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Let’s face it - everyone needs to eat, every day! Many New Zealand food franchisees say they chose to buy into the food industry because they believe it is recession proof. They may just be right.
Latest figures from Statistics New Zealand show that cafes and restaurants are bucking the downward trend and enjoying increased growth, with an additional $32 million being spent filling bellies during November 2009.
These figures are further backed up with lifestyle statistics which show more Kiwis are enjoying an increased amount of restaurant and cafe meals, and takeaway food and drinks.
The average New Zealand household is currently spending 17 per cent of its food budget on meals away from home, with approximately one-third of this on takeaway food.
With more people looking to secure their employment and financial future in 2010, could buying a franchise system in the food industry be the answer?
Retail Food Group (RFG) certainly believe so.
RFG, which owns five food-related franchise systems in Australia and New Zealand including bb’s cafes, Michels Patisserie and Brumby’s Bakeries, has recorded a 120 per cent spike in enquiries from potential franchisees in recent weeks.
RFG National Sales Coordination Manager Faith Manning said the franchise enquiry line has been running hot since after Christmas 2009.
“Compared to the same period 12 months ago, our enquiries are up 120% during the past two weeks which has been really surprising,” she said.
“It seems people have worked hard through 2009, had a Christmas break and have taken that time to reconsider their future finances and employment.
“Following the uncertainty of 2009 and the Global Financial Crisis, it seems many people are looking to take control of their future and their finances by owning their own small business.
“However at the same time they want to minimize their risk by looking at proven and growing franchise systems.”
Another major player in New Zealand, Restaurant Brands, which holds franchise heavyweights including Pizza Hut, KFC and Starbucks, also reported increased growth in their third-quarter figures.
Total sales rose to $72.9 million in the 12 weeks ended December 7, from $69.6 million a year earlier, the company said in a recently released statement. Same-store sales climbed 7.2 percent.
“The current economic climate is still not adversely impacting overall positive sales growth for the company,” chief executive Russel Creedy said in the statement.
So, the experts agree. Food related businesses, whether it is restaurants, cafes, take-away outlets or retail, is certainly a growth industry. Coupled with the voracious Kiwi appetite for small business, and the security of a proven system, this makes food franchising a powerful recipe for business success.
Business Franchise magazine has put together the following report looking at what systems are currently available, what’s news and what happening in the world of Food Franchising.
Bakers Delight has 22 Auckland and five Christchurch stores, as well as bakeries in Hamilton, Hastings, Mt Maunganui, Tauranga, Rotorua and Taupo. The company was recently ranked as the sixth top performing franchise in the industry and the largest, during an independent survey recently conducted by strategic marketing intelligence company, 10 Thousand Feet, www.topfranchise.com.au.
Bakers Delight was commended for its operational support and return on investment (ROI) when compared to the industry. Additionally 94 per cent of franchisees agreed Bakers Delight is a well recognised brand, compared to the industry average of 56 per cent. 96 per cent of franchisees also agreed they are passionate about their product, exceeding the industry by 10 per cent.
bbs Café was created specifically for customers who are looking for a welcoming oasis - a relaxing place to enjoy a break and meet with friends. The history of bb’s cafe is inextricably linked to that of DONUT KING, as the bb’s brand was developed alongside the donut chain in its early stages. The first bb's New Zealand outlet was opened in 1994. In late 2004, due to results from extensive market research, the new logo and tag line emerged as a result and the brand’s positioning statement was developed. The bb’s cafe system has grown to include over 60 outlets across Australia and New Zealand.
Brumby’s Bakery is proud to have been amongst the first companies to successfully embark on a franchising program not only when franchising was in its infancy, but when the specialty or hot bread shop market was just beginning. Like most successful businesses, Brumby’s had a modest beginning. The first store was opened in suburban Melbourne in 1975. Throughout the 1980s, when franchising was still in its early stages, Brumby’s paved the way to become one of the forerunners and by the early 1990s, Brumby’s had become a true franchise success story. The strength of the Brumby’s system was evident when it entered the New Zealand market in 1995. In 2007, the Brumby’s system was acquired by ASX listed Retail Food Group Limited. Brumby’s today is truly a retail success story in the specialty bread category in Australia and New Zealand.
Columbus Coffee is a franchise network of 28 cafes, employing around 300 New Zealanders, and was named ‘Supreme Franchise System of the Year’ in the recent Westpac Franchise Association awards. Columbus Coffee began as a ‘coffee concept’ store in Auckland’s tea-drinking heartland in 1995. Striking a chord with coffee loving consumers, the innovative business, which imported, roasted and brewed European style coffee, grew to become a chain of three stores over the next few years.
