Food Franchise Magazine Spring 2018 by MVHmedia

T h e U K ’ s o n ly t i t l e d e d i c at e d to f o o d & d r ink f r anchi s i n g

McDonald’s Franchising Opportunities

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things to

consider

BE INSPIRED

ORANGE BUFFALO

when buying a

Franchise

We speak to the owners of The Orange Buffalo the UKs first wing-only street food business!

Find out more about Franchise Resales on page 62

Print edition £3.99

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www.foodfranchisemagazine.co.uk

News Round Up

Market Watch

Our summary of the latest news from across the sector

An overview of the biggest franchises on the stock market

In business for yourself, but not by yourself… As a McDonald’s Franchisee you’ll have the opportunity to build your own business, with the support of a global company currently celebrating 47 quarters of continuous growth in the UK. You’ll have access to a wide range of resources including the support of an experienced Franchisee Consultant to advise you as your business develops. There’s no telling what the future will hold, but you’ll have the training and the support to make sure you make the most of our award winning system.

Search ‘McDonald’s franchising’

Publishing Director Lewis Wantling

Food Franchise message

info@mvhmedia.co.uk Office: +44 (0) 333 003 0499

Advertising sales Sandra Bouillet sandrab@mvhmedia.co.uk Office: +44 (0) 333 003 0499

Art Editor Natalie Florey-Abbotts Natalie@mvhmedia.co.uk

News & Features Writer Susanne Wynne susannew@mvhmedia.co.uk Office: +44 (0) 333 003 0499

Contributors Morgan Wolfe Gurmeet Jakhu Peter Watters Jess Bains

Finance Laura Williams finance@mvhmedia.co.uk Office: +44 (0) 333 003 0499

Hello and welcome to the Spring edition of Food Franchise Magazine! This issue we have compiled our exciting Top 25 Up & Coming Food Franchises. These hand-picked franchises are some of the brightest in the industry, and are making some huge inroads into the UKs food and beverage franchising sector. We have features dessert, fast food and cocktail franchises plus many more! Turn to page 36 to find out more! We also run through the Ten Things to Consider When Buying a Franchise. In the feature legal expert Gurmeet Jakhu gives his advice on the top aspects you should consider when choosing the perfect franchise for you. Over on page 62 Franchise Resale Consultant Jess Bains gives you his advice in regards to the benefits of a franchise resale. And in our Franchise Services overview, we assess some of the latest products to hit the market. As usual our industry news offers you the latest updates from across the food and beverage industry, and out Market Watch features gives you all the latest stock market info from some of the biggest UK franchises. And finally, our International News section features updates from some of the biggest names in franchising as they continue to make their mark worldwide. Until next time,

Publisher MVH Media Ltd.

The Food Franchise Team

Unit 9 Wilkinson Court, Clywedog Road South, Wrexham Industrial Estate, Wrexham LL13 9AE The publishers do not accept responsibility for advertisements appearing in this magazine. The opinions expressed are not necessarily those of the editor or the publisher.

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Contents 08 News round-up A look at some of the latest developments in the food franchise sector.

36 Top 25 Up & Coming Food Franchises We have hand-picked some of the UKs most promising franchises and we reveal how you can get a piece of the action!

52 Be Inspired: The Orange Buffalo We speak to The Orange Buffalo the UKs first wing only franchise!

36 4

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67 67 International News We round up the latest developments from brands around the world.

77 Franchise Services

We bring you the latest in innovation from across the sector.

74 Market Watch Our insight into the biggest franchises on the stock market.

84 Legal Would you know what to do if your business received a bad review?

84 SPRING 2018

Food Franchise

News

round-up Barburrito expands into airports The burrito chain has partnered with The Restaurant Group (TRG) to expand into airports. Morgan Davies, founder and CEO of Barburrito said, “This is a huge milestone for Barburrito - I am thrilled to be opening our first store inside an airport and what this means for the future of Barburrito. This is the start of an exciting partnership with TRG Concessions and Edinburgh airport. “With an established operating model working across 21 locations, we felt that it was

time to explore a franchise operation with a sector leader in this space. Edinburgh Airport is a fantastic location to launch the first of these. My first ever job was working in the sky shops at Edinburgh Airport and it is personally exciting to be returning to open a business in this fantastic location.” Nick Ayerst, managing director of TRG Concessions said, “We are excited to be working with Barburrito to bring a concept that’s new to Edinburgh Airport. “We are certain Barburrito will be well received by passengers. We are looking

Chopstix Group appoints Jon Lake as MD Chopstix Group, which owns and operates premium QSR brands Chopstix and Yangtze, announces the appointment of Jon Lake to the role of Managing Director with immediate effect. Highly respected within the hospitality sector for over 25 years, Lake brings a wealth of experience to the business. Lake has held a number of key roles within multinational organisations including Fine Food Capital where he was Development Director and Deloitte where he was Director of M&A specialising in the licensed retail sector. Prior to that, Lake held senior management posts with both Punch and Whitbread. Lake will work closely with Chopstix Group founders, Sam Elia and Menashe Sadik, who in the past two years, have tripled Chopstix’s market presence to 75 units, and with the acquisition of Yangtze last year, now have a combined outlet count of 84 stores. Commenting on Lake’s appointment, Elia and Sadik note; “We are delighted to have attracted Jon to the business, as he brings with him a first-class reputation for achieving success. “We have extremely ambitious growth

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plans both in the UK and overseas but appreciate there will be challenges along the way so are pleased to have Jon at the helm, as we move forward.” Jon Lake adds; “Chopstix Group is undoubtedly becoming a real force within the sector, operating premium brands which offer huge potential both nationally and internationally and I am delighted to join the team. “We will continue to drive the expansion of both our corporate and franchise business whilst establishing further infrastructure to support this growth.”

forward to further strengthening the food and beverage offer at the airport and look forward to developing the relationship with our new partners. Backed by growth capital provider, BGF, the business is constantly on the lookout for new sites as it continues to expand its business.

Comptoir Libanais makes regional debut Comptoir Libanais is to open its first restaurant in the West Midlands at Grand Central, Birmingham. The new 3,047 sq ft restaurant will be located next to Indian street food specialists, Mowgli and is due to open in March. Since its launch in 2008, the group has continued to share healthy and affordable Lebanese and Middle Eastern food with customers across England; with locations in and outside London. The new Comptoir Libanais restaurant at Grand Central marks an important first for Birmingham, where it will join other prime restaurant brands including Tapas Revolution and Pho. The restaurant will have space for approximately 100 covers and will also feature a small “souk” (market) where customers can buy authentic ingredients, homeware and gifts as well as branded cookbooks. Tony Kitous, founder of Comptoir Libanais, added: “I’ve always dreamt of creating a traditional Lebanese restaurant where everyone can eat and drink in humble and friendly surroundings, and I am so excited to now bring the warm Middle Eastern hospitality and way of life to brand new guests in Birmingham. “Grand Central’s position above the busy New Street Station and adjacent to Bullring makes it the perfect location for our first restaurant in the West Midlands.”

Coffee shop turnover grows 7.3% despite economic uncertainty The coffee shop market achieved growth of 7.3% in 2017, and despite Brexit issues the industry remains defiant. Excelling as the UKs largest sector, the £9.6bn industry added a total of 1,215 stores during the past 12 months reaching 24,061 – a 5.3% growth, according to the Project Café 2018 UK report from Allegra World Coffee Portal. Three quarters (71%) of those interviewed by Allegra expressed confidence in the years trading environment, despite issues surrounding trade and jobs as Brexit continues to impact the industry as a whole. Costa Coffee, Starbucks and Café Nero continue to dominate the sector with 2,326,

‘fifth wave’, we’re seeing a new era of leading brands competing on excellence. Key players are sharpening their focus on customer experience to stay ahead of rivals. If leading coffee shops can do this successfully, the market will remain strong. It’s time for the industry to dig deep and capitalise on the opportunities ahead.”

