In The News

McDonald's New Zealand has reported a 2 percent rise in revenue at a time when the global operations have dropped by the same amount. The figures relate only to company-owned stores and other revenue, including royalties paid by franchisees, and do not include sales made through franchised outlets - the majority of stores in New Zealand.

McDonald's new global chief executive, Steve Easterbrook, unveiled a major restructuring plan last month that aims to improve the Golden Arches' poor recent performance.

The company is hoping to save US$300 million a year by 2017 by selling more than 3000 company-owned outlets to franchisees, which would increase the proportion of franchise-run outlets globally to 90 per cent from around 80 per cent currently.

McDonald's New Zealand managing director Patrick Wilson was unavailable for comment today.

Company spokesman Simon Kenny said there had been "no material impact" from the restructuring in this country so far.

"It's been business as usual since the announcement," he said.

Restaurant Brands - whose businesses include Pizza Hut, KFC and Carl's Jr - posted a 9.2 per cent lift in sales, to $359.5 million, for the year to March 2.

Its profit jumped 19.4 per cent to $23.8 million.

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

Mad Group's attempt to raise cash to double the size of its Mad Mex chain through crowdfunding has failed, but the company intends to try again. Mad Group is the founder of Habitual Fix, which has 15 franchised stores, but took a different approach when it bought the New Zealand master licence for Australian chain Mad Mex. The Auckland firm tried to raise $750,000 to open its own stores by selling just over 7 percent of its shares to the public through equity crowdfunding platform Snowball Effect, but fell $291,100 short of its target.

Managing director James Tucker said the funds would have let Mad Group open another six to eight Mad Mex stores, to add to the six stores it has already, and achieve "critical mass".

Tucker said he remained "100 per cent confident" Mad Group would raise the funds it needed to grow Mad Mex.

It would now approach the 98 investors who had applied for shares to see if they were still keen to subscribe for them in a private offer, he said.

Discussions were also planned with other potential investors who had come forward as a result of the campaign and who had expressed interest in separately investing sums between $150,000 and $1.5 million, he said.

Mad Group's bank had offered further support to expand the enterprise, which meant it would only need about $500,000 to see through its original expansion plan, he said.

"There are a lot of wheels in motion that couldn't start until the offer closed on Friday, so now this week we are full steam into working through these other options."

Tucker believed New Zealand could support 30 to 50 Mad Mex stores in the "medium term" and said he was not sure why the equity crowdfunding campaign had fallen short.

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

Cooks Global Foods, which owns the rights to the Esquires coffee chain outside New Zealand and Australia, is continuing to expand overseas with plans for 125 cafes open by the end of this year - up from 70 at the end of last year. The NZX-listed company posted a loss of $3.99 million in year ended 31 March 2015, down from $5.1 million the year before.

"The business is focused on achieving revenue growth through boosting current sales, opening new stores and investigating new territories," said chairman Keith Jackson. "Cooks sees significant opportunities to export New Zealand's cafe culture into new markets and existing markets."

In the latest year, revenue doubled to $8.9 million from a restated $4.4 million the year earlier. Three quarters of the revenue came from the Esquires Coffee House unit, with the remainder from the supply division, which includes Scarborough Fair beverage products and Progressive Processors' kiwifruit and asparagus, which supply Esquires stores and other customers.

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

An advertising stunt designed for Pizza Hut by Ogilvy Hong Kong has created a box even weirder than Hell Pizza's coffin cut-outs. This one includes a lens that allows the customer to project the image from their smartphone on to any nearby wall. It's a clever riff on the traditional combination of movies and pizza. Watch a demonstration here. For now, the box is only available in Hong Kong

The Verge website reports:

'There are four different boxes, each of which comes with a separate movie download via a QR code. They're called Slice Night (for horror fans), Anchovy Armageddon (for science-fiction), Hot & Ready (for romance), and Fully Loaded (for an action flick). The box itself is fittingly called the "Blockbuster Box."

