In The News 
NAMED – the best franchises in New Zealand 23rd December 2022
What do franchise buyers want? 23rd December 2022
A new survey has some lessons for prospective franchisees as well as franchisors. Dr Callum Floyd and Adrienne Heard of Franchize Consultants and Simon Lord of Franchise New Zealand media report
Where do you want to be? Moving for a new business 23rd December 2022
McDonald's franchisee pays $28/hour for new staff 21st December 2022
22 December 2022 - A McDonald’s franchisee in Queenstown is offering $28 an hour for untrained and inexperienced staff to work during its busiest time of the year.
The difficulty of finding staff in the hospitality sector has been highlighted by the McDonald's franchisees in Queenstown and Frankton, who are offering $28 an hour for untrained and inexperienced staff to work during their busiest time of year. Workers will also be paid time-and-a-half on public holidays – a total of $42 an hour before tax. Workers at the two stores are already being paid a starting rate of $25 an hour, necessary to meet Immigration NZ requirements.
'I think it’s a significant amount of money to pay somebody you train on the job,' franchisee Sarah Lucas told Stuff. She said she was frustrated with Immigration NZ policies and had found the new Accredited Employer Work Visa (AEWV) system and its implementation 'woefully inept'. The AEWV actually discriminates against franchisees as employers, charging them more than 5 times as much as independent businesses to become accredited under the scheme.
People were now paying more for the system and getting a worse service than before, Lucas said.
'I email Immigration all the time. Some of our people get stuck in the system, and they just don’t move. They just sit there, and nobody tells you,' she said. 'I just wish the Government would wake up and see what they’re doing to businesses.'
Modern slavery: record $1.55m fines for ex-franchisee 18th December 2022
19 December 2022 - A multi-unit liquor store franchisee and his associated companies have been slapped with a record $1.55 million in fines after he confiscated workers’ bank cards, forced them to work 70-hour weeks and made them sleep in a cubicle at one of his shops.
Sukhdev Singh, who owned four Liquor Centre stores, will have to pay $415,800 himself within 14 days. The Samra group of companies which ran the stores have to pay up $1.138m. Singh also received the longest-ever banning order from operating a company, a three-year term starting in January. The offending took place between 2015 and 2019.
The chief executive of franchisor Tasman Liquor, Grant Simpson, told Stuff the offending happened before they bought the Liquor Centre chain in 2020. He said they terminated their relationship with the Samra group in 2021 after the first judgement against them. Simpson said they would not work with the group again and was working with the Inspectorate to “eradicate this type of behaviour” from the industry.
Franchising unites to support Pork Pie run for charity 13th December 2022
13 December 2022 – Two franchising personalities are taking this Mini to Invercargill – and aim to raise a massive $100,000 for KidsCan along the way
NZ's best franchises named - with full pictures 9th December 2022
When franchisee finance can be illegal 9th December 2022
December – 2022 Might some franchisors’ attempts to help their franchisees with financing, pricing or selling cause them to fall foul of some unexpected laws? Michael Bright investigates
New Life Members for FANZ 7th December 2022
November 2022 - The Franchise Association has appointed three new Life Members in recognition of their long-term contribution to the franchise sector
Change and success in the food biz 5th December 2022
Food franchises have always been popular – after all, everyone needs to eat. But hospitality is going through massive changes, so what do new buyers need to think about?
Should you buy a business instead of a house? 2nd December 2022
2 December 2022 - An interesting article from Stuff today about the possible value of buying a business rather than a house. It interviews Krista Coningham, the new Westpac Supreme Franchisee of the Year (although it gets a little confused about her awards - see our full report here) and Chris Small of ABC Business Sales, who seems a bit less enthusiastic about franchises - his company doesn't specialise in franchises as much as some other brokers do. He previously recommended buying existing businesses rather than new ones, and we posted some thoughts here. As always, it pays to take expert advice before buying any business from anyone.
Attracting migrant capital 26th November 2022
26 November 2022 – Details have now been published of the new Active Investor Plus scheme. What might it offer to franchisors, franchisees and migrants? Simon Laurent reports
NZ Franchise Awards 2022 Results: YOU BEAUTY! 12th November 2022
12 November 2022 – Two home-grown beauty brands starred at the Westpac New Zealand Franchise Awards. Both were Supreme Award winners for the first time, while winning franchisees came from towns all over the country.
Christmas comes early thanks to KidsCan kids 7th November 2022
November 2022 – Every year, The Coffee Club and KidsCan collaborate on a special competition to design the seasonal takeaway cups used in The Coffee Club's 65 cafés around New Zealand. But it's not just about the glory of winning – the young artists also raise thousands of dollars for their schools
Fake review ex-franchisee faces bankruptcy 6th November 2022
November 2022 – A Quinovic property rental franchisee who had his franchise agreement terminated after posting fake reviews on Facebook and Google now faces bankruptcy, according to Stuff. Akshaya Khera lost a bid to set aside bankruptcy notices over nearly $600,000 in unpaid court-ordered costs which had been awarded following the termination. The franchise agreement between Quinovic and Khera's company Exuberant allowed Quinovic to claim “actual and reasonable” costs from the termination of the agreement. Quinovic was awarded costs of $683,201 after spending $860,862 trying to prove the reviews were fake, included legal expenses and witness costs, according to a High Court judgment in late 2021.
