Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Restaurant Brands Renews KFC Franchise Agreements

14 August 2006

Restaurant Brands Renews KFC Franchise Agreements

Restaurant Brands New Zealand Limited is pleased to announce that it has signed a new KFC Master Franchise Agreement with Yum, the franchisor of its KFC and Pizza Hut brands.

The new agreement allows for an early franchise renewal of approximately fifty percent of the KFC store franchises due for renewal in May 2007. The agreement comes into effect tomorrow, ten months ahead of the official renewal date. The remaining KFC stores will be renewed next year in May 2007, as will the Pizza Hut store franchises expiring at that time.

In addition to the new KFC Master Franchise Agreement, Restaurant Brands has also signed an agreement with Yum which provides for a committed investment by Restaurant Brands of NZ$35 million into the KFC store transformation project over a three year period (which includes the approximately NZ$12.5 million spent to date on completing 15 stores under that project). Restaurant Brands plans to spend a further NZ$8 million on 8 stores by the end of the year.

The agreement provides that if stores are developed under the KFC store transformation project to an agreed standard, Restaurant Brands may be entitled to a new franchise agreement for an initial period of ten years with a further renewal of ten years, allowing for 20 years in total.

Restaurant Brands Chairman, Ted van Arkel, said that he was pleased with the outcome of the discussions with Yum.

“The Restaurant Brands board is delighted to be able to announce the early renewal of the KFC franchise for a further ten years. The new agreements and early franchise renewal give us increased certainty and the ability to concentrate on the next stage of the KFC store transformation project.”

Current trading conditions for the business continue to be tight, especially in the pizza category which is having a significant impact on both sales and margin. The exit from Pizza Hut Victoria is continuing, but progress is slow. The company is reviewing its forecasts for the remainder of the year and will update the market with further information shortly.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news