In The News

Seeking young achievers for franchise accelerator 19th May 2017


McDonald's ad accused of exploiting childhood bereavement 16th May 2017

McDonald's UK has apologised for upset caused by a TV advert that charity campaigners have said 'exploits childhood bereavement.' The advert shows a child asking about his dead father and thinking they had nothing in common until it is revealed they share the same favourite menu item. It's a rare false step from a company which, through its Ronald McDonald Houses charities, has always been seen as a major supporter of families facing challenges.

The campaign has attracted criticism from widows who called it 'offensive'.

A McDonald's spokesperson said: 'This was by no means an intention of ours.'

'We wanted to highlight the role McDonald's has played in our customers' everyday lives - both in good and difficult times,' the spokesperson added.

Bereavement charity, Grief Encounter said it had received 'countless calls' from parents saying their bereaved children had been upset by the advert.

The campaign, from London-based advertising agency Leo Burnett, first aired on 12 May and is scheduled to run for seven weeks.


Postie's food delivery trial extended to Auckland CBD 12th May 2017

11 May 2017 - New Zealand Post is to extend its food delivery programme trial to Auckland, after starting to deliver KFC in Tauranga last month. The trial will see New Zealand Post partner with Menulog to deliver food from 50 restaurants in Auckland's CBD. Such delivery services as Uber Eats are already having a big impact upon franchise sales levels, as detailed in the cover story of our latest magazine. Download the latest issue here or send for your free print copy here.

The national postal service has continued to put up postal pricing in recent years, citing a decline in mail and parcel deliveries.

The innovative move into food delivery is one which will see the company branch out from its traditional revenue streams.

[Menulog NZ commercial manager] Paul Dodds said if the trial went well, the delivery scheme would be rolled out across the country in the coming months, with deliveries likely to increase in Winter.

'We have maybe 20 [NZ Post] drivers just in Auckland CBD,' Dodds said.

'As we scale up we'll probably just keep growing especially over the coming months when it's going to get busier as it gets colder and wetter, and people don't want to leave the house.'


Domino's training hour to address brand's top three complaints 9th May 2017

May 2017 - Domino's New Zealand is to close each of its 110 stores for an hour for extra training in an attempt to achieve 100 percent customer satisfaction. The aim is to address the company's top three customer complaints: missing garlic breads, unevenly-cut slices and poorly distributed pepperoni.

Meanwhile, Domino's Australia has been fined for a breach of the Australian Franchising Code of Conduct. The company admitted it had provided an annual marketing fund financial statement to franchisees later than required under the Code. The A$18,000 fine was the first for non-compliance under the updated Code.

Domino's general manager NZ Scott Bush said the campaign and training session recognised customers valued Domino's products and speed, but wanted every product in every meal to meet expectations.

'We have run a number of focus groups and our customers tell us they love our products, but when we make a mistake, they want it fixed as quickly as possible and we will,' Bush said.


对你来说,什么是最佳的特许经营? 29th April 2017

可供选择的特许经营机会成百上千,如何从中选择一种为你服 务呢? Franchise New Zealand杂志及网站的Simon Lord为你 提供创业指导方针。The attached translation of one of our most popular articles has been supplied by our friends at AsiaWide Franchise in Singapore. Click to open the pdf.

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Migrant arrivals at new record 26th April 2017


More big names for national franchise conference 26th April 2017


Australia's joint employer inquiry under way 26th April 2017


Staff, franchise buyers and funding could limit growth 26th April 2017

April 2017 - A shortage of suitable staff and franchisees, as well as potential funding issues, are the main concerns for franchisors in the year ahead.

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Franchise survey questionnaires out now 12th April 2017


NZ Post to deliver KFC in Tauranga 3rd April 2017

KFC is to trial home delivery in Tauranga via the New Zealand Post courier network. The company ultimately plans to offer home delivery from around one-third to half of its New Zealand stores.

The news comes after UberEats launched in Auckland earlier this year to offer home delivery of products from a wide range of local restaurants. According to an article in the latest issue of Franchise New Zealand magazine (available free in print or digital form here), the service has proved hugely popular as a business-builder for brands like Burger Wisconsin and Mexicali Fresh, although the cost to franchisees is considerable.

