FOOD FRANCHISE Fast food Franchise
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Coffee franchise
Food-to-go Franchise
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Be Inspired:
Black Milk FOOD FRANCHISE
Deciding to franchise was an easy decision for Andy and Oliver, owners at Black Milk. We speak to Andy to find out more...
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V4 ISSUE 4 AUTUMN 2017
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Top 50 Food Franchises 2017!
One to Watch: El Mexicana
Find out where your favourite features on our countdown of the UK’s top franchises.
Print edition £3.99
Autumn 2017
Popular Mexican specialists El Mexicana tell us all about their plans for the near future as well as plans for their exciting new fast casual concept, Cocina.
News Round Up
Market Watch
Read our summary of the latest news from across the sector.
Our overview of the biggest franchises on the stock market.
philipo-fish I am a franchisee & this is my McDonald’s
‘We do a lot for the community, like helping out local business groups and sponsoring local football teams. But the main part of being a franchisee is developing my people. Seeing them enjoy themselves and be proud to work at McDonald’s – that’s the best thing.’ Phil, operates 6 restaurants in North Wales
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Editor’s message
Publishing Director Lewis Wantling info@mvhmedia.co.uk Office: +44 (0) 333 003 0499
Advertising sales Sandra Bouillet sandrab@mvhmedia.co.uk Office: +44 (0) 333 003 0499
Hello and welcome to the autumn edition of Food Franchise Magazine!
Art Editor Simon Warbrook Design@mvhmedia.co.uk
Production Editor Lili Sipeki lilis@mvhmedia.co.uk
Features & News Writer Susanne Wynne
susannew@mvhmedia.co.uk Office: +44 (0) 333 003 0499
Contributors Katee Dias Fiona Boswell
Finance Laura Williams finance@mvhmedia.co.uk Office: +44 (0) 333 003 0499
The summer saw a flurry of new openings and launches; Subway opened their 2,500th store, SOHO Coffee Co launched a succession of new stores in London and pizza giant Domino’s opened their landmark 1000th store. Elsewhere in the sector Canadian coffee brand Tim Horton’s will put their faith in the huge potential of the UK franchise sector, despite huge competition from established franchises such as Pret, Costa and Starbucks. The popular Canadian brand has already opened a unit in Scotland and intend to add to their Glaswegian outlet with more branches, in Manchester, London and Cardiff. Turn to page 8 to read more on the latest news and events. This edition also features our annual Food Franchise Top 50 (page 35). We have spent the last few months compiling the latest figures from the UK’s biggest food franchises, to bring you the UK’s largest (in terms of outlet numbers) franchise opportunities available today. Featuring One Stop, Papa Johns and Café 2 U to name but a few, the list covers both large and small, up and coming and well established franchises. Our One to Watch this month us Mexican restaurant chain El Mexicana; they have grown to become one of the UKs most popular specialist restaurants. We caught up with El Mexicana, they tell us more about the future of the brand, and give us exclusive insight into their new concept Cocina, which is set to open this autumn! We have chosen Manchester based cereal cafe Black Milk as this months Be Inspired. The cafe has just opened its first ever franchise, we speak to owner and founder Andy Young to find out why he started Black Milk, why they chose franchising, as well as their plans for further UK expansion. As always our International News keeps you up to date with the global franchising market and our Market Watch includes the latest market news from McDonalds, Starbucks and many more!
Publisher MVH Media Ltd.
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Front cover image courtesy of Black Milk
AUTUMN 2017 Food Franchise | 5
Contents AUTUMN
08 News round-up A look at some of the latest developments in the food franchise sector
35 Top 50 Food Franchises Read our countdown of the UK’s Top 50 Food Franchises featuring food and beverage businesses across the entire industry, from food to go specialists to coffee vans and everything in between
06
49 One to Watch: El Mexicana We find out what’s next for the popular Mexican chain and gain exclusive insight into the opening of their brand new casual dining concept, Cocina
57 Be Inspired: Black Milk Following the success of their cereal café in Manchester’s Northern Quarter, owners Andy and Oliver have stepped into the world of franchising, we caught up with them to find out more
49 6 | Food Franchise AUTUMN 2017
35
57
60
72
60 International News We round up the latest developments from brands around the world.
68 Market Watch
68
Our insight into the biggest franchises on the stock market.
72 Legal Katee Diass discusses employment status issues.
74 Franchise Services We bring you the latest in innovation from across the sector.
74 AUTUMN 2017 Food Franchise | 7
News
round-up Taco Bell to open its 18th store in Woking Taco Bell has continued its expansion across the UK with the opening of its eighteenth UK restaurant in Woking. With the Taco Bell head office also based in Woking, the long-awaited opening of a Taco Bell restaurant will bring something new, exciting and tasty to the town. Ellen Gault, Marketing Manager, Taco Bell UK & Europe said, “The UK is experiencing a taco revolution at the moment and as a result we’ve seen such love for Taco Bell throughout the UK. We can’t wait to open our eighteenth UK restaurant and look forward to welcoming Woking locals through our doors to experience delicious Mexicaninspired food.” Customers will be able to see their food made fresh to order, such as the bespoke Cheesy Quesdilla Nachos, with the option to enjoy a Sol Cervezas beer and frozen cocktails with their food, while the convenience of free wifi and charging stations for portable devices are perfect for those on the go.
Taco Bell commented last year on their expansion plans throughout the UK “The UK is a very important market for us and we’re continuing to work with our great franchisees to help bring more locations to our fans”
“As we continue to build a national Taco Bell presence in the UK, Drive Thru concepts will be a part of the portfolio, alongside High Street, Food Court and Stand-Alone concepts.”
Creams Cafe open their 50th store this month as they continue to lead the trend for dessert-only restaurants The UK’s largest dessert-only group have opened one new franchise location every month since the end of last year and are set to double their locations with new stores planned from Gateshead to Bournemouth, to Bristol and Liverpool this year. Creams Cafe has experienced phenomenal success since its launch in 2008. Since then it has supported franchisees nationwide. Franchisee Shane Boyd of Windsor Creams Café, commented “We were very satisfied with the business. We’ve been open two years and we have hit the targets, we set ourselves year on year. We’re also increasing our turnover year on year.” “We’re probably up 10% on last year already in regards to monthly sales.” Franchisees are aided by both Creams
8 | Food Franchise AUTUMN 2017
Cafe and wholesale food supplier Zoomex, Shane has attributed their support to his success. He added “Both the franchise and ourselves are dovetailing nicely in the area, through marketing and other means.” Following nine years of steady growth across the UK there seems no slowing down for Creams Café as they roll out a new menu to all stores, offering franchisees the support to upgrade and improve their offering and ultimately push for increased sales.
Burger King rolls out its delivery service as it faces increasing competition from its fast food rivals The fast food chain has announced it will now deliver to 59 areas across Britain, previously they only delivered to 43. After its initial launch last year with food delivery app Just Eat, the chain has reacted to consumer demand and has increased its delivery radius. With plans to increase this to 100 areas by the end of this year.
Competition to dominate the food delivery market is strong, with Burger Kings rival McDonalds rolling out its service with Just Eats rival UberEats. Similarly KFC has partnered with Just Eat to deliver from its 30 London branches. Currently food delivery is a hot topic, with more and more operators choosing to sign up to delivery services. The industry is currently thriving with many advances made over the last year, with Just Eat recently announcing its 1000th delivery via robot.
Costa Coffee introduce new autumn menu to help boost sales Coffee giant Costa, have announced a new autumn menu which will roll out to stores early this month. The new menu comes as Costa look for ways to boost lagging sales. Matthew Williams, commercial marketing director at Costa said: “We’re delighted to introduce an extended food menu to our stores from this September. We’re committed to providing our customers with the best experience when they visit our stores, and based on their feedback, we’ve been working with our innovations teams to develop products which we know they’ll enjoy.” “These additions give customers even more choice and are the perfect update to our ever-evolving menu of innovative food and drink options to complement our great tasting coffee.” Costa have experienced somewhat stagnant growth over the last year and are looking for ways to reinvigorate the coffee chain. As reported in The Telegraph, Costa boss Dominic Paul (appointed June 2016) recently stated that he wants customers to ‘appreciate the care we put into our coffee’. He says; “We are putting more resources into innovation. We don’t just keep up with the independents, we lead too.” “When I came to the business I could see the foundation was strong but we needed to invigorate and innovate. I want us to be famous for innovating.” Costa currently have 2,270 UK stores and concessions, and Paul hopes this will increase to 4,000 within the next 4 years. The brand also indicated it is rolling out trials for a brand new format for its UK shops. It is expected this will be rolled out in 20 stores in the first instance, as early as next spring.
AUTUMN 2017 Food Franchise | 9
News round-up
Tim Hortons announce plans to open new restaurants across the UK With a second restaurant already underway in Glasgow, Tim Hortons® restaurants will be opening in Manchester, Cardiff and Belfast over the coming months. The openings represent the second phase of an extensive, nationwide rollout plan with details to be revealed in due course. The expansion is expected to bring more job opportunities to each city. The new Tim
Tim Hortons®, the iconic Canadian coffee chain, will serve even more Guests in Great Britain later this year with new restaurant locations coming to England, Wales and Northern Ireland.
Hortons® locations are currently recruiting for team members at all levels, including manager and assistant manager. The first Tim Hortons® restaurant in Great Britain opened on Argyle Street in Glasgow at the start of June. The long-awaited launch was met with huge excitement, with Guests travelling from across the country and queuing overnight to be the first to sample the brand’s popular coffee and baked goods. Tim Hortons® was founded by its namesake, a top professional ice hockey player, who wanted to create a space where everyone would feel at home. Now one of Canada’s most iconic brands, nearly eight out of 10 cups of coffee sold across Canada are served at Tim Hortons® and more than 5.3 million Canadians – approximately 15 per cent of the population – visit the café daily. Across Great Britain, Tim Hortons®
will offer an extensive and varied menu of delicious drinks, which include Tim Hortons® signature coffee, espresso-based beverages, hot chocolate, French Vanilla and classic frozen Iced Capp® drink, as well as baked goods, breakfast and lunch items made from quality ingredients. Guests can also look forward to Tim Hortons® signature Timbits®, bite-sized doughnuts which come in a variety of flavours. Kevin Hydes, Chief Finance and Commercial Officer of the Tim Hortons® franchise in Great Britain says: “We were blown away by the reception we received in Glasgow, and are delighted to announce the opening of restaurants in Cardiff, Belfast and Manchester. We know there’s a great deal of excitement out there and we can’t wait to share more details. We’re always looking for fantastic people to join the Tim Hortons® Great Britain team – get in touch if you’re interested!”
Chopstix open landmark outlet with Applegreen CHOPSTIX, one of the UK’s fastest growing quick service restaurant brands, is set to officially open its 70th outlet This latest opening at Midway in the south of Ireland also represents the accessible Oriental food brand’s 10th venture with Ireland’s leading services operator Applegreen, further cementing the two-year partnership. Bringing 14 full and part time jobs to the area, the new Chopstix outlet will offer travellers the opportunity to enjoy freshly prepared and cooked
chicken and vegetarian dishes accompanied by a choice of noodles or rice, all typically served in under 60 seconds. Max Hilton Jenvey, Chief Operating Officer at Chopstix Group comments; “As our brand continues to go from strength to strength, we have much to celebrate with this new opening. Our 70th store, a developing partnership with Applegreen and the opportunity to offer our ever-increasing fan base a healthier, fresher and faster alternative in today’s quick service sector. There is undoubtedly much room for us to grow as a brand, and we intend to further build on our partnerships with Applegreen and other leading motorway services providers, to make Chopstix as visible on the nation’s roads as it is in the country’s high streets.” Now with 38 company owned and 32 franchised outlets, this latest unveiling represents Chopstix’s 12th new store opening of 2017 and marks the continued expansion of the fast growing “food to go” brand, which has seen its outlet count double in less than 18 months.
10 | Food Franchise AUTUMN 2017
AUTUMN 2017 Food Franchise | 11
News round-up
‘Cereal café’ to open first franchised location in Bolton Black Milk Cereal have announced the opening of their first franchised outlet, which will open in Bolton this September. The cult ‘cereal café’ has amassed quite a following from its original home in Affleck’s, situated in Manchester’s Northern Quarter. This following has allowed the business to take on their first franchisee, in the shape of regular customer Fayaz Patel. Speaking of Fayaz co-founder Oliver Taylor said; “We’ve built up a really good relationship with him, he and his family came in a lot. He was the perfect fit,” said Oliver. “The most important thing to us was that he understood the brand and he really gets what we’re about.” Of the location, Oliver said: “We’re really impressed by what’s happening in Bolton town centre. It’s always been a beautiful part of the north but the regeneration of the area is absolutely astounding. “It’s been a really exciting project to work on, seeing our little Manchester cafe grow from a tiny business started in Afflecks.” Black Milk can also be found on Oldham Street Manchester
and the new Bolton franchise – to be situated in a grade II listed building - is set to add to the number of bars and restaurants that have appeared in Bolton over recent months.
Domino’s announce intention to open 90 new stores this year as they declare profits of more than 9% Domino’s has announced strong results as part of their ‘continued growth’ following a ‘record number of new store’ openings as well as ‘increased digital participation.’ In total group system sales are up 10.5% reaching £546.5m from the previous year’s profit of £494.5m. UK system sales are up by 6.5% in total for the 26 weeks ended 25th June 2017. In this time the group saw strong expansion as they opened a total of 40 new stores. Commenting on the results, Chief Executive Officer David Wild, said: “The first half of 2017 has been another period of good progress for Domino’s Pizza Group, despite a more uncertain UK economic environment. The core business delivered strong year-on-year system sales, continuing to take pizza market share, with good like-for-like performance.” “We’ve had a record six months in the UK, opening 40 new stores and have consequently raised our expectations from 80 to 90 this year. I’m delighted we’ll shortly be opening our 1,000th British unit and we are well on track to achieve our goal of 1,600.” The group also reported strong online progress, with sales up by 11.5% on last year, achieving 75% of total sales, mirroring the strong advances in online ordering in the market as a whole. He continued; “DPG continues to lead the pizza market, with innovations such as the popular Lotta-Chocca pizza and our launch today of Amazon Echo voice ordering. Following a successful trial, we’ll be rolling out GPS, which will enable customers to track their delivery and help franchisees with labour management.” “This autumn, we’ll invest around £4m to improve customer value, supported by a bold new advertising campaign.” “We’ve taken controlling positions in our Nordics operations and completed the acquisition of the Dolly Dimple’s pizza chain in Norway,
12 | Food Franchise AUTUMN 2017
giving us immediate scale with promising early results in attractive markets, which are, as yet, underdeveloped.” “Our ongoing investment in growth, our new Warrington supply chain centre, digital capabilities and overseas expansion is balanced by returning capital to shareholders through dividends and share buybacks. “Whilst we acknowledge that our UK consumers are currently more cautious about the economic outlook, we’re focussing on growth investment with our franchisees; boosting marketing; improving customer engagement and enhancing our leading position in food delivery. Pizza remains the world’s most popular delivered food, and Domino’s is the top choice for consumers.” As for the future, Dominos expects to open an impressive 90 stores by year end, with intention expressed to resume share buy backs in the near future, ‘reflecting confidence in the long term and commitment to shareholder value.’
business profile
Pioneers of Fried Free Chicken, Selekt Chicken is on a mission to revolutionise the fast food industry by moving the fried chicken concept into the realm of fast casual. Offering customers completely fried free chicken with an array of flavour coatings, Selekt Chicken have developed a franchise opportunity with a difference. Incorporating a sleek, modern design concept with an innovative menu – that was developed over 24 months – Selekt Chicken offer their signature chicken alongside gourmet burgers, vegetarian options and high quality steaks. As well as an array of sides, desserts and drinks including milkshakes and high quality hot drinks. We speak to Chief Executive Officer Tahir Jamil, who discusses his brand new fried
free chicken concept and explains why potential franchisees should choose Selekt Chicken.
How long have you been in franchising? We launched our franchise offer earlier this year and are speaking to several interested investors and franchisees. At this stage, we want passionate, committed, well-funded people to work with us to build our unique brand.
What type of person/ investor are you ideally looking to work with? We want operators and investors who are passionate about food and quality and who are willing to follow our processes and
procedures to develop the Selekt Chicken brand throughout the UK. Experience in the industry is helpful but not crucial – our training program will give you all of the skills you need to run your Selekt Chicken business. What is important is a love of food, quality, people and the desire make your Selekt Chicken operation successful. Passion and commitment are crucial.
What are the opportunities available when investing in a Selekt Chicken franchise? Quite simply you have the opportunity to work with a unique, growing business and a committed passionate team of people, and, to make some money along the way.
How are you looking to grow Selekt Chicken over the next year? Our goal is to have a minimum of 10 new Selekt Chicken stores within the next 3 years. We want at least 90% of these to be franchised stores. We are keen to talk to operators from around the UK who want to be part of this growing brand.
AUTUMN 2017 Food Franchise | 13
business profile
What makes Selekt
Chicken different and why should a potential franchisee choose your brand? Quite simply, there are no other franchise brands offering an extensive Fried Free Chicken menu – we are unique. Our product makes us stand out in the very crowded QSR market we operate in. We have taken one of the UK’s favourite fast food offerings and improved it by making it fried free. Our menus, store design and service style create a modern, relaxed environment and our fantastic range of fried free products are delivered with speed and consistency. Our business team have many years of experience within the fast food franchise industry and although we are a new brand we come to the market with passion and knowledge. Our goal is to expand our brand throughout the UK and overseas, to do this we want to work with franchisees who hold the same passion for food and quality that we do.
What support can a franchisee expect from Selekt Chicken? We want every franchise store to be successful – our mission is to have an estate of successful franchised stores throughout the UK and overseas. Throughout your franchise agreement we will offer support in many ways, from getting your store open, training your staff, help managing budgets, and providing further training as and when needed – we support you every step of the way.
complete a Brand Audit to ensure each store meets our requirements.
What does it cost? Total up-front (franchise fee, shop fit etc.) and how much on-going? Every site is different and therefore shop fit costs will differ from store to store. A typical 100 sq foot site would cost in the region of £225K to open, this includes Franchise Fee of £10K, Design Fee, refurbishment costs, equipment and so on. We charge an on-going royalty fee of £1000 per month – unlike other franchises, we don’t charge a percentage fee, we believe this is an easier way to manage your budget and finances.
How long does a franchise agreement last and what happens after that term? Our agreements are 5 years, once the initial term is over we would review each franchise on a case by case basis for renewal, which, if approved, would be for a further 5 year term.
Are your current stores making profit? Yes, we have spent the last year working hard on making our business efficient, maximizing sales and profit without impacting the quality of our food and service.
When can I expect a return on my investment?
How long is the training and do I pay for it?
We can’t promise any level of profit in your franchise – we give you the tools to make your business a success but the hard work is down to you. What you get out of your franchise will depend on what you put in. We also realise that every franchisee structures their finances & business differently. We would however expect a franchised business to get a return on investment within 3 to 5 years.
The cost of your training is included in your Franchise Fee, you will however need to provide yourself with accommodation based near your training store. Initial training will usually last between 2 and 3 weeks. Our training provides all the knowledge you need to operate a successful Selekt Chicken but you are also responsible for gaining as much experience throughout your training as you can so
Do you find a site for me? How does finding a site work, what do I need to do and how do you help me? We are happy to put you in touch with commercial property agents, or you can source a location yourself. We will always approve a location before moving forwards with a franchise. We have a design team who will draw plans for the shop fitting and can put you in touch with project managers and shop fitters if needed. Before your store can be opened we will always
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business profile
marketing fund which covers things such as the brand website, in-store marketing designs, marketing plans etc. You will be fully supported in all aspects of your business.
How many other franchised stores do you have? Currently we have one corporate store open with 3 more stores in the pipeline. 2017 and 2018 will see at least 5 new stores opening – these will be a mix of both franchised and corporate.
Can I set my own prices?
the effort you put in will affect how long your training program lasts for – we only graduate franchisees who are ready!
Can you assist with getting funding? For example, lease on equipment? You will need to organise your finances to ensure you can take on the financial responsibility of a Selekt Chicken franchise. We are happy to supply information on any leasing packages our equipment suppliers may offer but ultimately it is your decision (along with your own financial advisor) on how you structure your business.
