In The News 
ASA upholds Countdown complaint about Mad Butcher ads
17th December 2013
The Advertising Standards Authority has upheld a complaint by Progressive Enterprises, owners of Countdown, that a series of adverts by The Mad Butcher claiming that Countdown was 31.5 percent more expensive was likely to mislead customers.
Jo, understood to be a real person, bought five meat products from the Mad Butcher Onehunga store and the Countdown Greenlane store on May 22.
These products cost $88.95 at the Mad Butcher, and $116.95 at Countdown, so the consumer could have saved $28 or 31.5 per cent, as advertised by the Mad Butcher.
Progressive Enterprises said the advertisements were misleading because no "basket shop" was undertaken by Jo at Countdown; consumers could not buy four of the five Countdown products at the prices listed in the campaign; one kilogram packs of meat were not available for purchase at Countdown; the products compared were not of similar quality; and the Mad Butcher prices should have been compared with the Countdown Onehunga prices.
BurgerFuel wins price war by not taking part
14th December 2013
BurgerFuel has announced record worldwide sales of $30 million in the six months to the end of September and says its brand has proved resilient to discounting by other burger chains. As ex-McDonald's and now BurgerFuel director Al Dunn told us in this article in 2009, 'Stay away from a price war or you'll get dragged into the commodity business and margins will evaporate.'
Chief executive Josef Roberts said BurgerFuel had not been dragged into the price war between its larger competitors. Amid an ultra-competitive fast food environment, McDonald's and Burger King have been offering burgers for as little as $2.
"We've kept away from that [discounting] and we've grown sales strongly while all of that's been going on," Roberts said. "It's become apparent that we are positioned away from the multi-nationals."
Employment law proposal exempts some franchisees but still has hooks
13th December 2013
12 December 2013 – New recommendations on a controversial employment bill recognise the independence of franchisees but say it’s who generates the work that defines how franchisees will be treated
Carl's Jr. stars for Restaurant Brands
12th December 2013
New board member for Esquires owner Cooks
11th December 2013
Franchise Awards photos - the social side
9th December 2013
The Westpac New Zealand Franchise Awards are a chance for the franchise whanau to get together, network, exchange stories and gossip and party into the small hours. Here's a selection of photos from the evening's festivities.
Fastway delivers story of hope for Starship
6th December 2013
Nando's NZ placed in receivership
30th November 2013
Troubled Nando's franchisees disputing marketing spend and rebates
29th November 2013
The failure of a Nando's store in Ponsonby owned by a high-profile franchisee is highlighting disagreements within the chain in New Zealand. A group of disgruntled current and former franchisees are questioning marketing spend, ingredient supply costs, loan repayments and incentive payments or rebates paid to the franchisor by chicken suppliers Tegel. Master franchisee Shailen Ramjee, himself a former Nando's franchisee, has strongly defended the company, pointing out that when he took over in 2006 the business was in a state of disarray, and that despite the GFC only two outlets of the 31-store chain had permanently closed.
Ramjee says a large majority of franchisees are happy with the franchisor and the business in general.
One of them is Kuldeep Arora, owner of the Nando's stores in Auckland's Epsom and Hamilton's The Base shopping centre.
He's so happy, in fact, that he plans to open his third Nando's store in a location he didn't want to disclose.
Arora says some people think they can buy a franchise and it will "run itself", but it actually takes a lot of hard work to make a business a commercial success.
"Nando's is a great system."
Arora says he has an excellent relationship with Ramjee, adding that it's "human nature" for people to blame others for their business failings.
McDonald's NZ launches food question website
27th November 2013
Restaurant Brands considers adding Mexican and Asian food as it eyes Australia for Carl's Jr.
25th November 2013
Restaurant Brands CEO Russell Creedy is considering taking the Carl's Jr. brand to Australia, and the brand's US owner has said it would 'look favourably' on the company taking up the Ausralian rights. Given the performance to date of Carl's Jr. in New Zealand, which Creedy suggests could become a $200m brand by 2020, Australian companies would also presumably be interested. It is not known whether Restaurant Brands has first option on the Australian rights.
The company is also considering two other new brands - one Mexican and the other Asian fusion.
Yum Brands, which owns KFC and Pizza Hutt, also has the Taco Bell fast food-brand, which Restaurant Brands recently mooted bringing here.
Creedy said Taco Bell was still under consideration but it was more likely it would opt for a healthy Baja-style brand. Mexican fast-food brands in the US that are expanding offshore include Baja Fresh, California Tortilla and Chipotle Mexican Grill, with the latter also recently opening stores for its new Asian fusion brand, the ShopHouse concept.
Hell launches 'world first' zombie game
21st November 2013
Another world burger record for NZ
21st November 2013
The Mad Butcher sells last personally-owned store
19th November 2013
Sir Peter Leitch, the founder of The Mad Butcher chain, has sold the last store he owned himself back to franchisor Veritas Investments after nearly 50 years in business. He will continue to be an ambassador for the brand, which has 37 stores nationwide and is on the expansion trail.
Sir Peter admits he was a little emotional about selling.
