In The News 
Covid-19 financial support for businesses - updated 15th February 2021
19 February 2021 - In December 2020, the Government announced the support that would be available to New Zealand businesses in the event of a resurgence of Covid-19. Given the current change in Alert Levels, here's an update from the team at Franchise Accountants.
Auckland businesses can register for travel 14th February 2021
15 February 2021 - Businesses inside the Auckland Alert Level Boundary can register online for travel documents allowing workers to cross boundaries
Franchise calls for changes to sick leave extension 5th February 2021
February 2021 - Supermarket franchise group Foodstuffs has expressed concerns about the planned increase to sick leave, saying that costs to businesses could double and it was unlikely that businesses will recoup these costs in productivity gains.
The company's Government relations head Melissa Hodd suggested Parliament’s Education and Workforce select committee should instead consider recommending an increase in the minimum entitlement to seven or eight days. It should also consider reverting back to a five-day minimum entitlement after the Covid crisis, she said.
Another suggestion put forward by Foodstuffs was that the Government should consider sticking to a five-day minimum entitlement while raising the cap on the amount of sick leave employees are legally entitled to carry forward from year to year from 20 days, to 25 or 30 days.
Coffee franchise launches collagen product 28th January 2021
28 January 2021 – Columbus Coffee cafés across New Zealand are launching collagen creamer as an option for wellbeing-conscious customers
Report finds demand for businesses outstrips supply 26th January 2021
January 2021 – A new report from ABC Business Sales suggests that the current business sales market is experiencing a significant gap between supply and demand, leading to increased prices. This could make greenfield franchise opportunities more attractive.
Calls for Covid scanner use to prevent more lockdowns 14th January 2021
Small businesses fearing they wouldn't survive another lockdown are calling for greater pressure on customers to make use of the Covid-19 tracer app now, rather than waiting for another community outbreak. The virulent new strains have already caused further lockdowns in many countries, and rapid tracing would be vital to the prevention of a new outbreak here. However, use of the tracer app among Kiwis has dropped off alarmingly, with many saying they will start using it again only if there is a new outbreak - by which time it will be too late.
In a Stuff article, First Retail Group managing director Chris Wilkinson said that the risk of not signing in to businesses is the “cataclysmic” shutting down of everything again.
“We’ve already seen what a second lockdown did to Auckland ... it was heart-wrenching to see the impact that had on businesses, the confidence of staff, and consumers.”
Wilkinson said scanning “peer pressure” should be encouraged, and political leaders needed to be actively scanning by example, and assigning scan “champions” to sectors.
In-store spend up, online down 12th January 2021
Kiwis ended 2020 on a strong note with a total retail spend for December of $6.1 billion, 2.3% higher than December the previous year. Figures from Datamine show that in the lead up to the holiday period, New Zealanders spent $620 million more than in November.
The figures also suggested that New Zealanders are supporting local by opting to spend in person rather than online.
In-store spend, at $5.4 billion, has grown 13.4% since last month and 4% compared with December 2019. As in previous months, online spend has continued to show negative growth compared to the same month last year, particularly spend at overseas companies, which is down 21.6%.
With a 48% drop in Travel and Accommodation spend, compared to December 2019, New Zealanders instead have spent money on:
Liquor Stores (18.6% year-on-year increase),
Furniture, Appliances and Homewares (15.1% year-on-year increase),
Health Goods and Services (13.1% year-on-year increase),
Clothing and Footwear (11.1% year-on-year increase)
(Datamine requires a log-in to see the full report)
Make a new start in 2021 10th January 2021
Supermarket franchisee goes large 10th January 2021
A prominent New World franchisee, Jason Witehera, is tipped to be the new owner of Pak'nSave Albany - one of the country's largest supermarkets which is thought to have the largest revenue of any in New Zealand. Mr Witehera is one of the rising stars of the Foodstuffs co-operative, having commenced his career as a shelf-stacker at age 16. Outgoing franchisee Paul Blackwell has reportedly become a director of an investment group which owns Starbucks New Zealand and is buying Burger King New Zealand from the receivers.
In a deal due to settle later this year and which could be for around $50 million, insiders say the transition is on although owners are yet to confirm that.
Insiders in giant co-operative Foodstuffs which owns the Pak'nSave and New World stores say it is common knowledge within the business about the sale which will then automatically trigger the sale of a second high-profile, highly profitable store because owners can only have one supermarket each.
Hollywood star's burger franchise to open in NZ 7th January 2021
Wahlburgers, the Boston-based restaurant company founded by brothers Mark, Donnie and Chef Paul Wahlberg, is expanding its international footprint with a franchise partnership that will span 20 locations across Australia and New Zealand. The Australian master franchisee plans to open five outlets here over the next five years. It is not yet clear whether the brand will be sub-franchised to individual operators.
