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

 

Interest Rates: Wheeler Hikes OCR To 3% On Inflationary Pressures, Eyes Kiwi

Reserve Bank governor Graeme Wheeler lifted the official cash rate for the second time in as many months, saying non-tradable inflationary pressures were "becoming apparent" in an economy that’s picking up pace and he's watching the impact of a strong kiwi dollar on import prices. More>>

ALSO:

Scoop Business: Equity Crowd Funding Carries Risks, High Failure Rate

Equity crowd funding, which became legal in New Zealand this month, comes with a high risk of failure based on figures showing existing forays into social capital have a success rate of less than 50 percent, one new entrant says. More>>

ALSO:

Scoop Business: NZ Migration Rises To 11-Year High In March

The country gained a seasonally adjusted 3,800 net new migrants in March, the most since February 2003, said Statistics New Zealand. A net 400 people left for Australia in March, down from 600 in February, according to seasonally adjusted figures. More>>

ALSO:

Hugh Pavletich: New Zealand’s Bubble Economy Is Vulnerable

The recent Forbes e-edition article by Jesse Colombo assesses the New Zealand economy “ 12 Reasons Why New Zealand's Economic Bubble Will End In Disaster ”, seems to have created quite a stir, creating extensive media coverage in New Zealand. More>>

ALSO:

Thursday Market Close: Genesis Debut Sparks Energy Rally

New Zealand stock rose after shares in the partially privatised Genesis Energy soared as much as 18 percent in its debut listing on the NZX, buoying other listed energy companies in the process. Meridian Energy, MightyRiverPower, Contact Energy and TrustPower paced gains. More>>

ALSO:

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news