'That store has got a lot of spiritual - and very, very good - memories,' the 69-year-old says. 'It's been a wonderful journey but it was time to let go and to move on.'
NZ franchise buyers to access more expertise
17th November 2013
Award-winning specialist Franchise Accountants takes on new role as co-sponsor of Franchise New Zealand
Franchise awards - RESULTS
16th November 2013
Bethlehem’s Ivy Joe stays on top as New Zealand's top franchisee and The Coffee Club reigns supreme in the Westpac New Zealand Franchise Awards for the second year running
Refresh franchise to manage TV renovation project
15th November 2013
KiwiYo takes award in Deloitte Fast 50
14th November 2013
Frozen Yoghurt franchise KiwiYo has won the National Rising Star award in this year's Deloitte Fast 50 list. The self-styled 'bar for people who aren't allowed to drink' currently has seven outlets in Auckland and the Bay of Plenty, and is planning overseas expansion and an eventual stock exchange listing (following in the footsteps of other recent franchise listings). 'Rising Stars' are categorised as businesses that have not yet been operating for three years or which do not qualify by reason of turnover for the main Fast 500 list. The only franchise to be included in the main list was Pita Pit at number 30, with revenue growth of 263.86 percent.
KiwiYo’s concept is nothing new, with frozen yoghurt and the self-serve model having been around for many years, (KiwiYo CEO) Norman Markgraaff says.
What it has done differently is its in-store design using video screens, lighting and other effects to appeal to a younger market, combined with clever social media engagement. Online videos of staff rapping, Instagram pictures of celebrity customers such as former All Black Mils Muliaina, and sponsorship of the Mission Bay square on the Auckland Monopoly board are all part of the equation.
‘The nature of our stores is basically a bar for people who aren’t allowed to drink. It’s a social gathering spot,’ Markgraaff says.
A Wellington couple who signed up to open an Original California Burrito Company franchise in the capital are seeking more than $200.000 in damages after the chain collapsed following a marital dispute between the franchisors. Two existing franchisees of the chain are still trading and are believed to be re-branding.
[Franchisee] KDC Holdings is claiming business losses of $211,586, including $158,750 it paid to Barrow and Hudson - the firm that holds the licence to the burrito chain's intellectual property - $10,000 for purchase of a scooter and the $18,975 it cost to be released from the lease on the Cuba St property.
Top 200 report - growth reurns to global franchises
6th November 2013
Alarmist headline from NBR: 'Prominent franchiser's business flop'
6th November 2013
The latest issue of the National Business Review's Last Call newsletter leads with the alarming headline ‘Prominent Franchiser’s (sic) Business Flop.’ In fact, the business in question is the non-franchised Central Installation owned by Andrew Chisholm, who also happens to be a director of the company which owns Green Acres and Hire A Hubby. There is no suggestion in the NBR article that Central Installation, which has been placed into liquidation, had any franchise connection beyond that. The NBR article can only be read by online subscribers.
Andrew Chisholm was the sole director of the company, which installed insulation in line with the government’s $347 million Heat Smart scheme to subsidize home insulation. NBR ONLINE understands that Central Installation had about 35 staff at its peak in July 2012 and was invoicing about $700,000 each month.
Signs point upwards for NZ economy
6th November 2013
Business confidence highest since 1994
1st November 2013
The latest ANZ Business Oulook Survey shows confidence remains buoyant, with a net 53 percent of firms expecting the general business situation to improve in the year ahead. The survey further reinforces the findings of the Franchise Confidence Index which shows franchisors are also expecting better times ahead.
The New Zealand economy was in a sweet spot, Bagrie said.
"While we remain at the mercy of global forces to a degree, local specifics - housing shortages, booming dairy prices, a city rebuild and a turnaround in job prospects encouraging less emigration - are delivering considerable pep."
Franchisees show support during Aussie bushfires
30th October 2013
McDonald's NZ accused of contempt for Parliament
29th October 2013
McDonald's has been accused of showing contempt for Parliament after sacking a worker who criticised the fast food giant at a select committee hearing. Anyone who appears before a select committee is granted 'privilege' - the right to speak freely with no threat of retribution, but in this case McDonald's specifically referred to the worker's appearance before the committee in a warning letter before sacking him. The select committee has reportedly sent 'a letter of censure' to McDonald's, and the Labour party and union organisers are expressing concern.
'A McDonald's spokesman admitted it initially warned Bailey about bringing the company into disrepute for making submissions but said that complaint was later put aside. It said Bailey's later dismissal for accessing private records on a company computer was unrelated to appearing before the select committee.'
Australian franchise awards - 2013 results
25th October 2013
Franchise Council of Australia names tops members, recognises importance of field support staff in annual awards
Aussie business to give away franchise
25th October 2013
Mexican restaurants are enjoying mixed fortunes in NZ right now, with the Californian Burrito Company closing its doors (the two existing franchisees are rumoured to be re-branding) while Mexicali Fresh is flourishing. Meanwhile, in Australia, Salsa's Fresh Mex Grill is so keen to find new franchisees that they are giving away a franchise to listeners of a Melbourne radio station. How long before someone replicates the idea here? The line being taken by the radio hosts is 'Ditch the annoying boss and endless emails for delicious fresh Mex, a sneaky siesta every now and then, and a new life as your own boss.' But research shows a desire to 'ditch the boss' is one of the least effective motivators for new business owners. The cover story in our latest issue explains why - get your copy here.
