put aside their allegedly strongly held attitudes in order to save a dollar, as opposed to voting with it.'
McDonnell argued there's a significant disconnect between the public narrative and what consumers actually do in stores.
'These everyday purchases involve a surprisingly low level of consciousness, which contradicts the current cultural narrative depicting millennials as conscientious, informed buyers. They may talk the talk, but fail to walk the walk,' he wrote.
The intoxicating aroma of KFC will likely continue to pull consumers out of their strong opinions and into the greasy embrace of fried chicken for some time, but consumer behaviour does have a tendency to change over time. And with governments across the world already dabbling in ways to fight the obesity epidemic with regulation, that change could potentially be forced in the future.
Franchisees are not employees, confirms US Court
posted on 13th April 2018
A court in California has dismissed a class action by four franchisees of 7-Eleven which claimed that, because of the control the franchise exercises, they had been misclassified as independent contractors and were entitled to damages under both the Fair Labor Standards Act (FLSA) and the California Labor Code. including overtime compensation and expenses incurred in operating their stores such as payroll costs, maintenance, cleaning and uniforms. The lawsuit purported to have been brought on behalf of all of the over 1,500 7-Eleven franchise locations operating in California. The Court found that that 7-Eleven's alleged controls did 'not exceed what is necessary to protect 7-Eleven's trademark, trade name, and good will.'
The case will be of considerable interest given recent law changes in Australia which make franchisors responsible for franchisees' employment breaches, thereby blurring the long-established line between franchisor and franchisee.
Quoting extensively from Patterson v. Domino's Pizza, LLC, 60 Cal. 4th 474 (2014), the court observed that franchisees acquire a business plan that the franchisor "has created for all of its stores," and that the plan "requires the franchisee to follow a system of standards and procedures." Haitayan, 2018 WL 1626248, at *2 (quoting Patterson, 60 Cal. 4th at 489). The court also noted that the goal in franchising, "which benefits both parties to the contract, is to build and keep customer trust by ensuring consistency and uniformity in the quality of goods and services, the dress of franchise employees, and the design of the store themselves." Id. (quoting Patterson, 60 Cal. 4th at 490).
Portermark quality recognised
posted on 12th April 2018
BP operator penalised for breaching employment law
posted on 12th April 2018
Auckland seminars to help franchisors and franchisees grow
posted on 27th March 2018
A series of five workshops to be held in Auckland in May will give New Zealand franchisors and their leadership teams new insights into best practice methods across a range of topics to help prepare franchise networks for improved performance and growth.
Esquires franchisees open in Pakistan and Jordan
posted on 27th March 2018
New inquiry for Australian franchise sector
posted on 26th March 2018
Top US franchisor in NZ for talks
posted on 28th February 2018
28 February 2018 - Chris Grandpre, the CEO of one of America’s top multi-brand franchise operations, is visiting New Zealand in March to look for local partners for four category-leading home and building franchises.
Criminalising cartels – how will it affect franchising?
posted on 27th February 201823 February – New legislation amending anti-cartels legislation would mean franchises need to be more careful than ever to ensure proper compliance
Employment clampdown - penalties grow
posted on 26th February 201826 February - Franchisors advised to ensure franchisees compliant as Labour Inspectorate investigations continue
Seminars improving performance for franchises and franchisees
posted on 25th February 2018March 2017 - Three seminars being held in Auckland are designed to help franchisors improve the performance of franchisees, and provide a foundation in franchise management for new franchisors and franchise executives. There's also news of a new seminar in May.
Big start to year for sKids and kids
posted on 21st February 201822 February 2018 - Business confidence may have taken a hit last year after the uncertainty following the election, but don’t tell that to sKids. Like several other franchises, the popular child care provider has reported a storming start to the New Year.
REWRITING HISTORY – and what’s to come for our economy?
posted on 20th February 201820 February 2018 - The latest Quarterly Economic Overview from Westpac deals with ‘lies, damned lies and statistics’ after Statistics NZ revised its estimates of GDP going back several years. But what's next?
Dream Doors launches US expansion
posted on 14th February 201814 February 2018 – Dream Doors has appointed its first US master franchisee and an advisory board with serious credentials
Foodstuffs to trial artificial intelligence shopping
posted on 14th February 201814 February 2018 – Shoppers at a suburban Four Square franchise will be the first in the world to trial new artificial intelligence technology that brings the checkout to the trolley
Investing in a franchise from the USA - new seminar
posted on 11th February 2018A seminar being held in Auckland on 13 March will help investors, entrepreneurs and companies looking at importing a franchise brand from the USA with unique insights
FAB Group appoints first UK General Manager for Skinsmiths
posted on 8th February 20188 February 2018 – FAB Group has announced the appointment of a UK General Manager to lead the company’s global brand, Skinsmiths, in the UK.
Genghis The Accountant
posted on 1st February 2018
Business confidence down but franchising more positive
posted on 1st February 201831 January 2018 - Concerns about business confidence are reflected in the latest Franchising Confidence Index survey, but what's really happening?
Swings and roundabouts in employment law changes
posted on 1st February 201831 January 2018 – Changes to employment law mean franchisors and franchisees need to be prepared
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