What are the site requirements (size, access, fittings, location etc.) The optimum size for a Selekt Chicken store is around 100 square foot but we are happy to consider any size store you are prepared to take on and discuss making the business work on a bigger or smaller scale. If you have a potential site we would always review options before approving as a Selekt Chicken store.
Do you offer exclusive territories? We don’t offer exclusive territories unless
you want to discuss multi-site options. We do want every Selekt Chicken store be very successful and locating 2 stores close to each other would limit yours and our potential for sales.
What help do I get opening my store? For example, staff training, balloons & marketing etc. We have experience opening stores and will support you from day one. Our marketing team will advise you on the best strategy for launching your new business in the local community and our operations team will be on hand during your first week of trading to support you and the business.
Can I have my own website and Facebook page? We are one brand and want all online traffic to come to our own branded sites. We will have pages dedicated to different stores where you can add your own local events, offers and news.
Do I do my own marketing – what help do you give? We have a marketing team who have many years’ experience in driving sales through marketing. Franchisees pay into a brand
We have spent time analyzing our target market and have structured our menus and pricing to match our target market. We are not a budget brand and our pricing reflects this. We want our franchisees to understand the balance between quality, profit and sales and can support anyone looking to move out of our pricing structure as we appreciate that different locations will have slight variations in their pricing. We like to review all offers and promotions at all stores to ensure we are not cheapening our brand with low pricing nor pricing ourselves out of the market.
Do you complete shop fit or can I use my own fitters? We have contractors who will design your store for you, you are welcome to have your own shop fitters build your store following the plans drawn by our team. We can also put you in touch with shop fitters who we have a relationship with already.
Can I open a store overseas? Yes, we are looking for overseas franchisees, predominantly well-funded investors and partners who are looking to grow the Selekt Chicken business outside of the UK. For more information about Selekt Chicken and how to apply visit our website www.selektchicken.com
AUTUMN 2017 Food Franchise | 15
News round-up
KFC open new outlet in Manchester Airport KFC have unveiled their latest opening, in Manchester Airports Terminal Three, a first for the popular fast food chain. The restaurant will provide 50 jobs. “This agreement with KFC marks a significant milestone in our strategy to increase our footprint in the rapidly expanding and dynamic UK marketplace through a strong international brand” says Walter Seib, CEO of HMSHost International. “We’re delighted to open this popular concept as part of the ongoing development of Terminal Three. Stephen Turner, Commercial Director at Manchester Airport, said: “We are delighted to launch the first ever KFC airside at a UK airport and I am sure the outlet will be incredibly popular with our passengers in Terminal Three. The well-known iconic brand will offer passengers something different, and complements the other food and beverage offering within the terminal.”
Subway open their 100th store in Northern Ireland Subway have announced the opening of its 100th store in Northern Ireland. Located on Upper Lisburn Road, Finaghy, Belfast, the store is owned by Subway® franchisees and local businessmen, Muhammad Aamir and Akhlaq Akhtar. The Subway® brand has undergone significant growth in Northern Ireland, with the first store opening some 19 years ago in Botanic Avenue in Belfast, and has created more than 1,500 new jobs. Through its franchise model, the brand has also helped a significant number of local people to fulfil their dreams of becoming their own boss. The team responsible for its growth in Northern Ireland are Development Agents Neil Black, Paul Heyes and Adam Heyes. Neil comments: “The Subway® brand has been supported by the people of Northern Ireland, who have been loyal customers of ours for nearly 20 years. We’ve been lucky enough to work with an excellent group of franchisees. “We’re thrilled to be opening a milestone 100th store in the region. The future for the Subway® brand is certainly very exciting and we’re all looking forward to working with our franchisees to help them realise their potential and to continue to grow the brand across Northern Ireland.” The new Subway® store is located in south Belfast, on a busy road that serves as a major arterial route between Belfast and Lisburn, and is surrounded by other shops, local businesses and homes. The brand new store offers seating for more than 20 customers. This is the third store for franchisees Muhammad Aamir and Akhlaq Akhtar, who also own Subway® stores on Woodstock Road, Belfast and in the Kings Square Shopping Centre. The duo have been Subway® franchisees since October 2007. Franchisee Muhammad Aamir said: “We saw a lot of potential in this location, plus I live nearby and there is a great community feel here. “Akhlaq and I looked at many different franchise possibilities and spoke to franchisees and a Subway® franchise made sound business sense to us. We are also passionate about the product and love the
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fact that there are low fat options available.” Muhammad’s business partner Akhlaq added: “It is great to see the Subway® brand expanding like this in Northern Ireland and to be a part of that momentum. We are so excited to open our third Subway® store and knowing it’s the 100th store in Northern Ireland is just the icing on the cake!” The Belfast office of Lisney, commercial property consultants and chartered surveyors, acted as agents. Andrew Knox, Surveyor at Lisney commented: “Lisney has its finger on the pulse of the Northern Ireland commercial property market and a track record of working with leading global organisations, such as the Subway® brand. “The opening of the brand’s 100th store in Northern Ireland is to be warmly welcomed and provides a further boost for a local retail sector which has enjoyed significant growth in recent years. We were pleased to secure this deal for our client and wish the Subway® brand every success with this store.” As the largest Quick Service Restaurant (QSR) brand worldwide – there are more than 44,000 Subway® stores in over 110 countries – the expansion of the brand continues at a fast pace, with the Subway® franchise recently announcing plans to increase the number of stores across the UK and Ireland to 3,000 by 2020, creating around 5,000 new jobs. One of the key reasons behind the success of the brand is the support network and robust processes available to franchisees, including Regional Development Agents who mentor franchisees with site selection, leasing, design, construction, purchasing, operations, local store marketing and more. Over 70% of all new Subway® franchises sold worldwide are to existing owners, a great testament to the strength of the brand and solid support provided to franchisees.
AUTUMN 2017 Food Franchise | 17
News round-up
Bargain Booze owner Conviviality profits have doubled Conviviality, owner of Bargain Booze and Wine Rack, has more than doubled its full year profits, totalling £22.5m. Diana Hunter, chief executive of Conviviality said: “The balance we have created across the enlarged group, and the resilience this creates gives us confidence in the future success of the business. “Importantly the culture that we have created at Conviviality, with its entrepreneurial and innovative focus, remains true across the group and we firmly believe there is exciting potential for significant organic growth for our businesses, with further potential opportunities to build on the current platform.” The pre-tax profits for the 12 months to the end of April are a 147% increase on the £9.1m it made the previous year. It also almost doubled sales to £1.56bn. Net debt of £95.7m was comfortably below target.
New wholesale franchise opportunity for ambitious self-starters launches in the UK A brand new wholesale franchise concept has launched in the UK. The Froth Shop Wholesale Franchise provides ambitious individuals with the opportunity to develop a successful business with a large customer base, supported by a range of exclusive and exciting brands, developed specifically for the UK Coffee Shop Market. The concept was conceived by Shane Saunders, who also operates a successful UK based coffee shop franchise, Mangobean Coffee Shops. “We’ve been operating in the UK Coffee Market for over a decade and we’ve been developing our own branded products since the beginning. We understand the needs of coffee shop operators and how to maximise repeat business and minimise costs”, commented Shane. Shane has supplied over 6 million cups of coffee and installed over 250 coffee machines and many other types of catering equipment in businesses throughout the UK. Following the successful launch of Mangobean in 2014, developing a wholesale franchise was the next logical step for the company.
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“Our wholesale franchise is something different to what’s already out there. The potential for success is only limited to the ambition and hard work of our franchisees. It’s a great opportunity to build up a database of clients who will be placing regular orders on products that are exclusive to your area. We provide a sustainable business and a terrific franchise opportunity to anyone with the drive to succeed.” The Froth Shop has been working with key partners in the development of new and exciting brands such as El-Hoddo Coffee and Cocolicious Hot Chocolate. “We have a dedicated marketing and brand development function that keeps its ears to the ground to pick up on the market trends that are having the most success. The fast moving and responsive nature of our business means benefits for our franchisees and their customers.” At £3,000 (+ VAT) for one of only 18 territories in the UK, Shane is expecting a significant demand for the wholesale franchise opportunity. “We are limiting our franchise to 18 ambitious individuals to allow them to develop large territories of their own. Our franchise fee is highly competitive and the support and training we will provide will allow our franchisees to hit the ground running. It’s an exciting time for us and we’re looking for the right wholesale franchisees to join us over the next 36 months.” The wholesale franchise opportunity has been developed to flexible and can be undertaken on a part time basis in the first instance. Froth Shop wholesale franchisees will benefit from a dedicated lead generation service and website support. The Froth Shop operates a national franchise model with opportunities now available nationwide. Interested parties should contact Ashley Pamment for further information (ash@mangobean.co.uk).
business profile
Riverford invests in new packaging technology Riverford Organic Farmers, one of the UK’s pioneering veg box schemes, grow and deliver veg, meat and more to over 47,000 customers a week nationally. Although a farm, IT help drive every aspect of the e-commerce business, from taking orders to optimising harvests. Over the last year Riverford have embarked on many projects to improve efficiency and services. The benefits of these projects have been and will continue to be felt by staff, farmers, suppliers, franchisees and customers. The latest project saw the introduction of a state-of-the-art production line and packing system technology, which reduces the time franchisees and drivers spend at a customers’ doorsteps. As Riverford’s product range has grown, so too have the number of items each customer has delivered, with the majority of customers now adding extras onto veg boxes, or building orders from scratch. Until now, orders were packed at farm level on a delivery round basis, then picked out by the drivers at the point of delivery. The new system means that individual customer orders can be packed at the farm, and will not
only reduce delivery times but also the time taken for the drivers to load vans for the day. The new packing line follows a tote and conveyor belt system. The line receives customer orders and breaks down the extras and meat products. Lights indicate to the workers which items and what quantity they need pick and pack into each tote. The totes reach a repack station and items are then packed into individual boxes and cool bags and labelled with the customer’s name and address.
Riverford’s franchisees are commenting positively on the change, as explained Paul Jardine of Islington & Camden home delivery “I’ve noticed a big difference to some of our longest delivery rounds. It’s reduced the amount of crates we’ve needed to load onto the vans and reduced packing time at the collection hub. “So far it’s saving about an hour per delivery round. With the extra hours I can fit in more deliveries per day, delaying buying a new van or employing more staff.”
B e the boss Explore our ethical, organic food delivery opportunities riverford.co.uk/franchising 01803 227380
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News round-up
McDonald’s workers protest for first time in company’s history Nearly 200 people protested over poor pay and conditions in the first strike in the company’s history. McDonalds opened its doors back in 1974 and yesterday for the first time almost 200 people gathered outside the houses of parliament to strike over controversial zero hour contracts and working conditions. Protestors consisted of union members and the public. 40 staff went on strike from
two restaurants in Cambridge and Crayford, South-East London; they walked out over the global company’s use of zero-hour contracts and a lack of union recognition. Shadow Chancellor John McDonnell also joined in the protest, speaking to The Guardian he commented: “These are
Former Head Chef opens Jaspers Catering Services latest franchise A new branch of national caterers Jasper’s Catering Services is opening in Poole this week, serving buffet catering to businesses and in around Bournemouth and Poole, including Christchurch, Ferndown and Wimborne. Headed up by former contract catering Director Ricky King, the business is a family affair with Ricky’s son Josh managing food production and his daughter-in-law Jazmine responsible for sales. After training in hotel management in Bath, he moved into contract catering and became Head Chef at 19. He has managed catering contracts for clients such as NatWest Insurance, IBM Computers, BMW, Barclays Bank, and since 1995, Bournemouth University. Ricky said “I have dipped my toe into managing my own business before but wanted my next venture to excel and for my whole family to be involved and feel the benefits.” “Jasper’s bridges the gap between the contract catering giants and independents. There is enormous opportunity within
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this marketplace and I feel I will be able to contribute and make my mark in this business.” With their business acumen, energy, passion for food and customer service, the King family are an ideal combination to open Jasper’s first South West branch. So
workers who are extremely vulnerable in terms of their employment conditions. And yet at the same time they’ve had the courage to come on strike. They’ve said: ‘We’ve had enough and we need to negotiate.’ “If I was McDonald’s management I’d be listening very carefully today. I’d contact the union and I’d get round that table.” As reported in The Guardian, a McDonald’s spokesman said the company was “providing our people with the option of a guaranteed hour contract, and all restaurants will have these contracts in place by the end of 2017”. He said the company “and its franchisees had delivered three pay rises since April 2016, increasing the average hourly pay rate by 15%.” “We are proud of our people at McDonald’s, they are at the heart of all we do and we work hard to ensure that our teams are treated fairly. Our internal processes underpin that commitment.”
much so that they already have aspirations to launch a second branch in neighbouring Southampton. Ricky continued “The Jasper’s Head Office team are positive, down to earth and hands on, they have given me confidence throughout this time leading up to the launch. I have total faith in the Jasper’s products and services, no other caterer can offer the variety and commitment to quality that we do.” “Whether it’s finger food and platters of sandwiches; tapas buffets, bowl food buffets, fruit and sundries boxes or healthy workplace snack solutions, Jasper’s has got it all covered. I can’t wait to get stuck in.”
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News round-up
Wafflemeister expands to the North of England London-based all day brunch and dessert brand Wafflemeister and food franchise consultancy Seeds Consulting have finalised an agreement to open the first Wafflemeister franchise in the north of England in partnership with Steve Mullarkey, an experienced multi-site Papa John’s franchisee and former Whitbread divisional director. The first store resulting from this partnership is scheduled to open early 2018. Founded in 2009 by Alexander Troullier, Wafflemeister currently operates sites in a number of prominent London locations, including Oxford Street, Westfield London and Westfield Stratford, as well as franchise stores in Wimbledon, Brighton and in the GCC. Comments Steve Mullarkey: “I was looking for a new opportunity that would complement my existing business and that would allow me to expand and develop in areas where I was already trading. Crucial elements for me when deciding which opportunity was best suited was the quality of the product, the professionalism, support and enthusiasm of any other parties involved, the long-term profitability of the venture and the opportunity to expand into a multi - site business. I am delighted to say that Wafflemeister ticked all of these boxes. I am really excited about opening my first store in the near future and I am certain this will be a great success and partnership moving forward”. The Wafflemeister stores feature an all-day dining menu
comprising sweet and savoury waffles, a range of sweet and savoury crepes, coffee, shakes, gelato and fresh juices, all served from compact mall kiosks or street front high street cafes. Adds Alexander Troullier: “Wafflemeister is always looking to partner with like-minded professionals and are excited to have done so with Steve. We think Steve is a fantastic partner who has tremendous relevant industry experience and we are looking forward to opening a Wafflemeister outlet with him very soon”. Seeds Consulting Director Matteo Frigeri comments: “We are pleased to see the franchise programme we have set up with Wafflemeister continues to attract quality franchisees like Steve. The fact that so many experienced restaurant franchisees have joined the brand in recent months is a testament to the appeal that this investment opportunity has amongst a discerning audience of successful operators.” Matteo Frigeri adds: “Wafflemeister has a successful trackrecord of supporting franchisees, from initial training to site selection and ongoing operational support. What is available to franchisees is not only a proven business model but a full support infrastructure to guide them at every step of the way”.
Olympian Usain Bolt to open 15 franchises across the UK Olympic sprinter Usain Bolt is to bring his restaurant franchise to the UK. Jamaican franchise Franjam has signed a deal with the Casual Dining Restaurants Group (CDRG) (who also operate KFC, Pizza Hut and Costa Coffee franchises) to bring 15 Tracks and Records restaurants to the UK. The aptly named Tracks and Records brand, promises to offer ‘real Jamaican vibes’, authentic Jamaican cuisine and Bolts speciality burger ‘Burgers à la Usain’. Franjam and partner Bolt opened their first Tracks franchise back in April 2011, in Kingston, Jamaica. The casual dining meets sports bar spot claims to be ‘a laid back hub of entertainment, live music, sports and incredible Jamaican fusion cuisine.’ They plan to open the 15 themed restaurants in as yet unnamed locations across the UK. CDRG company director and CEO, Aly Esmail, said: “We are pleased to add this incredible Jamaican brand to our growing number of franchises across the world.“
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“This partnership with Usain Bolt and the Tracks and Records brand will allow us to introduce an experience to our markets here in the UK that is as close as it gets to actually visiting the island and will give them a real taste of Jamaica.” Bolt said: “I’m happy to be able to share a taste of the Jamaica that I know and love with the rest of the world through the opening of these restaurants across the UK.” “London has always been a special place for me and I thank Aly for giving us the opportunity to share our vision and our culture with you all.”
Papa John’s Franchisees Open Sixth Store in 18 Months Leading pizza franchise, Papa John’s, has announced franchisees John O’Brien and Clif Roberson have opened their sixth store within 18 months. The school friends from Merthyr Tydfil turned business entrepreneurs, now run Papa John’s throughout South Wales including: Cwmbran, Pontypridd and Merthyr Tydfil. Their newest franchised Papa John’s in Yate, just north of Bristol, is their first outlet to be located outside Wales. “We always had a master plan!” confirms Clif Roberson. “We put a management structure in place from day one to enable us to expand rapidly. We are delighted that all our store managers have been selected through internal promotion from our original staff. It’s great to see how many of our people have the right ingredients for success and how they have progressed through the opportunity that Papa John’s provides. “From an operations point of view, we have been able to take advantage of Papa John’s current incentive scheme to open-up in Yate,” continues Clif. “This means Papa John’s has put a great deal on the table, to give us a helping hand with equipment and marketing to ensure we can get off to a really good start. This deal will also come into effect with our next Papa John’s opening
Costa has committed to hiring at least 250 new apprentices by the end of 2017 Costa has launched a major apprentice recruitment drive across the UK, as part of its commitment to offering careers and skill development in hospitality. There are 800 apprentices already in learning across Costa’s parent company Whitbread, with many more graduates working throughout the company, all of whom will receive the National Living Wage.
scheduled for next month – it is sure to be a recipe for success! “So far our journey with Papa John’s has been quite an adventure! One major highlight was being named as Papa John’s UK franchisees of the Year in 2016. Myself and my wife flew to Colorado to receive our award. It was an honour to meet the Global team. Our expansion doesn’t stop here though. We aim to continue to satisfy demand for our top-quality pizza made with only the finest ingredients and fresh dough for a better natural flavour. We are currently on-track to have a total of 15 Papa John’s up and running within the next couple of years.” Papa John’s is one of the largest pizza companies in the world and has opportunities for franchisees throughout the UK. Help is provided with location selection and full turn-key opening of stores. As a franchise, the Company supplies all the assistance needed to open your successful Papa John’s.
The fully-funded apprenticeship scheme offers nationally recognised qualifications focusing on wider business management, customer service and communication skills, as well as industry leading training in traditional barista skills. This ensures apprentices are able to progress within the company and the industry more widely, all whilst learning. “As a leading UK hospitality business, we want to lead the way in training the next generation of leaders for the hospitality industry,” said Russ Hartland-Shaw, Costa Apprentice Programme Manager. “We know our business can only be successful if the communities in which we operate thrive, which is why we are committed to providing a scheme that offers apprentices the right level of support and responsibility, as well as a clear, structured pathway to enable candidates to have a future within the company.” Costa apprenticeships have so far created more than 170 permanent roles for young people throughout the UK interested in pursuing hospitality career. “The Costa apprenticeship scheme has made a huge difference to me – It’s great to be invested in and have someone say that they believe in you,” said Rob Vizor, a recent graduate of the scheme. “My Costa colleagues were all great at giving me the help I needed to succeed, and that has given me a massive confidence boost across all areas of my life.” With impressive growth targets and a 2020 milestone of over 2,500 UK stores, apprenticeship vacancies will be available in stores throughout the country, including London, Manchester, Glasgow, Leeds and Birmingham. As part of this commitment to learning in the workplace Costa believes this year’s introduction of the Apprenticeship Levy is an opportunity for businesses to bring new talent into the business. Costa is reinvesting the Levy into existing programmes to increase the scope and potential they offer.