Country Fried Chicken is a licensed system which specialises in selling a great range of quality products. A Country Fried Chicken franchise can be operated as an adjunct to an existing business or as a dedicated stand alone outlet and provides franchisees with assistance in all areas of setting up your new chicken franchise store from installation and training through to a full turnkey operation. Country Fried Chicken boasts a great range of products including chicken pieces, chicken fillet burgers, chicken wraps, chicken rolls, fish and specially seasoned chips.
Cupa Nutz is a unique Vending Business Opportunity undergoing rapid expansion across New Zealand and Australia. Offering fantastic value for the customer, serving hot roasted, salted nuts in a bars, pubs, clubs and also the workplace. Who doesn’t love this healthy snack alternative? With exclusive licensed territories and zero on-going franchise fees this is a highly attractive vending business offering, with a proven and successful track record. Factor in the expected lucrative vending margins this is a very profitable business, proving highly popular both in Australia and New Zealand. Becoming a Territory owner ensures you benefit from the company’s rapid expansion, reaping the capital gain as the brand rolls out across the country.
Dreamy Donuts is a premium donut and coffee franchise operation with stores in both Australia and New Zealand and with a view to the world. Dreamy Donuts take pride in using the finest ingredients in their entire range to make sure they are able to create what they consider to be the best tasting donuts possible. They also have our own premium Dreamy Donuts blend of coffee, delicious cold beverages and can provide donut cakes for special occasions. There are two things that Dreamy Donuts do not compromise - quality product and exceptional customer service standards. All Dreamy Donuts franchisees have access to a complete franchise system which comprises site selection, development, fit out and training combined with ongoing management, marketing, operational and other support.
Esquires Coffee Houses are the fastest growing coffee house chain in New Zealand As an Esquires franchisee you’ll have the freedom and independence of running your own business without being alone. The Esquires expertise is within reach at all times providing a model for success with maximum benefits and service at the lowest possible cost and risk to you. The Esquires franchise structure has been designed carefully to allow new franchisees all the ongoing support they need, while still leaving them in the driver’s seat.
Hell Pizza first began in early 1996 next to Victoria University, and has since gained a huge following in Wellington. After a little creative advertising, the name Hell started to gain a reputation, as did their delicious and ‘hellthy’ pizzas. Since then the fire has spread to cover much of New Zealand with 63 stores or ‘hell holes’ in Wellington, Taupo, Palmerston North, Hastings, Napier, Tauranga, Hamilton, Rotorua, Auckland, North Shore, Whangaparoa, Christchurch, Dunedin, your mother, New Plymouth, Whangarei, Nelson, and Queenstown. For those interested in becoming a franchisee, the company is always on the lookout for those who think they have what it takes to own their own slice of Hell!
Jamaica Blue is always looking for enthusiastic people to join its team of franchisees. Jamaica Blue currently has sites throughout Australia and New Zealand. Established in 1992, Jamaica Blue opened the first café in Miranda, Australia and has since grown to over 70 outlets throughout Australia, New Zealand, Kuwait and China. Its first New Zealand store opened in North City in 1998 and there are now established outlets in Manukau, Porirua, Queensgate and Riccarton.
The name Jamaica Blue originates from the renowned and majestic Blue Mountains in Jamaica where the climatic conditions are ideal for growing premium coffee. The Jamaica Blue concept is built on the central theme of “fine coffee”. Jamaica Blue’s distinct advantage is its genuinely superior espresso coffee and the extent of its food offering to customers in a contemporary cafe environment.
Michel's Patisserie was founded in 1982 to meet the quality end of the food service market with a range of patisserie products. The concept was developed into a franchise system in 1990 and now represents and icon in the Australian and New Zealand retail food landscape. In February 2006, Michel’s Patisserie completed a management buy-out and merged with its master franchisee to create a single national franchise business. The transaction was the final step in the process of consolidating Michel’s Patisserie into a single national business. The Michel’s Patisserie system was subsequently acquired by Retail Food Group Limited in December 2007. The business is now well-established and resourced to continue growth. Michel’s Patisserie is now has over 340 stores throughout Australia and New Zealand.
Muffin Break
Muffin Break is a unique specialty bakery/cafe retail system, that operates throughout Australia and New Zealand and is growing rapidly in the UK. Muffin Break is able to negotiate prominent positions in these markets’ best known shopping and retail centres. Muffin Break has a very active new store development plan. Join one of Australasia’s best franchise businesses! Muffin Break is ultimately owned by Foodco Group Pty Ltd, an Australian company. Foodco New Zealand Ltd operates the Muffin Break concept in New Zealand as licensee of Foodco Group. Over the past 2 decades Foodco Group has become one of Australasia's leading food and coffee franchise business retailers with the following brands - Muffin Break, Jamaica Blue and Dreamy Donuts. Foodco Group offers unique proven and established concepts with access to great business systems, high quality developed products and services, specialised training and business advice and distinctive advertising and marketing programs.