Of course, you'll need a very dark room to be able to make out anything from the "projector," and even then, the quality will still be pretty piss-poor. That's not to mention the fact that you'll probably get your phone all greasy by sticking it in that pizza box, and that you'll have to try to make out whatever muffled audio makes it through the walls of the pizza box. We're not letting that stop us from trying it out though — we just need to find a way to get to Hong Kong first.'

Read more at http://www.theverge.com/201...

The New Zealand Natural franchise has been sold to a Hong Kong-based company as part of the sale of Emerald Foods. New Zealand Natural was originally founded in Australia, but was bought by Diane Foreman's Emerald Group in 2005. Managing director Shane Lamont will remain on the board of the new company - read our 2009 interview with him here.

'Hong Kong-based Emerald Foods Group (HK) bought 100 percent of the shares in Foreman's Emerald Foods subsidiary on June 3, according to Companies Office filings, completing an acquisition that had been approved by the Overseas Investment Office in April. The acquisition needed OIO approval because Emerald Foods owned sensitive land in East Tamaki, Auckland.

Foreign acquisitions need OIO approval where there is an interest in sensitive land, or the transaction is more than $100 million. The value of the Emerald deal was withheld.

The Hong Kong entity is 80 percent owned by Australian interests, with US investors holding almost 16 percent and other overseas people holding 4.3 percent, according to the OIO summary.

"The applicant intends to develop the business located on the land, with particular regard to exports to China," the OIO summary said. The office granted approval after being satisfied it would increase export receipts and attract additional investment for development. It also met the consequential benefits test, where the OIO believes it will provide additional New Zealand investment, sponsorship or community projects.'

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

10 June 2015 – Mr Green has responded to a series of negative articles by terminating a master licence agreement held by the franchisor’s brother

8 June 2015 - McDonald's has added kiwifruit to its Happy Meal menu in Mexico. The partnership between New Zealand's Zespri and the restaurant chain that is regularly targetted by healthy eating campaigners aims to sell more than one million kiwifruit this month.

Tens of thousands of Happy Meals were sold across Mexico every day and nearly one billion pieces of Zespri SunGold would be sold around the world this season, she said.

"Mexico is a sophisticated fruit market and consumers have responded really positively to the sweet tropical taste of Zespri SunGold Kiwifruit.

"Mexico is a relatively undeveloped market for Zespri - we're forecasting sales volumes of around 750,000 trays in Mexico this season, up 50 per cent from last season.

"This marketing partnership is a great step toward establishing both our brand and gold kiwifruit, which is largely unknown in this region, to families across Mexico.

See video here.

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

5 June 2015 - Upper Hutt City Council is being scolded by the Taxpayer's Union over offering an incentive to BurgerFuel to open locally. The incentive was available to all sorts of businesses, as we reported last November. Given the growing divide in NZ between urban and regional growth, such strategies for increasing local investment and jobs may well become more popular.

“This is possibly the most ridiculous example of corporate welfare we’ve seen yet. You work hard, you pay your rates and Upper Hutt City spends it on a burger joint,” Taxpayers’ Union executive director Jordan Williams says.

“Sucking money out of a community to spend it on a favoured business isn’t economic development, it’s robbing the poor to pay the rich. Money that would have been spent by citizens has been funnelled into the pockets of BurgerFuel’s investors."

In a press release, the council says the incentive is part of a scheme aimed at encouraging new business into the city.

Businesses that want to set up in the city can apply for a “package,” which can include grant funding, as well as discounts and, in some cases, cost waivers on council services.

Read more at http://l.facebook.com/l.php...

BurgerFuel has announced a deal with a major multi-unit Subway franchisee in California as it plans to open its first restaurants in the US. Last year, the company attracted investment from Franchise Brands LLC, which was created by Subway founders Fred DeLuca and Dr Peter Buck.

Shares in gourmet burger company BurgerFuel jumped more than 21 per cent yesterday after it announced a partnership with California-based franchisor OhCal Foods as part of its plan to break into the US market.