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News round-up
Cornwall’s oldest bakery bridges the gap with latest opening in Bridgewater After a hugely successful and busy year to date, the world’s oldest Cornish pasty maker continues its quest for national expansion with their latest opening Established in 1860, the award-winning artisan bakery is delighted to be working in partnership with local businessman James Tucker who will be adding Warrens Bakery to his current portfolio. As a successful entrepreneur in the area, James was impressed at the stand out quality of the craft bakeries premium range, commenting: “With Warrens I know where the product comes from – something that is important to me – and I can follow its journey all the way from production to the first delicious bite. Knowing that Warrens still use the same fresh, local ingredients and hand-crafted skills for every product really sets them apart from any other bakery.” 2017 is quickly becoming the year of the Cornish pasty takeover, with new Warrens Bakery store openings announced each month. As well as celebrating numerous openings and franchise partnerships, the team has been raising a toast after being shortlisted as one of the top three craft bakery businesses in the country, in the Baking Industry Awards 2017. Commenting on the opening of the new bakery, chairman of Warrens Bakery, Mark Sullivan says: “With the rise in popularity of craft bakery and British baking, we are delighted that we will be able to share our recipes and award-winning sweet and savoury bakes with even more customers in Bridgwater. We are immensely proud of our heritage and it is extremely important to us as we grow to do so with experienced and trusted partners.
Further expansion for SOHO Coffee as it opens its fourth London outlet SOHO Coffee Co. has launched its fourth London store in eight weeks, offering its famous, organic, Fairtrade Arabica coffee alongside fresh, handmade, on-trend food menu. The new store in Kingsway on the corner of Keeley Street, is the sixth store to open in the Capital, and also the sixth store to open this year. It is one of the brand’s largest footprint outlets and is a stone’s throw from many of the area’s top theatres. The brand is planning further openings
James is a prime example of that and, with a track record of running and launching several successful businesses in the area, we are looking forward to working with him in expanding our portfolio of stores in the region. We have big expansion plans in the region, with 20 stores over the next five years and can’t wait to build on our partnership and greet customers who may be more used to seeing our stores when holidaying down by the Cornish coast.” Franchise Owner James Tucker adds: “I’ve been visiting Warrens stores whilst on holiday in Cornwall for as long as I can remember, so was already familiar with the brand and its premium quality before hearing about the franchise opportunity. With Bridgwater being both my home town and the base of our business, it presented the ideal opportunity for our first store. I believe there is a real gap in the market here for a premium bakery like Warrens – a store that both offers traditional, local quality and, for many in this part of the country, evokes memories of wonderful holidays to Cornwall!” James continues: “Warrens Bakery brings a strong brand with excellent scalability to our portfolio. Scalability is something I look for in any business opportunity – in particular, the potential to take a strong, high quality and recognisable brand and expand it across our local market. Our next store will be Taunton and we are excited to grow the Warrens brand across Somerset.”
for 2017, and has already opened outlets in Cheltenham and Birmingham alongside Baker Street, O2 Centre and Austin Friars in London, since January. Since its inception in 1999, SOHO Coffee has pioneered this hot food-led coffee offering; a proposition which has allowed SOHO to further capitalise on the recent trend of consumers demanding quality, healthy, quick-serve food items for working lunches, shopping pit-stops and travel-friendly meals. Success is evidenced by the brand’s fast-paced expansion, of which Kingsway is the latest addition. The new store in Kingsway on the corner of Keeley Street, and opposite the London School of Economics (LSE), is the sixth store to open in the Capital, and also the sixth store to open this year. It is one of the brand’s largest footprint outlets and is a stone’s throw from many of the area’s top theatres. The brand is planning further openings for 2017, and has already opened
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outlets in Cheltenham and Birmingham alongside Baker Street, O2 Centre and Austin Friars in London, since January. Penny Manuel, Managing Director of SOHO Coffee Co commented “We are very proud and appreciative of the support and unstinting dedication shown during this busy time of expansion from all our people.” “From our new product development team right through to our recruitment, training and operations teams – people are at the heart of everything we do and we couldn’t do this without them!” Watch this space for the next store opening, due in a week’s time!
business profile
Fulfilling Dreams
Beatons Tearooms – the elegant franchise reviving British High Streets Patrick Duffy, founder and CEO of the Beatons group, was the first to spot a huge gap in the UK High Street way back in 2010. Where could you enjoy exceptional table service and quintessentially English afternoon tea (or the finest coffee or indulgent hot chocolate for that matter?) in your home town? It’s a gap the group has been quietly filling with its clever combination of a tearooms alongside a small but enticing collection of books for sale. The village of Tisbury in Wiltshire saw the launch of the first Beatons. It was an instant success, reviving the village despite a recessionary environment. The name, branding and stylish interiors are inspired by fashion icon Cecil Beaton, royal photographer and costume designer who lived locally. The brand has swiftly become synonymous with elegance and ‘gracious hospitality’ and makes franchisees’ dreams of owning a successful tearoom an affordable reality. Duffy developed the franchise model while carefully building on the group’s reputation. Beatons’ first female franchisees
launch their tearooms in Petersfield and New Milton in Hampshire this autumn. This gives the group a national presence of six units from Chester to Blandford Forum in Dorset, with more in the pipeline. Each serves their distinctive brand of ‘Gracious Hospitality’, along with a range of more than thirty loose leaf teas, luxury coffees, delicious homemade cakes and freshly made food, including a ‘curated’ selection of books to browse and purchase. Increasingly, individuals are seeking a lifestyle which takes them out of corporate life, away from screens and long commutes, the franchise opportunity that Beatons Tearooms offers can turn these dreams into realities. To find out more visit their website: www.beatonstearooms.co.uk
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News round-up
Food price inflation falls to 7% but prices still rising in key categories The latest edition of the CGA Prestige Foodservice Price Index reveals that in some categories actual prices are starting to come down slightly compared with previous months, although in other key sectors the trend is still up. Inflation in wholesale foodservice prices fell in July 2017, welcome news to the UK’s eating out operators who have experienced unprecedented food price inflation over the past 12 months. This month’s Foodservice Price Index, produced by CGA and Prestige Foodservice, reveals that food inflation hit 7% in the 12 months to July 2017, down from its previous level of 8.8% in June 2017 and 9% in May. But while some food prices are coming down, this inflationary fall can also be attributed to the higher monthly comparable of 2016, when the post-Brexit months saw prices rise rapidly as the value of the pound fell sharply against the Euro. One bright spot seen in this month’s FPI is in the price of sugar and cocoa, which has seen year-on-year deflation of 6.8% as prices for key ingredients in this category have fallen. Fruit inflation has also seen a healthy decrease to 8.95% for July, down from 13.6% in June due to a brief dip in prices. Other key food categories such as fish, meats, and oils and fats are still seeing price rises year on year due to supply and labour issues in producing countries.
Oils and fats saw the highest price inflation for July, at 12.4%, due to harvest issues for olive oil in the newer producing countries, while meat price inflation saw double digit rises in July as compared to the previous year, up to 11.4%. The price of wholesale milk, cheese and eggs has also risen slightly this month, up to a year-on-year inflation figure of 10.6% for July. Christopher Clare, Head of Consulting & Insight at Prestige Purchasing, commented: “While the CGA Prestige Foodservice Price Index shows that overall the price inflation figures appear to have calmed, this is somewhat due to the high comparables of last year. However, there are still a number of crucial supply issues that could force up prices further in many key categories.” “The weakened value of the pound is inevitably having a profound impact on wholesale prices in the UK and in some categories, such as vegetables, the threat of insufficient migrant labour is already threatening to constrain domestic supplies,” added Graeme Loudon, commercial director at CGA.
Jasper’s launches new finger food range After months of development work with suppliers, customers and the in-house team, Jasper’s is delighted to introduce a new range of finger foods to its classic buffet catering menus. The aim of the new range is to meet customer demand for satisfying buffet food, whilst offering a wide variety of products with nutritional variation, flavour and vibrancy. Classic sausage rolls and vegetarian sausage rolls are handmade for Jasper’s, as are the savoury pies and quiches. New pakoras, bhajis and samosas are made to an authentic recipe. Proving very popular with the customers that have tested them are the mini pizzas in both vegetarian and meat varieties. Jasper’s
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taco cups filled with Mexican chicken or five bean salad, are colourful additions to the menus. Each finger food platter comes with a vegetarian alternative. Wraps come in several tasty new varieties including lemon pepper chicken with red cabbage, spinach and mayonnaise; and Moroccan falafel with carrot, rocket and mint & yoghurt sauce. Knowing that the requirement for gluten free foods is increasingly important, Jasper’s has worked to develop a new marinade for its chicken skewers that is gluten free, and new vegetarian gluten free skewers which include Tuscan vegetable bite and sweet potato pakora. Jasper’s co-Director and Founder Paul McMahon said “In developing our new finger food range, we’ve listened to our customers who said they love the classic, filling products such as sausage rolls and quiches, but we have created our own versions which are definitely the best we have ever offered.” “We’ve been bolder with spice for example in our taco cups with chilli and our teriyaki-marinated sausage skewers with sesame. As the Business Catering Experts it’s vital we keep innovating as well as delivering what our customers love.” Jasper’s new finger food range will be incorporated in Classic Buffet Catering menus from 3rd July.
business profile
What makes Froth Shop different and why?
Why should an investor choose The Froth Shop? If you’re a dynamic and driven people’s person looking for a fantastic opportunity then The Froth Shop franchise is for you. We offer the opportunity to be your own boss, working flexible hours at the start, build a sustainable income with regular orders from your database of clients. The initial investment required is set at a very low level with huge scope for significant profits.
What type of person are we looking for? This is predominantly a sales role, so if you can communicate at all levels from coffee shop owner to corporate level, advising on food and beverage solutions confidently - we want you! Our franchisees need to have a strong work ethic, adopting a dynamic approach to their work. Froth Shop franchisees are looking for an exciting challenge to get involved with!
We are the only company offering this type of wholesale franchise opportunity. What we are offering is very innovative and rewarding. We only need between 18-21 partners around the UK. We’ve been doing this for 15 years and crafted out a very exciting package due to our organic and ambitious growth plans.
What support can a franchisee expect? We will support all franchisees with leads, marketing material, point of sale and training in-store and out. We will provide a network of support via franchise managers and our in-house marketing and design department to support you so you can deliver for your customers.
How are you looking to grow Froth Shop? We are only looking for 3 partners over the next 12 months then 15 more franchisees over the next 24 months. The Froth Shop - Retail Innovators. For more details contact ash@frothgroup.com.
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News round-up
Carluccio’s appoints new chief operating officer Carluccio’s the Italian all-day restaurant group owned by Dubai-based investment group Landmark, has appointed Peter Casey as its new Chief Operating Officer. Casey brings a wealth of retail and hospitality experience to Carluccio’s. He joins from the SSP Group where, as COO UK & Ireland, he worked on brands including Starbucks, and M&S Simply Food, driving the strategic development of the business and establishing a new operational structure. Prior to that, he has held director positions at Home Retail Group’s Homebase and Aldi. Sarah Murray, who has been with Carluccio’s since the group’s inception in 1999, moves from COO to the newly created role of Guest Experience Director. She will work closely with CEO Neil Wickers, HR, marketing and the operations team enhance the brand’s guest experience. Carluccio’s Chief Executive, Neil Wickers comments: “I am pleased to welcome Peter to the company. He brings strong customer, people and brand credentials, with relevant experience from several multi-site businesses. His strategic background and proven operational expertise will strengthen and
bring new skills to the executive team. Sarah is a highly-valued member of the management team and her in-depth brand knowledge makes her ideally placed to evolve the Carluccio’s customer journey and experience. I very much look forward to working with them both as we continue to develop the brand.”
Worldwide franchise rights acquired at German Doner Kebab German Doner Kebab -- the creator of the ‘German Engineered Doner Kebab’ -- is fastbecoming one of the big success stories in franchising. Launched in the UK by United Brands in 2016, it has already signed up around 200 franchise locations across England, Scotland and Wales, with some stores turning over in excess of £30,000 a week. The UK success has been such that United Brands, recently announced it has purchased the worldwide rights to the GDK brand. United’s owners, the Sarwar family, operate one of Scotland’s most successful business groups. The £230m empire encompasses a wholesale cash and carry business, 532 franchised convenience stores, a chain of pubs, Asian restaurants and a pharmacy group. GDK International is now seeking Master Franchise partners across the globe to build on its already impressive portfolio of around 60 global franchise stores in the UAE (Abu Dhabi, Dubai, Sharjah), Bahrain, Qatar, Oman, Pakistan, Sweden and the UK.
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The company’s UK management team has recently been enhanced with the appointment of a number of senior managers from leading global food and beverage franchise brands into key positions such as Operations Director and Director for Training, Store Development and Operational Excellence. In addition, the company is rolling out a brand new look and feel to the stores. GDK was created in Germany in 1989, with the vision of creating classic, authentic and healthy kebabs, combining high quality produce with excellent customer service. A GDK kebab has less than half the calories of a regular kebab, as it only uses 100% lean, succulent, halal meat, along with handmade breads and signature sauces. The ingredients are supplied centrally from Germany to ensure consistent quality. GDK International CEO, Imran Sayeed, explains: “We seriously believe in this brand, all of our UK stores are doing unbelievably well. So when the opportunity came up to buy the worldwide brand we had to take it. There is nothing else like GDK, it definitely offers a unique opportunity for serious investors. GDK is focused on quality, and is committed to changing people’s perception of the kebab. The fast food market is very competitive with a number of gourmet burger brands entering the sector however GDK brings in a new dimension to the kebab market by offering a quality fresh gourmet range which is also healthy… a kebab without the guilt. Sayeed adds: “We are currently looking for ambitious master franchise partners worldwide, and it’s our aim to have 700 franchise stores open in the UK and Ireland over the next 10 years, and a further 1500 stores open worldwide in the same time-frame. GDK is a very simple franchise to operate as it does not require a qualified chef to prepare the meals, it’s more a case of assembling the ingredients…. the German Engineered Kebab. One million fans on our international Facebook page can’t be wrong!”
business profile
exceeded expectations! The store is centrally located in St Crispin's Court, Stockwell Gate and run by franchisee Abdul Kasana, who also manages four other Papa John’s in the region. “We have recruited ten new part-time, plus ten more full-time local staff to manage the Mansfield store,” confirms Abdul Kasana. “The opening was attended by the local press and meant we were incredibly busy from day one! Local residents were keen to find out what was on the menu and to try our top-quality Papa John’s pizza, known for its fresh dough and ingredients. “Papa John’s is the only branded pizza chain to use only fresh dough, never frozen, giving a better flavour and our unique tomato sauce is made from the best Californian tomatoes, picked and packed from vine to can in just six hours. Abdul who previously worked as an education consultant in London prior to joining Papa John’s as a franchisee continues: “To help us launch the Mansfield store we were able to take advantage of a special franchisee incentive scheme run by Papa John’s. This gave us deals on equipment, assistance with marketing and reduced royalty fees which is a real helping hand when setting up a new business. It has meant we have tasted success quickly with the new opening!”
Abdul also runs Papa John’s in Nottingham Bulwell and Nottingham Arnold. He says: “In Nottingham city centre and there are around 30,000 people living in the local area and take-aways and food delivery are a popular part of the culture and we are delighted to deliver!”
Papa John’s was founded in the USA in 1984 and there are more than 350 stores across the UK and over 5,000 stores in more than 40 international markets and territories. Papa John’s is actively recruiting for more enthusiastic franchisees hungry to become part of its success story. Anthony Round, business development manager, Papa John’s confirms: “We supply all the assistance needed to get your successful Papa John’s up and running by providing all the necessary training, help with location selection and full turnkey solution to opening the store. “To become a successful Papa John’s franchisee you need to be motivated, enthusiastic, hard-working and want to be part of a growing team. Exceptional interpersonal and people skills are essential, as you'll be dealing with customers as well as leading your team on a daily basis. In addition to excellent written and spoken communication skills, you'll have to be an organiser with a can-do attitude and someone who gets things done. You'll have to be dedicated and passionate enough to adapt to a proven way of working, plus you'll need the ability to roll your sleeves up and get stuck in, which means everything from making pizza through to managing staff!
For franchisees looking to grow their businesses exponentially, running multiple franchises is a potentially profitable option. This is where the franchisee goes onto purchase more than one unit. We have some franchisees who run more than 20 Papa John’s! Franchisees essentially become managers and work with their team, including store managers who oversee the day-to-day running of separate outlets. Franchisees owning multiple operations must have good people skills to manage and delegate to teams successfully. At Papa John’s we encourage franchisees to expand in this way as economies of scale can be realised for each additional franchise taken on. “As a franchisor our role is to support franchisees through the entire process of setting up their franchised Papa John’s, including training, help with location selection and full turnkey solution to opening of stores,” explains Round. “Through our latest incentive deal, we are looking forward to working with more new franchisees all hungry to become part of our success story by opening-up more Papa John’s stores throughout the UK.” For further information please visit: www.papajohns.co.uk/franchise call: 0844 567 0937 or e-mail: enquiries@papajohns.co.uk
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News round-up
Starbucks reacts to food waste issue by offering cut prices at closing time During the last hour of trading Starbucks will offer customers 50% off food at more than 350 Starbucks operated stores across Britain. This means that any food with a nearing expiry date will be sold at the reduced price. The news comes in reaction to consumer concern over food waste, with many large companies choosing to simply dispose of excess food as opposed to finding alternative methods. The complete sale price of items sold at the discounted rate will be donated in full to Action Against Hunger, an organisations that aims to help malnourished children across the globe. The donated money will help fund numerous projects. This programme was originally trialled in 16 Manchester based stores early this year. The feedback was positive and in total £1,500 was donated to Action Against Hunger. Simon Redfern, head of communications, Starbucks Europe: “Tackling a challenge like food waste is not an easy one, but we’re proud to have developed a programme which will deliver for the long term. “Off the back of the success of our Manchester trial, we’re pleased to roll out this programme to the rest of our company owned British stores, and will be working with our franchise partners to see where else this programme could work as well. “Action Against Hunger is a respected international charity, and
we’re looking forward to working with them on this initiative to support projects alleviating the impact of food poverty.” Matt White, Director of Fundraising and Communications at Action Against Hunger, said: “Action Against Hunger applaud the Starbucks initiative to tackle food waste. Our global food systems face tough challenges and addressing food waste is one of the most effective ways to support change. Right now there are 16 million children in the world suffering from the severest form of malnutrition. “Every year between one and two million children die because they don’t have access to the right nutrition and healthy environment to grow up strong. By working together with Starbucks and their customers we aim to reduce food waste whilst raising money to save children’s lives where food security is threatened most – from Yemen and Iraq, to the countries currently at risk of famine, including South Sudan, Somalia and Nigeria.”
The Orange Buffalo finalising deals for new London locations The Orange Buffalo, the brand that has earned numerous accolades as the Best Wings in the UK quietly launched their franchise program early this year and is finalising two development deals for 5 and 20 units in London as well as a deal for Ireland. “The market is prime for a brand like The Orange Buffalo. The Brand has the unique mix of fantastic food, strong branding and a passionate customer following” says Jan van Delden, Senior Partner and lead advisor to The Orange Buffalo for Franchise Growth & Development. The Orange Buffalo is also developing their corporate locations with planned openings for 3 locations in London in the next 18 months.
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business profile
What makes Mangobean different Why should an investor choose Mangobean? We are delighted to offer an amazing opportunity where franchisees will be making cash sales from day one. Mangobean operates a flexible model that accommodates, not only those individuals looking for a one store, but for those looking to develop a retail site portfolio (5-50 sites). Our royalties are typically lower than other coffee shop franchises which means more of the profits go the the franchisee. We also use our royalties to support marketing activity, locally and nationally. We offer the complete turnkey solution, from site location to assisting with finances. We want the Mangobean franchise journey to be as enjoyable as possible.
What type of person are we looking for? This is an exciting opportunity, and we’re looking for individuals who are hard working team players who can demonstrate a strong work ethic. Fun, enthusiasm and hard work are core to our values.
There is no other concept like us; our royalties and fees reflect our ethos for the brand, the more you sell the more you buy! We are the main supplier to all stores ensuring quality and affordability throughout the year. We encourage you check other retail Mangobean franchisees and see for yourself! We started off roasting for coffee shops 15 years ago and been dedicated to our craft since, organically growing into the retail franchise sector.
