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In The News

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.

Read the full report here.

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

'Beautiful kids' recognised in franchise's annual competition 8th July 2022

'Beautiful kids' from a low-decile school in Christchurch have received long-overdue recognition through their prize-winning performances in The Coffee Club's annual Christmas Art competition after an emotional plea from their teacher. The competition with KidsCan, whose winners have been profiled every year by Franchise New Zealand, is a prime example of the contribution many franchises make to the communities they serve. According to the 2021 Franchising New Zealand Survey by Massey University, 24 percent of the franchise brands operating here contribute more than $100,000 each per year to the community.

Advice on riding the rollercoaster of inflation 6th July 2022

After a long period of stability, many countries – including New Zealand – are entering a new period of inflation. This impacts consumer spending and has a knock-on effect to business owners. So what can franchisors, franchisees and franchise buyers do about it?

FANZ extends Awards, Conference deadlines 29th June 2022

30 June 2022 - the Franchise Association has extended entry deadlines for the 2022 Franchise Awards, as well as the earlybird booking deadline for the National Franchise Conference

Why are visa changes costing franchisee employers more? 27th June 2022

June 2022 – Franchisees have been singled out for special treatment under the new Accredited Employer Work Visa scheme. Simon Lord looks at what lies behind the decision

Wendy’s New Zealand up for sale 22nd June 2022

23 June 2022 – The New Zealand arm of the well-known Wendy’s hamburger chain is on the market, including all 22 company-owned stores

Face-to-face franchise event in Wellington 21st June 2022

Avoid being scammed – good advice 16th June 2022

16 June 2022 – New Zealand banks have joined forces with CERT NZ, Consumer Protection, and Te Tari Taiwhenua Department of Internal Affairs (DIA) to warn Kiwis of new threats from scammers. The following information has been provided by MBIE

Franchise Conference 2022 19th May 2022

June 2022 - Future focus backed by impressive line-up of speakers at New Zealand's national franchise conference. Earlybird booking rates are now available until 15 July 2022

McDonald's to exit Russia after 30 years 16th May 2022

McDonald's has said it will permanently leave Russia after more than 30 years and has started to sell its 850 mostly company-owned restaurants there. Last year, Russia and Ukraine reportedly accounted for about 9% of McDonald's global sales. The company says it's the first time the company has ever exited a major market, but it was losing US$55 ($87m) million each month after closing its Russian restaurants in March.

2022 Franchise Awards open for entry 13th May 2022

June 2022 – Only a couple of months since the 2021 winners were announced, the 2022 Westpac New Zealand Franchise Awards are open for entry. The new simplified entry process has proved popular, and there’s also a new category. The deadline for entry has now been extended to 15 July 2022.

Extra requirements for franchisees as employers under new visa category 5th May 2022

5 May 2022 – Franchisees have been singled out for tougher treatment than other employers in a new visa category. Learn more in a free webinar on 30 May

Hollywood actor's burger chain to open in Auckland 3rd May 2022

3 May 2022 - Wahlburgers, the US burger chain founded by actor Mark Wahlberg and his brothers, is to open in Auckland later this year. It's one of five outlets the company plans for New Zealand, but with the brand being operated here by Australia's United Cinemas, it will not be franchised. The Auckland store will be located at the former Euro restaurant site on Princes Wharf, which industry commentators have described as a 'challenging' location although a high profile one as international tourists return. A previous star-themed restaurant, Planet Hollywood, was a key tenant at the former Sky City Metro on Aotea Square before closing in 2003 after just four years.

Reality check - why buy a new franchise? 3rd May 2022

3 May 2022 - Should new business owners follow a broker's advice to buy an established business rather than start up a business from scratch? Not necessarily, suggests Simon Lord

McDonalds spends half a billion dollars on NZ ingredients 19th April 2022

17 April 2022 – McDonald's spent a record amount on ingredients from Kiwi farmers, growers and bakers last year, with the majority being exported to McDonald's operations in Asia Pacific, Middle East and Africa

NZ pizza franchise to open in Australia 19th April 2022

17 April 2022 – New Zealand’s Hell Pizza franchise is ready to cross the ditch and open in Australia

Almost 40% of Kiwi small businesses using personal savings to support operations 12th April 2022

11 April 2022 – Latest findings from a survey commissioned by Prospa reveal that, when a business needs money, 38 percent of business owners will dip into their personal savings

New partner for franchise law specialists 1st April 2022

1 April 2022 – Khushbu Sundarji has become a partner at Stewart Germann Law Office

Overnight success - 30 years of franchise service 31st March 2022

November 2022 – Franchise New Zealand wins the Service Provider of the Year Award for the second time running

Uni mates' initiative builds award-winning franchise 19th March 2022

The Otago Daily Times has proudly covered the story of two friends who met at the University of Otago in the 1980s and went on to build what is possibly New Zealand's largest franchise - CrestClean. The company has just been named Supreme Franchise System of the Year in the Westpac New Zealand Franchise Awards. Read the ODT story here and see our full coverage of all the winners here.

