Nosh up for sale again
posted on 21st July 2017
The receivers of the troubled Nosh Group and sister company Mt Eden Food Company are looking for offers for the troubled group by 28th July. The companies were orifinally sold by Veritas Investments for $4 million in February, following an ultimatum from bankers ANZ, but the unidentified consortium behind new owners Gosh Holdings failed to turn the company around.
Nosh Group operates five Auckland stores: Glen Innes, Green Lane, Ponsonby, Pakuranga and Matakana.
Mt Eden Food Co operates the Mt Eden store. Nosh stores in Kerikeri and Mt Maunganui are independent franchises.
Mt Eden recorded the highest turnover in the year to June 2016, taking in more than $6.63 million.
But most of the stores were recording losses on a regular basis, sometimes in excess of $100,000 a month.
Between July 2016 and April 2017, the Nosh group had income of $13.3 million but after expenses, suffered a loss of $3.75 million.
All of the Nosh stores are in leased premises, so a buyer would have to renegotiate those leases if they wanted to continue.
US franchises urged to avoid Australia, consider NZ instead - UPDATED
posted on 20th July 2017July 2017 - Suggestions that the International Franchise Association has advised members to avoid expanding into Australia until legislative uncertainties are resolved have been denied
Workshops - stay on the right side of employment law
posted on 19th July 2017July 2017 - Employment issues are causing massive issues for some franchises in Australia. Two workshops taking place in Auckland this September will help franchisors and franchisees to avoid making mistakes.
McDonald's launches delivery service in NZ
posted on 19th July 201718 July 2017: updated - McDonald's has teamed up with UberEats to deliver Big Macs to your doorstep. It's now available from ten Auckland outlets and overseas experience suggests the service will grow.
Nosh in receivership; franchisees trade on
posted on 17th July 2017
Upmarket grocery chain Nosh has been placed in receivership, but two regional franchisees are trading on. The long-term impact of their franchisor's failure remains to be seen - a former Nosh outlet in Auckland's Mairangi Bay was converted into a New World under the same franchisee, but opportunities for such conversions are very site-specific.
A Nosh in Kerikeri and one Mt Maunganui trade as independently operated stores and are unaffected by the receivership.
Kerikeri owner David Whyman said he would still prefer to stay with the Nosh brand but hoped new owners would lead it in a better direction.
Last month, Nosh closed its Auckland stores ahead of a planned relaunch on June 26.
When the time came, different notices said the relaunch had been delayed until July 8.
The relaunch didn't happen on that day either.
No sign of activity - or stock - could be seen through the mostly covered windows.
Another big brand franchisee alleged to have underpaid immigrant staff
posted on 12th July 201712 July 2017 - An Australian Subway franchisee is facing court action over alleged underpayment of an immigrant worker. It's the latest in a series of cases to have hit some of the biggest names in franchising. Meanwhile, Foodco, the owner of the Muffin Break and Jamaica Blue brands, is working with Australia's Fair Work Ombudsman to educate its franchisees.
NZ franchisor and 5 stores placed in receivership
posted on 7th July 2017
New Zealand company Hardy's, which sells health and weight loss supplements, is facing challenges after the franchisor company and five company-owned store were placed in receivership earlier this week. Six franchisee-owned stores are trading as usual. The receivers are now seeking a buyer for the company, which was founded in 1986.
Companies Office records show that Andrew Grenfell and Kare Johnstone were appointed as receivers of Hardy's earlier this week.
Grenfell told the Herald that the five company-run stores affected by the receivership include those in Auckland's Sylvia Park, St Lukes, and Northwest as well as two in Bethlehem and Taupo.
The receivers are planning on running these stores while they look for a buyer for both them and the master franchisor.
Grenfell said he was not in a position to give details on the events leading up to the receivership. He said that the company-run stores and the master franchisor employed around 20 staff.
Tourette’s campaign proves Kiwis really do #GiveATic
posted on 5th July 20175 July 2017 – Hell has raised nearly $50,000 to ensure that more families living with Tourette’s can attend “life-changing” Camp Twitch this year
Strong outlook for franchising despite staffing shortage
posted on 5th July 20175 July 2017 – The latest Franchising Confidence Index demonstrates a continued increase in confidence levels across many areas
Is this the end for Nosh?
posted on 30th June 2017
30 June 2017 - With its company-owned stores closed, at least one franchise re-branded, suppliers and staff reportedly unpaid and the company's mystery owners apparently uncontactable, the future looks bleak for the former star upmarket grocery.
Sydney-based investor, Andrew Guy Phillips, bought the unprofitable chain via the company Gosh Holding for $4m saying he had the backing of a number of wealthy Kiwis.
Only one of these backers was revealed through changes to the Companies Office. He was Jonathan Denize, an Auckland man who has been declared bankrupt twice.
Denize did not respond to attempts to contact him this week.
"People in the industry shook their heads when Nosh was sold," said retail analyst Chris Wilkinson. "We all tried to work out who these buyers were."
Phillips was positive at the beginning of his purchase, and agreed to talk to the Herald about exciting plans for the franchise. This never came about and since the stores shut, he has not responded to calls or emails.
A number of employees and creditors of the business said this week that they were waiting for payment from Nosh.
Franchise Council under fire for lobbying against joint employer bill
posted on 30th June 2017
A Fairfax Media report has strongly criticised the Australian government for delaying a vote on its Protecting Vulnerable Workers Bill and suggested that it is the result of lobbying by the Franchise Council of Australia. The report, in the Sydney Morning Herald, specifically identifies as members of the FCA three companies whose franchisees have been accused of underpaying workers following a joint Fairfax/Four Corners investigation.
The new laws would hold franchisors responsible for a franchisee's violations in circumstances where it had significant control or influence over them, knew or should have known about underpayments, or failed to take reasonable steps to prevent the violations.
They would also impose much stiffer penalties for breaches, with companies facing possible $540,000 fines.
But the Franchise Council is targeting government and crossbench MPs as it seeks to neuter the bill, arguing it would have unintended consequences that would hurt employment and small business.
Small Business Accounting
20 YEARS in the making
posted on 27th June 2017SBA is celebrating two decades of growth and development
BRAND NEW! Franchise Association has a fresh look
posted on 26th June 2017June 2017 - The Franchise Association of New Zealand is modernising its logo and campaign lines as interest in franchising goes on growing
McDonald’s traymats come to life in new AR promo
posted on 22nd June 201722 June 2016 - McDonald’s is taking traditional tray mats to a new level with the launch of an interactive augmented reality experience as part of their new Despicable Me 3 movie tie-in
Multi-Unit Summit to help franchisees, franchisors grow
posted on 22nd June 2017June 2017 - The Franchise Relationships Institute is running its Multi-Unit Summit again in Melbourne on 24 August 2017. Aimed at multi-unit franchisees and franchisors, the Summit has quickly gained a reputation for offering solid facts and practical strategies in an engaging and inspiring environment
Hell keeps doors open for Tourette’s Association
posted on 22nd June 201722 June 2017 - Hell and the Tourette's Association have joined forces to help raise funds, awareness and political action
After-4 Event this month - Making NZ franchises great again
posted on 16th June 2017
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 201715 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.
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.'
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