956 and 675 sites respectively, holding a 52.9% share of the total ‘branded chain market.’ Allegra forecasts the total UK coffee shop market will exceed 31,400 outlets by 2022, with a turnover of £13bn. Allegra Group chief executive Jeffrey Young said: “The UK coffee shop market continues to be robust despite current challenges, laying down modest growth in 2017 amid severe concern over Brexit’s impact on jobs and investment. “As the market matures and we enter the

Restaurants ‘bright spot’ in consumer spending during difficult December trading According to the latest Visa Consumer Spending Index restaurants have performed well during December, this is despite the biggest drop in spending on UK highstreets in the last 12 years.

choose to order in. In fact, the food delivery market is worth £3.6 billion with online ordering platforms such as Deliveroo and Just Eat expected to fuel the rise of delivery, along with new entrants to the market. Literally taking the hassle out of

ordering, delivery services alongside improved ordering methods– such as the rise in mobile ordering – saw home delivery of ready to eat food grow ten times faster than eating out (NPD Group Data 2016) totalling £599 million visits.

Mark Antipof, Chief Commercial Officer at Visa, commented; “Christmas rounded off a lean year for retailers with consumer spending seeing its first consistent 12 month decline since 2012. “December’s consumer spending figures confirm our earlier prediction that the UK would see its first fall in overall Christmas spending in five years. This result has bucked the trend of the previous four years which saw annual consumer spending rise by an average of 1.7%. He added; “Hotels and Restaurants were again a bright spot in December’s results.” Mr Antipof also commented on the rise of online spending adding that it is ‘clear that the high street has suffered recently, while online spending has held up’. Online spending at takeaways and restaurants is on the increase as more restaurants sign up and more consumers

Spring 2018

Food Franchise

News

round-up

Putting health higher on the menu would encourage a third of consumers to eat out more often One-third (31%) of consumers would eat out more if healthier options were more readily available, according to new research into the outof-home market unveiled this week by IGD. Interest in healthy eating is on the rise and so is eating out*. IGD’s research – the first of its kind into this sector – explores the links between these trends and the opportunities presented for food and drink companies. With over two-thirds (67%) of consumers eating out at least once a week, according to IGD, and 34% claiming to do so a couple of times a week, the research examines the relevance of health on these occasions and how consumers balance nutritional aims with the desire for a treat. The research comprised an online survey of more than 9,000 people, plus qualitative tracking of consumers’ out-of-home eating experiences. Joanne Denney-Finch, Chief Executive of IGD, says: “Our new research, the first of its kind into the out-of-home sector, focuses on two powerful trends at play in today’s market: eating out, and eating well. Eating out of home plays a significant part in the national diet and at the same time, interest in health and eating healthily is growing. Many food and drink companies

already view health as a hugely important part of their strategy, but there is a clear commercial opportunity for businesses to take the lead in this area. Our findings signpost how companies can make the most of these two mega trends as they continue to come together.” Rhian Thomas, Head of Shopper Insight at IGD, says: “Health is rarely the numberone factor when people eat out and yet it widely influences behaviour and was regularly mentioned by the consumers we spoke to. Even when people are not actively seeking healthy choices, they avoid some outlets and menus viewed as too unhealthy – one-third (34%) avoid eating in certain places for this reason. Also, people may limit their eating out occasions if they associate this with overindulgence.”

Four key areas of influence Rhian outlines four main factors that influence people’s decisions when eating out of home. She says: “The first is occasion, i.e. day of week and time of day. Regular occurrences such as workday lunches are more functional and controlled whereas weekend dinners are usually seen as special occasions and the time for a treat. “The second is companionship i.e. who people eat with, if anyone. On their own, people tend to stick to regular choices, whereas in a group, they are more likely to try new things or visit different places. The third area is mood, i.e. the difference between a functional need and an emotional one. “Finally, we see the influence of speed and convenience. Some out-of-home eating decisions are made in time-pressed circumstances where people need easy choices, whereas others are relaxed occasions.”

1. Barriers and solutions IGD’s research highlights four barriers preventing health from having more of an influence on people when they eat out, according to Rhian.

2. Value perceptions “Over half (59%) of consumers feel it’s more expensive to eat healthily when out of home. The industry therefore has lots of scope to show consumers how they can eat healthily on a budget.” Confusion about messaging “If health information is not presented in a consistent way, it can sometimes confuse and lead to wrong choices,” says Rhian. “The food industry therefore has an opportunity to continue the work it has already started on refining its messaging to consumers.”

3. The effort to pursue health “Our research shows that when grabbing food on the go, people usually revert to the easiest option, so if finding something healthy requires special effort they are less likely to do so. When offered a range of options to make finding healthy food easier, the largest proportion of consumers recommended a dedicated selection of

Food Franchise

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News

healthy options clearly marked in-store or on the menu (35%). The answer for different retailers could vary by format, customer base and even time of day, to make it as simple as possible to signpost consumers to seek out healthier options.”

and meeting specific dietary claims, with 30% of consumers looking for more vegetarian options, 22% for more dairyfree choices and 20% for a larger vegan range (IGD ShopperVista Food-to-go, Q2 2017),” she says.

4. Takeaway food culture

2. Reposition the language of health

“Takeaway missions have the lowest explicit levels of consideration around health. However, expanded home delivery and takeaway options could shift this perception over time,” she adds.

Four business opportunities Finally, the research presents four clear commercial opportunities for companies, according to Rhian:

1. Offer a broader range of healthy options “First, there is scope to encourage some people to eat out more frequently by offering a broader range of healthy options

“There’s also an opportunity to reposition the language of health. Many consumers view healthy eating as a sacrifice but there is scope to break this association, by showing that healthy food can taste good and make you feel good too,” continues Rhian. “This requires hitting the right emotional notes, for example, giving healthy ingredients ‘hero status’, using enticing language and visuals to excite the senses and creating a sense of theatre around preparation.”

3. Lead the market “Thirdly, some restaurants, cafes and food-to-go companies could build

round-up

a reputation for leading the market on healthy choices, but this needs to be done in a skilful way, without switching off those who don’t want health messages to be too intrusive.”

4. Vary the offer and target demographics “Finally, there are opportunities to vary the offer and target certain demographic groups, locations and occasions when people are most concerned with healthy eating,” she adds. “For example, families with young children are particularly keen to see a wider choice of affordable, healthy choices in their area.” Rhian concluded: “If the barriers and solutions our research identifies are tackled over time, then there are clearly huge commercial opportunities for food and drink companies looking to bring together the two powerful trends of eating out and eating well.”

Spring 2018

Food Franchise

News

round-up

Coyote Ugly to open in Manchester The bar named after the film of the same name is set to open in Manchester this March, following a nationwide poll by the chain asking customers where they should open next. The brand have three chains in total, one in Cardiff and the other in Concert Square, Liverpool – which opened in

December 2017. Speaking at the time of the Liverpool opening, UK franchise owner Steve Lewis said: “We are very pleased with the venue location and it is such an amazing building that we will be restoring as much as possible. And on the success of the saloon in the UK Mr Lewis commented; “Customers have been travelling to us from all over the UK, every weekend, and many have been disappointed on not being able to book tables or booths as many key dates sell out weeks or months in advance. “The perfect answer to this problem is

Young people expect leaders to be ‘ruthless’, reveals Domino’s Pizza research Domino’s Pizza Group, the UK’s assumption of millennials having a leading pizza brand, reveals young more idealistic and inclusive concept of leadership. This may reflect a more people have a more jaundiced hard-nosed attitude to leadership than view of leadership than older generations and expect leaders to we expected or perhaps echo the way successful leaders are portrayed in be more ruthless and aggressive, less popular culture. consultative, and have lower ethical “This is not surprising if the only vision of great leadership you’ve been standards.