UberEats has not yet launched in Tauranga, and is thought unlikely to operate in some of the smaller regions of New Zealand for some time. New Zealand Post's courier network, on the other hand, is already well-established throughout the country. The trial will show whether food delivery might offer a new source of revenue for drivers and restaurants alike as the market for eating out increases but lower drink/driving tolerances reduce mobility - especially outside centres well-served by public transport.

According to a release from KFC owner Restaurant Brands Ltd, customers will be able to order on the fried chicken chain's website and have their food delivered by an NZ Post driver.

Restaurant Brands chief executive Ian Letele said the decision to partner with NZ Post was due to their expertise in logistics.

'NZ Post has an extensive delivery distribution network around New Zealand, and KFC is available in most towns nationwide. With the support of NZ Post, we hope to service the home delivery needs of many more KFC customers throughout New Zealand,' said Letele.

Mike Stewart, general manager of customer experience and innovation at NZ Post said, 'We are very excited to be supporting such a well-known and loved brand as KFC.

'Our many years' experience, and growing strength in on-demand delivery makes us the ideal provider.'


Opportunities abound as regional economies grow 31st March 2017

31 March 2017 – The latest figures from Statistics New Zealand show growing economic activity in 12 out of 15 regions. That means new business opportunities for franchisees and franchisors.

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National franchise conference draws big names for August 23rd March 2017


How far is fair? 22nd March 2017

Australian legislation may impact global franchise model

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More people coming to New Zealand on work visas 22nd March 2017

21 March 2017 – Record net annual migration levels continue, Statistics New Zealand said today, bringing larger numbers of migrants into the country on work and residence permits.

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Auckland seminars to help franchises grow 22nd March 2017

August 2019 - A series of five workshops in September will give New Zealand franchisors and their leadership teams new insights into best practice methods across a range of topics to help prepare franchise networks for improved performance and growth

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Settlement reached with Nosh franchisee 7th March 2017

Veritas Investments has reached a settlement with a franchisee who took down the signs and sought to terminate his Nosh franchise agreement after buying the business just days before Veritas disclosed it was under pressure from its bank to sell the chain.

Although details are confidential, it appears that the franchisee has paid Veritas rather than the other way round. The Nosh Group company has since been sold to a new goup of investors.

Mead's Constellation Drive Food Market had served notice to terminate its franchise, a move disputed by Veritas's Old NGL Ltd.

"Under the terms of the settlement, Constellation Drive Food Market has agreed to pay an undisclosed sum to Old NGL Limited to settle all debt, claims and disputes concerning that franchise," Veritas said in a statement to the NZX today.


Net annual migration passes 71,000 27th February 2017

21 March 2017 – Record net annual migration levels continue, Statistics New Zealand said today, bringing larger numbers of migrants into the country on work and residence permits.

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NBR opens regulation debate again 26th February 2017

A recent series of articles in the National Business Review has once again raised the topic of possible regulation in New Zealand’s franchise sector.

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Virtual drive-through on the cards 26th February 2017

An Australian-based Mexican fast food chain has teamed up with Google to create an app-only ordering system aimed at speeding up service and maximising efficiency within its stores. Guzman y Gomez currently has 82 stores in Australia with 8 more planned to open this year, as well as stores in Singapore and Tokyo. It is planning to start franchising soon as a way of building funds for expansion in to the US market. There are no Guzman y Gomez outlets in New Zealand.

Mr Marks said the three drivers of growth would be the chain’s focus on food quality — it has committed to using 100 per cent sow stall-free pork, free-range chicken and grass-fed beef — drive-through and mobile ordering.

More than 20 per cent of GyG’s orders now come through its app, and Mr Marks said he hoped one day that would be 100 per cent. “Eventually we will have counterless stores,” he said.

“I want people to walk into GyG and it’s like an Apple Store, our salespeople are on their phones, everybody’s ordering on the app.”

GyG has been working with the Google’s Zoo team, described as a “creative think tank for brands and agencies”, to bring that vision to life.


