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

 

Burger Fuel to bring franchise stores in-house

Burger Fuel to bring franchise stores in-house

By Paul McBeth

Sept. 26 (BusinessDesk) - Burger Fuel Worldwide, the NZAX-listed fast food chain franchisor, plans to bring its franchise stores in-house which it expects will deliver greater profitability, and has bought the Henderson, Auckland store for an undisclosed sum.

The Auckland-based fast food chain is targeting at least a 20 percent return on investment from its company-owned stores, and is considering opening its own restaurants in selected locations in New Zealand, before taking the format overseas, it said in a statement. As part of the plan, Burger Fuel bought the Henderson store from the current franchisee, Mike Jury, with ownership changing hands from next month.

“We’ve put many years into developing an extremely successful business model which makes strong profits for our franchisees and we’re increasing the number of company-owned stores in order to meet some key objectives," chief executive Josef Roberts said. "We have strong cash reserves and no debt, as well as the management to facilitate key Burger Fuel restaurant purchases and to launch new sites."

At the start of this year, Burger Fuel raised $5.9 million from US investor, Franchise Brands, to help fund its global growth aspirations, including plans to reach into the world’s biggest economy.

Burger Fuel said it plans to keep most of its stores as franchises, while pointing to the global trend of listed food companies owning at least a quarter of their restaurants.

"All our international license agreements going forward will allow for us to own and operate a percentage of restaurants within franchised territories," Roberts said.

Shares of Burger Fuel rose 1.9 percent to $2.75, and have jumped 69 percent this year.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Dry: Beef + Lamb Launches Drought Resources

The resources include a fact sheet outlining strategies to manage and mitigate the effects of drought, coping with stress on the farm and advice on feed requirements and animal welfare during the dry period. More>>

ALSO:

InternetNZ: Net Neutrality Failure In US "Will Hurt All Users"

InternetNZ Chief Executive Jordan Carter has condemned the decision by the United States communications regulator to undo 2015 open Internet rules, warning that all Internet users will end up worse off as a result. More>>

ALSO:

Mycoplasma Bovis: More Properties Positive

One of the latest infected properties is in the Hastings district, the other three are within a farming enterprise in Winton. The suspect property is near Ashburton. More>>

ALSO:

Manawatū Gorge Alternative: More Work Needed To Choose Route

“We are currently working closely and in partnership with local councils and other stakeholders to make the right long-term decision. It’s vital we have strong support on the new route as it will represent a very significant long-term investment and it will need to serve the region and the country for decades to come.” More>>

ALSO:

ScoopPro: Helping PR Professionals Get More Out Of Scoop

Scoop.co.nz has been a fixture of New Zealand’s news and Public Relations infrastructure for over 18 years. However, without the financial assistance of those using Scoop in a professional context in key sectors such as Public Relations and media, Scoop will not be able to continue this service... More>>