NZ Franchise Awards 2021 Results: HONOURS EVEN 8th March 2022

6 March 2022 – Friendly rivals from the same industry won the two biggest titles at the Westpac New Zealand Franchise Awards tonight. There were a massive 75 finalists this year - here’s our full report with all the winners in every category

The Franchise Coach consultancy changes hands 8th March 2022

9 March 2022 - Long-established consultancy business "The Franchise Coach" has been bought by Stewart Germann, the specialist franchise lawyer. The move will see an additional level of professional services offered to emerging and established franchisors in New Zealand, and incoming franchise brands from overseas

McDonald's Russia closes stores; Ukraine franchises donate food 8th March 2022

9 March 2022 - After yesterday's report that pressure was growing on global franchises to close stores in Russia, McDonald's has announced that it will close its 850 mostly company-owned stores there. The company said said the halt was a response to the 'needless human suffering unfolding in Ukraine'. Meanwhile, McDonald’s Ukraine is reportedly providing food from restaurants for the needs of Ukrainians during martial law, and KFC has opened kitchens for cooking to hospitals, military and territorial defence. A McDonald's Ukraine statement said, 'Our restaurants are closed for safety reasons, however, those located in the areas that are currently safe (as far as it’s possible) for our employees provide food to local communities. Local authorities take the products and distribute them where they are most needed.'

Global franchises face pressure over Russia 8th March 2022

8 March 2022 - A BBC report suggests that pressure is growing on Western food and drink giants to pull out of Russia due to the invasion of Ukraine. McDonald's and Coca-Cola, among others, have been criticised on social media for failing to speak out about the attacks and continuing to operate in the country. Apart from boycott calls on social media, both McDonald's and Pepsi have also been singled out by the boss of New York state's pension fund. Where franchises are locally-owned, either under individual or master franchise agreements, it's a complicated issue - for example, the majority of Starbucks sites in Russia are run by the Kuwait-based Alshaya Group - but McDonald's, which has 847 stores in Russia, owns the majority of them itself.

Awards coverage on RNZ - Ben Coates interviewed 7th March 2022

7 March 2022 - RNZ's Nathan Rarere interviews Ben Coates from Moerewa, who won the Small Business Franchisee of the Year title at the Westpac New Zealand Franchise Awards last night. See our full coverage of the results.

Restaurant Brands breaks $1 billion barrier despite Covid 28th February 2022

Restaurant Brands’ total sales for the year ended 31 December 2021 were $1,068.2 million, an increase of $175.9 million (19.7 percent) from 2020. This is the first time the listed company, which owns the master licences for Pizza Hut, KFC, Carl’s Jr. and Taco Bell stores in New Zealand, has passed the $1 billion mark.

Approximately $100 million of the increase arose from an additional eight months trading this year from the acquisition of 69 KFC and Taco Bell stores in California from an existing franchisee. The company also has operations in Australia and Hawaii.

Full year sales for New Zealand were $461.1 million, an increase of 12.4 percent, primarily from strong same store sales growth of 9.1 percent. The company estimates that the Government-mandated full store closures resulted in lost sales of $26 million in 2021 and $40 million in 2020.

Fourth quarter total sales for New Zealand were $126.2 million, an increase of 5.3 percent on the equivalent period last year, with Carl’s Jr. and Pizza Hut performing ‘very strongly’.

Store numbers increased by four during the quarter to 137, with the opening of three new Taco Bell stores and a new KFC store. In addition two Carl’s Jr. stores were converted to a KFC and a Taco Bell. Same store sales were strong despite the adverse impact of the continued Covid crisis.

Government changes date eligibility criteria for new support 25th February 2022

25 February 2021 - It quickly became apparent after the announcement of the government’s Covid Support Payment that the date comparator period would mean that many operators would be ineligible to access the support. Following lobbying by the Restaurant Association of New Zealand, the criteria have now been changed to allow comparison with either early 2022 or the same period last year. See the full announcement at https://www.beehive.govt.nz/release/more-omicron-affected-businesses-able-access-financial-support

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