Franchise survey questionnaires out in April 24th February 2017


Clampdown on rogue employers 23rd February 2017

23 February 2017 - Immigration Minister Michael Woodhouse has today announced new measures to stop employers who breach immigration and employment law from recruiting migrant workers.

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Economy in a sweet spot 22nd February 2017


Mixed prospects for local Chinese businesses 22nd February 2017

February 2017 – The economic outlook for local Chinese businesses is mixed, according to a survey by accounting software provider MYOB.

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Domino's NZ reports strong first-half profit 16th February 2017

ASX-listed Domino's Pizza Enterprises, which franchises 106 stores in New Zealand, posted net profit after tax of A$59.7 million ($63.8m) for the six months to January 1 - up 30.8 per cent on the same period the year before. The New Zealand stores were a strong contributor to the results, said NZ general manager Scott Bush.

Group chief executive Don Meij attributed the result to its focus on digital innovation, easy payment solutions and investment in premium ingredients, as well as support for its recently upgraded menu.

In its results briefing, the company sought to reassure shareholders after revealing it had returned A$4.5m in unpaid wages to staff over the last three years and seen 26 franchisees leave after internal audits.

Meij said the there was "no correlation between store profitability and the underpayment of staff wages" and the company had zero tolerance for unethical behaviour.

"I make no apologies for expecting the highest standards from our franchisees," Meij said.


Employment fraud a risk for franchises 9th February 2017

February 2017 - Employment issues continue to dog the franchise sector in Australia – are New Zealand franchisors prepared?

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New event - Future-Proof your Franchise 8th February 2017


Veritas sells Nosh for c$4 million 3rd February 2017

Veritas, which was ordered to sell Nosh or close the outlets by its bank, has sold the struggling chain for $3.98 million. The buyers are apparently a group of anonymous NZ investors going under the name of Gosh Holdings. According to the Companies Office, the newly-formed Gosh is 100 percent owned by Sydney-based New Zealander Andrew Phillips.

Nosh currently has two stores operating under franchise, although the Constellation Drive franchisee recently removed all Nosh signage. No comment has been made so far on the position of franchisees under the new owners. Although Mr Phillips says there will 'certainly' be more stores, it is not clear whether these will be franchised or company-owned.

Phillips, a New Zealand corporate finance specialist who has been based in Australia for 15 years, helped a consortium of New Zealand investors buy Nosh.

He would not identify the "two or three people" behind the purchase, but said they were involved with consumer products in New Zealand.

The group thought Nosh was a "great brand" and believed there was an opportunity to develop it and the chain.

Phillips, the new Nosh chairman, said his Australian base was also a hint as to what the future might hold for the business.

In New Zealand, there would be an internal restructure, but no change for customers with all stores open for business.

"We'll grow the brand there and then assess our options."

He said the company and its overhead costs needed to be looked at, but would not go into any possible job losses.

"We see this as a good opportunity.

"There will be more stores, certainly."

Phillips was confident it could turn Nosh around, and said private ownership would prove a better fit than being publicly listed.



Booze delivery co uses McDonald's to promote 1st February 2017

An Auckland home delivery company which offers to collect fast food as long as you order alcohol as well is has been taken to task for using McDonald's images on its website without permission. Alcohol abuse watchdogs have expressed concern about the service. The' On The Rocks' website reportedly has no age identification check and lists a number of fast food options that can be ordered, including kebabs, pizza and McDonald's.

A McDonald's spokesman said it was not aware On The Rocks would be delivering its food.

"Aside from Menulog, which is part of our home delivery trial in New Lynn and Glenfield, we don't have any formal relationship with delivery companies," the spokesman said.

He said On The Rocks was using McDonald's images on its website without permission.

"While businesses are able to offer the delivery service, they are not allowed to use our trademarks in their marketing.

"Typically we would ask businesses using our trademarks without our permission to stop doing so," the spokesman said.

The spokesman said he was not aware of any other company selling alcohol alongside McDonald's in New Zealand.


Nosh deadline extended for possible buyer 31st January 2017

A statement from Verita Investments reads: 'Further to the announcement of 16 January 2017, ANZ has agreed to extend the date for Veritas’ delivery of a proposal for Nosh to 4pm on 2 February 2017, to allow conclusion of negotiations with the
preferred bidder for Nosh.'