New Zealand Natural has over 600 branded outlets in 21 countries, making it New Zealand’s most significant food franchise business - growing steadily to become one of the World’s leading premium ice cream brands. NZN is already well established in New Zealand with 15 parlour outlets, and whilst opportunities for additional franchised stores are limited there are growing destination locations such as Queenstown which would be considered for full franchises. Apart from award-winning ice cream, NZN stores offer an extensive range of smoothies, juices & shakes, and the unique “Fruit Flo”, a luscious blend of fresh fruits and frozen yoghurt. 2009 also saw the introduction of a world first, with ice cream “Sooshi” launched to great acclaim throughout Australia and New Zealand.
Robert Harris Coffee Roasters operates New Zealand's best-known and largest chain of retail cafe franchises with proven success in cities and provincial centres nationwide. The Robert Harris Café brand has been synonymous with quality and taste since 1972.When you buy a Robert Harris Coffee Roasters franchise you don't just buy an outlet, you purchase a brand name that is renowned amongst coffee aficionados and the general public alike. Robert Harris Cafés have earned an enviable reputation for their blend of stylish hospitality and professional business systems.
Spudbar recently launched their second New Zealand store at Christchurch’s Northlands Mall. Since then both stores have taken off and have a strong following from loyal customers who love the amazing flavours and variety, while knowing it is so healthy. “We pride ourselves on being one of the few fast food options where you can get your entire recommended daily intake of veggies in one meal”, said Gareth Owen, Spudbar NZ Director. Spuds are 100 per cent fat free and Owen believes that its’ healthy offering will be a real advantage for all ages. “With obesity being a significant national health threat, we want to spread the message about all the benefits of spuds, and are offering people not only healthy food choices, but incredibly tasty ones too!” he says.
Streetwise Coffee are absolutely passionate about excellent quality Expresso Coffee to Go and great services. Streetwise began on the Kapiti Coast in 2003, the brainchild of local entrepreneurs. Now the stunningly unique Streetwise Coffee retailing units are popular destination points around New Zealand. Franchises are currently available. Franchisees purchase a stunning, purpose built Coffee Retailing Unit that is strategically located to maximise revenues and profitability. Streetwise provide full ongoing product, training and management support.
Subway attributes it success in New Zealand to ‘global support systems and brand recognition’. These factors have helped Subway to grow to over 200 stores in New Zealand and are a big reason that Subway is able to maintain its distinction as the Number One Global Franchise opportunity," said Regional Profitability Manager Ben Miles. "We can attribute our success to the fact that this is a brand made up of local men and women who are committed to making their businesses work and represent hundreds of success stories throughout New Zealand. Along with providing entrepreneurs with a chance to realize their dream of owning their own business, our franchisees are able to provide about 2000 positions to jobseekers throughout the country.”
The Coffee Club is still celebrating its success at the recent Westpac NZ Franchise awards. Graham and Anne-Marie Franks and the team at The Coffee Club Sylvia Park are on cloud nine after winning Franchisee of the Year in the Food and Beverage Category at major national awards ceremony. The awards are judged on a written submission on the operations of the business and the judging panel were looking for franchisees that not only embraced the system provided by the franchisor but also went that extra mile to generate outstanding results. The Coffee Club is rapidly becoming one of the country's best recognized brands in hospitality. They are dedicated to being recognized as a leader in the New Zealand franchise Industry. Their consultative franchise systems, contemporary organizational design and extensive history in hospitality are the building blocks for your success.
Wokinabox is currently looking for master franchisees to help launch its New Zealand operations. Wok in a Box began in 1992 when a small Asian take away restaurant opened its doors in Norwood, South Australia with founder Adrian Morrissy predicting a boom of Asian inspired eating. Today wokinabox is one of the fastest growing franchises in Australia with 37 stores across and boasts 31 per cent year-on-year growth over the last 5 years. This success has helped the franchise achieve consistent rankings inside BRW’s top 20 ‘Fastest Growing Franchises’ since 2007. Mr Morrissy said identifying a niche market for healthy, fresh take away was another key factor in the rapid growth of the business.
Xpresso Delight was established in 2004 by Stephen Spitz and Paul Crabtree. The concept works by franchisees placing fully automated, commercial grade, gourmet espresso coffee machines into workplaces free of charge, with the coffee costing $1 per cup. An Xpresso Delight franchise offers you an amazing opportunity to create your own business and generate windfall profits. Yet at the same time, you’re able to tap into the support of experienced professionals who have done it all before.
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