Future thinking: AI in New Zealand franchising

As franchise systems throughout the country seek to optimise operations, enhance customer experiences, and drive growth, AI technologies are increasingly becoming integral to business strategies. From embryonic, homegrown franchise networks to multi-national giants with a Kiwi presence, the adoption of AI is altering the franchising landscape across Aotearoa.

New Zealand’s unique business environment — with its market size, geographical isolation, and innovative spirit — presents distinctive opportunities and challenges for AI implementation in franchising.

Here, we look at how franchises are leveraging AI technologies, the hurdles they face in adoption, and what success stories are emerging that highlight the potential of these tools to streamline and supercharge franchise operations.

At the 2025 International Franchise Association (IFA) Convention in the USA, held in Las Vegas in February, AI in franchising was a major focus. Numerous sessions were dedicated to discussing how artificial intelligence can be used to optimise franchise environments, improve customer engagement, and provide a competitive edge across marketing, training, and operational efficiency, making it a key topic of conversation among franchisors and franchisees alike.

A critical tool

A central theme of the IFA Convention, AI is now considered a critical tool for modern franchising, not just a trend, with many sessions highlighting its potential to transform the industry. Topics covered included:

AI-powered chatbots for customer service Predictive analytics for sales forecasting Automated marketing campaigns AI-driven training platforms for franchisees Data analysis for operational optimisation At the IFA Convention, presenters from major franchise brands and AI technology companies focused on case studies and best practice examples of how they are integrating AI into their operations, with a key takeaway being that AI can be leveraged to enhance customer interactions and provide a more personalised customer experience. The consensus was that franchisors who effectively utilise AI are set to gain a significant competitive advantage over those who don’t.

Greg Paget, former franchisor, board member of the Franchise Association of New Zealand (FANZ) and now a franchising and small business mentor, was among the Kiwi contingent at this year’s IFA Convention. “I attended a number of very informative sessions at IFA on AI,” he says. “All of them, without exception, were very good, and I can see that this is something that businesses need to embrace or be left behind.

“The interesting thing compared to previous presentations on this topic, was that the sessions I attended were about far greater practical applications. In the past I’ve heard a lot of experts telling us about how great AI is going to be, but I’ve always found myself leaving a presentation none-the-wiser as far as application is concerned. This year it feels really different.

“There are now a raft of AI tools out there, which I’m starting to play around with. For anybody to become engaged, they simply need to make the leap.”

AI in New Zealand franchising

The franchising sector represents a significant component of New Zealand’s economy, with sales turnover for the entire franchising sector estimated at $73.4 billion according to the 2024 Franchising New Zealand survey conducted by Massey University Business School, and an estimated 114,300 Kiwis employed in business format franchise systems.

As digital transformation accelerates globally, New Zealand franchises have begun exploring AI solutions to maintain competitiveness and improve efficiency.

According to the 2024 survey, approximately 72% of franchises are using or planning to implement AI technologies within their operations. Many franchises reported they are currently utilising AI tools, particularly ChatGPT, to enhance the efficiency and effectiveness of their operations. Respondents also indicated a diverse application of AI across various functions including:

Content creation for marketing purposes Chatbots for customer service and lead generation Research and data analysis (consumer behaviour analysis performance tracking, etc.) CRMs Email communications Key applications One of the most visible applications of AI in franchising has been in customer service. Many franchise businesses have implemented chatbots and virtual assistants to handle routine customer inquiries, process orders, and provide information about products and services.

Back in 2022, Night ‘n Day, a New Zealand convenience store franchise with over 50 locations nationwide, implemented an AI-powered chatbot called, ‘Nightbot’ to handle customer queries across its digital platforms. The system was introduced to address frequently asked questions about store hours, product availability, and promotions while collecting valuable customer data. According to the company...

 

This article is published in full on page 6 of the Autumn 2025 (Year 34 Issue 1) issue of Franchise New Zealand magazine.

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