What support can a Mangobean franchisee expect? We offer the complete turnkey solution, providing you with a ready-made business. We actively assist you with finance, provide a dedicated franchise manager, project manager, strong design and marketing department and a constant flow of marketing materials to give your store a real presence on any UK high street!
How are you looking to grow Mangobean? We will be opening 20 stores over the next 15 months with 7 already in the pipeline with a target of 100 stores over the next 5 years. Mangobean - Coffee Wonderlands are the next generation coffee shops! For more details contact ash@mangobean.co.uk
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News round-up
Diners shun restaurants as delivery apps soar Over two-fifths (43%) of consumers eat out less often now as online delivery giants such as Deliveroo, Just Eat and Uber Eats transform the restaurant sector, according to new research from Nectar, the UK’s biggest loyalty scheme. Nectar’s research found that almost two-thirds (64%) of consumers look first to these online delivery services when ordering takeout food, compared with just 16% who begin by looking on a restaurant’s own website and 16% who use a search engine. While consumers are discovering new restaurants through online platforms, nearly half (48%) say that they would rather order takeout than visit these establishments in person. This has fostered a new attitude towards restaurant meals, with 42% of people saying they prefer to entertain at home than eat out. “The likes of Deliveroo and Uber Eats are clearly having an impact on dining habits. While working with online platforms can be a valuable means of income generation for restaurant brands, the threat to dine-in establishments is clear as consumer habits shift,” comments James Moir, Managing Director of Nectar. The research found that when people do choose to eat out, 65% do so for the experience, placing newfound pressure on restaurants to focus on providing the best ambience, service and an environment that is reflective of their brand. James continued: “Ultimately, diners now have more choice, so restaurants need to respond. They will be even more keenly judged on value, quality and service. With so much data from online and in-
restaurant purchases now at their fingertips, restaurants can know their customers better than ever before.” “This means using that data to create a tailored online experience, complemented by a quality restaurant environment offering the value and experience diners want.” Nectar’s research also reveals that the use of restaurant delivery apps is driven not by income, but by demographics and life-stage; 55% of those aged between 18-34 have used food delivery apps and websites in the last three months, compared with 20% of 45-54-year-olds and 12% of 55 to 64-year-olds. Families are most drawn to the convenience of these platforms, with 56% of respondents with children having used them, compared with 30% of those without children.
Whitbread to Launch Bar + Block Steakhouse in Bath Coffee shop, restaurant and hotel operator Whitbread is set to launch its fourth Bar + Block Steakhouse following the successful roll-out of three sites in Birmingham, London and Whiteley. Set to open on the 28th September, the new steak-focussed all-day casual dining restaurant will open its latest site in Bath city centre, on James Street West. Nathalie Pomroy, Chief Marketing Officer for Whitbread Restaurants, comments: “We’re very excited to launch our fourth Bar + Block Steakhouse in Bath as part of our wider brand growth strategy. Following the success in Birmingham, London and Whiteley, we are eager to see how our unique offering will be received in the beautiful city of Bath filled with real foodies.” Bar + Block Bath will be a 3780-square foot, 132 cover informal steakhouse serving breakfast, lunch and dinner, with an emphasis on delivering high quality steaks at affordable prices. Signature dishes include rotating steak specials from the Butcher’s Block, as well as The Mighty Block Burger, an eight-ounce hand-ground beef patty with cheese sauce, smoked beef brisket, crispy onions, pickles, cucumber, lettuce, tomato and fiery black sauce. Bar + Block will also offer an extensive drinks range, with a focus on craft
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beers and ciders, innovative cocktails and a specially curated wine list. The modern design inspired by the theatre of food and drink, includes an open kitchen and central feature bar with copper detailing complemented by reclaimed wood, high quality fabrics, comfy seating and warm lighting. Decorative finishing touches include the brand’s signature neon cow, wall calligraphy detailing the brand story alongside colourful contemporary artwork.
Meal deals help to drive category growth but convenience retailers reliant on sandwiches are missing out Food to go is one of the fastest growing convenience categories sold by convenience retailers, according to IRI, a provider of big data and predictive analytics to FMCG retailers and manufacturers. Sandwiches, sushi, salads and snacks purchased ‘to go’ grew 6.6% in the high street multiple for the year ended 25 March 2017, boosting revenues by £36mn for these stores. Using IRI’s Convenience Market Place solution, which covers all UK supermarkets and convenience retailers including petrol forecourts IRI claims that retailers have capitalized on the British shopper’s culture for convenience, expanding their ranges to include more innovative offerings than the lunch time sandwich. Food to go sales in all retailers - including, high street multiples, convenience multiples, petrol forecourts, travel outlets and independent convenience retailers, is worth £2.3bn and grew by 5% in the last year. Main store supermarkets dominate sales in food to go with sales of £1.45bn while convenience retailers traded around £900mn in the last year. As the market has grown and retailers have seen how food on the go has the potential to bring shoppers into their stores, retailers have been experimenting with promotions including ‘meal deals’. The sector now sells more than 1.4bn meals meaning that on average every person buys an average of 20 ‘food to go’ meals a year. Across all retailers, sales of sandwiches grew by 3.8% to £1.4bn and while they still account for most volume sales, it is baguettes, salads and sushi - all higher priced items – which are showing faster growth. Ready to eat salads for example grew 5.1% to £800mn while sales of sushi grew by 12% to £100mn. “’Ready prepared food is a way of life for most time-poor shoppers today who adopt a ‘buy-it-when-I-need-it’ approach to grocery shopping and who are eating out more,” said Martin Wood, Head of Strategic Retail Insight at IRI. “Now that there are more choices available, including sushi and salad, shoppers don’t need to
compromise their health.” “There are also some really good ‘meal deals’ being offered that add a drink – with more convenience retailers also providing fresh coffee - and/or a snack to the sushi or sandwich lunch at a price that often works out a lot cheaper than all of the component parts,” added Wood. “This is encouraging people to buy their breakfast, lunch or ‘anytime meal’ on the way to work or home, boosting sales across not just the food to go category but also snacks and beverages too.” According to IRI, sales of beverages and snacks across all convenience retailers are also growing. Single-serve soft drinks* rose by 3.3% in sales value to just over £3bn while single-serve salted snacks* rose +0.4% to £0.7 bn. Collectively food to go, drinks and snacks are worth £7bn annually for all retailers. However, independent convenience retailers (including symbol groups like Budgens, Londis, Spar, Costcutter and Nisa) who are more dependent on selling sandwiches, showed no growth in the food to go category unlike the multiple convenience retailers (Tesco Express, Co-op, Sainsbury’s Local, One-stop, McColls and Little Waitrose). All convenience retailers grew value sales of food to go by 5% in the last year (value sales of £865mn) but this was driven by the high street multiple convenience retailers with growth of 6.6% (to £584mn) and petrol forecourts and travel outlets up 2.9% (to £185mn). Independent convenience retailers showed a slight decline in food to go sales of -0.4% (to £96mn). “There is a huge opportunity for independent convenience retailers to work with their wholesale and buying group partners to identify a broader range of ‘food to go’ options. In this way they can capitalize on these changing consumer behaviours,” concluded Wood.
Domino’s celebrates as it opens its 1,000th UK store Domino’s, Britain’s favourite pizza brand, is celebrating opening its 1,000th store in the UK. CEO David Wild commented; “From just one store in Luton to 1,000 in just over 30 years is a remarkable feat and testament to the hard work and commitment of everyone at Domino’s. 1,000 stores is a major milestone for our business and we’re extremely proud.” “But it’s the validation of our fantastic pizzas from our thousands of customers that really counts ‘Domi-Day’ is our way of saying thank you for their continued loyalty and support and we look forward to opening more stores, creating more jobs and delivering more pizza over the next 30 years
and beyond.” Last year, Domino’s vowed to create 10,000 new jobs as part of a major recruitment push, announcing plans to open more than 65 stores in the UK and Ireland. Earlier this month, the pizza chain announced strong results as part of their ‘continued growth’ following a ‘record number of new store’ openings as well as ‘increased digital participation. However, their like for like sales were up just 2.4% in the first half of 2017, a large decline from last year’s 13% growth.
The opening of the 1,000 store is the latest in a year of milestones for one of the UK’s most established pizza chains, which also includes the 20 year anniversaries in both Scotland and Wales.
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News round-up
Touchscreen technology is here to stay but at what cost to hygiene? Touch-screen technology is providing foodservice companies with new ways to get consumers and staff interacting with their services, menus and products. Investing in this technology is providing them with the edge that consumers want. But dirty, unhygienic touchscreens can turn-off customers and reflect badly on the reputation of the restaurant. These devices can be tough to clean and users want the surfaces they interact with to be both hygienic and easy-to-view. Numerous quick service restaurants and food services use these touchscreens on a daily basis to serve customers, but how clean really are these surfaces? Quick service restaurants offer the ideal environment for cross-contamination due to volume-driven operations, self-service beverage, ice buckets and condiment stations and most significantly, orders being placed on
touchscreens. Swab tests, by consumer group Which?, have revealed thousands of germs living on touchscreens and up to 20-times as many bacteria were found these touchscreens than on a toilet seat. Research found these germs living on touchscreens are being left behind as users swipe the screens of devices. These bacteria can spread sickness bugs, which means both customers and employees are at risk. Clean Screen wipes, by Sani Professional, are easy-to-use, super-fast drying and smearfree, eliminating all unwanted germs on these surfaces. Unlike other screen wipes on the market Clean Screen wipes are lint-free which means not only are they scratch free but will also not leave any unwanted fibres or dust on devices. Using these wipes on a daily basis will keep the screes hygienically-clean, guests will be impressed and they are more likely to return if they are confident in cleanliness standards. Jon Edmond, European business development manager at Sani Professional, says: “The public are becoming wise to the hazards of touchscreens. Therefore, regular use of screen wipes being used by staff
PEFC Publication for the Food to Go Sector The Programme for the Endorsement of Forest Certification (PEFC UK), has produced a new informative brochure, specifically aimed at the Restaurant and Food & Beverage industry sectors, promoting responsibly sourced and labelled materials used in the production of food and beverage packaging. The new brochure highlights the facts that consumers are keen to make good environmental choices in their purchases, and this is particularly relevant when it comes to their food packaging for items in which they take-away their morning coffee, snack, lunch, or evening meal. Consumers want to see that their packaging, be it for food or beverage items, has been responsibly sourced, is easy to recycle and has a minimal impact on the environment, the world’s resources, and forests. As the brochure highlights, consumers trust labels, and therefore increasingly manufacturers are now producing packaging materials that are certified as sustainable through assurance and certification schemes such as PEFC.
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reassures customers of cleanliness and the high level of hygiene they are looking for. “People don’t want to use screens which are covered in other people’s finger-prints. Our Clean Screen wipes have been designed specifically for the job – they are a one-step operation and screens can be cleaned in seconds. Dispensed from our clinical-looking canisters, consumers are bound to notice and are sure to be impressed. “As well as being vectors of infectious disease, touchscreens are expensive devices and therefore usually not cleaned properly for fear of damage. Sani Pro screen wipes can be used on a regular basis as the wipes apply the perfect amount of liquid to the surface and are made from non-linting, super soft cloth so won’t damage the screen.”
This is illustrated further in the brochure within several case studies, where manufacturers such as AB Group Packaging have produced quality, renewable and PEFC certified paper and carrier bags for the food to go sector. The PEFC label is used by AB Group on the paper bags and food bags to demonstrate its corporate commitment to supplying customers with products that have been responsibly sourced. This was highlighted recently when a leading luxury food hall brand specified that all the carrier bags used in its food hall should certified and labelled, as they have a requirement that all the woodbased products used in their business come from well-managed forests. Colpac is another PEFC-certified company that is featured promoting the benefits of responsibly sourced and produced packaging. With 80 years’ experience in producing an array of sandwich and food to go products, Colpac has strong green credentials, and is keen to demonstrate to consumers that the products it manufactures are sustainably sourced, with the PEFC label providing a stamp of approval and reassurance of this fact to its customers. Benders Paper Cups is a producer of high quality paper cups, and is the UK’s only dedicated paper cups manufacturer. All the paperboard used to make its cups comes from PEFC certified forests. Most recently, Benders produced a series of specially designed paper coffee cups to mark the occasion of Hull being recognized as the City of Culture for 2017, all of which carried the PEFC label. By using the PEFC label on its paper cups, Benders states that it is demonstrating that its materials have been responsibly sourced.
top 50 food franchises 2017
Food Franchises Food franchises are currently thriving. Four out of five new franchises are profitable within two years according to the British Franchise Association (BFA), and with some of the biggest names in the UK food market utilising the many benefits of the franchise concept - and with new concepts appearing all the time – there has never been a better time to consider franchising.
The names included in this year’s Top 50 are some of the crème de la crème of the food franchising industry. We have spoken to the owners and operators of the featured franchises to gain the inside track on the growth and future plans of the nation’s Top 50 Food Franchises.
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top 50 food franchises 2017
Top 50 2017
Food Franchises
1. Subway
2500
26. Pepe’s Piri Piri
61
2. Costa
2270
27. Warrens Bakery
54
3. Marston’s
1676
28. Las Iguanas
53
4. McDonalds
1250
29. Creams Café
47
5. Domino’s Pizza
1000
30. With Thanks
47
6. One Stop
944
31. Giraffe
46
7. Starbucks
900
32. Oast House Farm
43
8. Bargain Booze
711
33. Harry Ramsdens
43
9. Pizza Hut Delivery
452
34. Kaspa’s
43
10. Papa John’s
350
35. Tops Pizza
42
11. Coffee Republic
320
36. Spudulike
40
12. Dixy Chicken
140
37. Roly’s Fudge
39
13. Baskin Robbins
137
38. Shakeaway
37
14. Café Rouge
120
39. Sam’s Chicken
37
15. Pizza gogo
105
40. SOHO Coffee Co
33
16. Café 2 U
95
41. COOK food
33
17. Favorite Fried Chicken
90
42. Auntie Ann’s
32
18. Millies Cookies
83
43. Esquire’s Coffee
31
19. Mr Simms
80
44. Wok & Go
27
20. Wimpy
78
45. Oggy Oggy Pasty Company
25
21. Chicken Cottage
72
46. Really Awesome Coffee
25
22. Riverford
69
47. Oakhouse Foods
23
23. Chopstix
65
48. Chozen Noodle
22
24. Muffin Break
60
49. Tossed
21
25. Bella Italia
62
50. El Mexicana
21
#1 Subway “For the Subway brand, our primary objective is to continue to grow our franchise network further and faster by bolstering the number of talented, entrepreneurial franchisees that are part of the brand,” says Sacha Clark, Marketing Director for Subway UK & Ireland. And the future is looking strong, with plans to open 500 stores by 2020, bringing the total store count up to 3,000, and creating 5,000 new jobs. Subway’s 2,500th store in the UK has recently opened in Keynsham, Somerset and is the second launched in the UK which features their new ‘Fresh Forward’ design, with the first launched in the UK at Manchester Piccadilly in March 2017. Subway are also currently trialling self-order kiosks in the USA with a view to introducing them globally, in addition to dynamic digital menu boards as part of their the ‘Fresh Forward’ format.
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top 50 food franchises 2017
led destination and wet-let community pubs, accommodation and brewing, maintaining a good balance within our brand portfolio and broad consumer appeal.
because we have to keep changing in this very competitive environment.” “It doesn’t mean you change the heart of your business or rip up the rulebook, but you’ve got to stay at the forefront of what matters to the customers.”
#4 McDonald’s
#2 Costa Dominating the world of coffee franchising with the most amount of outlets, Costa Coffee has seen success over the last year with number of units up by 13% on last year and sales increasing by 8.7%. It is no wonder then that according to NPD Group data, by June 2017 Britain’s wellknown coffee outlets – of which Costa is a contributor - had increased visits by 120 million since 2008 to a massive 659 million visits a year (a 22% increase on LY). With success in their expanding travel and drive thru channels continuing and with plans to open 230-250 Costa coffee shops and install 1,250 Costa Express machines announced in July, Costa owners Whitbread also expressed their intention to achieve global system sales of around £2.5bn for the Costa brand by 2020.
Serving approximately 3 million people in the UK every day, McDonalds is one of the world’s leading global foodservice retailers with over 37,000 locations in over 100 countries. Approximately 85% of McDonald’s restaurants worldwide are owned and operated by independent local business men and women. With global comparable sales increasing by 6.6% on LY, success for McDonalds has been driven by their gourmet range of burgers and their foray into the world of home delivery, which has been picking up pace thanks to their tie-up with Uber Eats, and the digital re-vamp of its stores to include self-service kiosks as well as table service. Paul Pomroy, CEO of McDonalds UK said of the brands future; “We want the 3.7 million people that come to us every day to keep coming to us. There’s no one silver bullet for success, but what matters most to the customers is critical to our future,
#5 Domino’s Pizza The first Domino’s store opened in Luton in 1985 and since then, the Company has grown its store team network to over 35,000 colleagues. By opening its 1,000th store, Domino’s is well on track to achieve its 1,600 store target for the UK. Creating around 35 jobs per store, this long term target represents approximately 21,000 additional jobs. Domino’s recently raised its outlook to 90 stores this year, up from 80, representing a new store every four days in 2017. Chief Executive Officer, David Wild says; “With a relentless focus on customers, quality ingredients and innovation, we continue to grow market share and lead the UK pizza delivery sector. The success and scale of the business is ultimately down to the commitment and hard work of our world class franchisees, fantastic team members and dedicated colleagues.”
#3 Marston’s In their latest trading report, Ralph Findlay, Chief Executive Officer, said: “We remain encouraged by our continued market outperformance and focused on delivering sustainable growth and maximising return on capital in an evolving market place.” “Our transformed pub estate continues to deliver positive like for like growth across all three divisions. We benefit from an operating structure which spans food-
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top 50 food franchises 2017
#6 One Stop
#7 Starbucks
#8 Bargain Booze
One Stop is a retail convenience business that focusses on being the best store for customers in their neighbourhood. Open 7 days a week One Stop aims to meet the needs of all its local customers. A subsidiary of Tesco since 2003, One Stop can be found all over England and Wales. Their franchise model was launched way back in 2014, following a successful pilot and since then One Stop have displayed proven expertise in their field and have created a growing business with a culture of innovation. In fact, One Stops like for like growth has outperformed the market for the last 4 years. John Miller, Head of Operations for Franchise says; “The challenge for retailers is to ensure that they stand above local competition and become the store of choice in their neighbourhood. This means they need to get the basics right and provide great promotions and value for money underpinned by excellent customer service, and the right range backed up by strong availability.” “Becoming a One Stop Franchisee means you can make good use of all the knowledge and expertise we have on these topics along with our scale, to help grow your business and succeed.”
One of the biggest coffee chains in the UK, Starbucks has prospered as one of the most well-known brands on the British high street today, with a mix of 900 Starbucks owned and franchised stores in the UK. Despite a dip in profits Starbucks continue to move forward with their plans to take the brand even further. Starbucks say, “ We have experienced significant economic and geopolitical headwinds this year which affected sales, including slowing economic growth, impact of Brexit and ongoing security concerns contributing to weakening consumer confidence.” Speaking after the latest results Martin Brok, president of Starbucks Europe, Middle East and Africa, said; “Whilst there are undoubted challenges presented by a more cautious consumer environment, lower high street footfall, and adverse currency impacts, we are investing significantly to drive innovation in our food and coffee offering, and are greatly encouraged by our customers’ response.” “We also continue to focus on strategically remodelling our store portfolio to reflect changing customer demands. The UK remains one of the most important EMEA markets for us and we will continue to grow where our customers want to find us.
Operated by Conviviality Retail, Bargain Booze is one of the most established franchised off-licences in the UK. With the UK alcohol market valued at £40 billion, overall Conviviality is responsible for around £1 in every £12 of industry sales (8%) from a product portfolio ranging from a 35p bottle of soft drink to a £15,000 bottle of fine wine. Bargain Booze – alongside Select Convenience and Wine Rack – boasts 352 franchises and 711 UK outlets in total. David Robinson, CEO, of Conviviality said in their annual 2017 statement; “We saw 39 franchisees join the group, a strong indication of the benefits of our model to independent business people. Our core model is predicated by Franchise loyalty and commitment to upholding the values of our brands.” “This, combined with the high standards that we set, are helping to deliver our differentiated local customer experience.”