The New Zealand burger chain, which also operates in Australia, Egypt, Saudi Arabia, Kuwait and the United Arab Emirates, has been eyeing the competitive US market since early last year when it raised $5.9 million from US investor Franchise Brands to help fund its global growth aspirations.

BurgerFuel chief executive Josef Roberts said the latest partnership with OhCal, which services more than 2100 Subway restaurant outlets, was its next strategic move.

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

2 June 2015 - Locally-owned Z Energy has bought the Caltex New Zealand service station assets for $785 million. The chain includes 147 service stations and 73 truck filling sites around the country. All the Caltex service stations are operated by franchisees, along with 7 of the truck sites. Z Energy operates via 23 licensed retailers, each of whom operates a cluster of between 7 and 16 sites each.


The deal is expected to take some months to conclude.

Z chief executive Mike Bennetts said Mike Bennetts said Z would operate two brands throughout the combined service station network. Z would continue with its new build programme on prime sites around New Zealand.

"The acquisition is also a great fit with our longer term market growth strategy," said Bennetts.

"Caltex is a successful and highly attractive business in New Zealand and the acquisition means we can use the scale of the combined operation for the expanded supply of biodiesel to a broader market."

He said the Commerce Commission and Overseas Investment Office processes were expected to take some months. "It is very much business as usual for Z, with a continued focus on safety, people and operational excellence."

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

A new law in France which stops supermarkets destroying unsold food has helped to focus attention on food waste. An article in the New Zealand Herald looks at how local food companies handle the issue, starting - as always - with McDonald's.

Who does what?

McDonald's NZ carried out waste audit.

Restaurant Brands wouldn't reveal stance, but operations "tightly controlled".

Farro Fresh donates to Fair Foods.

Muffin Break no policy, up to individual owner.

Brumby's bakeries charities.

Baker's Delight must be given away.

Countdown variety of charity partners.

Foodstuffs charities, including Food Harvest.

Fruit World no policy, stock sold off cheap or given to pig farmers.

Nosh - no comment.

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

Veritas Investments, owners of the Mad Butcher franchise, has cut profit projections for the year by 19 percent. However, the reduction, from 5.3 million in February to $4.3 million for year ending 30 June, is not connected to the Mad Butcher franchise, which it says is trading as expected despite publicity earlier this year over franchisee liquidations. Instead, it says that the turnaround of the under-performing Nosh chain is behind schedule and drink-driving legislation has affected the performance of its Better Bar Company sites in Hamilton.

The Mad Butcher business continues to trade to expectations and we envisage results for the franchisor business to be on target. In April 2015, the first Mini Mad Butcher store has been opened in Mosgiel and is proving a successful format. The company will look for open further mini style stores at appropriate locations around the country. There are 4 Mad Butcher stores held for sale, which will be sold as franchisees are identified and approved.

Read more at https://nzx.com/companies/V...

28 May 2015 - New Zealand has risen to 17th place on an annual world competitiveness ranking

McDonald's Corp shareholders in the US have approved a proposal to make it easier to nominate directors and taken the new CEO to task over wages, advertising and food

McDonald's Chief Executive Steve Easterbrook, who took the helm on March 1, is fighting on numerous fronts as he works to turn around the company, which saw profit and revenue fall in 2014 after service times slowed and nimbler rivals picked off customers with menus that appeal to growing appetites for fresher, less-processed food.

Despite opposition from McDonald's, 61 percent of voting shareholders said yes to a proposal that would make it easier for long-term investors to list director candidates on company proxy materials.

  

The UAW Retiree Medical Benefits Trust brought the proxy access proposal before investors because "McDonald's board needs to be more accountable for these performance lapses," the Trust's Corporate Governance Director Cambria Allen said at the meeting, which was closed to media but accessible via webcast.

Read more at http://www.reuters.com/arti...