Read more at http://www.veritasinvestmen...

Hell champions disabled training 31st January 2017

Hell Pizza is continuing to leave its controversial past behind as it builds a reputation as 'champion of the underdog’.

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Optimistic start for franchising in 2017 31st January 2017


NZ franchise survey for 2017 26th January 2017


Hell champions disabled training programme 17th January 2017

Hell Pizza is continuing to leave its controversial past behind as it builds a reputation as 'champion of the underdog’.

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Veritas gets extension from bank 17th January 2017

17 January 2017 - ANZ has agreed to extend the deadline for Veritas Investments to either sell or begin winding up its Nosh food supermarkets until the end of the month.

The owner of the Nosh franchise on Constellation Drive in Auckland's Mairangi Bay has dropped the Nosh brand from its store. Veritas said the franchisee has indicated that he will operate independently of the Nosh franchise and "has purported to terminate its franchise agreement. Veritas does not accept that termination, and the parties are in dispute over the matter."


Nosh franchisee removes branding 15th January 2017

One of the two Nosh franchisees has removed the branding from their store ahead of the deadline set by ANZ for the brand's owner, Veritas Investments, to sell its own stores. The six company-owned stores are being offered for sale through a business broker, but it is not clear from their advertising whether they are being sold as franchises or as independent outlets.

The store on Constellation Drive has removed its Nosh signage and appears to be attempting to remove all references to the brand. 

A shopper at the Constellation Drive shop in Auckland said the store had gone as far as scribbling over Nosh logos on items such as cheese, which had Nosh pricing labels stuck on the outside of their packaging.

A sign at the check-out told customers it was no longer Nosh and said that due to changed arrangements, American Express would no longer be accepted.

Owner Phillip Mead would not say what lay behind the changes, or whether his plan was to trade independently. He confirmed the store was not accepting Nosh loyalty cards or vouchers.


No news on Nosh as deadline approaches 13th January 2017

Veritas Investments is still working through the process ahead of a deadline to present a plan for its unprofitable Nosh supermarket business to ANZ. Individual stores have apparently been listed for sale through a broker.

In mid-December the company, which also owns the Mad Butcher franchise, said it had until Jan. 15 to deliver either an unconditional contract for the sale of Nosh Group, or a proposal to close and wind it down to its lender.

At the time, it said the sale or closure of the loss-making Nosh business would result in non-cash asset write-downs and one-off expenditure related to the sale or closure but provided no further details.

On Friday, chairman Tim Cook said he had no comment other than "we are working through the process."


KFC trials menu suggestions based on facial recognition software 2nd January 2017

2 January 2017 - Diners at a Chinese KFC concept store can use facial recognition technology to choose meals for them based on their mood and age. KFC collaborated with Chinese search engine Baidu to launch the system.

Baidu stated that the principle behind the system was based on setting certain set meals, food and beverage choices to a specific age range, as reported in People's Daily Online.

For instance, the AR-operated machine will recommend a lunch combo of zinger burger, boneless mini fillets and coke to a 20-year-old male customer; and a breakfast of porridge and soya milk to a 50-year-old female customer.

The food suggestion leaves some customers to question: 'What if a 50-year-old wants to have fried chicken?'

'Why is the computer not recommending healthier choices to younger people?' One Chinese web user wondered.



Caci offers incentive funding for new regional franchisees 22nd December 2016


Christmas already a winner for retail 19th December 2016

A total of $2,642 million was spent through the Paymark network in the first 14 days of December, up 6.1 percent on last year. The trend reinforces the positive expectations in the latest MYOB Small Business Monitor.

Annual growth rates for the first 14 days were strongest in Hawke’s Bay and West Coast. Spending growth was lowest in Gisborne and Marlborough region (that includes Kaikoura in Paymark’s coding), both due to exceptional circumstances.

The majority (52%) of spending remains through debit cards although the growth rate is faster through credit cards, which today also includes contactless cards.

As an insight into the pre-Christmas spending patterns, the spending rises through the day from 6-7am to reach a peak between noon and 1pm most days and then gradually tapers off.


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