The research, commissioned by Domino’s as part of its new leadership programme, TeamSkills explores attitudes to leadership among three groups of people: Gen Z (16 to 22 year olds); Gen Y (23 to 40 year olds); and Gen X (41 to 52 year olds). (1 Interestingly, the findings show soft skills such as the ability to listen to team members, build a consensus and resolve conflict were all deemed less important by Gen Z compared to generations Y and X. Young people (Gen Z) are also significantly more likely than people aged 41 to 52 years old (Gen X) to rate ‘doing whatever it takes to achieve goals’ as very important. In fact, only 40 percent of Gen X rated high ethical standards as very important, the lowest for the three groups surveyed. Simon Wallis, Chief Operating Officer, Domino’s Pizza Group said: “These results challenge the popular

Food Franchise

exposed to is The Devil Wears Prada or The Apprentice. That said, we’re reassured the two of the most admired leaders are Martin Luther King and

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to expand and open another venue.” 12 sites are expected to open over the next 5 years with a rowdy, western style atmosphere.

Albus Dumbledore, and that’s true of all age groups.” Mr Wallis continued; “As well as opening 600 new Domino’s stores over the next few years, creating over 21,000 jobs, we’re looking for 5,000 more team members to help us handle the festive rush and serve up over 8.8 million freshly handcrafted pizzas during December through to New Year’s Day. “It’s exciting to think our new leadership programme, TeamSkills may help seasonal recruits to become team leaders of the future. With over 80% of our managers starting life as delivery drivers or pizza makers, Domino’s offers a fantastic environment for ambitious people to really succeed.”

News

Las Iguanas gets a makeover and a new menu

commented; â&#x20AC;&#x153;The Las Iguanas menu offers something different. If you come here, be prepared to try something adventurous.â&#x20AC;? First opened in Bristol in 1991, Las

round-up

Iguanas quickly became something of a local institution, bringing a blend of the traditional and new to each location, using fresh ingredients and regional food and drink.

The Nottingham branch of Las Iguanas has revealed its newly refurbished Chapel Bar restaurant and new menu. Nottinghamâ&#x20AC;&#x2122;s Las Iguanas Chapel Bar restaurant is number 7 of the 54 restaurants for the franchise group. The branch has also incorporated a new menu that features Patagoniastyle lamb meatballs blended with apple, mind, parmesan and nutmeg and braised in a spicy tomato sauce and coconut chicken an explosive combination of flavours - breast strips fried in cumin, coriander and cayenne pepper, delicately cooked in creamy coconut sauce. A spokesperson for the brand

B e the boss Explore our ethical, organic food delivery opportunities riverford.co.uk/franchising 01803 227380 Spring 2018

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Donut King and Crust Gourmet Pizza Bar to open in UK Global food and beverage company, Retail Food Group Limited has announced new Master Franchise Agreements for the United Kingdom in connection with the Crust Gourmet Pizza Bar and Donut King Brands. In total, 250 Crust outlets and 140 Donut King Outlets are set to open in the first ten years, with the first to open its doors within the next six to eight months. Jabbar Mumtaz, who secured the Master Franchise Rights for Donut King and Crust in the UK, said: “I am excited to join the RFG family and am confident that both brands will be well received in the UK. RFG and its Brand Systems have a great reputation, a quality product offering, and fantastic benefits for Partners and I look forward to working with the Company and introducing locals to pizza and donuts like they’ve never experienced.” RFG Chief Executive – International, Mike Gilbert, commented on the

importance of the United Kingdom as a global market for RFG following the establishment of International Hubs in Australia, USA and the Middle East. Mr Gilbert continued; “RFG is pleased to be joining forces with such a strong and experienced Master Franchise Partner who is capable of applying sufficient resources, expertise and resolve to ensure the successful entry of these brands into the UK. He explained the model provides the Company and local Partners with the opportunity ‘to forge sustainable relationships to successfully develop RFG’s Brand Systems internationally, whilst drawing on the Group’s more than 30-years’ experience in retail food

franchising’. International operations represent a key part of the Company’s growth platform and are backed by a dedicated International Division focused on increasing RFG’s footprint of international licensed territories. “Growing the international penetration of RFG’s Brand Systems within new territories remains a focus for the Group and we’re certain our existing global experience will serve us well as we pioneer the Donut King and Crust brands in the UK, which has long been a target market for RFG,” Mr Gilbert said. Currently Donut King, which over the past three decades has evolved into Australia’s largest speciality donut and coffee destination and serves over 20 million customers per year, is successfully operating in six international licensed territories; while Crust, the original innovators in the pizza space, has grown to boast more than 200 stores domestically and is also operating in Singapore. RFG is Australia’s largest multi-brand retail food franchisor with a network of more than 2,500 outlets across 12 Brand Systems and 83 territories. As well, RFG is an emerging leader in the foodservice, dairy processing and wholesale bakery sectors.

UK taste for artisan doughnuts continues to grow as Dum Dum Donnutterie re-brands Dum Dum Donutterie has launched its rebrand at INTU Lakeside, Essex as the UK continues to demand artisan dessert concepts. Using all natural ingredients the doughnut empire has trail-blazed the gourmet doughnut concept in the UK, and now the brand - led by patisserie chef Paul Hurley and his team of innovators – has launched a brand new retail concept store. The takeaway and café design is with thanks to a collaboration with London based retail design consultants, Innovare Design. Mr Hurley has previously spent 15

Food Franchise

years working alongside the people behind the Dunkin Doughnuts UK franchise, and launched DumDum Donutterie 10 years ago. The first rebranded store launched at INTU Lakeside in mid-December 2017 to rave reviews from the intu shopping centre management team. “I really feel that the team at Innovare Design have helped me to unlock the brand potential for DumDum

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Donutterie,” said Hurley. “I talked and they listened. It’s been a fantastic, fastpaced collaborative journey and it’s not over yet…watch this space!”

BUSINESS PROFILE

Papa John’s Franchisee Engineers More Store Openings Leading pizza franchise, Papa John’s, has announced franchisee and former mechanical engineer, Siddhartha Chirumamilla (Sid), has opened two more stores. Falkirk north-east of Glasgow and Billericay in Essex bring Sid’s total Papa John’s portfolio to 11 and he has plans to open more before the end of the year. Sid explains: “I first experienced Papa John’s when I was a student delivery driver! I went on to work in mechanical engineering but always wanted to run my own business. I bought my first franchised Papa John’s with the help of a HSBC loan five years ago and the business grew rapidly. “My role has changed dramatically over

the years from being a pizza delivery driver to now overseeing my own operation. These days, most of my work is currently involved with handling the new openings, while my managers run each individual Papa John’s. I have an experienced business partner: Vamsi Atluri, who runs my multiple Scottish based outlets and the rest are in the South East of England.”

Phil Gaffer, QFP, Papa John’s franchise sales and business development manager confirms: “We are seeing a growing trend for our franchisees to run multiple operations. Once a franchisee becomes confident in managing one store, we can help them apply that knowledge to open multiple outlets if they wish. We are also able to offer some great incentive deals to help ambitious franchisees expand in this way.” For further information please visit: www.papajohns.co.uk/franchise

News

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Casual Dining Group acquires contract to operate DUBL wine bar in UK Casual Dining Group (CDG) has acquired an exclusive contract from Italian wine producers Feudi di San Gregorio, to operate DUBL wine bars in the UK, demonstrating the company’s ongoing commitment to expanding its concessions portfolio. DUBL is a premium wine bar concept with a typical Italian style that sells a range of sparkling wines, produced in Italy by Feudi di Gregorio using the Campenoise Method, alongside fine Italian meats, cheeses, and oysters. There are currently three DUBL wine bar in Italy, including one at Naples Airport. This latest agreement is an important addition to CDG’s portfolio of brands, allowing it to further tap into the lucrative sparkling wine category, as it seeks to establish DUBL as a premium offer in the UK, primarily targeting airports and travel hubs. The first UK DUBL, which features an island bar unit seating 25 people, will open at Luton Airport in late February, complementing CDG’s existing Bella Italia and Oriel Grande Brasserie sites at the airport. Mark Nelson, Managing Director of Concessions and Franchising, Casual Dining Group, said: “We are delighted to add DUBL to our ever growing concessions portfolio.

