In The News 
McDonald’s meatless burgers fail to fire in US 9th August 2022
10 August 2022 – While plant-based alternatives from companies such as Beyond Meat and Impossible Foods have been touted as the ‘next big thing’ in the hospitality sector, McDonald’s has just ended trials of its McPlant burger in the USA owing to disappointing sales, and reportedly has no plans for further trials.
Franchise conference - scam warning 3rd August 2022
The National Franchise Conference has proved so popular that it’s even attracted the attention of scanners. An email (ours was from ‘Rosalie Silva’) appeared to offer details of all 1100 attendees at the Wellington conference, including client name, business name, title, email address, phone number, and web address, etc. Well, the conference hasn’t happened yet, and although it will be big it won’t be attended by 1100 people, either. FANZ CEO Robyn Pickerill says, ‘FANZ respects the privacy of its members and conference delegates, and does not sell attendees' details.’ See genuine details of the Conference, which takes place on 22-24 August - places are still available.
Buyer beware - are you seeing the whole truth? 3rd August 2022
August 2022 – A recent advertisement for a franchise opportunity in the USA has drawn attention for making claims that rely heavily on the small print, according to well-informed franchise commentators. It’s a reminder to franchise buyers to take care
New GM for Domino's NZ 1st August 2022
Restaurant Brands releases figures, rules out buying Wendy's 27th July 2022
28 July 2022 - Restaurant Brands has ruled out purchasing the Wendy's NZ chain of 22 stores recently put up for sale by the Lendich family. Restaurant Brands also owns the Carl's Jr brand in New Zealand and CEO Russell Creedy told NBR, 'One beef burger brand is enough for us.'
The NZ-listed company, which also operates Pizza Hut, KFC and Taco Bell stores in New Zealand, Australia, Hawaii and California, yesterday announced its second quarter sales figures, saying that 'Covid-19 continues to affect Restaurant Brands’ business operations, with high case numbers resulting in staffing issues for the business as well as its contractors and suppliers.' Total sales were up by 8.2 percent over the previous year, supported by 17 new stores and the strengthening of the US dollar. Same store sales by region were as follows:
- New Zealand: Up 1.4 percent
- Australia: Up 5 percent
- Hawaii: Up 2.9 percent
- California: Down 3.0 percent
Restaurant Brands share price fell 9.4 percent after issuing a profit warning, saying it was struggling with Covid-related staffing issues and worldwide increases in costs.
2022 training programmes – improving franchise performance 12th July 2022
July 2022 - Four training programmes being held in October/November 2022 are designed to address the needs of the owners and managers of franchise systems, field managers and support office staff
New FANZ Board named 12th July 2022
July 2022 - The Franchise Association has a new Board for the coming year
'Beautiful kids' recognised in franchise's annual competition 8th July 2022
'Beautiful kids' from a low-decile school in Christchurch have received long-overdue recognition through their prize-winning performances in The Coffee Club's annual Christmas Art competition after an emotional plea from their teacher. The competition with KidsCan, whose winners have been profiled every year by Franchise New Zealand, is a prime example of the contribution many franchises make to the communities they serve. According to the 2021 Franchising New Zealand Survey by Massey University, 24 percent of the franchise brands operating here contribute more than $100,000 each per year to the community.
Advice on riding the rollercoaster of inflation 6th July 2022
After a long period of stability, many countries – including New Zealand – are entering a new period of inflation. This impacts consumer spending and has a knock-on effect to business owners. So what can franchisors, franchisees and franchise buyers do about it?
FANZ extends Awards, Conference deadlines 29th June 2022
30 June 2022 - the Franchise Association has extended entry deadlines for the 2022 Franchise Awards, as well as the earlybird booking deadline for the National Franchise Conference
Why are visa changes costing franchisee employers more? 27th June 2022
June 2022 – Franchisees have been singled out for special treatment under the new Accredited Employer Work Visa scheme. Simon Lord looks at what lies behind the decision
Wendy’s New Zealand up for sale 22nd June 2022
23 June 2022 – The New Zealand arm of the well-known Wendy’s hamburger chain is on the market, including all 22 company-owned stores
Face-to-face franchise event in Wellington 21st June 2022
Avoid being scammed – good advice 16th June 2022
16 June 2022 – New Zealand banks have joined forces with CERT NZ, Consumer Protection, and Te Tari Taiwhenua Department of Internal Affairs (DIA) to warn Kiwis of new threats from scammers. The following information has been provided by MBIE
Franchise Conference 2022 19th May 2022
June 2022 - Future focus backed by impressive line-up of speakers at New Zealand's national franchise conference. Earlybird booking rates are now available until 15 July 2022
McDonald's to exit Russia after 30 years 16th May 2022
McDonald's has said it will permanently leave Russia after more than 30 years and has started to sell its 850 mostly company-owned restaurants there. Last year, Russia and Ukraine reportedly accounted for about 9% of McDonald's global sales. The company says it's the first time the company has ever exited a major market, but it was losing US$55 ($87m) million each month after closing its Russian restaurants in March.