May 2015 - The international arm of Esquires Coffee, owned by NZ-listed Cooks Global Foods, has a secret weapon in its plans to open hundreds of outlets in provinces throughout China. Ellen Zhang is a former Esquires franchisee who used to work for YMCI, a Chinese government organisation, where she built relationships with large property and retail companies.

Zhang is spearheading the drive to sell Kiwi coffee culture to her home country, just 11 years after arriving in New Zealand as a migrant who found her first job serving in a cafe near Auckland's Britomart transport station. She went on to buy into her first Esquires shop franchise.

She said her dual cultural background had helped her do business. She said: "There is a lot of opportunity for us in China as there is a trend to drink coffee and talk business. At one time coffee would have been reserved for foreigners, and you would have had to go to a hotel to get it.

"Now, if Chinese people don't visit coffee shops they are considered old-fashioned and behind the times!

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

May 2015 - Franchisees Bruce and Lynette Hopkins, of Speedy Signs Manukau, have been named among the Top 10 achievers in the world-wide Sign-A-Rama franchise group.

May 2015 - The world-famous Hooters Restaurants is looking for local partners to bring its unique brand of service to New Zealand

A global coalition of trade unions has funded a report which suggests that McDonald's has used 'aggressive' tax strategies to avoid paying billions of dollars in taxes each year. The report, which does not allege that the company has done anything illegal, found that McDonald's was 'well-positioned to take advantage of the international loopholes and mismatched tax regimes that allow companies to pay very low tax rates on royalty income.' Read the full report. The report singles out Australia for one of its case studies, suggesting that the company could have reduced tax payable by almost A$500 million in that country.

"McDonald's uses royalty payments from franchisees and foreign subsidiaries in major markets to route profits to tax havens," the report states. "These strategies may have allowed it to avoid up to US$1.8 billion (NZ$2.4m) in tax in those markets in the years between 2009 and 2013, including €1 billion (NZ$1.5b) across Europe and A$497 million (NZ$535m) in Australia."

A spokeswoman for McDonald's said: "We have always been committed to paying our fair share of tax in Australia. In fact, over the past five years, McDonald's Australia has paid in excess of $500 million in tax."

But the report suggests the company's Australian operations show an "unusually high level of inter-company payments over the five years" had gone to the low-tax nation of Singapore.

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

A council initiative to attract new retailers to Upper Hutt has paid off with the opening of a new BurgerFuel in the city this week. The initiative was first promoted to franchisors in November last year and offered grants totalling up to $80,000 towards relocation and retrofit expenses (see details here).

BurgerFuel Australasia general manager Craig Notman said the city council's approach was as good as it gets.

"This is the first time we've worked with a council that has such a pro-active stimulus package," he said.

"They have a great programme in place to assist the introduction of new businesses to the area and the BurgerFuel family is very happy to be joining the community."

Council economic development manager Phil Gorman said it was exciting to see UHCC's  stimulus package working to such effect for the city.

"To secure a brand as big as BurgerFuel and to have them investing as they have will encourage and help provide confidence to others looking at Upper Hutt as a great place to set up," Gorman said.

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

Dream Doors franchisor Derek Lilly came to the rescue when a former franchisee turned up on Fair Go after leaving a Tauranga pensioner in the lurch. It's an example of how franchises need to respond fast to prevent brand damage even when they aren't involved in the problem.

If you have TVNZ On Demand, you can watch the programme here.: https://www.tvnz.co.nz/ondemand/fair-go/06-05-2015

Read more at https://www.tvnz.co.nz/onde...

Following the liquidation of the franchisor for Video Ezy in New Zealand, the company's Australian owners have taken over. Managing director Paul Uniacke is currently touring the country to meet the 60 franchisees here, and is talking of taking stores back and moving to vending kiosks. What that means for franchisees isn't clear.

Uniacke said the company planned to "look through New Zealand systems" and would then decide on what ideas it could introduce here "that have been hard to run or maintain off a 70 store franchise base".

