In The News

Hell keeps doors open for Tourette’s Association 22nd June 2017

22 June 2017 - Hell and the Tourette's Association have joined forces to help raise funds, awareness and political action

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After-4 Event this month - Making NZ franchises great again 16th June 2017


Brexit and write-down affect Esquires global owners 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 15th June 2017


Brazilians take on The Body Shop 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 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 9th June 2017


Another pizza chain for New Zealand? 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 31st May 2017


BurgerFuel opens in US 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 29th May 2017


Auckland's economic growth 'spectacular' 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 28th May 2017


Seeking young achievers for franchise accelerator 19th May 2017


McDonald's ad accused of exploiting childhood bereavement 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 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 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.


对你来说,什么是最佳的特许经营? 29th April 2017

可供选择的特许经营机会成百上千,如何从中选择一种为你服 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 26th April 2017


More big names for national franchise conference 26th April 2017


Australia's joint employer inquiry under way 26th April 2017


Staff, franchise buyers and funding could limit growth 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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Franchise survey questionnaires out now 12th April 2017


NZ Post to deliver KFC in Tauranga 3rd April 2017

KFC is to trial home delivery in Tauranga via the New Zealand Post courier network. The company ultimately plans to offer home delivery from around one-third to half of its New Zealand stores.

The news comes after UberEats launched in Auckland earlier this year to offer home delivery of products from a wide range of local restaurants. According to an article in the latest issue of Franchise New Zealand magazine (available free in print or digital form here), the service has proved hugely popular as a business-builder for brands like Burger Wisconsin and Mexicali Fresh, although the cost to franchisees is considerable.

UberEats has not yet launched in Tauranga, and is thought unlikely to operate in some of the smaller regions of New Zealand for some time. New Zealand Post's courier network, on the other hand, is already well-established throughout the country. The trial will show whether food delivery might offer a new source of revenue for drivers and restaurants alike as the market for eating out increases but lower drink/driving tolerances reduce mobility - especially outside centres well-served by public transport.

According to a release from KFC owner Restaurant Brands Ltd, customers will be able to order on the fried chicken chain's website and have their food delivered by an NZ Post driver.

Restaurant Brands chief executive Ian Letele said the decision to partner with NZ Post was due to their expertise in logistics.

'NZ Post has an extensive delivery distribution network around New Zealand, and KFC is available in most towns nationwide. With the support of NZ Post, we hope to service the home delivery needs of many more KFC customers throughout New Zealand,' said Letele.

Mike Stewart, general manager of customer experience and innovation at NZ Post said, 'We are very excited to be supporting such a well-known and loved brand as KFC.

'Our many years' experience, and growing strength in on-demand delivery makes us the ideal provider.'


Opportunities abound as regional economies grow 31st March 2017

31 March 2017 – The latest figures from Statistics New Zealand show growing economic activity in 12 out of 15 regions. That means new business opportunities for franchisees and franchisors.

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National franchise conference draws big names for August 23rd March 2017


How far is fair? 22nd March 2017

Australian legislation may impact global franchise model

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More people coming to New Zealand on work visas 22nd March 2017

21 March 2017 – Record net annual migration levels continue, Statistics New Zealand said today, bringing larger numbers of migrants into the country on work and residence permits.

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Auckland seminars to help franchises grow 22nd March 2017

August 2019 - A series of five workshops in September will give New Zealand franchisors and their leadership teams new insights into best practice methods across a range of topics to help prepare franchise networks for improved performance and growth

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Settlement reached with Nosh franchisee 7th March 2017

Veritas Investments has reached a settlement with a franchisee who took down the signs and sought to terminate his Nosh franchise agreement after buying the business just days before Veritas disclosed it was under pressure from its bank to sell the chain.

Although details are confidential, it appears that the franchisee has paid Veritas rather than the other way round. The Nosh Group company has since been sold to a new goup of investors.

Mead's Constellation Drive Food Market had served notice to terminate its franchise, a move disputed by Veritas's Old NGL Ltd.

"Under the terms of the settlement, Constellation Drive Food Market has agreed to pay an undisclosed sum to Old NGL Limited to settle all debt, claims and disputes concerning that franchise," Veritas said in a statement to the NZX today.


Net annual migration passes 71,000 27th February 2017

21 March 2017 – Record net annual migration levels continue, Statistics New Zealand said today, bringing larger numbers of migrants into the country on work and residence permits.

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NBR opens regulation debate again 26th February 2017

A recent series of articles in the National Business Review has once again raised the topic of possible regulation in New Zealand’s franchise sector.

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Virtual drive-through on the cards 26th February 2017

An Australian-based Mexican fast food chain has teamed up with Google to create an app-only ordering system aimed at speeding up service and maximising efficiency within its stores. Guzman y Gomez currently has 82 stores in Australia with 8 more planned to open this year, as well as stores in Singapore and Tokyo. It is planning to start franchising soon as a way of building funds for expansion in to the US market. There are no Guzman y Gomez outlets in New Zealand.

Mr Marks said the three drivers of growth would be the chain’s focus on food quality — it has committed to using 100 per cent sow stall-free pork, free-range chicken and grass-fed beef — drive-through and mobile ordering.

More than 20 per cent of GyG’s orders now come through its app, and Mr Marks said he hoped one day that would be 100 per cent. “Eventually we will have counterless stores,” he said.

“I want people to walk into GyG and it’s like an Apple Store, our salespeople are on their phones, everybody’s ordering on the app.”

GyG has been working with the Google’s Zoo team, described as a “creative think tank for brands and agencies”, to bring that vision to life.


Franchise survey questionnaires out in April 24th February 2017


Clampdown on rogue employers 23rd February 2017

23 February 2017 - Immigration Minister Michael Woodhouse has today announced new measures to stop employers who breach immigration and employment law from recruiting migrant workers.

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Economy in a sweet spot 22nd February 2017


Mixed prospects for local Chinese businesses 22nd February 2017

February 2017 – The economic outlook for local Chinese businesses is mixed, according to a survey by accounting software provider MYOB.

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Domino's NZ reports strong first-half profit 16th February 2017

ASX-listed Domino's Pizza Enterprises, which franchises 106 stores in New Zealand, posted net profit after tax of A$59.7 million ($63.8m) for the six months to January 1 - up 30.8 per cent on the same period the year before. The New Zealand stores were a strong contributor to the results, said NZ general manager Scott Bush.

Group chief executive Don Meij attributed the result to its focus on digital innovation, easy payment solutions and investment in premium ingredients, as well as support for its recently upgraded menu.

In its results briefing, the company sought to reassure shareholders after revealing it had returned A$4.5m in unpaid wages to staff over the last three years and seen 26 franchisees leave after internal audits.

Meij said the there was "no correlation between store profitability and the underpayment of staff wages" and the company had zero tolerance for unethical behaviour.

"I make no apologies for expecting the highest standards from our franchisees," Meij said.


Employment fraud a risk for franchises 9th February 2017

February 2017 - Employment issues continue to dog the franchise sector in Australia – are New Zealand franchisors prepared?

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New event - Future-Proof your Franchise 8th February 2017


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