In The News

ANZ managing director of retail and business banking Fred Ohlsson said construction and agriculture were caught in the tailwind of the Canterbury rebuild and increasing commodity prices.

However, optimism was at, or near, historic highs across all major sectors, according to the survey of 250 micro and intermediate firms in New Zealand.

The rising confidence was paving the way for a broad-based uplift in business activity, employment and economic growth, he said.

The Auckland-based firm will buy half of Kiwi Pacific Foods for $2.8 million in cash and $400,000 in shares at $1.38 apiece, with potential earn-outs if certain export targets are met. The owner of the remainder of the business is Antares Restaurant Group, which holds the New Zealand Burger King franchise.

'Kiwi Pacific Foods is a business that can be supported by the procurement base of the Mad Butcher Limited business and aligns us with the iconic Burger King'brand as our cornerstone client,' Mad Butcher chief executive Michael Morton said in a statement.

'We see good growth opportunities in export markets through the Burger King connections internationally.'

'The last time we saw these sort of readings, in 1994 and 1999, an economic upswing was in full swing. Gross domestic product growth was in excess of 5 per cent.'

In both those cases the economy was rebounding from recession. This time there are some additional one-offs - the need to rebuild Christchurch and address housing shortages in Auckland, and the most favourable terms of trade for 40 years.

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.

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."

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.

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.

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.'

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.

[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.

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.

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."

'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.'

'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.'

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.'

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.

"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.