Feudi di San Gregorio are passionate wine producers and we’re confident that with our operating experience DUBL will be well received by UK consumers. “The UK sparkling wine category has seen exponential growth over recent years

Record breaking Christmas Trading for Green King pubs Greene King have revealed sales Additionally Pub Company LFL sales for the first 37 weeks of the year were -1.4%. over Christmas have boosted Drink and room LFL sales were ahead company fortunes, as they reveal of last year, while food LFL sales remained Pub Company like-for-like (LFL) sales behind last year. Pub Partners LFL net profit growth of 1.6%. for the first 36 weeks of the year was up 0.2% In the trading statement for the 37 weeks to 14th January 2018, the pub chain also revealed that if it wern’t for the heavy snow at the beginning of December 2017, LFL sales would have reached 3.45%. The record breaking Christmas Day saw sales of 7.6m - which was up 2.6% on last year - and 154k meals sold. Either side of the two Christmas weeks sales were slower, reflecting the tough underlying trading environment and additional snow impact.

Food Franchise

while Brewing & Brands own-brewed volume was -0.9% for the first 37 weeks, against a weak ale market down 3.0%. They remained on track to deliver targeted cost savings of £40-45m this year and their brand optimisation programme continues to deliver attractive returns of 25%. Meanwhile both new build and disposal programmes have been revealed as remaining on track with six new sites opened, and 40 disposals completed in the year-to-date. Looking ahead Greene King’s additional

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and we feel there is scope for more DUBL outlets. While our main focus for openings will be airports and other travel hubs, we’re also open to pop-up and retail store opportunities, should the right sites arise.” Antonio Capaldo, Chairman of Feudi di San Gregorio winery, commented: “We are extremely excited to partner with Casual Dining Group to bring the DUBL concept and our wines to the UK market. We’re passionate about making excellent wines and have been searching for a partner who is equally passionate about creating outstanding customer experiences – CDG are the ideal match. We’re confident the customers are going to love the new offer.”

investment to enhance the customer experience - including being more competitive on price, and having more team members available at key trading times, as well as strengthening local marketing activity, is expected to help improve their competitiveness and relative trading performance. The company say they have industryleading brands, a strong and flexible balance sheet, and a sustainable dividend, which leaves them well placed given the challenging

"dallas is the most cost effective franchise in fast food"

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"ZERO JOINING FEES"

What is the timeframe on ROI?

With the low cost franchise investment required in setting up a Dallas, a typical ROI can be achieved in as little as 12-18 months.

FRANCHISE OPPORTUNITIES WITH DALLAS

INFO@DALLASCHICKEN.CO.UK

DALLASCHICKEN.CO.UK

FRANCHISE@DALLASCHICKEN.CO.UK

How long has Dallas been around?

"OVER YEARS Dallas has been established for 22 years COLLECTIVE INDUSTRY EXPERIENCE" from its humble beginnings in 1996! As a reputable and well-known brand in the What sets Dallas apart from others? fast food industry, franchise enquiries are •low start up investment cost common place with the latest store due •minimal royalties to open in Burnley, Lancashire soon. •attractive consumer menu price point for more information, please contact •in house & trade partner support network dabeel waheed, operations director •dedicated distribution supply chain M: 07960110014 E: dabeel@dallaschicken.co.uk network Spring 2018

Food Franchise

BUSINESS PROFILE

Europe’s first Café Co-working network in Amsterdam! A concept, a mission, a revolution.. In the midst of a transition from work to co-work, a unique concept emerged taking the “co” in co-working and turned it into a community. Introducing Anticafé, a network of spaces across Europe at the crossroads of your good old café house, that hot desk you’ve been selling parts and limbs to rent and Home, but a little tidier. A shelter to all, a place to work, create and enjoy quality coffee and company. The best part? You pay for the time spent and everything else is included! For 5€ an hour, eat, drink and enjoy as much as you want. Beyond an interesting pricing and tasty product, get in touch with likeminded people from different sectors and create a strong network, join a community. We need Anticafé! Anticafé has known an exponential growth since the first opening in April 2013 and now has a network of 12 spaces across France. The coworking café has been awarded Best Coffee Concept of 2016 & 2017 by Time Out in Paris. Behind this success lies a dedication

Food Franchise

to quality and the perfection over time of a unique experience, a true bond with the client. The start-up recently took a step forward by launching a plan to set up its concept in Europe’s most vibrant cities. Amsterdam’s in the bullseye! With a booming of creative and cultural industries Amsterdam is right in the tide of the coworking trend. With a growing community of freelancers and digital nomads, but mainly of self-employed workers, there is need for a spot they can rely on and greet their clients. Co-working spaces, hot desks rental are on the rise in cities like Rotterdam or Utrecht and yet more and more people choose to work from home, isolated, because they can’t afford their spot or don’t like the hostile environment of said spaces; it sounds depressing! Anticafé is here to provide a comfortable and affordable space for all to enjoy; all around Europe, all week long! Furthermore,

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with an existing culture of coffee and conviviality, the custom of Brown Coffees and the more contemporary at tray for Scandinavian aesthetics. Anticafé is all about making relevant encounters and enjoy quality time with quality products. A vast array of beverages and edibles that may look better in a Dutch fashion. Towards a vibrant European community Anticafé is deeply anchored in the European project to build an international family. To do so they want their spaces to be the most authentic and folk as possible, they believe that people don’t recognise themselves in big brands anymore. Therefore they work with locals to create unique spaces, spaces that look like you and that you might like. With an attention to the success of every project, Anticafé’s development team spends an important amount of time selecting and understanding pretenders to an Anticafé. As they say “An excellent partner to set up in a new city is an entrepreneur like us who shares our vision, is highly motivated and committed to helping us develop in another country, knows how to run a team, how to communicate with them and with us and mainly who knows his/her environment. We do not set requirements for knowing the

BUSINESS PROFILE

restaurant business, yet we are looking for people who are very committed and eager to learn quickly.” Once the dream team is assembled Anticafé plans on building and strengthening its vibrant community of people and places all around Europe and the World. The big picture is for Anticafé to connect people everywhere and across borders using coffee and outstanding designs. Seems that a beautiful revolution is on the way, are you in?

● Implementation of embedded software ● General retro planning before launch ● Communication support for the site opening ● Support for human resources management And of course everything that concerns the spirit and the culture of the Anticafé group!

What does an Anticafe Franchise Offer? The revenue requirements will vary accordingly to the country, city, location & other variable factors (rent, wage, and cost of commodities…) TOOLS, MORAL AND LOGISTICAL SUPPORT AND ASSISTANCE ON ● Administrative and financial management ● Stock management and management of the space ● Safety rules, sales techniques ● Management and design of the space and the equipment,

Spring 2018

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Ever wondered how to launch a new fast food outlet? Phil Gaffer, QFP, Papa John’s franchise sales and business development manager explains how to launch a successful fast food franchise, with help from Papa John’s franchisee Amit Abhol (Rana) who joined Papa John’s in 2017 and now runs four stores. “Opening a successful store is about finding the right building, in the right location and creating the right customer experience through correct fit-out and branding,” says Phil Gaffer. “However, for the uninitiated, opening a new store is a complicated process! It involves finding a suitable property in a competitive marketplace,

Food Franchise

dealing with legal arrangements and planning permission, not to mention managing the project for the refit and construction of the retail unit. “All this needs to run in parallel with franchisee training so dates are coordinated and the handover of the keys coincides perfectly with a completed induction.