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#9 Pizza Hut Delivery Operating 717 Pizza Hut outlets in total, the 452 franchise operated delivery units have gone from strength to strength since the opening of their first franchised Pizza Hut outlet in 2001. With the rising success of home delivery
top 50 food franchises 2017
now defining the fast food market, Pizza Hut Delivery is well placed to dominate the delivery market. Last year they announced major expansion for their franchise network in the UK and planned to invest £40 million in order to open 200 new delivery outlets by 2020. Speaking at the time Pizza Hut UK & Ireland CEO, Raphel Miolane, said: “We’ve built a firm foundation for the business since we opened our first delivery store over 15 years ago.” “We wouldn’t be where we are today without our franchisees and we are looking forward to growing our existing relationships, whilst also developing new partnerships to achieve our ambitions.”
#10 Papa John’s Leading pizza franchise, Papa John’s, continues to expand and there are now well over 350 stores in the UK. Papa John’s is actively recruiting for new franchisees who are hungry to bring the company’s BETTER INGREDIENTS, BETTER PIZZA concept of superior quality pizza to new regions around the country. Franchisees don’t need any direct experience of the industry as all the necessary training is provided. However, individuals do need to be motivated, enthusiastic, and hardworking
and want to be part of a growing team. Papa John’s is currently running an incentive scheme to help franchisees setting up. This includes royalty reduction programme, some free equipment plus a marketing launch package. In addition, Papa John’s provides all the help needed to set up, including location selection and full turnkey solution to opening the store.
#11 Coffee Republic Coffee Republic is one of the UK’s leading coffee chains with a reputation for providing great tasting coffee and delicious freshly made food. Currently Coffee Republic have 36 coffee bars across the UK, and 18 international bars in countries such as Bahrain, Oman, Qatar, and major Spanish airports. The vast majority of Coffee Republics are concessions, which are located nationwide. Coffee Republic currently has a total of 320 (bars and concessions) and are the third highest coffee franchise on our list behind industry giants Costa and Starbucks. Coffee Republic’s aim is “For all our customers to experience the best tasting coffee on the high street and to deliver on quality and consistency with each cup served.”
#12 Dixy Chicken Specialising in Halal chicken, Dixy Chicken was founded in the late 80s and since then has grown into a global chicken brand. With a vision to become the world’s leading fast food brand, they aim to bring great value to fast food lovers. With 140 UK outlets as well as branches internationally, Dixy Chicken has become a regular addition to the UKs fast food scene. With people at the core of their business, due consideration is given to potential franchisees backgrounds, previous work areas, the level of expertise and the urge to translate the business into a success story.
#13 Baskin Robbins For 65 years Baskin Robbins has been delighting customers with irresistible treats and are now the world’s largest chain of ice cream speciality shops, with more than 7,300 retail shops in nearly 50 countries. Headquartered in Massachusetts, USA, Baskin-Robbins is part of Dunkin’ Brands Group, Inc. along with sister brand Dunkin’ Donuts. In addition to developing flavours, Baskin-Robbins has always been a leader in the ice cream industry with innovations such as hand-packed ice cream, a unique flavour ribbon technique,
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top 50 food franchises 2017
the use of traditional dessert ingredients such as apple pie and cheesecake, and the introduction of mousse-textured ice creams. The commitment of BaskinRobbins to creating new products is evident with the introduction of signature ice cream cakes and the growing line of beverages, including Fruit Blasts, and the Cappuccino Blast frozen-blended coffee drinks, which innovated the frozen coffee category in 1994.
more formal evening meals, Café Rouge has an engaged following, all eager to soak up the truly French atmosphere.
Despite outlet numbers falling ever so slightly, over 100 outlets is still a huge achievement in the competitive world of pizza franchises.
#15 Pizza GoGo With 105 sites across the UK Pizza GoGo was first established in 1987 and since then has established itself as one of the UK’s leading takeaways.
#14 Café Rouge Café Rouge was launched in London back in 1989. Today, Café Rouge is the only established nationwide French casual dining brand in the UK. Now with over 120 restaurants in the UK, the brand serves 6 million meals each year. Unique in covering all day parts, Café Rouge combines the very best examples of classic bistro cuisine, wine and coffee in beautifully designed restaurants. A dedicated food and marketing team work together to source the best artisanal French produce to craft dishes for the UK’s original all-day bistro. Featuring a wide menu, ranging from lighter dishes to
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#16 Café 2 U For over twelve years Cafe2U franchisees have been delivering great coffee and food to businesses, events and functions
top 50 food franchises 2017
across the UK. To put it simply, we take the premium “high street” experience directly to the customer! The flexible model is built around the working week, so revenue from events and weekend activities can significantly increase earnings potential. We are now officially recognised as the 4th largest branded coffee chain in the UK (by outlet numbers) with nearly 100 franchisees running their own successful Cafe2U business. Most of our franchise partners run just one van and manage to enjoy healthier work-life balance than their previous career. We then have the multi-van franchise partners with 2 or 3 vans and staff.
#17 Favorite Fried Chicken Over the last 30-plus-years Favorite has demonstrated its success by providing a product menu and operational system to match and exceed any other, whilst offering it at a far more competitive cost to franchisees, not only in terms of capital start-up but ongoing. Favorite are currently the only chicken QSR to be full members of the British Franchise Association, as well as offering low start-up costs and a fully supported and approves franchise system, in what is still a high growth market. Favorite has continued to develop its brand and as part of this has moved in to off-street locations, with the opening of its
Tollgate Services unit in the last 12 months. This new venture has demonstrated the viability of the Favorite menu and offering alongside other major brands within this format, as well on the high street and offers great potential for further expansion.
located in the UK, with an additional 7 international stores located in France and Hong Kong. Stocking childhood favourite sweets such as cola cubes and cream soda, the nostalgia associated with Mr Simms has assured its place as number 18 in our Top 50.
#18 Millie’s Cookies Millie’s Cookies was founded in 1985, opening its first store within the famous Selfridges department store food hall on Oxford Street, London. Since then they have grown their business to 83 stores in the UK as well as stores in France, Germany, Hong Kong and Malta. With a strong brand identity and a loyal fan base worldwide. Millie’s is one of the most wellreceived dessert franchises in the UK. Millie’s has experienced a great year since 2016’s Top 50. Millie’s is moving forwards with new openings in Birkenhead and St Helens. Also, the extension of their partnership with frozen foods specialist Iceland is a clear indicator of the potential growth for this dessert franchise.
#19 Mr Simms Mr Simms Olde Sweet Shoppe is a confectionery store chain which offers a range of boiled sweet products in Victorianstyle stores. Opening in September 2004, there are currently 80 Mr Simms
#20 Wimpy One of the best-known names on the casual dining scene, Wimpy has recently embarked on a nationwide refurbishment and expansion programme. The company has been busy upgrading many of its existing 79 restaurants and has plans to open seven new operations over the next 12 months, while continuing to seek new franchisees. Born in London in 1954 and proud of its British heritage, Wimpy successfully taps into the memory bank of the baby boomers, while continuing to please new generations with its menu classics such as the Wimpy Hamburger and Knickerbocker Glory. It has kept up-to-date with trends by guaranteeing all of its burgers are made with 100% British beef, displaying calorie counts on all its menus and serving a wide range of lighter meals and salads. Wimpy is now part of the South Africanbased Famous Brands family, where fellow brands include Steers, Debonairs Pizza and Mugg & Bean.
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#21 Chicken Cottage The first Chicken Cottage opened in Wembley, North London in 1994, since then it has become synonymous with the UK fast food scene, a regular addition to our high streets. Offering fresh, Halal chicken it has proved to be a success with the UK public as well as overseas, with international branches in Brussels, Germany and Italy to name a few. Owned by TI Global Food Holdings Ltd incorporated, it is one of the fastest growing British franchise opportunities.
#22 Riverford Riverford Organic Farmers grow and deliver award-winning fresh organic fruit and veg boxes straight from its own farms to homes across the UK via their network of franchisees. The box scheme began 30 years ago, when founder Guy Watson left behind his management consultant career in London to return to his parents’ South Devon farm and started growing veg. Early days saw the produce grown and delivered using only three acres and a wheel barrow. Guy initially started delivering his vegetables locally to friends in Devon. In 1999 Riverford launched its franchise network, which now has 60 thriving franchisees who are Riverford’s brand ambassadors across the country; building relationships with, and delivering ethically grown organic produce to,
thousands of loyal customers. Riverford now deliver around 47,000 boxes a week. Riverford continues to develop its existing model by extending their current range, developing new products and investing in IT solutions and marketing.
#23 Chopstix Offering a fresher, healthier and faster alternative and with its tasty menu and contemporary surroundings, CHOPSTIX attracts customers of all age groups and demographic profiles. Having doubled its outlet count in less than 18
months, the accessible Oriental food brand is now one of the UK’s fastest growing brands, with 72 outlets in total - 65 of which are located across the UK. 32 stores in the current CHOPSTIX portfolio are franchises. This figure is set to rise dramatically as the brand engages with new franchisees, attracted by the wide selection of available territories, competitive entry cost, high returns, low space requirements and average service times under a minute. Through multi-site and master franchise agreements, Chopstix is set to become even more visible within the nation’s shopping centres, high streets and motorway services networks.
#24 Muffin Break With a recorded 6% growth per annum over the past three years and over 300 stores worldwide – 60 of these located in the UK – Muffin Break is the third highest placing dessert based franchise to feature on this year’s Top 50. With store openings in Chester, Basildon and Chatham this year, the chain provides freshly baked items in store, as well as a wide range of hot and cold drinks, including a bespoke coffee blend which is made from 100% Arabica beans. They are also constantly updating their portfolio, including the Eton Mess Strawberry and Cream muffin, released during Wimbledon and their hummus wrap, released in reaction to growing consumer demand for more vegetarian options.
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#25. Bella Italia Bella Italia has a history spanning over 40 years, and during 2017 its parent company The Casual Dining Group gave the brand a complete refresh, and the great news is; their customers love it! Its contemporary design, all day Italian menu, and warm & welcoming personality combine to prove a winning formula for an ever-growing army of loyal customers. Now with over 62 restaurants in the UK, and more opening all the time, they’re familiar and loved – with each visit ending with a full belly and a massive smile. With sites due to open in Saudi Arabia, UAE, South Africa and Ireland under franchise, the appeal of the brand is set to increase; so there has never been a better time to join the Bella family. Their dedicated food development team work tirelessly on creating the most authentic Italian dining experience- keeping dishes operationally simple to execute to ensure every customer is wowed. Unique in covering all day parts, with a wide appeal, Bella Italia has the widest range of dishes of any UK Italian branded restaurant, all prepared with the most authentic of Italian ingredients.
#26 Pepe’s Pepe’s started in 2007, and their first store opened in Watford, London. For the first four years they operated just three company stores whilst developing their
product offering and in-house support infrastructure. Since signing their first franchisee in 2011, their network has grown to over 60 franchised stores across the UK. Pepe’s now have three franchise offerings: Pepe’s QSR; Pepe’s – The Piri Piri Grill; and Pepe’s Express. They plan to have over 100 franchised stores in the UK by the end of 2019. In support of their UK development they have also sold Master Franchises for the USA , Ireland, Pakistan and Morocco and are currently in discussions for Master Franchises in another five countries.
#27 Warrens Bakery 2017 is quickly becoming the year of the Cornish pasty takeover, with new Warrens Bakery store openings announced each month. As well as celebrating numerous openings and franchise partnerships, the team has been raising a toast after being shortlisted as one of the top three craft bakery businesses in the country, in the Baking Industry Awards 2017. After a hugely successful and busy year to date, the world’s oldest Cornish pasty maker continues its quest for national expansion with the announcement of their 54th location in Bridgwater.
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#28 Las Iguanas
#29 Creams Café
Las Iguanas offers delicious fresh Latin food and a bar renowned for high quality Latin inspired cocktails, as well as the largest selection of rums and tequilas in the UK. Now with over 50 restaurants, up and down the UK, the brand is in an exciting period of growth, with over 10 UK restaurants opened in the last 12 months. Set to hit the international scene soon, across the Middle East and beyond, the fresh & authentic Mexican, Brazilian & South American food & cocktails are sure to find ever more loyal amigos. Keeping true to its Latin roots the team have close ties with South America including friends, suppliers, charities and organisations. Regular visits serve to keep enhancing the brand and the authenticity, making sure the design and menus are best in class. • Appealing to a wide age group, with a loyal following amongst millennials • A market leading cocktail menu, with huge bar trade potential • Unique in offering Latin American food, that goes beyond Mexican dishes • Nationwide presence • Suited to a range of locations
Creams Cafe is a fast casual dining restaurant specialising in waffles, crepes, sundaes, milkshakes and gelato. The Creams story began in 2008. The first restaurant came about after meticulous research from the founding partners, who sourced special ingredients and products, including the authentic Italian gelato that inspired them. Since then, the brand has grown from strength to strength, with 55 restaurants currently trading across the UK and a further 50 in development. The ambition is to develop the franchise quickly by opening a further 300 outlets throughout the UK. A Creams restaurant is 2,000 to 3,000 square feet and ideally located in high-footfall destinations close to other restaurants and cinemas. Creams targets traditional high-street locations, as well as out-of-town retail and leisure parks. A smaller kiosk format is also being developed that will be 200 to 1,000 square feet in size and typically located in highfootfall locations. Creams believes it can open more than 100 of these over the next five years. With very strong sales across the estate
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and a healthy return on investment, Creams Cafe represents an excellent food franchise opportunity.
#30 With Thanks With Thanks is a brand that sells sweets and snacks, directly through franchises or in partnership with brands and organisations. Offering those looking for
top 50 food franchises 2017
franchise opportunities an ideal platform to run their own ethical confectionery business, earning an additional income selling sweets for charity. Franchisees sell a range of charity branded sweets and products from impactful self-service point of sale units located in work places, shops, leisure centres and other locations. In March this year, With Thanks launched five new franchises in Stevenage, High Wycombe, Banbury, Slough and Halesowen, and six of their existing franchisees expanded by increasing their box numbers.
#31 Giraffe Operating their 9 franchised restaurants through airports and travel hubs, Giraffe World Kitchen has a total of 46 UK outlets. Approached by The Restaurant Group (TRG) - who license food and beverage concessions in UK airports - Giraffe agreed to franchise their name after it was thought the brand would make a refreshing change to the usual airport fare. They currently have franchise restaurants located in London’s Heathrow, Manchester Airport, London Gatwick and Dubai International airport.
#32 Oast House Farm Charity snacks box franchise Oast House, an Associate Member of the British Franchise Association, has more than 40 franchisees now operating, and plan to have a network of 50 franchisees by early 2018. The network contributed more than £40,000
to the charities they support in the last 12 months, and has now expanded into all four constituencies of the UK covering Wales, Northern Ireland, and Scotland too. Franchise Director, Matt Simmonds, has promised more to come, including a new version of its franchise management system to enhance support and efficiency for franchisees. Oast House offers three different investment levels for franchisees, all under £10,000 in total, building its network on ethics both in franchising and in community support. Oast House operates without management service fees – instead, franchisees contribute a small percentage of their turnover to charities including The Sick Children’s Trust, which provides support to families in their most difficult times.
#33 Harry Ramsdens One of the UK’s most recognisable Fish & Chip shops, Harry Ramsdens world famous Fish & Chips has been in the UK since 1928. Harry Ramsden’s began serving fish and chips on 20th December 1928 from a small striped wooden hut beside a tram stop in Guiseley, West Yorkshire. Harry Ramsden’s have a proud heritage and history of success that speaks for itself, known not only for their world famous fish and chips but as a destination and great place to eat. No wonder, as currently it is estimated that the UK eats 382 million portions of fish and chips every year.
#34 Kaspa’s With the dessert only restaurant gaining
in popularity, Kaspa’s is well placed to dominate this market with 43 restaurants and growing. Kaspa’s have plans for a further 22 this year alone. Their menu hosts a selection of ice creams, gelatos, waffles, crepes, milkshakes, smoothies and sundaes. The fact that there are two dessert only restaurants in the Top 50 shows the growing popularity in this field, definitely a one to watch.
#35 Tops Pizza With stores situated around the South West, Tops Pizza is another pizza chain contender on the UK high-street. Opened in 1989 Tops Pizza has expanded since then to a total of 42 outlets. The pizza specialists have upped their outlet numbers by 2 in the last year.
#36 Spudulike One of the UK’s most well-known foodto-go specialists, Spudulike has been a familiar face on the UK high-street since its opening, in 1974. Now 43 years later, the chain boasts 40 outlets situated up and down the country. Initial expansion focussed mainly on opening managed outlets in and around Edinburgh, however, towards the late 1970’s management turned to franchising as a method of more rapidly expanding the business. Between 1979 and 1982, spudulike was acquired by the British School of Motoring who made use of their franchising experience to develop the
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business, creating a much loved brand amongst consumers throughout the UK. This partnership allowed Spudulike to thrive and introduce new products before it demerged from BSM and became an independent family owned company, active in all areas of the fast-food market from high street stores to shopping centres. Today, spudulike’s expertise in the baked potato business is second to none, owing their success to a passion for honest, seasonal and flavoursome food.
Shakeaway, the world’s largest milkshake bar company since 1999 operates a successful worldwide franchise in the cold dessert marketplace, attracting family audiences across all demographic sectors. In addition to offering over 180 milkshake flavours, Shakeaway’s balanced menu features real fruit smoothies, fit and healthy shakes, lower fat fries, fat free frozen yoghurt desserts and refreshing
#37 Roly’s Fudge Originating from Devon in the West Country over 30 years ago, and currently located up and down the country Roly’s Fudge is the largest fudge franchise system in the world and in 2016, nine fudge pantries were opened with many more planned in 2017. Many of Roly’s franchisees open not just one, but several shops and over 80% of their franchisees own 2 or more shops, with some owning as many as four shops each. Their first franchised outlet was opened in 1996 in Ilfracombe since then they have spread across the country.
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shaved ice re-invented at less than 160 calories per serving. The company ethos is honest and reasonable, with a focus on controlled organic growth. Shakeaway operates low cost, effective marketing programmes via instore, online, TV and radio promotion; recently being awarded finalist status for ‘Best Overall Marketing Campaign’ at the 2017 Franchise Marketing Awards.
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Shakeaway has 37 UK and 11 international stores, growing fast with 8 UK and 7 International stores due to open this year, including flagship stores in: South Africa, Qatar, Poland, Colombia, India and the UAE. Within 2-3 years Shakeaway’s fast expansion will peak to above the 100-store total.
#39 Sam’s Chicken Sam’s began operation in 1990, its first restaurants situated in Wealdstone, Harrow, and Middlesex. It has since expanded to 37 outlets nationwide, although its main presence is in London. After developing their own secret mix of spices and a signature process of cooking - to give their chicken its crispy golden brown coating - Sam’s Chicken features on the Top 50 for the second year in a row.
#40 SOHO Coffee Co With their distinctive logo quite literally up in lights, Soho Coffee is up and comer in the competitive coffee business. Opening in 1999, Soho has established itself as a diverse independent company with independent ideals. With a flourish of new openings in London over the last few months, SOHO is expanding rapidly. Speaking of their latest opening Penny Manuel, Managing Director of SOHO Coffee Co. explains; “All our stores are individual; as individual as our customers.” “Our sites in London highlight this diversity and we are enjoying the opportunities and challenges this brings. We pride ourselves on offering something for everyone.”
#41 COOK food COOK was founded in 1997 by Edward Perry and Chef Dale Penfold. The idea was simple, to make remarkable meals for your freezer by hand, using the same ingredients and techniques as a good home cook, so everything looks and tastes homemade. They managed to hold on to their independence during the recession and today they have two large kitchens and close to 90 shops (a mixture of companyowned and franchises). Unusually, they are involved in every step of the process: from sourcing ingredients and cooking them, to packing, transporting, and selling the meals in their shops. COOK
food can also be found in branded freezers in like-minded, independent concessions (you won’t find them in any of the big supermarkets). They believe business can be a force for good in society and are a B Corporation, accredited by the Living Wage Foundation, and are currently ranked 31st in the Sunday Times Best Companies to Work For, making them the highest placed manufacturer.
