In The News

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.

Read more at http://www.nzherald.co.nz/b...

12 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.

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.

Read more at http://www.nzherald.co.nz/b...

5 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

Is this the end for Nosh?

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.

Read more at http://www.nzherald.co.nz/b...

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.

Read more at http://www.smh.com.au/feder...

22 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

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

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.

Read more at https://www.nbr.co.nz/artic...

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.'

Read more at http://www.stuff.co.nz/busi...

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.

Read more at http://www.nzherald.co.nz/b...

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.

Read more at http://www.stuff.co.nz/busi...

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.

Read more at http://www.stuff.co.nz/busi...

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.

Read more at http://beta.nzherald.co.nz/...

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.

Read more at http://www.bbc.com/news/uk-...

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.'

Read more at http://www.nzherald.co.nz/b...

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.

Read more at http://www.nzherald.co.nz/b...

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.

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.

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.'

Read more at http://www.nzherald.co.nz/b...

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.

How far is fair?

22nd March 2017

Australian legislation may impact global franchise model

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.

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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