"We see this as an opportunity to take these stores back, it's possibly a healthy reset," he said. 

"There are some synergies we can probably bring into New Zealand."

Uniacke said DVD kiosks might play a part.

So far, Video Ezy only had 40 of the movie vending machines this side of the Tasman, while it had 1400 in Australia. It was "one of the silver bullets that we have launched," he said. 

The kiosks minimised rent and staffing costs, which meant dvds could be borrowed for half the usual cost, he said. 

They could also be placed in "high foot-traffic" with high rent prices, where a store would be impossible to afford.

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

An article on the Stuff website outlines the experiences of three immigrant families who have had problems with Mr Green franchises sold by Dean Smith in Canterbury, Wellington and Rotorua. Dean Smith is the brother of Mr Green franchisor Julian Smith.

Savio Laban, a married hotel worker with two young children, thought Mr Green cleaning would give him a start in business. He borrowed from his social group and paid Dean Smith $15,000 in March for a customer list expected to return $1000 a week. He did not realise Mr Green Property Management Ltd had been struck off the Companies Office register in January.

The pattern was repeated. A customer list failed to materialise and Laban, originally from Mumbai, last month asked for his money back. Emails from Julian Smith to Laban said he was going to put pressure on his brother to repay the money.

"Dean always had some excuse why he couldn't give our money back. We don't know what to do. We made a wrong decision in trusting Mr Green. We came to New Zealand to work hard and make a better future for our two kids and all our hard earned saving is down the drain," Laban said.

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

McDonald's new CEO Steve Easterbrook has unveiled the first stages of a plan to turn around the company's fortunes after a lengthy period of poor sales and profits worldwide. In a 23-minute video, he promises to reduce bureaucracy and harness the power of franchising to create 'A modern, progressive burger company ... delivering a contemporary customer experience. 'Our success will be driven market-by-market with the power of local management and franchises working together,' he promises.


To help make the right changes more quickly, McDonald's is restructuring its business into four units led by lean management teams. The company is also aiming to simplify its menus to simplify customer choice, reduce staff confusion and improve quality - see 7 mistakes that led to McDonald's downfall.


Response from Wall Street was not immediately positive, with McDonald's stock falling 1 percent to $96.65.

The US market, which accounts for more than 40 percent of operating profit, recently stripped away a level of field oversight and will be its own unit.

Another unit will be made up of established international markets such as Australia and the United Kingdom, and another with high-growth markets such as China and Russia. The countries where McDonald's has a smaller presence will be grouped separately.

Previously, the units were segmented by geography rather than market type.

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

1 May 2015 - Strikes planned for McDonald's restaurants today have been called off after the company reached an agreement with the Unite Union over zero-hours contracts. Workers will be guaranteed 80 per cent of the average hours worked over a three-month period. McDonald's is the last of the major fast food brands to address the issue, with the Union calling for the government to outlaw the practice to protect other workers in smaller chains or independent restaurants. Media reports have suggested that these are more likely to be the scene of minimum wage breaches or immigration frauds than franchised brands.

Mr Treen said the agreement hadn't been finalised but the union was convinced "there is good will on both sides" and a spokesman for McDonald's said security of hours would be included in the collective agreement.

"We know that having security of hours is important to our people, which is why on April 13 we announced that a guarantee of hours would be formally written into our employment agreements," the spokesman said.

"Since April 13 we have been working through the technical detail with Unite, along with other elements of the agreement.

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

McDonald's will reveal initial details next month of a plan to halt its sales declines around the world. The company has been struggling in many markets for some time as it fails to keep pace with changing consumer trends. Although its new CEO says the company now has a 'hunger for change', some analysts believe that it is 'too little, too late' for the world's best-known franchise. Much will therefore depend on the May 4 announcement.

The world's biggest hamburger chain said global sales declined 2.3 per cent at established locations during the first three months of the year, with results for April expected to be negative as well. The drop included a 2.6 per cent drop in the U.S., where people are increasingly heading to places that market their food as more wholesome.