#42 Auntie Anne’s Auntie Anne’s are the worlds’ largest hand rolled soft Pretzel Franchise with nearly 1,400 locations in 26 countries including 1,000 in the USA; 100 in Thailand, and over 20 stores in Japan, South Korea and Saudi Arabia. With new pretzel flavours released this year, a brand new catering menu, a new logo to appeal to ‘generation Z’ and a successful loyalty app under their belt, Auntie Ann’s has established itself as one of the leaders in food to go.
#43 Esquire’s Coffee Esquires Coffee isn’t just another soulless high street coffee chain, their stores are the hub of the community in which they serve. Esquires Coffee’s core principles are focussed around serving exceptional quality Fairtrade and organic coffee, with premier customer service in aspirational yet comfortable store environments. What makes Esquires Coffee different to the other coffee chains that dominate the UK high street is the brand’s commitment
to providing a product, service and setting that is second to none. Esquires is all about creating a unique customer experience that keeps the customer coming back for more. Esquires stores are designed to fit the needs of the modern day coffee drinker, communal tables for groups, smaller tables for dates and business meetings, comfy booth seating, USB ports for charging laptops and smartphones, daily newspapers and relaxing background music. Esquires currently have 31 stores operating in the UK with a further 5 stores set to open by the end of 2017. Esquires are actively recruiting franchisees to open single and multiple stores across the UK and aim to be operating 200 stores in the UK by 2021.
#44 Wok & Go Wok&Go offers a quick, nutritious and affordable alternative to traditional fast food. Its concept of authentic Asian cuisine, cooked fresh and served fast, is proving popular with students, shoppers, office workers and families – all hungry for the value and convenience of restaurant quality food without the wait. Wok&Go stores serve eat-in, takeaway and delivery orders, giving us a broad appeal all-year round. Their approach has made them one of the fastest growing businesses in the fastcasual market, Wok&Go is growing fast, with 27 UK locations and more to come in 2017, including overseas expansion. They
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have already identified great locations for their next group of openings and are already ready to match them with suitable franchisees.
#45 Oggy Oggy Pasty Company Oggy Oggy Pasty Co was originally established in 1993 in Penzance by two local entrepreneurs who produced and sold their own Cornish pasties & bakery products throughout the region. In 2003 Oggy Oggy formally established their franchising operation and quickly expanded the reach of the business throughout the South West and further afield. Since then the business has evolved significantly and is now a well-respected franchising operation. They also added a Van sales franchising model, and also a Retail Concession so that existing retail businesses and attractions can offer Oggy Oggy’s freshly baked pasties with their own product ranges. Now at 25 outlets Oggy Oggy sit at number 45 on our Top 50.
has become a household name, due to its array of convenient frozen ready meals. Oakhouse has expanded by one franchise since our last Top 50.
began taking payment by card only. Now the healthy chain has announced successful first year results in the trial as they saw turnover increase by 13.6%.
#48 Chozen Noodle
#50 El Mexicana
Asian cuisine is currently topping the charts in terms of popularity, with many areas of the UK picking it as their favourite. Chozen Noodle resides at number 48 with 22 outlets dotted across the UK. With a menu deliberately limited to between 8-10 dishes, they are renowned for their quality, fresh ingredients. By creating custom made dishes, Chozen Noodle have capitalised on consumers who want more than burgers and fried chicken.
The El Mexicana brand has gone from strength to strength over the last 12 months. As the appetite for Mexican food shows no signs of slowing down, El Mexicana have capitalised by opening 3 new stores across the country. The first in Liverpool’s busy city centre in December 2016, was soon followed in February 17 by a store in the food court of the McArthur Glen shopping centre Bridgend. Finally in May of this year, El Mexicana opened at the White Rose Shopping Centre in Leeds, bringing the total to 21 stores across the country. Building on the strength of the El Mexicana brand, they are now opening a sister brand called Cocina, which has a more casual dining approach and will allow diners to linger slightly longer over their Mexican feast. The first store will open in Swansea in Sept 2017, to be quickly followed by two locations in Norwich, one in Milton Keynes and another in Telford. More locations are planned for early next year.
#46 Really Awesome Coffee Coffee is making a huge impact in this year’s Top 50! Really Awesome Coffee, the mobile cafe franchise, serves fresh gourmet coffee, hot & cold drinks as well as an array of snacks and confectionery directly to customers wherever they are. They currently have a network of 25 franchise partners located across the country and are growing year on year. With 50-70 million cups of coffee consumed per day, it is no wonder that mobile coffee vans are gaining more interest as an avenue to capitalise on this booming market. Each van is designed with the mobile barista in mind, utilising the latest tech to offer a ‘one stop shop’ mobile coffee service. Delivery top notch fresh products with an efficient service is highly prized by consumers today, and Really Awesome Coffee has capitalised on this demand for quality and convenience.
#47 Oakhouse Foods From their headquarters in Wiltshire, Oakhouse Foods has become one of the country’s favourite ready meal services, and have been delivering to customers across Britain for the last 20 years. Supporting its customers in their ability to live independently, Oakhouse
#49 Tossed Healthy food to go concept Tossed has 21 stores located across London, 14 of these are stores, 2 can be found within shopping centres and 6 can be found at Welcome Breaks. Opening in the spring of 2005, Tossed was founded from a simple mission, to create a new, healthy and exciting food experience that didn’t compromise on taste or portion size. The chain now employs 217 people and founder Vincent McKevitt has expressed plans to open 48 new salad restaurants by 2020. Last year the forward thinking franchise rolled out touch-screen menus for customers, instead of manned tills and
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*All figures provided by the franchisors or their representatives. Every effort was made to ensure all relevant franchises were contacted regarding this feature.
one to watch
One to Watch
El Mexicana First opening their doors in 2011, El Mexicana has grown rapidly to become one of the biggest and most popular retailers of Mexican food in the UK. AUTUMN 2017 Food Franchise | 49
one to watch
With 21 restaurants across the country in prestigious retail locations including shopping malls, city centres and motorway service areas, the company’s winning mix of fresh, modern Mexican food and great value for money has been a real hit with customers. With a mission to bring their customer’s excellent quality authentic Mexican street food, El Mexicana’s menu of fully customisable food has ensured their place on the UK’s high-street and have even announced exciting plans to launch a brand new casual dining concept later this year.
Cocina will incorporate El Mexicana’s renowned Mexican street food into a relaxed dine in experience. Their latest franchise will open in Swansea creating 20 jobs and will offer a tequila bar as well as a reward app for loyal customers. There are plans for five Cocina’s this year alone with two locations planned in Norwich, one in Milton Keynes and another in Telford. We spoke to El Mexicana’s Marketing and Media Manager Sue Kelly to find out more about El Mexicana and its sister brand Cocina, why they chose franchising, how the industry is performing and what they have planned for the future…….
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What makes El Mexicana stand out? We offer customers a healthy alternative to traditional fast foods such as burgers etc. Our food can be customized to meet the customer’s exact requirements; so you can choose your own fillings, toppings and even what level of heat you want. We make your meal your way. The growth in both the casual dining and Mexican food sectors shows no sign of slowing down. Customers are continuing to experiment with new and varied cuisines and are becoming more adventurous with
one to watch
their tastes. Over recent years eating out has become more of the norm rather than a treat. El Mexicana and Cocina both meet these needs for customers perfectly.
Tell us more about Cocina…. Cocina is the big sister to El Mexicana. While El Mexicana focuses more on offering customers a quick Mexican bite to eat, Cocina will offer the opportunity to linger slightly longer over your meal. As demand for Mexican food keeps growing and growing we realised people don’t
just want to grab a burrito on the run, they also want to take the time to enjoy the experience and learn more about this exciting, vibrant cuisine. This led to a lightbulb moment from Brand Owner John Coverley! He would expand the existing El Mexicana offering, to include a casual dining format, where friends can relax, socialise and savour their Mexican experience.
What inspired El Mexicana to franchise?
We’ve already had great interest with Cocina, the first site is due to go live at the end of September, with four more stores due to open before the end of this year (two in Norwich, one in Milton Keynes and one in Telford)
John wanted to provide a healthier alternative to some of the other fast food restaurants available. The key to our food is providing quick service, without compromising on quality or nutritional value.
The brand owner John Coverley has a background in the retail sector spanning 30 years. He previously owned franchised Sandwich chain Nosh, when he spotted a gap in the market for quick service Mexican food outlets and El Mexicana was born.
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one to watch
We find that individual business owners have an added drive to succeed when they are running their own business. Combining this with our successful business model means we can ensure a real success story.
appetite for Mexican food. Now more than ever the public enjoy experimenting with different cuisines and when they dine out they want to try something they wouldn’t necessarily try at home.
How would you describe the market in terms of demand competition and growth?
As a franchise model we stand out as we offer franchisees a turnkey, stressfree package including help locating and developing a site, full shop fit, ongoing operational and marketing support and training.
Whilst there have been new competitors emerging over the last 12-18 months, this has only served to increase the public’s
We have a simple operating framework and an affordable entry cost. These elements
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are extremely important to potential franchise owners.
What are the advantages of franchising with El Mexicana or your new brand Cocina? You will be joining a team with considerably experience within the sector. Not just from the everyday running of a franchise but within all aspects of opening and successfully running a business; from property sourcing, shop fit and ongoing support.
one to watch
What does the future hold for the El Mexicana and Cocina brands? We have big plans for the rest of 2017! There are already talks happening to secure more El Mexicana sites which will take the franchise to new areas of the country. We also have our hands full launching the new Cocina branch of the brand, which as mentioned above will have 5 sites live before the end of this year alone.
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MASTER franchising
Top tips
for incoming franchisors Master franchising can be complex, so if you’re considering bringing a brand to the UK you will need to get specialist legal and consultancy advice. Fiona Boswell CFP head of franchising and commercial services at Fraser Brown Solicitors gives her top legal and practical tips for incoming franchisors.
#1
It is all about the brand
Franchising in any country is all about the brand – to develop a franchise network in the UK you will need to ensure that your brands are registered here. This may be by extending an existing international trademark registration to apply to the UK also or registering your trademark in the UK. Pre Brexit we would have advised registering an EU trademark - as we are presently in flux regarding the application of EU trademarks in the U.K. At present our advice is to stick to single country registration instead. Registration is vital for the growth of your brand in the UK marketplace - as
it grants you the monopoly right to use the brand (subject to payment of renewal fees). This also applies to securing the local domain names for your brand and the registration of designs. Note there is no requirement to register ownership of copyright in the UK. Practical tip: Check your brand works in the UK and doesn’t have any adverse associations. Avoid relying on business partners to do this it can be a costly exercise to practically secure ownership of your brands registered in foreign territories once you fall out with your business partner.
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#2 Cut once measure 10 times You will need to have already established that your business is suitable for the UK market. Get some guidance from specialist franchise consultants on whether your franchise will work in the UK – understanding the local market is key to the success of your business. Ideally you should have a test run to flag any areas that may need work. The lessons learnt in doing this will be valuable for the future of your franchise operation.
MASTER franchising
#3
Choose your growth structure wisely
Next you will need to look at how you want to operate your franchise in this country –there are normally three ways to do this 1. Individual franchise, 2. Area franchise and 3. Master franchise. Individual Franchise: This involves you setting up a limited company in the UK and developing the franchise yourself.
supports the franchisees whilst you provide some support and control what the master franchisee does. The master franchisee gets its income generally from franchise fees and usually a fee based on sales turnover and you receive your income typically from (I) products sold(usually by way of a markup) and (2) a royalty fee from the Master Franchisee.
Master Franchise: This is appointing a company or individual to develop the network in the territory for you. The master franchisee trains, recruit and
Practical Tip: You must be confident of the aptitude, integrity and financial standing of this business partner and have the time and resources to invest in their development.
#4
Make sure you look the part
You will need to have appropriate systems, manuals and contracts in place to operate your franchise. English laws do not currently prescribe that you require any particular documentation to operate, or recruit for franchises and neither are you subject to any formal registration or disclosure process, as applies in other European countries. Likewise, generally you are not liable to make payments to franchisees when they cease to operate a franchise business in England. However, the British Franchise Association the leading trade body for the franchising industry in the UK, recommends that franchisors have a disclosure document specifying key details about the franchise which is disclosed to franchisees prior to them signing up. This is in line with many of the requirements of other European countries and whilst not law is good ethical franchising practice which will help attract quality franchisees and also be useful evidence to counter any misrepresentation claims. Without specific legislation governing the operation of franchises it is even more important to implement robust contracts that specify the obligations of the master franchisor and master franchisee and corresponding contracts with subfranchisees. These will work in conjunction with your operations manual as the key tools for policing the operation of your franchises. Generally these contracts are subject to English law and English courts as this is where your franchises will be. If you are an incoming franchisor this may mean you need to tweak your existing documentation pack to comply with English laws. Practical Tip: Ensure that you own any of the materials/software/websites etc. created as part of your package of franchise materials. In English law the fact that you have commissioned and paid for the work does not mean that you own the rights in it. Make sure that you have a contract in place with any contractors that ensure you own the work created. This needs to be drafted carefully to be enforceable.
Area Franchise: This is similar to the master franchise but instead of being given the whole of the UK to develop you appoint them to grow your business in a specific area only. Practical Tip: There are other options –joint venture and hybrid franchise structure that might be more suitable for you depending on the level of control that you require. Take advice at the outset on your proposals to ensure that you start with a structure that meets your requirements. It is costly to adapt the structure at a later stage.
#5
Make your contract your bodyguard
In terms of policing your franchisees there are key areas were English laws impose specific obligations on businesses. Data protection is an area of extreme sensitivity and your franchise contracts and corresponding manuals will need to include clauses that ensure that the franchise network is operated in accordance with data protection laws. Anti-Bribery is another area heavily policed in Europe with corresponding fines and risk of imprisonment for businesses that do not comply. Using the internet and social media are also areas that businesses need to be aware of and it is vital that you implement a social media policy for your franchisees that specifies in what ways they can use the internet and social media so as to avoid tarnishing your brand. Nb - Competition laws prevent outright bans on internet usage as prohibitive of passive selling but measures suitable to legitimately protect your brand are permitted. Get advice on how to structure your contracts to ensure that measures concerning the use of social media and the internet are enforceable.
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MASTER franchising
#6
Keeping your business, your business is important
Prevention of competition is a key area for any intending franchisor and your contracts should include appropriately drafted restrictive covenants to legitimately protect your business interests and the goodwill of your brand once a franchisee ceases to operate an outlet. To be enforceable these must be carefully drafted so take advice (see point below regarding infringing completion laws). Likewise you should ensure that you have signed non-disclosure agreements with potential investors prior to disclosing sensitive information regarding the operation of your franchises and have taken some financial payment from them (deposit) to demonstrate their commitment to the project.
#8
#7 Get sector specialist advice If your business operates in a heavily regulated are a– e.g. drinks, hospitality and leisure, care industry, foo d you will also need specia list advice on English law s that affect the operation s of this type of business in England. Your choice of bus iness partner should have familiarity with the requirements in England or at least have trusted specialist advisors to provide guidan ce on compliance requirements .
Do not promise what you cannot deliver
Ensure that your marketing and recruitment material are vetted for compliance with English advertising laws that protect against misrepresentations –take special care regarding profit forecasts. It is best to under promise as discrepancies will not only ruin your reputation in the franchise market but land you in hot water with advertising authorities and consumer watchdogs resulting in hefty fines.
#10 he Get in with td right crow is l franchising in the UK The key to successfu ess. sin bu ur nchisees to yo attracting the right fra h itis Br the th iation wi Membership or assoc t tha dy bo l ica eth an as Franchise Association its n of franchises by regulates the operatio d credibility to your ad to lp members will he suppliers and adviser brand. Likewise using BFA will also that are vetted by the receiving are u yo ensure that e. vic ad list cia spe
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#9
Avoid infringing European Competition Laws
Competition laws impact on a variety of key concerns for those considering franchising in the UK. Pricing controls – are a particularly sensitive area –and agreements or concerted practices that seek to control pricing in franchise networks (by imposing minimum or set prices) will fall foul of competition laws rendering your agreements unenforceable. Some forms of price promotions and restrictions on excessive pricing are permitted but again these must be carefully drafted. If you plan to exclusively supply your franchise network in the UK any restrictions on the network seeking products elsewhere must be carefully drafted to comply with competition laws. Get advice on whether this will apply to you as it is a complex area.
BE INSPIRED
- Be Inspired -
Black Milk Black Milk first arrived in the form of a small café situated in the eclectic surroundings of Manchester’s Affleck’s Palace. Operating from a compact space with just five tables, Black Milk immediately struck a chord with customers who were looking for something different. With the popularity of dessert only cafés coinciding with Black Milks chocolate topped cereal inventions, soon the only way to get a table on the weekend, was to reserve one. AUTUMN 2017 Food Franchise | 57
BE INSPIRED
Fast forward barely two years later and Black Milk Cereal have not only opened a second location - once again in Manchester’s thriving city centre - but have also decided to embark into the lucrative world of franchising. The accolade of the brands first ever franchisee goes to regular customer Fayaz Patel, who will open the new Black Milk branch in Bolton this September. Founders and owners Andy Young and Oliver Taylor, have struck gold with the unique concept and have plans to develop the brand even further across the UK. We caught up with Andy, one half of Black Milk Cereal….
Although we took pride in delivering incredible experiences for large crowds, we wanted to develop a more permanent concept that was available to enjoy day in day out.
Did you have a background in the food and drink industry prior to opening your franchise? Oliver is from a family of restauranteurs and has worked for leading companies like Gaucho and Lounge 10. My experience is far more event orientated although I worked for TV chef James Martin for a year whilst starting up Black Milk with Oliver.
How did Black Milk Cereal begin Andy… Me and Oliver started running events together around five years ago whilst at University. Starting out in the U.K, we quickly grew and took our event to Spain.
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What made you choose the franchise model over running an independent business? We want to explore and encourage the growth of our concept through both franchising and investment in our own cafes. We
BE INSPIRED
believe both avenues to growth can be achieved simultaneously. Also the franchisees vested interest in their investment means that we can now rely on others to be our eyes and ears when we (business owners) can’t always be there.
How long did the process take from the franchise enquiry to the launch of your franchise? Fayaz first approached us at the end of 2016. As we were in the middle of building our second cafe at the time, we agreed that the best path would be to learn from the construction process and early months of the Manchester café. We would then apply our knowledge to the build and opening of the Bolton cafe
How did you fund the venture and how easy was it to secure the capital? We started our first cafe with £1,000 each and have continued to reinvest nearly all the funds that come in to the company in to growth. This has meant working 80 hour weeks, however it has without doubt been worth the sacrifices. We’ve take small loans from time to time but have managed to grow without leveraging the company too much or relying on outside investment.
How would you describe the market at the moment in terms of demand, numbers, competition and growth? Demand for dessert cafes is surging and we see many competitors entering at the bottom end of the market. We set ourselves out at the premium end of the market, and see little to no competition in this sub-segment of the market. Our growth has been averaging in double digit percentage points each month since opening, giving us total confidence there is plenary of room for expansion and growth We value growing at a sustainable pace above all else. Black Milk will be here for many years to come.
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LEGAL
International
NEWS
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INTERNATIONAL NEWS
Camile franchise owner to open second restaurant in Swords When Pramod Thankappan joined Camile Thai as a manager in 2011 little did he know he would be starting down a path that would lead to him being right in the middle of the booming hot food delivery market. With significant management experience in the food industry behind him he quickly established himself as the group operations manager of the fastgrowing business. Seeing how the operation worked first hand made Pramod aware of how successful operating a franchise could work. In 2013 Pramod secured the funding he needed to open his first Camile franchise in the Omni Park in Santry and now is almost ready to open his second branch in Swords. Talking about his history with the company Pramod said; ‘From my first few weeks working with Camile I knew it was a different business from the ones I had worked with before. It was offering the Irish market something it had been missing and I saw the potential there. When I was offered the chance to open my own franchise I didn’t hesitate and I’m proud to be opening my second in Swords later this year’ The benefits of being part of this rapidly growing industry is
something that Pramod has become abundantly aware of ‘When I started I saw it as a business model that thrived in the Dublin market, the more I’ve seen this market develop the more you can see people’s attitude to food is changing worldwide. More traditional restaurants are giving way more and more to fast casual and delivery restaurants and it’s an exciting market to be a part of’ As well as operating his own business Pramod also currently operates as Camile’s Franchise manager liaising with other franchisees on behalf of the business. As a franchise owner and previous operations manager this puts him in a unique position of understanding both sides making him perfect for the role. On balancing both jobs he said; ‘Compared to the company role having my own business has a different set of demands but there is a different sort of freedom and having your future in your hand that I thrive in.’