'Over the course of my career I’ve had the pleasure of filming in Australia and New Zealand and am grateful for the opportunity to now share my family’s delicious recipes with the people of these great two countries,' says Mark Wahlberg. 'With 49 Wahlburgers locations across the USA, two in Toronto Canada and one on the American Ramstein Air Base in Germany, this expansion to Australia and New Zealand is a really exciting step in continuing to build this brand around the world.'
Racing Ahead to 2021 22nd December 2020
Thank you to all our sponsors, advertisers and readers for your support through this challenging year for all of us. We wish you all the best for a very Merry Christmas and a Happy and Prosperous New Year. Enjoy the summer - and if you do start to think about new opportunities, here are some resources.
Lower card fees planned for small businesses 9th December 2020
10 December 2020 – Government plans hard cap for merchant services fees to encourage contactless payment; consultation sought
How will the Privacy Act changes affect your franchise? 25th November 2020
25 November 2020 – As email attacks and fraud grow, new data privacy laws require businesses to be aware of their governance and compliance responsibilities
Auckland event - Christmas Drinks 24th November 2020
BoP Event - 2020 Round-Up 24th November 2020
A free after-4 event being held in Tauranga will help franchise people catch up after a challenging year
Good news, but lower unemployment and immigration a challenge for franchise recruitment 24th November 2020
24 November 2020 - The latest issue of Westpac’s Quarterly Economic Overview explains why the economy is where it is, and looks at the implications of Covid-19, local and global economic expectations, and forecasts for the future. How will franchising be affected?
What to look for in a franchise 12th November 2020
Jessica Satherley of Red News sat in on our recent 'Business after Redundancy' webinar - here are some of the things she learned about what to look for.
NZ small businesses feel the love, global survey reveals 25th October 2020
26 October 2020 – NZ small businesses and consumers had the most positive outlook during Covid-19
New franchise event in Wellington 25th October 2020
Franchisors, franchisees, and anyone interested in learning more about franchising are all welcome to a franchise networking event being run in Wellington on Tuesday 1st August.
BurgerFuel quits USA 23rd October 2020
23 October 2020 - BurgerFuel is to close its single store in the USA, as part of a deal between the US master franchisee (and BurgerFuel's original founder) Chris Mason and the NZX-listed BurgerFuel Group. The decision brings to an end an adventure which started in 2014 when the US company Franchise Brands took a stake in the New Zealand chain. Franchise Brands was associated with Subway founder Fred DeLuca, but the partnership came to an end following DeLuca's death later that year.
Chain founder Chris Mason took over the rights to the BurgerFuel USA master franchise in 2018, after the board of New Zealand-based Burger Fuel Group decided it was not viable to expand into the US market.
At the time, Mason stepped down from Burger Fuel Group’s board but retained his roughly 11 per cent stake in the company.
But on Friday, Burger Fuel Group, which included the Shake Out and Winner Winner brands, advised the New Zealand stock market that it would acquire 1,538,461 shares from the Mason Family trust to settle debt relating to the US venture.
Starbucks owners buy Burger King NZ 20th October 2020
20 October 2020 - Tahua Partners, the company which owns the New Zealand master licence for Starbucks, has bought Anares, the trading company which operates Burger King in New Zealand. After reportedly seeking a buyer for some time, the parent group of companies which own Antares went into receivership on April 14, during the coronavirus lockdown but Antares continued to trade during the sale process. The price was not disclosed.
Burger King is the third largest quick service restaurant chain in New Zealand, with 78 restaurants nationwide employing 1800 staff. Neither Starbucks nor Burger King offers sub-franchises in this country, with all stores being company-owned.
After Antares’ parent company went into receivership, negotiations with landlords, creditors and the franchise holder, led to a compromise, allowing the restaurants to remain open while a buyer was found.
However, five Burger King restaurants – Lambton Quay, Courtenay Place in Wellington and Queen Street, Takapuna and West City in Auckland – would close as part of the deal.
Masterclass for franchisor development 12th October 2020
12 October 2020 – The popular Franchisor Excellence Masterclass is back at the end of the month, with online delivery making it easier than ever for Kiwi franchisors to attend
Eat Fighter: rivals co-operate in battle of the brands 6th October 2020
7 October 2020 – Two of New Zealand’s best-known food franchises are going head-to-head to win customers
Subway bread not bread, say Irish 1st October 2020
2 October 2020 - The rolls used in Subway's hot sandwiches contain too much sugar to be considered bread, according to Ireland's Supreme Court. An Irish franchisee of the US company had claimed it should not pay VAT on the rolls it uses in heated sandwiches, but the court ruled that because of the level of sugar in the rolls they cannot be taxed as bread, which is classed as a "staple product" with zero VAT.
Under Ireland's VAT Act of 1972, ingredients in bread such as sugar and fat should not exceed 2% of the weight of flour in the dough. The judges concluded that in Subway sandwiches the sugar content is around 10% of the flour in the dough for both white and wholegrain rolls.