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“However, in real-life hold-ups – often with planning permission – need expert help and this is where working with an experienced franchise team is invaluable for anyone starting out. At Papa John’s we have acquisition managers dedicated to finding suitable properties in great locations which is the first stage in the process. Access and parking need to be considered to select the perfect property as this will reflect on the whole customer experience of those visiting the store and its likely success. “Next comes lease negotiations.

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As many units may require a 10-15 year lease it is essential a suitable legal contract is drawn up to protect the franchisee. Again, our legal franchise team manages this to ensure franchisees have a suitable legal framework for their store acquisition which will work for them both in the short and long-term. “Obtaining planning permission can prove challenging and can often be the longest part of the whole process, so our team is responsible for drawing up appropriate plans and managing the application to maximise the likelihood of success. “Refit and construction of the store is the final stage and timescales can vary from between six weeks to a couple of months for a full store overhaul to meet specifications before opening. At Papa John’s we work with trusted partners to ensure competitive cost of conversion on behalf of our franchisees and that projects are completed on time and within budget. “By working in partnership with our franchise owners we can coordinate training, so the store fit-out completion coincides with induction completion before the grand ‘handing over of the keys’ and trading can actually commence.” Amit Abhol (Rana) joined Papa John’s in 2017 and have already opened four stores and have plans to open up to 20 outlets in the near future. Rana explains: “I was previously employed at a rival pizza firm, based out of Northern Ireland. Over 15 years I worked my way up to become an operations director for biggest franchisee in Ireland, managing multiple stores. “One of the benefits of the franchise model is that much of the marketing and brand awareness work has been completed compared with starting out alone. Help with store openings too, means franchisees can hit the ground running. “Currently, we are working on opening new stores. This may mean looking at locations and overseeing fitout. We work closely with Papa John’s acquisition managers, talking every week on the phone. It is essential to

find prime locations, so we do some of the research and put forward options to see if we can move forwards. “Papa John’s legal team draws up the leases and deeds. The staff are really helpful. They have a lot of contacts and are all ‘on the ball’ ensuring the job gets done quickly and properly. “We use contractors for our stores who manage the whole project build. They charge a fee but deliver the project and we will take advantage of their services more and more as we expand opening more outlets in the future. “Overall, what we have learned so far, is that planning and timing is important

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when it comes to store openings. A grand opening will be less successful during a time when everyone is away on holiday for example! Working closely with Papa John’s we can now maximise our planning efforts and each time a new store is opened it all becomes a little easier! “From my point of view, there is no-doubt my experience has helped me fast-track to open multiple stores. But for others, direct experience is not necessary as full training and support is provided. However, dedication, a hands-on approach, determination and endless enthusiasm will certainly go a long way!”

Spring 2018

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Shakeaway to open Canterbury branch

A popular milkshake bar is set to open a store in Canterbury. Shakeaway’s Rochester branch will close on Sunday (January 28) ahead of relocating to the city on a date to be determined. It is not yet known where in Canterbury it will be. In a statement posted on Facebook, a representative of the Rochester milkshake bar said: “We would like to sincerely thank all of our customers for their patronage and loyalty. “We will update the Shakeaway Facebook page when the new Canterbury store opens.” The chain was established in 1999 and has since developed a devoted following. It has stores open across the country, as well as in the Philippines, Mexico, USA, Bahrain and Malaysia

Warrens Bakery opens in Harrow The oldest bakery in Cornwall opens its doors in Harrow today, as the famous bakery brings its award-winning traditional pastries to North-West London. A spokesman for Warrens Bakery said: “With a rich heritage and an array of hand-crafted sweet and savoury bakes, Warrens Bakery is proud to be the oldest bakery in Cornwall and is recognised as the world’s oldest Cornish pasty maker. “After being shortlisted as one of the top three craft bakery businesses in the country, in the Baking Industry Awards 2017, the opening follows recent news that Cornish pasties are having a renaissance. “With the rise in popularity in craft baking, the premium bakery puts a firm focus on provenance, hand crafted skill and innovation. “The opening will mean Harrow residents won’t have to travel far to pick up a hand-crimped taste of the iconic pasties, often enjoyed during holidays by the coast.” The openings comes as part of a flurry of openings for the bakery as they opened in Ealing and Devonshire Row last November, marking the first Warrens Bakery in London.

Slim Chickens to Expand in United Kingdom, Ireland Slim Chickens, the “better chicken” franchise with almost 70 units open, has officially announced plans to develop in the United Kingdom and Ireland. Boparan Restaurant Group, a restaurant ownership organization based in England, signed a franchise agreement with Slim Chickens to open locations in the United Kingdom and Ireland, starting with a location scheduled to open in the first quarter of 2018. Slim Chickens will be providing guests in London something they have not yet had the luxury of enjoying: fast-casual chicken. “This is another landmark moment in our brand’s growth,” says Tom Gordon, co-founder and CEO of Slim Chickens. “We’re spreading our wings and bringing our second-to-none chicken to another international market and are excited about continuing our international growth. “In the U.K. there’s a big opportunity in the fast-casual chicken segment with little existing competition in the marketplace,”

Food Franchise

added Tom Crowley, CEO of Boparan Restaurant Group. “We were looking for a progressive concept that would fill this gap and Slim Chickens was the perfect fit. We loved the product and the design and branding have a modern approach. We feel confident that Slim Chickens will be successful in the UK due to our connections here, paired with the brand’s strong leadership team helping fuel growth through strong operations. Boparan Restaurant Group, which employs 2,500 people is one of the U.K.’s fastest growing companies. The brand’s portfolio includes various restaurant concepts including Giraffe World Kitchen, Burgers & Cocktails, FishWorks, Ed’s Easy Diner and additional chains. After researching and meeting with a number of American fast casual chicken chains,

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Boparan Restaurant Group landed on Slim Chickens as its next restaurant partner because of its superior product and modern approach to branding and design. “It’s clear that our brand’s offering has been a hit stateside and we have no doubt that we will see this same reception as we continue our international growth,” says Slim Chickens COO Sam Rothschild. “Boparan is the right partner to lead the charge of introducing better chicken and making Slim Chickens a household name in the United Kingdom and Ireland.”

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Like-for-likes sales decline 0.1% nationally, against Christmas 2016 for restaurant and pub groups Britain’s managed pub and restaurant groups saw collective like-for-like sales marginally down by 0.1% over the six-week Christmas and New Year period, according to latest figures from the Coffer Peach Business Tracker. “The public still went out to eat and drink, but essentially it was a repeat of last Christmas. Better trading in the second half of the festive season, when people were mainly off work, failed to provide enough of a boost to beat 2016’s overall numbers,” said Peter Martin, vice president of CGA, the business insight consultancy that produces the Tracker, in partnership with Coffer Group and RSM. The results, which cover the six weeks up to January 7, show that managed pub groups did better than casual dining restaurants, delivering a small increase in trade with collective like-for-likes up 0.6% on last year. Restaurant chains saw collective like-for-likes down 1.0%. “It looks like people were more willing to go out to drink than eat this festive season, with drink-led pubs and bars having the best of trading. Across the managed pub market, drink sales were up 1.8%, while food was down 1.4%. Food-led operations, both pubs and restaurants, generally had a worse Christmas than 2016,” added Martin.