Global franchise brands offered to NZ entrepreneurs 1st November 2022
November 2022 – Some top food brands are among nine international franchises looking for local partners in New Zealand
Small businesses increasing sales, employing more people 30th October 2022
October 2022 – Rising sales and slower increases in wages have signalled an improvement in small business prospects, new data from Xero shows
Xero NZ country manager Bridget Snelling said strong jobs growth in September was encouraging to see, and meant that small firms had the confidence to grow their teams and hire despite record low unemployment.
Snelling said the small business economy remained 'highly attractive to Kiwi employees' and was 'competing well with large businesses'.
Geotech named Australian Franchise Supplier of the Year 28th October 2022
October 2022 – Geotech Information Services has been named Australian Franchise Supplier of the Year at the recent FCA Business Essentials National Excellence in Franchising Awards
Domino's launches plant-based pizza 24th October 2022
25 October 2022 - Domino's has added the option of a plant-based 'beef' topping from Impossible Foods to its pizza range
Domino's Australia/New Zealand chief marketing officer Adam Ballesty said that the meat-substitute pizzas would be available every day of the week.
'We know people are actively seeking more sustainable food options, but it is also critical that these alternatives deliver on taste and a great pizza experience. The Impossible Beef pizza topping ... has all the flavour and texture of juicy, authentic minced beef, but with far less environmental impact.'
The Domino's launch comes just months after McDonald's ended trials of its McPlant burger in the USA owing to disappointing sales. The cover story in our latest issue looks at the move to meat-free and other major trends and opportunities in the hospitality sector.
Immigration support for hospitality and tourism sectors 9th October 2022
9 October 2022 - Immigration Minister Michael Wood today announced measures targeted to support the hospitality and tourism sectors and have adjusted the requirement to recruit chefs as requested by industry.
Support is also being provided to the wider tourism and hospitality sector, by extending their exemption to the median wage threshold to give them more time to transition.
“As the world recovers from COVID-19, labour shortages continue to be a persistent ongoing global symptom,” Michael Wood said.
“We are listening closely to the concerns of the hospitality and tourism sectors, and working with them to take practical steps to support them with these challenges where we can, as businesses work towards more productive and resilient ways of operating.
Staff availability has been a major concern for many hospitality businesses in recent months, with some operating shorter hours as a result - see our cover story here.
Taste the future with Katsubi 5th October 2022
Serving food that’s fast, fresh and healthy, Katsubi delivers a winning formula
Are food franchises worth more or less on resale? 5th October 2022
5 October 2022 - A report suggests franchise resales are attracting lower multiples than other businesses. Is that true?
BurgerFuel launches rescued bread-based beer 4th October 2022
5 October 2022 - Bread into beer into buns: BurgerFuel, in collaboration with Citizen Collective, is launching a craft beer made from rescued surplus bread
Finalists announced for 2022 Franchise Awards 30th September 2022
30 September 2022 – Many of New Zealand’s top franchise brands are fighting for honours in the Westpac New Zealand Franchise Awards. Here's the list of finalists
McDonald’s Hiring Day adds over 700 staff 28th September 2022
At a time when many hospitality businesses are struggling to find staff, 700 people have joined the McDonald’s crew following the chain’s first ever New Zealand National Hiring Day last Saturday, with a further 2000 people expressing interest. More applicants are currently being processed, so the initial number of new hires is expected to be closer to 1,000.
The day provided Kiwis with the opportunity to walk in and interview in restaurants across the country and be hired on the spot.
McDonald's NZ looks to hire 2,000 people in a day 20th September 2022
McDonald's is hiring 2000 workers in New Zealand with jobs being offered on the spot as part of its recruitment drive.
The fast-food chain is holding walk-in interviews at all of its restaurants on Saturday September 24, which it has termed National Hiring Day. People of all ages and experience levels are encouraged to show up between 9am and 6pm for an interview.
The move comes as many hospitality businesses struggle for staff, leading some to operate short hours. Read more in the cover story of our latest free magazine.
Changing traffic, changing business 15th September 2022
Geotech have been mining their data to outline some post-pandemic shifts in New Zealand’s retail landscape
Immigrant workers who aided fraud investigation may have to leave NZ 13th September 2022
A group of migrants who have been helping an investigation into immigration fraud may soon be forced to leave the country, RNZ reports. The group were some of the 50 Chinese construction workers who claimed a New Zealand-based recruiter had misled them about their pay and working rights. An arrest warrant was issued for Li Wenshan, who fled New Zealand before charges were laid, and two associates face a trial in December this year; however, 10 workers expected to give evidence have been told by Immigration authorities that they would be expected to leave the country within a month of the trial ending.
