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Brexit and write-down affect Esquires global owners

posted on 15th June 2017

NZAX-listed Cooks Global Foods, which owns the rights to the Esquires Coffee chain outside Australasia, had higher sales in the UK and Ireland in 2016, but lower revenue revenue thanks to post-Brexit currency fluctuations. The company has posted a larger net loss ahead of a restructuring of its Chinese operations.

Esquires in Australia and New Zealand is independently owned by RFG and operates here via master franchisee Cafe Coffee & Bakery Systems.

The company wrote down the value of its Chinese coffee store operations by $4 million ahead of its expected sale into a new joint venture in China, and wrote down the carrying value of the Progressive Processors supply business by $450,000 after it was sold. In exchange for its Chinese assets, which includes 26 stores, Cooks gets 30 percent of the company which will own the Esquires brand in China, Hong Kong, Macau and Taiwan.

Revenue from its operations in the UK and Irish markets grew in local currency terms but the gains were erased by falls in the pound and the euro following the Brexit vote last June, Jackson said. After conversions, sales from Britain decreased 13 percent to $1.5 million, compared to a 22 percent gain in local currency. The company now has 29 stores open in the UK, four more than a year earlier. Irish revenue rose 12.5 percent to $668,000, behind the 15 percent gain on a local currency basis.


Christchurch welcomes another New Yorker

posted on 15th June 2017

15 June 2017- Christchurch's thriving food scene has received another boost with the opening of a third New York Deli in the city offering New York-style sandwiches and bagels. The latest location is at the new BNZ Centre.

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Brazilians take on The Body Shop

posted on 15th June 2017

The Body Shop, the ethical cosmetics franchise founded by Anita Roddick, has been sold by L'Oreal to a Brazilian make-up company. The Body Shop was founded in Brighton, England, in 1976 and went public in 1984. An early proponent of cause-related marketing, it was famed for its social and environmental campaigns which were sometimes controversial and required considerable buy-in from franchisees. The company was taken over by L'Oreal in 2006. Anita Roddick was made a Dame in 2003 and died in 2007.

All 28 outlets of The Body Shop in New Zealand are operated under the one owner, OLT Retail. The company does not sub-franchise in New Zealand.

RCG retail expert John Polkinghorne said: 'The Body Shop has been a real success story in New Zealand. They've had a long history here and consumers are aware of their strong ethical stance.'

'That should position them well for the future, since business ethics are a bigger issue today than they've ever been.'

'But all retail businesses need to innovate and refresh themselves constantly, The Body Shop is no exception. They need to make sure that they stay relevant and have the best offerings instore and online.'


No pizzas for no-go area in Rotorua

posted on 13th June 2017

A Domino's franchisee has been instructed by the police to stop deliveries to a Rotorua suburb because of safety concerns after its delivery vehicle was stolen in the area, although police have denied giving such advice. The local Hell Pizza franchisee has also said they have stopped delivering to certain customers in the Fordlands area.

Domino's said its Koutu store was working 'closely with the local police on this matter and will resume deliveries to that area following police advice.'

'The safety and security of our team members is of the utmost importance to Domino's and each team member is equipped with safety training,' the company said.

The Domino's spokeswoman said the stolen van was found a few days later.

'We can confirm instruction was given by police to the store manager to avoid the area until further notice for the safety of his staff. The store manager advised the owner and agreed to follow this advice.'

Rotorua police prevention manager Inspector Stu Nightingale said police were happy to provide crime prevention advice to businesses but would not tell a company not to go somewhere.


Franchisor strengthens global team ahead of float

posted on 9th June 2017

9 June 2017 – FAB Group, the owner of the Caci franchise, has today announced the appointment of two senior leadership positions.

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Another pizza chain for New Zealand?

posted on 7th June 2017

US pizza giant Papa Johns has announced that it is looking for local developers to establish 100 stores around New Zealand . The company has 5,000 outlets in 45 countries around the world compared to Pizza Hut's 15,000 (93 in NZ) and Domino's 12,000 (114 in NZ). The other major player in New Zealand is locally-owned Hell Pizza, which has 66 stores here. The fast-growing Sal's has 12 stores. A new brand from Kosova, Proper Pizza, is also due to enter the market later this year with the help of Stuart Deeks, who brought Esquires Coffee to New Zealand.

Papa Johns last looked at the New Zealand market in 2004, but its search for a master franchisee here was unsuccessful. At that time, Pizza Haven was a major player here, Pizza Hut had bought and close Eagle Boys and Domino's had yet to enter the market.

University of Canterbury associate professor Ekant Veer said Kiwis have a love of fast food, but a fourth pizza chain was risky business.

'One hundred stores – that's a lot. We've already got Pizza Hut, Domino's at that low end line. We've got Hell's pizza which takes that upper end, and then we've got the various restaurateurs.'

'I don't think New Zealanders are as closely aligned with pizzas to set up 100 stores,' Veer said.

Fast food was on of the biggest spending categories for most New Zealanders, he said.

'Cheap and nasty seems to be the way we like to eat out.'

'There's still space for good fast food but directly competing with other fast food places is probably not the way to do it,' Veer said.


Conference ALL SOLD OUT

posted on 31st May 2017

31 May 2017 - There's now a waiting list for places at the 2017 National Franchise Conference being held in Hamilton in August

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BurgerFuel opens in US

posted on 30th May 2017

BurgerFuel has achieved a long-held ambition by opening its first outlet in Indianapolis. The Ponsonby-based franchise originally planned to enter the US in a venture with Franchise Brands, a specialist investment company founded by Fred DeLuca and Peter Buck, owners of the Subway franchise. However, the plans fell through after the untimely death of Mr DeLuca. Read more about that deal and Kiwi franchises in the US market in this article from our archives.
The NZAX-listed BurgerFuel has over 30 franchised stores around New Zealand and a further 20 in the Middle East.