Although London and the rest of the country both overall turned out flat, London saw a bigger contrast in fortunes between restaurants and pubs, with casual dining down 2.6% inside the M25 and pubs up 1.5%. “Looking across the six week period, the run-up to the holidays saw generally poor trading, with the snow in particular hitting sales. Trading picked up in the last three weeks either side of the core holidays. Every year the Christmas period seems to be coming more concentrated,” said Martin. “Although the sector will be disappointed it didn’t beat 2016’s numbers, the results do reflect the flat trading we’ve seen in the market over the past year – and they also come on the back of increases for the past two Christmases,” he added. Total sales growth among the 37 companies in the Tracker cohort was 3.4%, compared to the festive period last year, reflecting the continuing if much more subdued effect of new openings. Mark Sheehan, managing director of

Coffer Corporate Leisure, said: “Despite very negative press particularly associated with restaurant sector trading, the eating and drinking out market is not in free fall. Trading over the important December trading period was flat with pubs trading better than restaurants. There is no question that the trading environment is competitive but these numbers are not the car crash that has been widely portrayed. 2018 will be a challenging year and we expect to see bars and pubs trading more robustly than restaurants.” Paul Newman, head of leisure and hospitality at RSM, added: “Increased drinks spend across the managed pub market over the festive period was not enough to offset disappointing casual dining like for likes, rounding off a flat year for the sector and failing to give operators Christmas cheer. Since the New Year a number of high profile brands have already announced site closure plans and with consumer confidence waning and uncertainty ahead of Brexit, we expect our restructuring teams to be kept busy in the months ahead.”

Hubbub announces new partnership with Starbucks to promote reusable coffee cups • Call for a smaller charge of 5p • Will investigate impact of a charge in select Starbucks locations The Environmental Select Committee has today called for a 25p ‘Latte Levy’ on disposable coffee cups, using the money raised to improve the UK’s recycling bin infrastructure and reprocessing facilities. Currently, the UK throws away 2.5 billion disposable coffee cups every year and only a small percentage of these are currently recycled. The Committee highlighted the impact of the plastic bag charge illustrating the positive impact that charges can make.

Hubbub, a charity that creates environmental campaigns with a difference have welcomed the raising of the issue and fully support efforts to encourage more people to use reusable cups, but have also recognised the need to investigate the impact of a cup charge. Trewin Restorick Chief Executive Officer says; “We believe that more testing is required to assess the impact a charge may have on changing behaviour. To understand how better this could work we are delighted to announce a partnership with Starbucks that will trial and promote a 5p cup charge in 20 - 25 central London stores.

“The trial will investigate the impact of a 5p charge on a paper cup, coupled with the prominent marketing of reusable cups, on customer behaviour. The trial will begin in February and the revenue donated will be used by Hubbub to run a comprehensive behaviour change study, broadening understanding as to how the public can be encouraged to choose reusable drink containers. Our joint findings will be shared with any interested parties before taking a view on next steps. The partnership will provide on-the-ground evidence on the impact of the proposed charge and will help government respond to the Select Committee’s recommendation.

Spring 2018

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Former GBK boss to take on new role as the head of Burger King UK Ex-Gourmet Burger Kitchen CEO Alastair Murdoch, will head up Burger King UK. The newest entity of the burger restaurant which was formed last year as Bridgepoint UK gained its exclusive rights and acquired its main franchisee Caspian UK.

food offering, restaurants, teams and franchisees as we build a brand for the next generation,” said Murdoch.

He will head up operations alongside Martin Robinson – who is also chairman of Bella Italia owner Casual Dining Group and Park Dean Resorts – and chief finance officer Tim Doubleday, who also used to hold the same role at Casual Dining Group.

Mr Murdoch left GBK amid poor trading results in November 2017, and was previously the boss of Pizza Express. “Working closely with our franchisees, we will take a measured approach to improving customer attraction and retention through investment in improving the consumer experience, our

Little Dessert Shop to open in Sutton Coldfield The Little Dessert Shop will open another branch this year as the popular sweet eatery confirms its expansion. The dessert franchise will open on the Mulberry Walk centre in Mere Green. David Wernick, director of the Mere Green shop, said: “The Little Dessert Shop has established a reputation that, in a very short space of time, has proven highly popular, not just with our customers but with other franchisees who share our vision and passion. “I think it’s bringing something new to the market. Everyone has a sweet tooth. Everyone loves desserts. It attracts people from all walks of life and of all ages. It was a niche market that wasn’t being tapped into.” The shop offers everything dessert connoisseurs could wish for including, cookies, ice-creams and brownies, as

Food Franchise

well as cakes, sundaes and waffles. Offering pudding fanatics more than 1,000 different sweet combinations and more than 300 different types of milkshakes and mocktails. The unit will seat 60 and will offer both sit in and takeaway options.

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Tommy Miah’s Fried Chicken signs master franchise agreement for India UK-based Master Franchisor Tommy Miah, owner of ‘Tommy Miah’s Fried Chicken’ (TMFC) franchise, has signed an exclusive master franchise contract with ‘Hungry Humpty’, a Kolkata-based company, to manage franchising activities for all of India from 2018. They aim to open 200 TMFC Franchise outlets throughout India in the next five years. Tommy Miah, is a Bangladeshi-born British celebrity chef, owner of the award-winning Raj Restaurant and founder of the International Indian Chef of the Year Competition. He is often recognised as the “Curry King” in Britain.

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Taco Bell to open Scotland’s first drive-thru Mexican restaurant. Scotland’s first Taco Bell drivethru is coming soon to Phoenix Retail Park in Paisley with a twostorey diner style eatery. The Tex-Mex fast food chain franchise is expanding to Scotland after its proposals received Renfrewshire Council’s seal of approval for the country’s first Taco Bell restaurant and drive-thru. Plans to open Tim Hortons and Bella Italia diners in the area are also underway. A statement released by Renfrewshire Council announced: “The applicant proposes to build the first ever Taco Bell drive-thru restaurant in Scotland in Phoenix Leisure Park. “The space will provide internal

seating for 102 people, an external area to accommodate an additional 12 seats and also the convenience of the drivethru facility. “The site is in a highly accessible location, it is within walking distance of Linwood and the nearby business park, retail park and car showrooms. “If planning permission were refused, the operator would not relocate to Paisley or Linwood town centres and would more likely seek to locate to another area, possibly out with Renfrewshire.” Last month, Taco Bell opened its first outlet in Glasgow where a budget range of tacos, burritos, nachos and quesadillas is served daily. The world’s most famous Tex-Mex fast food chain

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might be new to Scotland but in the UK alone, it has over 18 restaurants and 6,500 outlets around the world. Taco Bell’s new restaurant with drive-thru in Scotland will be housed in a newly built pavilion that promises new jobs for the community and an enriching addition to customer’s shopping experience. The architects at 3D Reid who drew-up the plans stated: “The aim is to create a new food unit which can complement the current list of tenants. “The new pavilion will have its own sense of identity and a new point of reference for visitors by adding a new dimension to the existing shopping experience available. “Through considered material selection and design decisions, the retail unit applications seek to generate additional activity and purpose to new public space and new employment opportunities within the local area.”