2022 Franchise Awards open for entry 13th May 2022
June 2022 – Only a couple of months since the 2021 winners were announced, the 2022 Westpac New Zealand Franchise Awards are open for entry. The new simplified entry process has proved popular, and there’s also a new category. The deadline for entry has now been extended to 15 July 2022.
Extra requirements for franchisees as employers under new visa category 5th May 2022
5 May 2022 – Franchisees have been singled out for tougher treatment than other employers in a new visa category. Learn more in a free webinar on 30 May
Hollywood actor's burger chain to open in Auckland 3rd May 2022
3 May 2022 - Wahlburgers, the US burger chain founded by actor Mark Wahlberg and his brothers, is to open in Auckland later this year. It's one of five outlets the company plans for New Zealand, but with the brand being operated here by Australia's United Cinemas, it will not be franchised. The Auckland store will be located at the former Euro restaurant site on Princes Wharf, which industry commentators have described as a 'challenging' location although a high profile one as international tourists return. A previous star-themed restaurant, Planet Hollywood, was a key tenant at the former Sky City Metro on Aotea Square before closing in 2003 after just four years.
Reality check - why buy a new franchise? 3rd May 2022
3 May 2022 - Should new business owners follow a broker's advice to buy an established business rather than start up a business from scratch? Not necessarily, suggests Simon Lord
McDonalds spends half a billion dollars on NZ ingredients 19th April 2022
17 April 2022 – McDonald's spent a record amount on ingredients from Kiwi farmers, growers and bakers last year, with the majority being exported to McDonald's operations in Asia Pacific, Middle East and Africa
NZ pizza franchise to open in Australia 19th April 2022
17 April 2022 – New Zealand’s Hell Pizza franchise is ready to cross the ditch and open in Australia
Almost 40% of Kiwi small businesses using personal savings to support operations 12th April 2022
11 April 2022 – Latest findings from a survey commissioned by Prospa reveal that, when a business needs money, 38 percent of business owners will dip into their personal savings
New partner for franchise law specialists 1st April 2022
1 April 2022 – Khushbu Sundarji has become a partner at Stewart Germann Law Office
Overnight success - 30 years of franchise service 31st March 2022
March 2022 – Franchise New Zealand celebrates 30 years by winning the prestigious Service Provider of the Year Award
Uni mates' initiative builds award-winning franchise 19th March 2022
The Otago Daily Times has proudly covered the story of two friends who met at the University of Otago in the 1980s and went on to build what is possibly New Zealand's largest franchise - CrestClean. The company has just been named Supreme Franchise System of the Year in the Westpac New Zealand Franchise Awards. Read the ODT story here and see our full coverage of all the winners here.
NZ Franchise Awards 2021 Results: HONOURS EVEN 8th March 2022
6 March 2022 – Friendly rivals from the same industry won the two biggest titles at the Westpac New Zealand Franchise Awards tonight. There were a massive 75 finalists this year - here’s our full report with all the winners in every category
The Franchise Coach consultancy changes hands 8th March 2022
9 March 2022 - Long-established consultancy business "The Franchise Coach" has been bought by Stewart Germann, the specialist franchise lawyer. The move will see an additional level of professional services offered to emerging and established franchisors in New Zealand, and incoming franchise brands from overseas
McDonald's Russia closes stores; Ukraine franchises donate food 8th March 2022
9 March 2022 - After yesterday's report that pressure was growing on global franchises to close stores in Russia, McDonald's has announced that it will close its 850 mostly company-owned stores there. The company said said the halt was a response to the 'needless human suffering unfolding in Ukraine'. Meanwhile, McDonald’s Ukraine is reportedly providing food from restaurants for the needs of Ukrainians during martial law, and KFC has opened kitchens for cooking to hospitals, military and territorial defence. A McDonald's Ukraine statement said, 'Our restaurants are closed for safety reasons, however, those located in the areas that are currently safe (as far as it’s possible) for our employees provide food to local communities. Local authorities take the products and distribute them where they are most needed.'
Global franchises face pressure over Russia 8th March 2022
8 March 2022 - A BBC report suggests that pressure is growing on Western food and drink giants to pull out of Russia due to the invasion of Ukraine. McDonald's and Coca-Cola, among others, have been criticised on social media for failing to speak out about the attacks and continuing to operate in the country. Apart from boycott calls on social media, both McDonald's and Pepsi have also been singled out by the boss of New York state's pension fund. Where franchises are locally-owned, either under individual or master franchise agreements, it's a complicated issue - for example, the majority of Starbucks sites in Russia are run by the Kuwait-based Alshaya Group - but McDonald's, which has 847 stores in Russia, owns the majority of them itself.