Domino’s Australia backs Pepsi as it drops Coca-Cola from its restaurants Domino’s Australia have switched drinks suppliers to Pepsi, in a blow to iconic brand Coca-Cola who previously provided one million cases of drinks per year to the popular pizza chain’s hundreds of restaurants. Domino’s confirmed it was expanding its drink range through a “new, long-term partnership with Schweppes Australia, ranging Pepsi brands”. The company’s chief executive in Australia and New Zealand, Nick Knight, said the new partnership followed extensive customer testing. Domino’s will now stock Pepsi, Pepsi Max, Sunkist, Solo, 7UP, Mountain Dew and Cool Ridge water. A spokesperson for Coca Cola said they were ‘always disappointed when customers choose not to make our products available to their customers, but respect their decision to do so.” This is the second blow to Coca-Cola as they also found out Australian company Woolworths would not be stocking Coca-Cola No Sugar as its customers already had “ample choice” of no-sugar or low-sugar cola. “We have taken the decision to not range this product at this time,” a Woolworths spokesman said. The news saw Coca-Cola Amatil’s share price fall 3.36% to $8.91.
A Coca-Cola Amatil spokeswoman said “Our great range of globally iconic brands and local favourites are still available across the majority of quick service restaurants in Australia.”
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INTERNATIONAL NEWS
Dunkin’ Donuts open 6 new restaurants in America Popular doughnut franchise Dunkin’ will open 6 new restaurants in Georgia, USA. Currently there are over 11,300 Dunkin’ Donuts restaurants worldwide, 8,500 of these restaurants are located in the USA alone. The group has signed franchise agreements with QSR Group LLC and Guzaratti LLC to develop the six new restaurants. Two of these will be ‘multi brand’ locations with Baskin Robins, the sister brand to Dunkin and the world’s largest chain of specialist ice-cream shops. Guzaratt LLC will also develop one Dunkin’ Donuts location in a gas and convenience store. Two of the new franchisees Nishith
and Navnit Patel of QSR Group LLC will operate the multi-brand Dunkin Donuts and Baskin Robins. “We couldn’t be more excited to develop Dunkin’ Donuts and Baskin-Robbins, two iconic brands, in Macon. The team we’ve formed has a deep understanding of what it takes to be successful in multi-unit restaurant development and we’re looking
forward to our first of many openings next year,” says Navnit, Dunkin’ Donuts and Baskin-Robbins franchisee. “As we expand throughout Macon over the next several years, we hope to attract new customers, as well as long-time fans of the brands, and show them the premium products and quality service we have to offer.”
As McDonald’s closes its doors in Delhi, Subway is reaping the benefits Food to go sandwich chain Subway has seen an 5% rise in market share as 43 out of 55 McDonald’s closed its doors in Delhi, according to a report by Kantar IMRB. The closures come as the relationship between McDonald’s and Connaught Plaza Restaurants (CPRL) broke down earlier this month, resulting in 169 CPRL owned restaurants facing closure as their right to use the McDonald’s brand was revoked. The ban will commence on the 6th September – as the notice period reached its end on the 5th September - meaning that CPRL can no longer use the McDonald’s system and its intellectual property. Burger King and KFC have also experienced growth, with shares rising at both outlets by 2%, but it is Subway that has seen the biggest rise of 5%. India is currently experiencing double digit growth across the QSR market as a whole, helped by new outlets in new markets and a surge in discount-driven footfall at shopping centres. The report also states that average bill size has increased by 8% across the market as a whole.
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Pizza Hut America announces plans to hire roughly 14,000 delivery drivers by the end of the year Pizza Hut expects to hire nearly 3,000 new drivers per month based on the needs of each individual restaurant and market, including full and part time positions. In addition, pizza hut has developed a “delivery network algorithm,” a multi-faceted technology system intended to improve the accuracy and reliability of Pizza Hut deliveries. The system will predict how long a delivery will take, and will account for variable factors such as weather, construction, traffic, and other factors. Nicolas Burquier, Pizza Hut’s chief operating officer, said in a statement; “We are serious about this, and this focus and commitment to the best experience will hopefully help some customers re-assess the brand if they haven’t tried us in a while or haven’t had us deliver a pizza before.” “This is about accuracy and consistency, giving our customers a trusted experience. We think these changes enable our team members even more to deliver a hot, delicious Pizza Hut pizza when the customer expects it.” The new technology will be available in all 6,300 U.S. Pizza Hut restaurant locations immediately.
Pret A Manger has signed its first US franchise agreement The company has announced two shops to be located at the Wharton School of the University of Pennsylvania and a third that will open at the University of Chicago. In a press release they revealed that the shops will open in partnership with Bon Appétit Management Company, an on-site restaurant company operating more than 1,000 cafes in 33 states for corporations, universities and museums, as well as public restaurants. They will offer Pret’s popular menu of organic coffee and handmade natural food, including sandwiches, salads, wraps, baguettes and hot options. “Choosing the right partners is important for Pret and we really admire Bon Appetit’s values and operational strengths,” stated Jo Brett, Pret’s U.S. President. “Our menu of freshlymade food to go is perfect for students juggling a busy academic lifestyle, and I’m sure our organic coffee will also be very popular on campus. Pret is a natural choice for students looking for fresh and nutritious food and we hope that these three new university shops are the first of many.” Bon Appétit CEO, Fedele Bauccio added; “I have long admired Pret for its fresh, flavourful menu items that can be enjoyed quickly on the go. In addition, Pret’s culinary and sourcing standards align closely with Bon Appétit’s, which will make us a great team.”
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INTERNATIONAL NEWS
Burger King sales climb as Tim Hortons struggles Restaurant Brands International have announced their Q2 results, declaring comparable sales growth of 3.9% at Burger King, while Tim Hortons grew just 0.8%. Their most recent acquisition Popeyes Louisiana Kitchen grew by 2.7 percent. Daniel Schwartz CEO of Restaurant Brands International Inc, commented that this decline was ‘primarily driven by the brand’s performance in Canada, where comparable sales fell 0.6 percent’. He also commented; “In the second quarter, we continued to grow system-wide sales and profitability for all three of our iconic brands.” “In particular, we had notable strength at BURGER KING®, with both strong comparable sales growth and net restaurant growth. We also made good progress integrating POPEYES®, and continue to be excited about the long term growth potential for the brand.”
Global pizza franchises compete to secure Russia’s more rural locations Pizza brands including Domino’s and Papa John’s are competing to secure rural locations in Russia. As online card payments become more prevalent and foreign brands are now much more recognisable, global chains are betting on a profit in rural locations such as Rostov-on-Don. Currently, there have been setbacks to securing sites in these locations including transport link issues, bureaucratic delays, employment and shipping costs as well as having to adjust menus
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“We appreciate all of the hard work from our franchisees and their teams to deliver a great guest experience, and we are confident in our ability to create further value for all of our stakeholders for many years to come.”
to suit Russian tastes. According to Reuters ‘Domino’s Pizza’s DZP.N Russian franchisee, DP Eurasia believes the time is now right to expand beyond Moscow, where sales at the 76 outlets it had at the end of March are far outstripping growth in its main market Turkey.’ DP Eurasia’s head of Russian development Elena Ivanova commented: “The company has done its own research and realised that there’s almost no quality pizza in the regions, which gives us enormous ground for development.” “Like-for-like sales in Russia have risen 30.1 percent this year up to May 21, whereas the comparable figure for Turkey was 6.3 percent growth.” Guvenc Donmez, DP Eurasia’s Russian head, said he saw room for ‘1,500 Domino’s outlets in the longer term.’
Taco Bell Opens First Restaurant in Romania The first Taco Bell restaurant in Romania will open this fall in the Baneasa Shopping City mall in Northern Bucharest. Sphera Franchise Group has officially announced the entry of Taco Bell on the Romanian market. The South-Californian brand is part of the Yum! Brands portfolio and is the main chain of quick service restaurants in the world that offers Mexicaninspired products, according to a press release from Sphera Franchise Group. Taco Bell is currently recruiting for the new restaurant to be opened in the Romanian capital. Sphera Franchise Group is the largest restaurant group in Romania, owning the companies that operate KFC, Pizza Hut, Pizza Hut Delivery and Taco Bell in a master franchise system. In Romania, the KFC network comprises 63 restaurants in Bucharest and other big cities such as Timisoara, Cluj-Napoca, Suceava, Oradea, Pitesti, and Brasov. Pizza Hut has entered the local market in 1994, with a first restaurant in Bucharest. At present, there are 21 Pizza Hut places in Romania.
Pizza Delivery Company Telepizza opens first Iranian store with a further seven stores due to open by the end of this year Telepizza, the largest non-U.S.-based pizza delivery company in the world by number of stores, today announces further expansion, with the opening of its first Iranian with a further two stores set to open by the end of the month. The store located in Theran, marks the start of the latest phase of Telepizza’s ambitious global expansion plans, becoming the first International QSR brand to enter the Iranian market and with 1,421 stores globally. Te lepizza plans to build on this successful first launch with a further seven stores due to open in Theran by the end of 2017 and 200 stores across Iran planned in the next 10 years. The significant opportunities presented by Iran’s large, young, population (more than 80 million people of which 65% are below 36 years old), and highly fragmented
competition, made the country an obvious choice for expansion. “We are very proud of the inauguration of our two first Iranian stores. It is a great responsibility to become the first QSR chain in the country,” remarks Pablo Juantegui, Chairman and CEO of Telepizza Group. “At Telepizza, we are delighted to share with Iranian consumers the essence of our brand, bringing them the unique flavour of our pizzas, at any moment and place.” Telepizza International President, Giorgio Minardi,
comments: “The launch of our first Iranian outlet marks an exciting step in our international expansion which continues to gain momentum. Iran looks set to become a hugely important market for us, with significant room for growth. We know our innovative flavours and commitment to use only quality local Iranian ingredients, coupled with our outstanding customer service and great value will appeal to Iranian consumers.’ At launch, Telepizza brings its expertise and proven track record in marketing, delivery technology - including full service website and ordering app - franchising and supply chain management. Coupled with its franchisee operating strength and real estate and local management expertise, Telepizza is perfectly positioned to take full advantage of the opportunities presented by the emerging Iranian market. Alongside classic pizzas, the Telepizza menu also features innovative Chef’s signature pizzas such as the Nachos pizza, bringing exciting new flavours to the Iranian market and appealing to consumers’ desire to ‘try something different’.
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INTERNATIONAL NEWS
Tim Hortons raises its prices after revealing disappointing Q2 results Following the announcement of Restaurant Brands International (RBI) Q2 results yesterday, the chain has increased prices in a select number of its Canadian branches. The famous Canadian chain – which has recently opened a branch in Glasgow, UKhas increased its prices via a notice to its customers in their windows reading, ‘‘To our valued guests, please be aware that due to rising operational costs, there will be a slight price increase affecting some
hot beverages and breakfast menu items starting Wednesday, August 2, 2017’. So far, consumers have not reacted well to the news. Tim Hortons has experienced
Papa John’s Signs Franchise Agreements for Kazakhstan, Kyrgyzstan, Poland Papa John’s International, Inc. continues its expansion into new countries with the announcement of signed development agreements for Kazakhstan, Kyrgyzstan, and Poland. The pizza chain signed a development agreement to open 16 restaurants over the next five years in Kazakhstan, with the first store scheduled to open in Almaty over the next few months. In addition, PJ Western plans to open its first restaurant in Kyrgyzstan in the fourth quarter of 2017, with a plan to open six restaurants in Bishkek over the next three years. They also will be opening 23 restaurants in Poland beginning in late 2017. “We are very excited about establishing and expanding the Papa John’s pizza brand in these three countries,” said Chris Wynne co-owner and CEO of PJ Western. “We believe our success in Russia will transfer to Kazakhstan, Kyrgyzstan and Poland and our new customers will love our BETTER PIZZA and quality ingredients.” “PJ Western continues to have great success in Russia and Belarus and we are excited about their expansion plans. We expect that Chris and his team will continue to deliver on our BETTER INGREDIENTS. BETTER PIZZA. brand promise in Kazakhstan, Kyrgyzstan and Poland,” said Tim O’Hern, Senior Vice President & Chief Development Officer. Papa John’s International is currently looking for potential franchisees in Paris, France, as well as Germany, Belgium and Denmark.
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disappointing sales growth of 0.8%, in comparison, RBI’s other brands Burger King and Popeye’s Louisiana Kitchen experienced comparable sales growth of 3.9% and 2.7% respectively.
Starbucks plans to operate 5,000 stores in mainland China by 2021 Starbucks Corporation has announced entry into a definitive agreement to acquire the remaining 50% share of its East China business from long-term joint venture partners, Uni-President Enterprises Corporation and President Chain Store Corporation for approximately $1.3 billion in cash consideration, in the largest single acquisition in the company’s history. Starbucks will assume 100% ownership of approximately 1,300 Starbucks stores in Shanghai and Jiangsu and Zhejiang Provinces, building on the company’s ongoing investments in China, its fastestgrowing market outside of the United States in terms of store count. Concurrently, UPEC and PCSC will acquire Starbucks 50% interest in President Starbucks Coffee Taiwan Limited (“Taiwan JV”) and assume 100% ownership of Starbucks operations in Taiwan for approximately $175 million. Founded in 1997, the Taiwan JV currently operates approximately 410 Starbucks stores in Taiwan. “Unifying the Starbucks business under a full company-operated structure in China, reinforces our commitment to the market and is a firm demonstration of our confidence in the current local leadership team as we aim to grow from 2,800 to more than 5,000 stores by 2021,” said Kevin Johnson, president and ceo, Starbucks Coffee Company. “Similar to our decision in 2011 to fully license our Hong Kong and Macau market operations, we are pleased to transition our business in the Taiwan market to our long-time partners Uni-President Enterprises Corporation and President Chain Store Corporation, both highly-recognized local operators, as we continue to grow in Taiwan. This is a critical next-step as we advance our multifaceted China growth strategy for long-term profitable growth in Asia.” East China is a significant and strategic region for Starbucks in China, with Shanghai containing nearly 600 stores, the largest number of stores globally of any city where Starbucks has a presence. In December 2017, Shanghai will also be the first city
outside of the United States to welcome the opening of the ultrapremium Starbucks ReserveTM Roastery. “This is the beginning of yet another exciting new chapter for Starbucks in China. Full ownership will give us the opportunity to fully leverage our robust business infrastructure to deliver an elevated coffee, in-store third place experience and digital innovation to our customers, and further strengthen the career development opportunities for our people,” said Belinda Wong, ceo, Starbucks China. “Our East China partners’ relentless pursuit of operational excellence and leadership has provided us a solid foundation to maximize the unprecedented growth opportunities ahead and we look forward to extending our world-class network of unique programs to support their personal and professional dreams.” “We’ve had a strong friendship with Starbucks for nearly 20 years, starting with the opening of the first store in Taiwan and then further extending our partnership with the opening of the first store in East China” said Alex Lo, Chairman, Uni-President Enterprises Corporation. “We are confident that our new ownership model and continued collaboration with Starbucks will enable us to be even more focused on delivering an elevated Starbucks Experience to our customers in the Taiwan market.” Starbucks will discuss the financial impact of these transactions during its third quarter fiscal year 2017 earnings conference call at 2:00 p.m. PT today, Thursday, July 27. Both transactions are expected to close by early calendar year 2018 and are subject to customary closing conditions, including receipt of required regulatory approvals.
Chipotle reopens doors in Denver following first renovation in 24 Years The first-ever Chipotle opened in 1993 across from the University of Denver, where founder and CEO Steve Ells first started serving burritos inspired by San Francisco Mission District Chipotle Mexican Grill has reopened its doors today to the first-ever Chipotle restaurant in its hometown of Denver following a summer long renovation. The original Chipotle location opened in the former Dolly Madison ice cream shop on East Evans Avenue across from the University of Denver, where founder, chairman and CEO Steve Ells himself prepared delicious food and served the very first Chipotle customers. Today, Chipotle has more than 2,300 locations worldwide and more than 60,000 employees. Despite its growth, the menu has
remained remarkably similar, with only a few additions, including the burrito bowl, salads, vegetarian Sofritas, and most recently queso (the most requested item Chipotle didn’t previously serve). Much of the work at Evans was done behind the scenes. Chipotle expanded the cramped basement of the 850-square-foot restaurant to create additional storage and food prep space, allowing them to make the small open kitchen - still a hallmark design element of all Chipotle locations - more efficient. Work in the dining room updates
the style of the small space, while preserving the original charm of the first restaurant. “The Evans restaurant will always be special to me,” said Ells. “I opened that restaurant with the novel idea to show that food that was served fast didn’t have to be a typical fast food experience, and with the hope of financing a ‘real restaurant.’ Today, Chipotle has become plenty real and we are having a significant impact on the way people eat by making delicious food, made with whole, unprocessed ingredients available and affordable to everyone. That isn’t something I could even have imagined when I opened that first restaurant 24 years ago.”
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MArket watch
Market Watch 1. Brand in focus – McDonald’s McDonald’s global comparable sales have increased by 6.6%, reflecting positive guest counts in all segments. Consolidated revenues decreased by 3%, due to the impact of their strategic refranchising initiative. Systemwide, sales increased 8% in constant currencies, due to strong comparable sales performance and restaurant expansion. Comparable sales for the International Lead segment increased 6.3% for the quarter, led by continued momentum in the UK, strong performance in Canada and Germany and positive results across all other markets. The segment’s operating income increased 8% (13% in constant currencies), fueled primarily by sales-driven improvements in franchised margin dollars. Notably, the fast food giant declared that they are building a better McDonald’s, and remarked that customers are noticing. McDonald’s president and CEO commented; “Our relentless commitment to running great restaurants and keeping the customer at the centre of everything we do is generating broad-
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based strength and momentum across our entire business.” “For the quarter, we delivered our strongest global comparable sales and guest count results in more than five years.” Easterbrook concluded; “Whilst we’re encouraged by our results from the first half of 2017, we’re not complacent. Today we’re acting like a leadership brand, taking on new challenges and opportunities and moving with a greater sense of purpose and urgency.” “We’re building on our momentum, leveraging our size and scale and executing with greater precision against our priorities to retain, regain and convert customers by giving them even more reasons to visit and enjoy McDonald’s.” “I’m confident that we’re on the right path to continue positively impacting sales, guest traffic and customer satisfaction as we work to bring the biggest benefit to the most people in the shortest time possible.”
MArket watch
2. Starbucks Starbucks underperformed expectation and shares dropped by as much as 4% as global comparable sales increased by just 4%, below analyst expectations of 6.2%. In fact the coffee chain experienced ‘lackluster’ sales across all regions, China/Asia Pacific region increased by 3% (against expectations of 4.6%) and decreased by 1% in the Europe/Middle
East/Africa region (against expectation increase of 2.8%).
which had been at or above 5% for the 25 consecutive quarters prior to Q3.”
This is the third quarter in a row that Starbucks has posted weaker-thanexpected same-store sales. CEO Howard Schultz said the company has a “clear line of sight to returning our U.S. business to historic levels of comp sales growth
Scott Maw, Starbucks CFO said; “The combination of trends in the quarter and ongoing macro pressures impacting the retail and restaurant sectors has us a bit more cautious going into Q4.”
Costa is also attempting to fend off competition by innovating its coffee products and focusing on a more expensive coffee. They have announced plans to open between 230 and 250 Costa coffee shops and install around 1,250 Costa Express machines this year. Speaking on behalf of Whitbread as a whole, Chief Executive Alison Brittain said; “We have had a good start to the
year, with first quarter sales growth of 7.6% in line with our expectations.”