Meanwhile, McDonald's is struggling in other regions of the world as well. During the first quarter, the unit encompassing Asia, the Middle East and Africa reported an 8.3 per cent drop in sales at established locations, hurt by a supplier controversy in China last year and ongoing consumer perception issues in Japan.

Sales at established locations dipped 0.6 per cent in Europe because of softness in France and Russia.

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

The New Zealand Herald is running a series of franchising stories this week. Today's is about a couple of Robert Harris franchisees. We ran a detailed article on working with your spouse a few years ago - read it here. And find out more about the Robert Harris franchise here.

There are some challenges when you're part of a franchise group. Sometimes the wheels of change can move slowly. Yes, it's our business, but the decisions that we make can have wider implications, and so there are processes we need to follow when we want to implement any changes.

Sometimes other challenges can be because you're part of a franchised network. If someone visits a Robert Harris cafe in another part of the country and has a bad experience then this could - and through no fault of our own - have a negative impact on your business. You're only as strong as your weakest link.

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

21 April 2015 - Google has set a deadline of today for websites to ensure they are mobile friendly, and those that do not meet the requirements risk being cut from Google searches. Franchise New Zealand readers and clients needn't worry - we've been mobile friendly for years - but other franchising websistes (even newly-developed ones) don't come up so well. Test for yourself at https://www.google.com/webmasters/tools/mobile-friendly/

The requirements included being readable on smaller phone screens, not using software that was not compatible on mobiles and having links spaced out to make searching on mobiles easier for users.

Auckland based marketing consultant Fleur Revell from Impact PR said she had looked over websites of the NZX's top 50 companies earlier this month and found that half failed Google's online mobile readiness tool.

'Dynamic businesses that can adapt rapidly to Google's 500 algorithm changes each year will reap the rewards, while others will be relegated to virtual obscurity as their rankings slip off the coveted first page of Google,' she said.

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

Restaurant Brands CEO Russell Creedy says the company plans to expand its Carl's Jr. chain substantially over the next five or six years as the company reports a solid performance across all its divisions.

The NZX-listed company bought the New Zealand rights to American fast-food brand Carl's Jr in 2011, opening its first store the following year.

It has since expanded to 18 stores in the North Island, netting $200,000 in earnings before interest, tax, depreciation and amortisation and a 40 per cent increase in sales to $20.1 million.

Creedy said sales at the burger chain would continue to grow as the company looked to expand the brand to an initial 60 stores in the next five or six years.

'It's [had] very rapid growth,' Creedy said. 'I think the market could easily take 60 stores, that's an initial target for me.'

'If you look at competitors, they have around 80-plus stores - KFC has close to 100 and McDonald's around 160, so 60 is a pretty realistic first target,' he said.

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

Burger King is to stop including toys with kids' meals and end child-focussed TV advertising as it seeks to claim the moral high ground over rival McDonald's. Last year, Burger King added energy content to its menu boards, and it has already reached agreement with the Unite Union over zero-hours contracts.

'We decided some time ago to re-evaluate how we present our kids meals, and as part of our ongoing commitment to the Advertising Standards Authority Children's Code for Advertising Food, the decision was made to drop toys altogether.'

The chain will stop selling toys at all 82 of its outlets nationwide.

Hunter said the move was Burger King's second major initiative to help customers make healthier choices. Last year, it became the first major burger chain in New Zealand to display the energy content of menu items on menu boards.

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

16 April 2015 - McDonald's has said it is committed to working with the Unite Union in the controversy over zero-hours contracts. The franchise has become the major focus for media coverage of the debate, which saw strikes and protests at several different companies yesterday. Other fast food companies, such as Hell Pizza, Burger King, and the Restaurand Brands 'big four' (KFC, Starbucks, Pizza Hut and Carl's Jr.) have already reached agreements.