NZ's franchise sector worth almost $37 billion - and growing 7th March 2022
8 March 2022 - The New Zealand Herald has published a summary of last November's Survey of Franchising with comment from specialist franchise lawyer Stewart Germann. The article states that, 'New Zealand is the most franchised country in the world per capita, outside the United States, according to Franchise New Zealand.' Actually, that statistic does include the United States, which is believed to have around three times as many people per franchised unit as New Zealand (directly comparable statistics are not available). New Zealand has one unit per 154 Kiwis.
The NZ Herald article is behind a paywall; read our full report on the 2021 survey here.
Awards coverage on RNZ - Ben Coates interviewed 7th March 2022
7 March 2022 - RNZ's Nathan Rarere interviews Ben Coates from Moerewa, who won the Small Business Franchisee of the Year title at the Westpac New Zealand Franchise Awards last night. See our full coverage of the results.
Restaurant Brands breaks $1 billion barrier despite Covid 28th February 2022
Restaurant Brands’ total sales for the year ended 31 December 2021 were $1,068.2 million, an increase of $175.9 million (19.7 percent) from 2020. This is the first time the listed company, which owns the master licences for Pizza Hut, KFC, Carl’s Jr. and Taco Bell stores in New Zealand, has passed the $1 billion mark.
Approximately $100 million of the increase arose from an additional eight months trading this year from the acquisition of 69 KFC and Taco Bell stores in California from an existing franchisee. The company also has operations in Australia and Hawaii.
Full year sales for New Zealand were $461.1 million, an increase of 12.4 percent, primarily from strong same store sales growth of 9.1 percent. The company estimates that the Government-mandated full store closures resulted in lost sales of $26 million in 2021 and $40 million in 2020.
Fourth quarter total sales for New Zealand were $126.2 million, an increase of 5.3 percent on the equivalent period last year, with Carl’s Jr. and Pizza Hut performing ‘very strongly’.
Store numbers increased by four during the quarter to 137, with the opening of three new Taco Bell stores and a new KFC store. In addition two Carl’s Jr. stores were converted to a KFC and a Taco Bell. Same store sales were strong despite the adverse impact of the continued Covid crisis.
Government changes date eligibility criteria for new support 25th February 2022
25 February 2021 - It quickly became apparent after the announcement of the government’s Covid Support Payment that the date comparator period would mean that many operators would be ineligible to access the support. Following lobbying by the Restaurant Association of New Zealand, the criteria have now been changed to allow comparison with either early 2022 or the same period last year. See the full announcement at https://www.beehive.govt.nz/release/more-omicron-affected-businesses-able-access-financial-support
The outlook for franchising in 2022 23rd February 2022
23 February 2022 – Westpac’s latest quarterly Economic Overview looks at what lies ahead as New Zealand faces Omicron, and the Franchising Confidence Index finds franchisors looking for opportunities in a gloomy start to the year
Kiwi cafe franchise sold 10th February 2022
Suntory Beverage and Food Ltd has announced it is to sell its fresh coffee business in Australia, New Zealand and Singapore to UCC Coffee. This includes New Zealand’s oldest café franchise, Robert Harris.
UCC are a leading global coffee business, and have built hugely successful brands and blends across Asia, Europe and the Americas. With no other operations in Australia and New Zealand, they see the acquisition as a highly complementary opportunity to create a truly global leader in the coffee industry.
The sale is expected to be completed in the first quarter of 2022, (subject to regulatory approvals). Suntory say that, in the meantime, it remains business as usual for suppliers and partners with no change to day-to-day operations.
Robert Harris was born in 1897 in Sydney but lived most of his life in Hamilton. He ran a hairdressers and tobacconist’s shop before starting a delicatessen, and began selling coffee in a small way in 1952. He soon became fascinated by the coffee business and eventually devoted his life to building what became New Zealand’s first chain of cafés. Robert Harris died in 1974, and there are now 34 franchised cafés bearing his name around the country.
New owners for food franchise 9th February 2022
10 February 2022 – Asia-based investment company PAG Asia Capital has sold The Cheesecake Shop to Melbourne's River Capital, a boutique asset manager. The Cheesecake Shop operates more than 220 franchised stores across Australia and New Zealand.
PAG bought TCS in 2017 and also owns the Red Rooster, Oporto and Chicken Treat brands.
River Capital has a history of investing in franchise concepts: it was previously a significant shareholder in Brumby’s before it was sold to Retail Food Group, and has had investments in Domino’s and KFC.
Franchise Awards move online 1st February 2022
1 February 2022 - The Westpac New Zealand Franchise Awards will take place as an online-only event on 6 March.
No jabs franchisee loses business 27th January 2022
27 January 2022 – A franchisee which advertised for unvaccinated staff despite the mandatory requirement for hospitality staff to be vaccinated has left the business after being fined $24,000 for breaching the mandate. The franchisor reportedly gave them 10 days to comply or leave
2021 Franchising Survey – RESULTS 7th December 2021
Highlights from Massey University's latest franchise survey in New Zealand show the resilience of franchising in difficult times
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