Franchise Summit moved to November 28th September 2020
Assistance available for lockdown lease issues 28th September 2020
28 September 2020 - The Government has at last announced details of its arbitration and mediation funding package aimed at resolving ongoing disputes between commercial tenants and their landlords arising out of the Level 4 and 3 lockdowns. However, unlike the original proposal of 4 months ago, landlords can't be forced to participate.
Franchises' reputations grow as local brands deliver 25th September 2020
25 September 2020 - A new survey has shown that New Zealanders' appreciation of certain franchise brands grew during uncertain times.
NZ-owned cafe franchise applauds UK support for hospitality businesses 24th September 2020
The NZX-listed company which owns Esquires Coffee in the UK has praised the UK Government's 'generous' support packages. The UK government has reduced VAT for hospitality, slashing tax from 20 per cent to 5 per cent until January; introduced the Eat Out Help Out programme offering dining discounts in the month of August; and council rates have been abated for 12 months.
Cooks Global Foods has 58 outlets in England. It says the long, hard lockdown earlier this year had not had a material impact on its top line sales in the current financial year, and that Downing Street's work from home orders had provided a boost to the group's suburban neighbourhood outlets.
Franchise at the forefront of deep cleans 13th September 2020
Schools and workplaces are closing for deep cleans after potential Covid-19 contacts - but what does a 'deep clean' involve? Galvin Bartlett of the Paramount services franchise told RNZ's First Up programme.
Next webinar: Business after Redundancy 1st September 2020
15 October 2020 - Our webinars on buying a business after redundancy are proving popular. Get free, independent advice from leading experts on how to make a safe and sensible decision. Our next webinar is on the evening of Wednesday 28th October. To register, all you have to do is email editor@franchise.co.nz with your name and which area of the country you are from.
Our recent webinar on buying a business after redundancy was so well received we're running it again. Get free, independent advice from leading experts on how to make a safe and sensible decision with this special webinar session on the evening of Tuesday 15 September.
Restaurant Brands buys into California market 1st September 2020
New Zealand-listed Restaurant Brands has bought 69 KFC and Taco Bell stores in the United States to add to its overseas operations in Australia and Hawaii. Restaurant Brands is the master licensee for the KFC, Pizza Hut, Taco Bell and Carl's Jr. brands in New Zealand. The company was partly taken over by a Mexican-based investor last year.
First Retail Group managing director Chris Wilkinson said the company was well positioned to expand in the US.
'Once you are defined in one country, there is a significant amount of transferability to expand into others,' he said.
Fast food businesses have proven to be resilient during the Covid-19 crisis across the globe.
Franchisors help as cost of delivery bites into food margins 28th August 2020
28 August 2020 – Takeaway-only restrictions in Auckland have fuelled demand for delivery services again. What’s the impact on franchisees, and how have franchisors responded?
Building great franchise teams - NZ seminars 27th August 2020
Three seminars being held online and in person in October are designed to give franchisor teams the tools they need to help franchisees get the most out of their businesses.
Economic outlook not so gloomy 27th August 2020
27 August 2020 - Westpac’s Quarterly Economic Overview is more positive than might be expected. Here are some extracts, along with links to the full report
New Board for Franchise Association 19th August 2020
20 August 2020 – There are a number of new faces on the FANZ Board after the results of the elections were announced yesterday.
Just Cuts calls for rent support action 12th August 2020
Just Cuts is the latest franchise to suggest that commercial landlords in New Zealand have not been as supportive as in other countries. The Franchise Association and other business groups have regularly called for action to force landlords to negotiate on rents, saying that some very successful long-term businesses are facing bankruptcy owing to the actions of a few landlords who are not prepared to make allowances for cashflow damage caused by lockdown. Legislation was prepared, including a $40 million mediation fund, but failed to pass after New Zealand First withdrew its support.
Learning from lockdown: one franchisor's story 4th August 2020
4 August 2020 - Keeping things humming even during lockdown was a top priority for business owners, so Westpac asked Brad Jacobs of The Coffee Club to share the story of how they temporarily shut down 66 franchises and built an online presence in just one week.
Franchise education for young lawyers 4th August 2020
29 July 2020 – In a New Zealand first, AUT is offering an undergraduate level paper in franchise law
Franchisee ‘perhaps NZ’s worst employer?’ 4th August 2020
August 2020 - A recent news story about a Bottle-O franchisee has again demonstrated the risk to franchise brands of franchisees breaching their employment responsibilities to migrant workers
Free webinar: Business after Redundancy 31st July 2020
15 October 2020 - Our webinars on buying a business after redundancy are proving popular. Get free, independent advice from leading experts on how to make a safe and sensible decision. Our next webinar is on the evening of Wednesday 28th October. To register, all you have to do is email editor@franchise.co.nz with your name and which area of the country you are from.
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