An editorial in today's New Zealand Herald calls not just for an end to zero-hours contracts but for Government changes to include guaranteed numbers of hours of work.

Unite director Mike Treen led his delegates out of a five-hour mediation meeting on Tuesday because he said McDonald's refused to guarantee 80 per cent of actual hours and insisted on guaranteeing 80 per cent of rostered hours only.

"Rosters go up and down. We can't measure a roster," he said. "At the end of it I said, 'Are you moving from scheduled hours to worked hours in your proposal?' And they said no."

However McDonald's human relations manager Christine Hutton emailed Mr Treen at 4.30pm yesterday proposing further mediation dates between April 17 and 29. Spokeswoman Kim Bartlett said the company was willing to talk about scheduled or worked hours.

"Our initial offer was exactly the same as Restaurant Brands but it was scheduled hours, theirs was worked hours," she said. "We are willing to have a discussion with Unite about that, but to do that we have to be in the same room."

Mr Treen said he would accept more mediation if McDonald's assured him that it was willing to make "a meaningful offer".

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

The Unite union says that it will organiise strikes and protests at McDonald's, Burger King and Wendy's outlets on Wednesday as part of an international fast food workers' day of action. The intention is to create more pressure around zero-hour contracts. Unite reached an agreement with Restaurant Brands over the issue last wek, but has said McDonald's offer is 'meaningless' and 'misleading'. Meanwhile, Workplace Relations Minister Michael Woodhouse is apparently readying to abolish the practice.

Controversial zero-hour contracts mean workers had to be available for work but had no guaranteed hours per week. Woodhouse asked officials to review the legislation late last year, amid concerns employment laws were not being used as intended. 

Prime Minister John Key said if zero-hour contracts were being used in a way to discriminate against employees then that had to stop.

'But general flexibility in the labour force is also important, because there are some people who want to have that flexibility.'

Casual contracts were a common practice, which did not require employees to always be available or prevent them from picking up hours elsewhere. 

Woodhouse told One News it was worth banning zero-hour contracts, even if their implementation was relatively low.

'We can expect to get some good advice about that to make some changes in that bill to effectively rule out those kind of punitive provisions. "Even if it is a relatively low incidence in our employment, it's probably worth ruling them out, for the sake of certainty for those vulnerable workers.'

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

April 2015 - Following on from Restaurant Brands' announcement last week that it would end zero-hours contracts at all its outlets, McDonald's has announced that it will do the same - but Unite Union has called their proposal 'meaningless'

McDonalds NZ announced Monday all employees would receive 80 per cent security of hours up to a 40 hour cap, based on the average of the previous 12 weeks. 

The company had presented its updated position on security of hours at its most recent collective bargaining meeting. 

That had 'previously been common practice' when it came to scheduling in McDonald's restaurants, but would now be formally written into employment agreements, communications manager Kim Bartlett said.

Hoewver, Unite Union has criticised the proposal, calling it 'meaningless' and 'misleading'.

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

April 2015 - Two articles from an influential US franchise magazine have put the focus on franchising in New Zealand

Restaurant Brands has agreed with Unite Union to end zero hours contracts at its outlets by the end of July. Unite has 2000 members working in the company's  KFC, Pizza Hut, Carl's Jr. and Starbucks brands.

Unite's national director Mike Treen said it was a giant step forward for the industry.

'Restaurant Brands is a public company, and I think that they recognised New Zealand society has moved on; that it's no longer acceptable in 21st century New Zealand for this type of contract to exist, so they're looking for a way to move with the times.'

The Unite Union is now setting its sights on other major fast food chains. It will mount a campaign to try to convince McDonald's, Burger King and Wendy's to end zero hour contracts.

'It is time for New Zealanders to tell these profitable multi-national chains that they need to stop taking advantage of their often young and vulnerable workers and put an end to a labour practice that the people of New Zealand have made clear they find unacceptable,' said Mr Treen.

Read more at http://www.radionz.co.nz/ne...

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