3. Domino’s Domino’s Pizza the recognised world leader in pizza delivery announced strong growth in same store sales, global store counts and earnings per share. Domestic same store sales grew 9.55% during the quarter versus the year-ago period, which represents the 25th consecutive quarter of positive sales. “It was another outstanding quarter for our domestic business, as brand momentum, strong execution and emphasis on getting better each day continued to drive what we do,” said J. Patrick Doyle, Domino’s president and Chief Executive Officer. “While international same store sales growth was slightly under our expectations, we remain very confident in our continued ability to generate best-in- class growth, and are encouraged by the strong store growth we are seeing from our international franchisees.”
4. Costa Costa sales grew 8.7% with UK equity like for like growth of 1.1% as well as experiencing a good performance in their expanding travel and drive-thru channels. Costa intend to focus on their initiatives, rolling out ‘Cold Brew’ in over 200 of stores and their latest summer Frostino and cooler drinks, which went on sale in the Summer.
“Our continued drive to grow and innovate in our core UK businesses, focus on our strengths internationally and build capabilities to support long-term growth, combined with our ongoing cost efficiency programme, gives us confidence that we will make further good progress this year.”
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MArket watch
5. Papa John’s The pizza chain announced global restaurant sales growth of 4.1% in the second quarter, lower than the last quarter’s rise of 4.9% as well as the yearago quarter’s 5.9% increase. International revenues were up 6.2% year over year primarily on positive comparable sales.
“The company delivered solid results in the second quarter, including the 27th consecutive quarter of positive North America comparable sales and the 29th consecutive quarter of positive International comparable sales,” said Papa John’s founder, chairman and CEO John Schnatter.
“Our industry-leading quality and digital platforms, such as our launch of Facebook instant ordering, will continue to drive the consistent growth of the Papa John’s brand globally. The increase in out share repurchase authorisation aligns with the continued confidence we have in our business.”
6. Yum! Brands KFC, Pizza Hut and Taco Bell owner Yum! reported worldwide system sales growth of 6%, KFC and Taco Bell achieved growth of 7% however they reported disappointing results at Burger King, just 2% growth. Yum! announced that going forward, the company aims to drive growth at KFC, Pizza Hut and Taco Bell brands via its strategic transformation plan, following the separation of the company’s all-important China division. The company’s transformation and growth strategy entails employing greater focus on the development of its three iconic global brands, increasing its franchise ownership, and creating a leaner and more efficient cost structure. Comps at the KFC division were up 3% same as the year-ago quarter figure but higher than last quarter’s growth of 2%. Growth was witnessed across the U.S. as well as developed and emerging markets internationally. Pizza Hut comps decreased 1% same as the year-ago quarter figure but comparing favourably with last quarter’s dip of 3%. Comps grew 2% in international emerging markets but declined 3% in the U.S. Comps at international developed markets remained flat, Taco Bell comps increased 4%, performing favourably in comparison to comps decline of 1% a year ago but lower than the 8% rise in the preceding quarter.
7. Marston’s In destination and premium, like for like sales for the 42 week period were 1.3% ahead of last year. In the most recent 12 weeks of the period, like-for-like sales were up 0.6% which continues to be ahead of the market. Operating margins were slightly below last year in line with expectations, in regards to cost outlook for 2018 their guidance remains unchanged from that provided in their interim results in May.
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Marston’s remain on track to meet growth targets for 23 new pub-restaurants and bars in the current financial year in addition to eight lodges. In taverns, like-for-like sales for the period were 1.9% ahead of last year, with growth of 2.4% in the last 12 weeks of the period, principally reflecting the benefits of the warm water in June. Ralph Findlay, CEO, said; “We remain encouraged by our continued market outperformance and are focused on
delivering sustainable growth and maximising return on capital in an evolving market place.” “Our transformed pub estate continues to deliver positive like-for-like growth across all three divisions. We benefit from an operating structure which spans food-led destination and wet-led community, pubs accommodation and brewing, maintaining a good balance within our brand portfolio and broad consumer appeal.”
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Subscribe online at www.quickbitemagazine.co.uk Follow us @quickbitemag AUTUMN 2017 Food Franchise | 71
LEGAL
THE TAYLOR REVIEW OF MODERN WORKING PRACTICES
WILL THIS CLEAR UP THE CONFUSION REGARDING EMPLOYMENT STATUS ISSUES?
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LEGAL
Is that delivery driver of yours an employee, worker or self-employed? Many readers will recall that the issue of employment status has been under the microscope a lot recently, in particular during legal cases involving Uber, CitySprint and Deliveroo, which examined whether an individual was classed as an employee, worker or selfemployed. The Taylor Review makes various recommendations about how to clear up the confusion regarding an individual’s employment status. Employment status is an important issue as it governs what protections the individual has, for example, only an employee can claim unfair dismissal and only employees and workers can claim pay of at least the national minimum wage and paid holidays. However, there can often be doubt as to what category the individual falls into and obviously such uncertainty is undesirable for both employee and employer.
Review, makes it clear that the lawmakers need to get wise to this type of practice and a revised definition with less focus on the element of personal service is needed. •
The Taylor Review makes some recommendations to try and fix the situation, including: •
That the category of “worker” needs to be redefined and, in particular, the tests used to determine worker status need to be overhauled. Currently, there is a focus on both the degree of control exercised by the employer over the individual and the requirement for the individual to perform the service personally. However, it is acknowledged that some employers include a substitution clause in the individual’s contractual documentation (namely the right for the individual to send a different person to perform the services instead of them) to try and defeat the worker test, Essentially they argue that there is no requirement for personal service, despite the fact that, in reality, the substitution clause will never be used. Matthew Taylor, who led the
•
•
That the individuals we currently know as “workers” should instead be referred to as “dependent contractors” as this is more reflective of the reality in many situations. Taylor acknowledges that an intermediate category of individuals who benefit from limited employment rights is desirable for the world we live in. That the individual’s status should be the same for both employment and tax purposes, as presently an individual can be classified differently under these two regimes. However, it must be recognised that tax law does not have a “worker” category and there appear to be no plans to introduce this. That said, where an individual is self-employed for tax law purposes, the Review makes it clear that they should also be self-employed from an employment law perspective too as this will help avoid confusion for all.
their employment/engagement and if they do not, there should be the right to compensation. Currently, only employees are entitled to receive such written particulars and then only within the first two months of their employment. Taylor believes that there needs to be more transparency at an earlier stage. •
That a free online tool should be developed so an individual can check their employment status themselves with certainty over the result. (A similar tool exists for tax law purposes already.)
Only time will tell whether the recommendations from the Review are adopted and the detail of what form any changes will take. However, this is perhaps the first step towards getting clarity on employment status issues which will, in turn, hopefully make life more certain for employers going forward.
That there should be a legal requirement for the employer to provide both employees and workers/dependent contractors with a clear written statement of their basic terms on day one of
Katee is a senior solicitor in Goodman Derrick’s employment team advising on all aspects of contentious and non-contentious employment law, from recruitment to the end of employment relationship. She has acted for clients in the hospitality and leisure sector for many years. Katee has been recognised as an “Associate to Watch” by Chambers & Partners Guide to the Legal Profession and as a “Super Lawyer” by The Telegraph. Goodman Derrick is a leading commercial law firm in the City of London.
Katee Dias , Senior Solicitor, Goodman Derrick LLP 020 7404 0606 - kdias@gdlaw.co.uk
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Food Franchise services
FOOD FRANCHISE Services 74 | Food Franchise AUTUMN 2017
FOOD FRANCHISE services
3S-POS serve up Quick-Service EPOS Systems At 3S POS we work very hard to identify the needs and obstacles our customers face in the day-to-day running of their business. We provide mission critical EPOS solutions by listening to our customers’ requirements, observing their operations
and drawing on our technical know-how. Our unique consultation process ensures your investment in technology is an extension of your business rather than just another tool.
We have a dedicated set of features developed to cater for the Quick Service market to speed up order taking, stream line management processes & increase profits! EPOS features: • Enterprise Stock Control • Customer Relationship Manager • Loyalty & Promotions Management • Kitchen Display Systems • Handheld Ordering • Headoffice Management • Attendance & Rota Management • Live Table Bookings • Graphical Table Management • Telephone & Online Ordering • Chip & Pin • Mobile Payment Solutions • Order Ready Screens • Digital Signage/Menu For more information about our products and services contact us on 0207 034 3030 or visit www.3s-pos.com
Lynx Purchasing launches Online Savings Calculator Hospitality and catering operators can calculate the savings they can make across a wide range of essential products and services using the new Online Savings Calculator launched by buying specialist Lynx Purchasing. Potential savings start at £5,620 on an annual purchasing spend of £50,000, rising to a £112,400 saving on an annual budget of £1m, based on a basket of a range of goods and services regularly bought by operators. Located on the Lynx Purchasing website at www.lynxpurchasing.co.uk, the Savings Calculator is free, and simple to use. Using a mouse or touchscreen, by sliding the calculator to the actual purchasing spend of the business, the potential annual savings that can be made through Lynx Purchasing’s buying partnerships with a range of leading industry suppliers are shown. The Online Savings Calculator works on both
desktop and mobile devices, and makes its calculations using genuine savings achieved by Lynx Purchasing for a broad range of its hospitality and catering customers. The amount saved is based on a basket of everyday food and drink purchases, as well as products such as cleaning & hygiene and disposables, and services including utilities and telecoms. Rachel Dobson, managing director of Lynx Purchasing, said, “Every business is different, but these are real savings that we have achieved for our customers. In some cases, we can recommend suppliers who will deliver even bigger savings, depending on the needs of a particular business.
customers to the benefits of working with a buying specialist.” Lynx Purchasing works with more than 2,200 hospitality and catering operators to match them with the best suppliers and get the best possible prices on food and drink, as well as a whole range of essential products and services. Lynx’s buying experts help operators buy better and save time and money, year after year. For more information on Lynx Purchasing, visit www.lynxpurchasing.co.uk email savings@lynxpurchasing.co.uk or call 01325 377 845.
“Most importantly, our service is entirely free to the operator; there’s no fee, no contract and no obligation to buy from a particular supplier. The Online Savings Calculator is a simple, graphic way to introduce potential
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FOOD FRANCHISE services
It’s a Wrap! It’s a Wrap manufacture high quality, bio-degradable & compostable custom printed greaseproof paper for hundreds of casual dining and fast food businesses in the UK and worldwide. From independent restaurants, through to some of the largest chains, we have the capabilities of producing small orders starting from 1,000 sheets up to millions of sheets. We can print in 1 colour, 2 colours or vibrant 4 colour process and all in registered print. All our artwork set-up and trimming service is free of charge, and we have the fastest turnaround in the industry with a delivery time of only 7-10 working days from approval of artwork. All of this has enabled every business an affordable opportunity to present their food with their own branding or message professionally. Give us a call on 01327 301566 and let us help you make your food stand out from the crowd!
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FOOD FRANCHISE services
UK’s first permanent catering exhibition centre to open in Bristol The UK’s first permanent catering exhibition centre will open in Bristol on the 19th September. Showcasing products from over 50 leading equipment brands all under one roof, the National Catering Equipment Centre (NCEC) is being billed as a centre of excellence for the catering industry, providing a variety of users, from operators to dealers, consultants to chefs, with a unique venue to discover, train, network and to become immersed within everything to do with catering equipment. Laura Clarkson, NCEC Manager is extremely excited about the imminent opening: “Up until now, the hospitality industry has not really had somewhere to call home. Football has Wembley, Rugby has Twickenham and now the hospitality industry has the NCEC.” “We believe the NCEC will quickly become the place to visit for anyone involved with catering equipment, from dealers to distributors, through to operators, consultants and chefs.” Brands that have already confirmed their involvement in the NCEC include; Dynamic, Olympia, Samsung, Hoshizaki, Thor, Winterhalter, Burco, Lincat, Pira, Polar, LEC, Buffalo, Waring, Churchill, Steelite and many more. Keith Warren, Director of CESA, has given his full support to the initiative: “The NCEC is an exciting initiative for the hospitality industry. By allowing customers to try equipment before they buy it, it will provide a real service to both operators and the supply chain.” Launching as a permanent space to showcase many leading brands, the NCEC will also boast a fully functional training and demonstration kitchen where NCEC onsite Development Chef, Dean Starling will be available to provide advice on all types of equipment, as well as helpful hints on menu development and onsite catering. With so many brands in one place, Laura believes the benefits are clear: “One of the key benefits of having all of these superior brands within one place is that demonstrations can be set up in the kitchen, allowing a customer to test drive a particular oven, blender or induction hob (for example) before making the purchase.” “As visitors will be able to touch, feel and see the equipment in action, they will be able to make a more informed purchasing decision.”
ElectroCruz Series Stand No: 3046
E L E C T R I C
asy swap 25Ah battery. arge lockable delivery box. asy Charge. onvenient. ilting Rack for under seat storage. ange 40 to 50 Miles. nstallation of charging sockets. lean.
You get the complete package with fitted accessories. Ready to go when delivered. We can supply our bikes in any colour you require (minimum order quantities apply).
Tel: 01903 366650 Email: info@batterymotorbikes.co.uk Web: batterymotorbikes.co.uk
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FOOD FRANCHISE services
Battery Motorbikes - designed for the fast food market Here at Battery Motorbikes we work hard to improve our products, concentrating on the small scooter market we have been met with a lot of interest, as we provide a great product at a great price. Our ElecroCruz 25RLi scooter has been specifically designed with the fast food delivery market in mind. This model has a 40 to 50 mile range and utilises a removable 72volt 25Ah Lithium battery weighing only 18Kg. Also if you purchase an extra battery you will always have a full battery ready to use. In fact, our electric mopeds have the same specifications as their 50cc equivalents and can therefore deliver in near silence. Plus if any of your staff has passed a car driving test before January 2001, they are able to ride our scooters with no extra test or L plates! More than half of global consumers (53 % representative of 1.1 billion people) prefer to purchase products and services from a company with a strong environmental reputation. Advertising the fact that your company uses green energy to deliver can persuade them to purchase from you. A company`s environmental reputation is a clear preference for its customers.
Professional franchise sales and resales service for food franchisors and franchisees An innovative consultancy service is now available to help steer food franchisors, franchisees and investors smoothly through the franchise sales and resales process. Franchise Sales and Resales manages the process from concept through to a successful completion, with a proactive methodology aimed at realising maximum sale value.
Specialising in the sale of: • Franchises sales • Franchise resales • Multi-unit franchises • Master franchises
• Entire franchise business • Franchise acquisition and business sales
The service provided by Franchise Sales and Resales is further enhanced with support from legal advisers, banks, and financial specialists from within the franchise industry.
For more information, call 01462 685633, email info@franchisesalesandresales.com, or visit www.franchisesalesandresales.com.
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The company is headed by Jess Bains MICBA, who previously led the franchise sales and resales division at FDS (Franchise Development Services), with the service provided based on more than 15 years of experience of the franchise and business sectors, combined with valuable advice and guidance. We work closely with franchisor and franchisee, ensuring there is no conflict of interest, only an enhanced service essential in the sales and resales process in concluding a positive outcome. We will tailor a programme that is in line with your objectives utilising a portfolio of publications, websites and skills to target pre-qualified candidates to promote your franchise for sale. Specialising in the sale of: • Franchises sales, • Franchise resales, • Multi-unit franchises, • Master franchises, • Entire franchise business, • Franchise acquisition and business sales. The service provided by Franchise Sales and Resales is further enhanced with support from legal advisers, banks, and financial specialists from within the franchise industry. For more information, call 01462 685633, email info@franchisesalesandresales.com, or visit www.franchisesalesandresales.com.
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FOOD FRANCHISE services
Nelson Catering Equipment kitchen design deliver on every level Nelson Catering Equipment can call on its 35 years’ kitchen design experience to provide some of the most cleverly thought through solutions for today’s professional kitchens. Equipment used is from the UK’s most respected brands while Nelson also provides a bespoke stainless steel fabrication service. Nelson is also focusing on its latest Advantage warewasher range. Advantage features some of the most energy and water efficient dishwashers and glasswashers currently available and includes various undercounter and pass through models. Nelson’s Advantage promises the highest build quality, faultless performance and ongoing reliability.
These machines deliver on every level. They reduce running costs drastically by using minimal water, energy and chemicals; they run exceptionally quietly and they produce exceptional results. Outstanding results are achieved across all types of crockery and glassware – even delicate items can be
washed with the ‘Soft Start’ programme which gradually builds to full force. The Advantage is built to exceptionally high specifications with all parts undergoing rigorous testing to ensure its durability and ongoing reliability.
Fryersmate celebrate their 10th anniversary With over 30 years’ experience of working in the fast food industry Fryersmate have decided to give something back to the industry, by offering 15% discount to their loyal customers*. Fryersmate was first conceptualised in 2007, following a number of years’ experience in the fish and chip trade. Using various utensils and equipment while operating their business, the company formed to improve the current offering of utensils on the market by developing new ideas and giving the caterer even more choice of utensils. Setting out to provide the industry with a range of utensils which offer both comfort and durability, a meticulous eye for detail and precise planning briefs meant that innovative designs were manufactured using only the finest stainless steel. From their 100 mesh skimmer and chip shovels, to scoops, lifters and baskets their vision is to deliver outstanding quality products to our customers at affordable prices with great customer service Also as part of their continuous improvement Fryersmate further refined their product range using feedback from loyal and existing customers to ensure we produce the best products to cater for your needs. * cannot be used in conjunction with any existing offers
CELEBRATE OUR 10th ANNIVERSARY AND ENJOY 15% OFF* ALL OUR PRODUCTS! For further information on our range call us today on 01522 542054 or buy online at www.fryersmate.com *15% off all products available from the 25/08/17 -24/09/17
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diary dates
Dates for your diary Find out what events are taking place in the world of franchising over the next few months The number one event for business growth and expansion in the food profession.
Takeaway Innovation Expo
Excel London 26th - 27th September 2017
The Food Entrepreneur Show is THE event for any entrepreneur striving for success in the food and drink industry. This is the event where you find the opportunity to turn up the heat on your competition and take your business to the next level.
Find out more about running your own business with the support of an established brand at the UK’s flagship franchise exhibition.
The National Franchise Exhibition
Restaurant and Takeaway Business Live
NEC Birmingham 13th - 14th October 2017
Meet dynamic franchise brands from all business sectors, including food & drink, home-based, fitness, low cost, care, and property. The event is sponsored by Anytime Fitness: number one global franchise as voted by Entrepreneur Franchise 500. Be inspired by over 40 free presentations and connect with a community of professional advisers, including the bfa, legal and financial experts and consultants.
Returning for its third year at the SEC Glasgow, RTBLive has quickly become the premier event for local business owners in the Food Services Industry. Sharing a venue alongside its sister event – The Scottish Business Exhibition, RTBLive is a ‘one-stop-shop’ for any restaurant, takeaway, pub, bar, café or other food service business in Scotland looking to improve their efficiency and profitability.
SEC Glasgow 1st - 2nd November 2017
We invite all driven, ambitious business owners who are seeking the best of the best from the culinary market to this FREE two day event. RTBLive is sure to whet the appetite with live demonstrations from exhibitors, seminars, and focused workshops. RTBLive delivers!
The 2nd annual Food and Drink NPD and Innovation Summit is being organised by the industry leading publication Food and Drink Business Europe. They have over 20 years’ experience in the food and beverage manufacturing industry.
Food and Drink NPD and Innovation Summit
In the next issue:
Ricoh Arena, Coventry 7th November 2017
As a result of its knowledge of the industry and its contacts within it, it organises food manufacturing events covering the issues that matter to the industry. As a result of its knowledge of the industry and its contacts within it, it organises food manufacturing events covering the issues that matter to the industry.
Avoiding Franchise Risk – Top 5 Tips for Assessing a Franchisor
10 Things to Consider when Buying a Low Investment Franchise
From failing to trial a product yourself to believing the hype, we run down the pitfalls to avoid when choosing a franchise.
There are plenty of franchises available that require a low investment, we take a look at what to consider before making a franchise purchase.
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