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

 

Crown Accounts: Government Ekes Out Six-Month Surplus Of $9M

The New Zealand government eked out a tiny surplus in the first six months of the fiscal year as growth in domestic consumption lifted the goods and services tax take, while uncertainties over the Kaikoura earthquake costs meant expenses were less than expected. More>>

ALSO:

Almost 400 Jobs: Shock At Cadbury's Dunedin Factory Closure

Workers at Cadbury in Dunedin are reeling after learning this morning that the iconic Cadbury factory is to close, with the loss of almost 400 jobs... “The company had reported it was doing well and this has come out of the blue,” says Chas. More>>

ALSO:

Transport: Boards Of Inquiry For Auckland Roading Projects

Boards of Inquiry have been appointed to decide on two significant Auckland roading projects in a move which will get a decision by the end of the year, Environment Minister Dr Nick Smith and Conservation Minister Maggie Barry announced today. More>>

ALSO:

Three Months On: Quake Reciovery In Kaikōura And Elsewhere

Three months after the magnitude 7.8 earthquake on 14 November, encouraging recovery progress is being made in affected communities. More>>

ALSO:

Jetstar, Qantas For Govt Transport: Government Still In Talks With Air NZ

The government is still negotiating with national carrier Air New Zealand in a cross-agency air travel contract that will add a number of new airlines to the list of approved flyers. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news