Spring 2018

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Wrap It Up! share the secret to their success Deepesh & Rakesh, are proud owners of the Wrap It Up! Franchise (Multi-Store) and here’s how their journey started… After working for major corporations for over six years in the city of London there came point in where we wanted to start our own business and work for ourselves. We knew that we were passionate about food and customer service. We looked into setting up our own restaurant but knew the probability of opening a new restaurant and making a success of it were slim that’s when we started looking into a franchise model where they had a proven business model and would have a higher percentage of success. After many months of research we came across an opportunity with Wrap it up. We decided to go and visit one of their stores and was blown away with their simple concept of serving world gourmet wraps from around the world and fell in love with the taste of the food. After getting in touch with their management team we had a meeting and they assured us that a suitable site would be found and they will be able to provide all the necessary tools and training required to make this store a success. In 2012 we left the rat race forever and found a site and we were ready to open, the franchise team were on hand in the initial months of us opening to assist and guide us. They are always on hand when we need there assistance. This site has been successfully running for over five years and recently just opened our second site in harbour exchange. Now that Wrap It up! has opened territories for the first time throughout out the country we plan to open our third store in 2018 and In the next few years we plan to expand and open numerous sites with the help of the Wrap It up! management team.

Food Franchise

Next we meet Kiren a proud Wrap It Up! franchisee (Multi-Store, London)… I started my career in Retail and was employed for many years in a fast paced Car Parts industry, where I was able to develop extensive experience in sales with a particular emphasis on customer relationship management, which is considered key in a competitive sales environment. I was always passionate about food and on the look for a food concept that I could feel passionate about and there began my journey when one day I googled if there was a good ‘wrap’ place around in London. To my luck Wrap It Up! came up on google and I decided to try their food and from that point onwards I fell in love with the brand. After looking at numerous food brands and comparisons it was an easy decision to go with Wrap It Up! for their superior quality of food, passion for helping their franchisee’s is what

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separates them to other brands out there. In August 2013 I opened up my first Wrap it Up! store in Monument and have never looked back since then. My store has seen an increase in sales every year and the brand has gone from strength to strength. Many competitors opened near my store but Wrap it Up! has always been the leader in the wrap grab n go market. I believe the brand is doing some fantastic work and the future looks great! I am on the hunt for my third store and plan to build a strong portfolio of Wrap It Up! stores in the coming years. How to become a Wrap It Up Franchisee…. As a partner, you will be privy to one of the fastest-growing QSR concepts in the UK. With an entire team that is putting top-quality food as the primary focus of the business, we will assist you in establishing and developing the brand on all fronts. From operations to marketing & advertising, staff training to food development and a state-of-the-art central kitchen, you will be guided and nurtured at every stage of your business

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development. Brand Overview & background ● A proven business model since 2006 with great profit margins. ● An expanding portfolio of 17 prime locations across the UK ● Well-capitalised for future growth ● Dedicated franchise support team ● State-of-the-art central kitchen producing high-quality food ● Low-cost business model with excellent returns ● Support in raising capital, our model is approved for funding through major high street banks and we will help you every step of the way. ● Wrap It Up! has been successfully serving wraps for the past 11 years. Wrap It Up! Is one of the leading gourmet wrap restaurants in the UK. We have 17 prime locations in London, Manchester, Leeds, Liverpool and Reading. Since opening our first store in 2006 our business has gone from strength to strength. Inspired by vibrant street food from around the world, our fast, fresh and delicious wraps are a huge hit with a broad consumer demographic, from students to professionals. In 2015 we opened our centralised kitchen, the freehold backbone of Wrap It Up! Spending £1.5 million on state of

the art equipment, we’ve revolutionised our cooking by preparing our food in one place, thus having 100% control over our high quality products. Our food from kitchen to customer is always fresh and made in front of our customers. We also continuously invest in our central support team who are here to help drive your business success. Franchise support As a franchisee you will have a dedicated Franchise Manager and support from our central team including operations support, training, marketing and food development to help you run a successful business. You will have regular store visits to help identify business growth opportunities and improve your store operations. Compliance audits are conducted monthly to make sure our Brand is delivering the highest quality food and service to keep driving customers through your doors. Store size & costs Our brand works best in prime mixeduse retail and leisure locations. We do not cook anything in our restaurants. Optimum store size is 500 – 850 sq. feet A store typically costs c. £120,000 to £180,000 (excluding vat). The pricing

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can be above or below this range and it very much depends on the specific retail shop in question. Our franchise fee is £17,500 + VAT. Franchise royalty fee of 8% of the net sales and a marketing fee of 2% of net sales. Earning potential: Wrap It Up! has been in operation since 2006, so we know how successfully the stores trade. Franchising relies heavily on the quality of the franchisee in-situ and that is no different at Wrap It Up! Suffice to say, the Wrap It Up! franchise offers an industry busting Return on Investment (ROI) for the right franchisees. When the signage is placed over the door, the hard work begins… Your ROI will depend on your own capability and performance. We will be absolutely transparent on the financial model, ensuring you are fully aware of the potential on offer. We have opportunities throughout the UK and we want to work with people who are passionate about food and customer service.

Spring 2018

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Gluten free lifestyle set to rise in 2018 Storming the food market in 2017, predictions have revealed that free from brands can look forward to an even stronger 2018. Recent statistics have shown that one in 10 people now avoid gluten altogether, with more and more opting for the health benefits rather than an essential dietary requirement*. Additional figures support this as a report by Mintel found 15 per cent of households were avoiding gluten and wheat; more than half because they believed it was part of a healthy diet. Sam Benjamin, brand manager for Too Good to be Gluten Free, expects a huge year for such brands with sales predicted to rise across the Free From market. “The free from market is rapidly growing as last year alone the market cited a 27 per cent rise in sales.

“This growth has been driven both by consumers who have medical conditions that require free-from diets, but also what we refer to as free from lifestylers, a growing market of people who are choosing to cut certain ingredients from their diet for health, diet or lifestyle reasons. “This growing market is demanding free from choices but with the focus on the taste and quality of the product.” Statistics revealed by national charity, Coeliac UK also show every one person in a 100 are living with coeliac disease, and 13 per cent of UK population need to avoid gluten altogether. Too Good to be Gluten Free offers both

Dunkin brands breakfast focus boosts sales The world famous doughnut empire has pegged its ‘strategic focus on morning sales’ as one of the reasons that customers counts have improved. According to Nigel Travis, Dunkin’ Brands Chairman and CEO the brand has made significant steps to position itself as “America’s most-loved beverage-led, onthe-go-brand.” Mr Travis added; “Morning comparable store sales increased each quarter sequentially, and we had our highest quarterly beverage comparable sales of the year in the fourth quarter of 2017, driven by iced coffee and Frozen Dunkin’ Coffee. “Our strategic focus on morning sales yielded improved customer counts in that critical daypart during the last three quarters of the year and we are actively working to drive afternoon traffic through p.m. beverages and food along with all-day value offers that kicked-off in January. “Additionally, in 2017, we believe that Dunkin’ Donuts was once again one of the fastest growing retail brands by unit count in the country,” concluded Mr Travis. In the fourth quarter earnings release they revealed that Dunkin’ Donuts U.S.

Food Franchise

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comparable store sales growth in the fourth quarter was driven by increased average ticket offset by a decline in traffic. Growth was driven by core breakfast sandwich sales; iced coffee and Frozen Dunkin’ Coffee sales; as well as traditional donut sales. Meanwhile Baskin-Robbins U.S. comparable store sales growth in the fourth quarter was driven by increased average ticket offset by a decline in traffic. Growth was driven by beverages including shakes, smoothies and Cappuccino Blast as well as the take-home category. In the fourth quarter, Dunkin’ Brands franchisees and licensees opened 141 net new restaurants around the globe. This included 126 net new Dunkin’ Donuts U.S. locations and 40 net new BaskinRobbins International locations offset by 23 Dunkin’ Donuts International net closures and 2 Baskin-Robbins U.S. net closures. Additionally, Dunkin’ Donuts U.S. franchisees remodelled 88 restaurants and

Coeliac’s and lifestylers the perfect alternative to sweet and savoury products. With gluten free desserts, quiches and savoury pies, Benjamin feels the gluten free market will continue to develop this year and beyond. “We believe you can cut gluten completely without sacrificing on taste and it’s something that can be done across the board with lots of food products and that’s how we see the market developing; basically more and more products going gluten free and there not being a noticeable taste difference. “We are currently expanding the ranges to serve this demand which we feel is on the increase. At the moment we have a series of products in the snacking and sharing market and this is an area which we want to grow provide the consumer with a wider range to choose from but we will also be looking at other food types over the year and new sectors where we can launch tasty free from options.”

