In The News

He’s the embodiment of a shifting balance of power over the last few years that puts many multi-unit operators on equal footing with, or in many cases several rungs above, the franchisor whose stores they buy and whose rules they follow. 

Hashim is a vocal critic of franchisors who don’t treat their franchisees as partners, and he uses his bully pulpit to say so as the rising chairman of the International Franchise Association. (When he becomes chairman in 2016, he will be one of just a few franchisees to hold the post in IFA history.) He scoffs when, at conferences, the spotlight always shines on franchisor execs and rarely on franchisees. “CEOs of brands with literally 20 stores will be keynote speakers, and in the audience are franchisees with 300 stores. And somehow that franchisor knows more?” he says. “I find it comical.”

He knows which brands he’d never touch. “You look at the boards of companies that purport to be franchisors, and you will be hard-pressed to find a franchisee anywhere. How strange is that?” he says, adding such companies often lace their disdain of franchisees throughout their management practices. “I think the industry needs to take a stronger look at the wisdom and talent of franchisees and use that.”

What’s surprising to him is how few people do their due diligence, by calling multiple current franchisees before deciding to buy. “I’ve been in 10 brands and I’ve been called probably three times” over the years, he says, by prospective franchisees.

“The staff decision issued today by the National Labor Relations Board recommending that McDonald’s and its franchisees should be considered joint employers gives a whole new meaning to the word ‘outrageous,’  David French, the National Retail Federation’s senior vice president for government relations, said in a statement.

McDonald’s and other fast-food operators — pressured by union groups in recent months to raise wages and improve working conditions — have said franchisees are independent business owners who set their own policies. But activists said the decision was proof McDonald’s controls its franchisees more than it claims to.

“The reality is that McDonald’s requires franchisees to adhere to such regimented rules and regulations that there’s no doubt who’s really in charge,” said Micah Wissinger, an attorney at Levy Ratner who brought the case on behalf of McDonald’s workers in New York City.

Also read QSR magazine's report.

"Burger King New Zealand acknowledges 2013's increased competitive environment, however we remain focused on key business strategies that are right for our business," chief executive John Hunter said in an emailed statement. "Our menu innovation, restaurant expansion and refurbishment programme plus our operational and guest experience strategies remain our core focus for the continued growth of Burger King New Zealand."

Wilson said the company had been collecting customer feedback through social media about which pie flavours to bring back next. McDonald's will be trialling an apple and blackberry sweet pie from this week, until they run out. The trial would consist of 30,000 pies available in McDonald's in South Auckland, Hamilton, Palmerston North and Christchurch

Supporters of mandatory severance pay said it was time to align our severance pay model with other developed economies. But Employment advocate Danny Gelb said compulsory redundancy would increase costs to business "by stealth".

Small Business Voice chief executive Max Whitehead said small and medium-sized enterprises should be exempt from compulsory redundancy pay laws, as in Australia.

He said a mandatory regime would have destroyed small firms during the recession — but said he was "horrified" to hear of staff who had worked at big firms for almost 20 years getting no redundancy pay.

Speaking at the listed cafe and fast food company's annual general meeting in Auckland today, chairman Ted van Arkel said most shareholders would be satisfied with the return on their investment over the past year. 

'Restaurant Brands is a business going from strength to strength,' Arkel said.

'We have the core competencies, the financial muscle and scale to capitalise on any opportunities that do arise.'

Restaurant Brands' total sales during the first quarter (12 weeks ended 19 May 2014) were $77.7 million, an increase of 5.9% or $4.3 million on the equivalent period last year, with all four brandsrecording positive sales growth.

Of the total increase in sales KFC was the key contributor at $2.8 million with Carl’s Jr. contributing a further $1.4 million.

Same store sales for the company were up 4.3% with strong growth in KFC which grew 5.0%. Starbucks Coffee was up 5.5% and Pizza Hut up 9.3%. Carl’s Jr was down 36.2% as it rolled over very high new store opening sales in the four stores open in the prior year.

Third-quarter sales at the Mad Butcher business were weighed down by product shortages created by last year's drought, and aren't expected to recover in the fourth quarter. Still, the company's half-stake in Kiwi Pacific Foods, which makes hamburger patties for Burger King, is expected to make up for the shortfall.

Starbucks has gone well beyond allowing people to build custom orders around its traditional coffee drinks.

Last weekend, before my daughter and I left home, she had already searched for “Starbucks secret menu” on the computer and narrowed her choices to a handful of drinks (all of which involved various ingredients from Starbucks' menu for adult drinks).

By the time we reached the store, my daughter had decided on a “Rolo Frap," but neither the Starbucks’ employee taking her order nor the barista had heard of the drink. Rather than disappoint my daughter, they asked for the recipe to make it and we grabbed it online (using the free and easy-to-access Starbucks Wi-Fi, of course).

Starbucks prepared and priced a drink that they had never heard of before and my daughter was delighted -- so much so that she took a picture of the drink and posted it on her Instagram before she even tasted it.

'McDonald's and our 53 New Zealand franchisees largely enjoyed a positive 2013, buoyed by the launch and roll out of Georgie Pie,' McDonald's New Zealand managing director Patrick Wilson said.

But while revenue was up, net profit for the period was down 3.7 per cent to $30.7m.

Having recently opened a restaurant in north Hamilton, McDonald's now operated 163 restaurants and employed more than 9000 staff in New Zealand.

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Marshall said he had done his due diligence on the business and there was potential for it to do well in this country. The Golden Roast will face competition from a number of existing operators offering spit-roast catering services.