Green Party immigration spokesman Ricardo March said the treatment of this group undermined efforts to combat migrant exploitation. 'These workers are not pieces of evidence, they are human beings, and so to put them in a situation where they are treated as expendable once they're not deemed useful to provide evidence is unjust,' March said. 'And, actually, [it] will undermine the government's intent to create a supportive environment where workers are able to come forward and participate in processes to hold employers to account.'
Unite Union director Mike Treen, who has assisted the men since 2019, is also called for a pathway to residency for this group. Treen said the system of temporary visas had fuelled migrant exploitation and needed to change. 'Immigration New Zealand [INZ] created a system of migrant labour exploitation, and they throw out the people who have helped expose it,' he said.
Worker exploitation has recently been targetted by the Labour Inspectorate and the MBIE, but in a recent interview with Franchise New Zealand, Dr Christina Stringer of the University of Auckland Business School was critical of the new Accredited Employer Working Visa (AEWV) scheme which continues to tie immigrants to specific employers. ‘International research highlights that the linking of an individual migrant to an employer creates a precarious situation,’ she said. Under the AEWV system, franchisee employers are charged over five times as much for accreditation as independent business owners.
Restaurant Brands bosses to step down 6th September 2022
7 September - Russel Creedy, CEO of Restaurant Brands, and CFO Grant Ellis are to retire next year after 20 years with the company, which operates KFC, Taco Bell, Pizza Hut and Carl's Jr. in New Zealand. They will move into new positions in the interim.
Residence through investment 4th September 2022
3 September 2022 – A new immigration scheme being introduced later this month could open up opportunities for larger investment franchises. Simon Laurent, of immigration specialists Laurent Law, reports
Invite to Australasian Franchisor Executive Forum 1st September 2022
1 September 2022 - Senior New Zealand franchisors are being invited to attend the Franchisor Executive Forum In Melbourne, Australia, on 27 September.
Conference huge success for NZ franchise world 31st August 2022
1 September 2022 - Last week's National Franchise Conference in Wellington saw over 200 people from New Zealand, Australia and the USA get together in person at last
Thanks to Gorbachev, Russia has Pizza Hut - no more 31st August 2022
1 September 2022 - An old Pizza Hut advert showing former USSR president Mikhail Gorbachev promoting the brand, has resurfaced once again after the brand pulled out of the country owing to the war in Ukraine. As the BBC reports, the advert was aired internationally in 1998 but was never shown in Russia, where it was ridiculed by the press. It's being regarded as an 'era-defining artefact'.
McDonald’s meatless burgers fail to fire in US 9th August 2022
10 August 2022 – While plant-based alternatives from companies such as Beyond Meat and Impossible Foods have been touted as the ‘next big thing’ in the hospitality sector, McDonald’s has just ended trials of its McPlant burger in the USA owing to disappointing sales, and reportedly has no plans for further trials.
Franchise conference - scam warning 3rd August 2022
The National Franchise Conference has proved so popular that it’s even attracted the attention of scanners. An email (ours was from ‘Rosalie Silva’) appeared to offer details of all 1100 attendees at the Wellington conference, including client name, business name, title, email address, phone number, and web address, etc. Well, the conference hasn’t happened yet, and although it will be big it won’t be attended by 1100 people, either. FANZ CEO Robyn Pickerill says, ‘FANZ respects the privacy of its members and conference delegates, and does not sell attendees' details.’ See genuine details of the Conference, which takes place on 22-24 August - places are still available.
Buyer beware - are you seeing the whole truth? 3rd August 2022
August 2022 – A recent advertisement for a franchise opportunity in the USA has drawn attention for making claims that rely heavily on the small print, according to well-informed franchise commentators. It’s a reminder to franchise buyers to take care
New GM for Domino's NZ 1st August 2022
Restaurant Brands releases figures, rules out buying Wendy's 27th July 2022
28 July 2022 - Restaurant Brands has ruled out purchasing the Wendy's NZ chain of 22 stores recently put up for sale by the Lendich family. Restaurant Brands also owns the Carl's Jr brand in New Zealand and CEO Russell Creedy told NBR, 'One beef burger brand is enough for us.'
The NZ-listed company, which also operates Pizza Hut, KFC and Taco Bell stores in New Zealand, Australia, Hawaii and California, yesterday announced its second quarter sales figures, saying that 'Covid-19 continues to affect Restaurant Brands’ business operations, with high case numbers resulting in staffing issues for the business as well as its contractors and suppliers.' Total sales were up by 8.2 percent over the previous year, supported by 17 new stores and the strengthening of the US dollar. Same store sales by region were as follows:
- New Zealand: Up 1.4 percent
- Australia: Up 5 percent
- Hawaii: Up 2.9 percent
- California: Down 3.0 percent
Restaurant Brands share price fell 9.4 percent after issuing a profit warning, saying it was struggling with Covid-related staffing issues and worldwide increases in costs.
2022 training programmes – improving franchise performance 12th July 2022
Four training programmes being held in May/June/July 2024 are designed to address the needs of the owners and managers of franchise systems, field managers and support office staff
New FANZ Board named 12th July 2022
July 2022 - The Franchise Association has a new Board for the coming year
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