Fast food brands show strong growth in NZ

Describing itself as a ‘corporate franchisee’, Restaurant Brands has the New Zealand master licences for four brands: KFC, Pizza Hut, Carl's Jr. and Taco Bell, as well as some international operations. According to the company’s latest trading update, total sales for the first quarter to 31 March 2024 were $333.0 million, representing a $24.4 million (7.9 percent) increase on the equivalent period last year.  

New Zealand sales for the first quarter were $149.0 million, up 15.2 percent in total and 11.4 percent on a same-store basis. The company’s sales report says, ‘Sales increased across all brands, driven by additional store openings, innovation through marketing initiatives and improvement in trading hours which has flowed through to solid transaction growth. Store numbers increased by two to 149 stores during the quarter.’

In addition to the 149 company-owned stores, the business has 122 Pizza Hut stores run by franchisees (an increase of 12 stores from March 2023).  The other three brands are not sub-franchised in New Zealand.

Restaurant Brands also has outlets in Australia, California and Hawaii. Internationally, the strong sales growth in the New Zealand and Hawaiian markets offset slowing sales growth in Australia and negative sales growth in California. 

‘Cost of living pressures, driven by inflation and elevated interest rates, continue to impact consumer spending in all our markets,’ says the report. ‘The group remains focused on driving improved margins and increased profit levels while maintaining brand health, protecting our strong customer base and continuing to position the business to deliver sustainable long-term value.  This is supported by ongoing strategic pricing and cost control programmes across all markets, alongside investments into technology, product innovation, network expansion and brand experience.’