New Zealand fast food chain Burger Fuel aims to make America great again 'one Burger Fuel at a time.'

Burger Fuel opened its first US store today, in Indianapolis, and needs New Zealanders' help to sell Americans on the fast food chain. 

Kiwis are being encouraged to write a postcard or submit a short video to explain to Americans what BurgerFuel is all about.


2017 Franchise Awards - enter now

posted on 29th May 2017

May 2017 - The Franchise Association has launched the 2017-18 Westpac New Zealand Franchise Awards and is calling for entries from franchisors, franchisees and service providers

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Auckland's economic growth 'spectacular'

posted on 29th May 2017

A new report from Auckland Council's chief economist says Auckland's economic growth is 'spectacular' and an extra 60,000 jobs were added last year. The growth will be good news for those looking to set up businesses in the city, while the increasing congestion may encourage others to seek opportunities in other parts of the country.

'Auckland's growth is spectacular, certainly very strong, driven by population, tourist and the construction boom which is creating a lot of jobs,' said economist David Norman.

Auckland annual employment growth is running at 7.3 per cent, compared to 4.9 per cent for the rest of New Zealand.

Norman highlighted population growth, construction sector activity, demand for goods and services, tourism and the retail sector as the big economic growth drivers.

The 60,000 additional jobs were created in professional services (including law, accounting, finance, consultancy, architecture), construction (one in every eight jobs), hospitality (one in every eight jobs) and health care and social services (one in every 10), Norman told the Herald.


Massive response for franchise survey

posted on 28th May 2017


Seeking young achievers for franchise accelerator

posted on 19th May 2017

17 May 2017 – Kiwi business owners can win involvement in a global business accelerator programme designed to help them grow their concepts through franchising

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McDonald's ad accused of exploiting childhood bereavement

posted on 16th May 2017

McDonald's UK has apologised for upset caused by a TV advert that charity campaigners have said 'exploits childhood bereavement.' The advert shows a child asking about his dead father and thinking they had nothing in common until it is revealed they share the same favourite menu item. It's a rare false step from a company which, through its Ronald McDonald Houses charities, has always been seen as a major supporter of families facing challenges.

The campaign has attracted criticism from widows who called it 'offensive'.

A McDonald's spokesperson said: 'This was by no means an intention of ours.'

'We wanted to highlight the role McDonald's has played in our customers' everyday lives - both in good and difficult times,' the spokesperson added.

Bereavement charity, Grief Encounter said it had received 'countless calls' from parents saying their bereaved children had been upset by the advert.

The campaign, from London-based advertising agency Leo Burnett, first aired on 12 May and is scheduled to run for seven weeks.


Postie's food delivery trial extended to Auckland CBD

posted on 12th May 2017

11 May 2017 - New Zealand Post is to extend its food delivery programme trial to Auckland, after starting to deliver KFC in Tauranga last month. The trial will see New Zealand Post partner with Menulog to deliver food from 50 restaurants in Auckland's CBD. Such delivery services as Uber Eats are already having a big impact upon franchise sales levels, as detailed in the cover story of our latest magazine. Download the latest issue here or send for your free print copy here.

The national postal service has continued to put up postal pricing in recent years, citing a decline in mail and parcel deliveries.

The innovative move into food delivery is one which will see the company branch out from its traditional revenue streams.

[Menulog NZ commercial manager] Paul Dodds said if the trial went well, the delivery scheme would be rolled out across the country in the coming months, with deliveries likely to increase in Winter.

'We have maybe 20 [NZ Post] drivers just in Auckland CBD,' Dodds said.

'As we scale up we'll probably just keep growing especially over the coming months when it's going to get busier as it gets colder and wetter, and people don't want to leave the house.'


Domino's training hour to address brand's top three complaints

posted on 9th May 2017

May 2017 - Domino's New Zealand is to close each of its 110 stores for an hour for extra training in an attempt to achieve 100 percent customer satisfaction. The aim is to address the company's top three customer complaints: missing garlic breads, unevenly-cut slices and poorly distributed pepperoni.

Meanwhile, Domino's Australia has been fined for a breach of the Australian Franchising Code of Conduct. The company admitted it had provided an annual marketing fund financial statement to franchisees later than required under the Code. The A$18,000 fine was the first for non-compliance under the updated Code.

Domino's general manager NZ Scott Bush said the campaign and training session recognised customers valued Domino's products and speed, but wanted every product in every meal to meet expectations.

'We have run a number of focus groups and our customers tell us they love our products, but when we make a mistake, they want it fixed as quickly as possible and we will,' Bush said.



posted on 29th April 2017

务呢? Franchise New Zealand杂志及网站的Simon Lord为你
提供创业指导方针。The attached translation of one of our most popular articles has been supplied by our friends at AsiaWide Franchise in Singapore. Click to open the pdf.

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Migrant arrivals at new record

posted on 26th April 2017

26 April 2017 - Migrant arrivals reached a new high of 129,500 a year in the March 2017 year, Statistics New Zealand announced today.

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More big names for national franchise conference

posted on 26th April 2017

31 May 2017 - There's now a waiting list for places at the 2017 National Franchise Conference being held in Hamilton in August

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Australia's joint employer inquiry under way

posted on 26th April 2017

April 2017 - A number of submissions have been made to the Australian committee reviewing proposed legislation that would make franchisors jointly liable with franchisees on employment issues.

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Staff, franchise buyers and funding could limit growth

posted on 26th April 2017

April 2017 - A shortage of suitable staff and franchisees, as well as potential funding issues, are the main concerns for franchisors in the year ahead.

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