'Three finalists will be selected from the Salsa’s Camp, with the grand prize-winner announced on Friday 29 November by Mix 101.1’s Chrissie and Jane at a live broadcast from Salsa’s Bridge Road store. The fiesta will begin with breakfast burritos, salsa dancing and piñatas and finish with one lucky listener being handed the keys to their very own Salsa’s store.'
Growth strategy gathers pace for newly-listed franchise group
24th October 2013
Franchisee prospects good but where are the buyers?
23rd October 2013
NZ burrito franchise collapses, franchisees still trading
22nd October 2013
The Original California Burrito Company has closed all its stores, with the exception of two franchised outlets and two in Australia, following a marital dispute between the owners. The New Zealand company is owned by Food Retail Group, not to be confused with the Retail Food Group, the Australian listed company. A Wellington couple who signed up to open a franchise in Cuba Street are seeking more than $200,000 in damages.
Australian businessman Jeff Moss opened the first Original California Burrito Company store in Auckland in 2011. He said yesterday that things turned sour in May when he separated from his wife, Lisa Krukziener, the property developer's sister.
She and Andrew Krukziener took out an urgent court injunction against Food Retail Group, the firm that owns the burrito chain's intellectual property, outlets and franchise system, Mr Moss said. 'Unfortunately, as a result [of the injunction], the banks withdrew support and the business has now collapsed.'
How McDonald's US has beaten off rivals
21st October 2013
Ana analysis of the burger market in the US shows just how far McDonald's has pulled ahead of its nearest rivals since 1997, with unit volumes rising from 30 percent higher to 70 percent. This analysis looks at some of the reasons.
Since then, McDonald's implemented its "Plan to Win." That plan won, basically. The company added new dayparts and found reasons to get customers to come in more frequently. Gordon told me about a time when he went there at 3 p.m. one afternoon, typically a dead time for restaurants. "The place was hopping," he said. The reason: snack items and coffee, smoothies and free wifi and restaurants that have been remodeled. Gordon also believes that McDonald's strong breakfast daypart give it a halo effect that lasts through lunch.
Top franchisor takes over at New Zealand beauty franchise group
19th October 2013
Starbucks closing stores as Restaurant Brands focuses on burgers
18th October 2013
Restaurant Brands half-year results show an increased net profit flattered by non-trading items. Starbucks, which is for sale 'at the right price', continues to decline with more store closures although same-store sales are up. Pizza Hut same-store sales have grown strongly as the franchising programme continues.
"Whilst there has been some improvement, trading conditions remain challenging and the [quick-service restaurant] market continues to see heavy price discounting," the company said.
Full-year profit for the group, excluding non-trading items, was expected to be $18m to $19m, the company said, similar to last year's $18.4m.
But Leadbetter said the tough competition, including heavy discounting by competitors Burger King and McDonald's, was unlikely to subside.
Much of the revenue gain in the first six months of the year came from the group's new Carl's Jr burger outlets after a further three were opened in the period, bringing the total to five.
Association appeals for info to help address cartels legislation
15th October 2013
US invites kiwi franchisors to find out more
15th October 2013
Top speakers at Franchise Marketing Forum
15th October 2013
McDonalds training to count towards Massey degree
9th October 2013
Achieving an in-house qualification at McDonald's will gain staff members credits towards a bachelors degree in business studies or a diploma or certificate in business studies at from Massey University. Restaurant managers will be able to have work experience cross-credited for up to four credits - just over 15 per cent of a bachelors degree. That would cut the time it would take to complete a degree by around two years if studying part-time.
McDonald's has previously been recognised by the qualifications authorities both in New Zealand and other countries. Here's an article from 2009 about a UK scheme, and here's a fascinating story from the BBC entitled Everything I Needed to Know I Learned In McDonald's.
The head of Massey's College of Business, Professor Ted Zorn, said it was the first such agreement between the university and a business.
'We have gone in to McDonald's and looked at what they are doing, and created a blanket policy for staff who have completed their inhouse training. We assessed the content [of the inhouse training], and found there was a pretty good fit with some of our first-year papers.'
McDonald's has also introduced a scholarship programme to help staff cover tuition fees.
Beauty franchise group rebrands
8th October 2013
Georgie Pie to go national
8th October 2013
Australian town tells McDonald's to burger off
8th October 2013
As Grey Lynn residents campaign against the opening of a Bunnings, an Australian township has taken its fight to stop a McDonald's franchisee opening in their town to new levels. Although the local council in Tecoma rejected the original proposal by a vote of 8-0, the decision was overturned on appeal to a higher tribunal. Protestors have placed 200 gnomes (a symbol of the town) on the steps of McDonald's headquarters in Melbourne and taken out an advert in the Chicago Tribune.
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