Baskin-Robbins U.S. franchisees remodelled 34 restaurants during the quarter. Revenues for the fourth quarter increased $11.4 million, or 5.3%, compared to the prior year period due primarily to increased franchise fees driven by additional renewal income “We’re pleased to have delivered our revenue, operating income, and earnings per share targets for 2017, and look forward to sharing our growth targets for 2018 and beyond at our upcoming investor day on February 8 in Boston,” said Kate Jaspon, Dunkin’ Brands Chief Financial Officer. “In January, we announced an approximately five percent reduction in our general and administrative expense target in 2018 to two percent of systemwide sales. We are also encouraged by the recently passed tax reform act which includes provisions that we expect to be favourable to the majority of our franchisees as well as net beneficial to Dunkin’ Brands.” The brand also tested a simplified menu across 1,000 restaurants, which proved successful. With Mr Travis stating; “We strongly believe the simplified menu, which is expected to roll-out nationally by the end of the first quarter, will improve franchisees’ profitability and enable us to better serve customers.

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January sales stand up for pub and restaurant groups • Like-for-likes sales up 0.6% nationally, against January 2017 • Pub businesses have best of month’s trading Britain’s managed pub and restaurant chains saw collective like-for-like sales come out slightly ahead in January, despite the doom and gloom stories surrounding the eating-out market. Latest figures from the Coffer Peach Business Tracker, the sector’s established sales barometer, showed a 0.6% increase on the same month last year. While restaurant groups across the country collectively recorded flat trading – up 1.0% in London and down 0.3% outside the M25 - managed pub operators were ahead 1.0% nationally, driven mainly by drink-led businesses. London traded better than the rest of Britain in January, with collective likefor-like sales ahead 1.6% compared to 0.4% outside the capital. Managed pubs in London were up 2.0%. “A string of site closures announced by some of the sector’s more high profile casual dining brands has done little to bolster confidence in the sector lately, but these latest figures suggest that overall the market remains relatively stable. People are continuing to go out to eat and drink,”’ said Phil Tate, chief executive of CGA, the business insight consultancy that produces the Tracker, in partnership with Coffer Group and RSM. “But that doesn’t disguise the fact that the market is experiencing increasing cost pressures on a number of fronts and that competition is intense. Consumers have more choice than ever. Brands that may have over extended themselves are now feeling the pain,” Tate added. “Nonetheless, January is one of the quietest months of the year and also one usually most affected by weather, so we usually have to wait until later in the year to discover any real shifts in the market,” he said. “Notwithstanding an increasing

number of disposals and receiverships occurring mainly in the restaurant sector, these Coffer Peach Tracker figures for January show a degree of resilience against trend especially in drinks-led businesses,” said David Coffer, the Chairman of the Coffer Group. “As it is traditional for consumers to seek out such venues during a recessionary or challenging political and economic period, we feel that this trend will continue and that there will be further growth in the drinks-led sector and also a recovery in well-run, sophisticated restaurant brands. It is interesting to note that the drink-led businesses which are comparatively more productive are those which are managed. “Some would say ‘an adjustment’ in the restaurant sector was overdue following a lemming-like expansion programme from London to the provinces over the last five years or

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more. We believe that lessons have been learnt and that possibly expansion will be comparatively slower but operators will be redirecting investment into quality products, service levels and value,” Coffer added. “There are still challenges to be dealt with especially property rates and the stabilising of employment from Brexit effected countries. It still remains a difficult period for the food and beverage sector but the outlook still remains optimistic and positive,” he said. Paul Newman, head of leisure and hospitality at RSM, added: “With dry January now a seemingly increasing trend, the latest numbers for wet-led operators, particularly in London, will be viewed with cautious optimism. On the other hand, the New Year for the eating out sector has heralded the announcement of a hefty number of site closures. Flat trading amid fierce discounting will have done nothing to quell fears that there is more of the same to come.” Total sales growth among the 39 companies in the Tracker cohort was 3.7%, compared to January last year, reflecting the continuing if much more subdued effect of new openings. Underlying like-for-like growth for the sector was running at 1.1% for the 12 months to the end of January.

Spring 2018

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Key things to consider when partnering with a restaurant delivery service provider It’s no secret that consumers are seeking convenience, resulting in a drive towards on-demand delivery. Most restaurant operators see the shift as a good thing for business, with some even moving to a delivery-only model. The trend is here to stay. Indeed, UK food industry insight specialist NPD Group reported that the eating out market grew delivery traffic by 0.7% in the year to June 2017, meaning an additional 74 million visitors to restaurant delivery and click-and-collect services. The majority of this growth was through delivery, which contributed 52 million new visits to the market during the same time period - a 9% increase, valuing the delivery market as a whole at £3.6bn towards the end of last year. While this trend is great for customer convenience, how should restaurant operators pick the right delivery partner for them, whilst ensuring the likes of Just Eat, Deliveroo and UberEATS help not only the customer but also the operator’s bottom line? Certainly, it makes sense to broaden the customer base beyond the diners who walk into a restaurant. However, as operators weigh up the various services out there, they need to bear in mind that any partner should help their business as much as the partner helps their own. This should all tie into a deep understanding of an operator’s profitability, and to having front-of-mind that customer satisfaction, efficiency of operation and the delivery of a quality brand experience are all critical to long-term success. With the above in mind, Oakes, CEO, Revenue Management Solutions (RMS) discusses five key points for operators to consider before partnering with a delivery service provider:

1. Choose a partner that delivers an experience which matches your brand ethos In the same way first impressions count for customers dining in, it’s extremely doubtful restaurant operators will get a second chance to make that all important first impression on delivery customers, if the food or service is below average. First and foremost, operators must take the time to research a delivery company’s reliability and customer service - and at the very least,

Food Franchise

request statistics on customer satisfaction and average delivery times. Consideration should also be given to how the business trains its team to deliver orders, how it handles complaints, whether it conducts background checks on drivers and how it sets its own benchmarks.

2. Customer satisfaction can easily be checked via third-party sources, such as social media and customer rating websites like Trustpilot. Increased business isn’t better if it doesn’t make money or add incremental sales The value of each order will vary depending on whether a restaurant is located in a densely or more sparsely populated area. Once the commission percentage has been deducted, which can be anything from 15-30%, operators need to subtract the additional costs of the new service from the net revenue per order, to gauge potential profit margins. If operators plan to offset some of the commission by adding a delivery charge, they need to keep in mind that customers focus on the total cost paid. Just because a £4 delivery charge might not seem exorbitant compared to other local area services, customers sensitivities to pricing should always be given top priority. To give you an example, if a customer orders a meal which comes to £11.99, will they still place that order when the final total with delivery is £15.99? Operators should be using transaction data to analyse price sensitivities before setting delivery costs, which should be a natural extension of how menu prices for walk-in customers are determined.

3. Time is critical: make sure the restaurant is ready to handle deliveries efficiently A worldwide, six-month research project conducted in 2016 by global consulting firm McKinsey & Company revealed that speed of delivery is the biggest variable in

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customer satisfaction, with an average 60% of consumers citing it as a key factor. In consumer thinking, the optimal wait time is no more than 60 minutes. Therefore, an operator needs to design their menu, packaging and on-site processes with speed in mind. Are the products easily prepared and assembled? Is the delivery technology integrated with the restaurant’s in-house EPoS system to ensure the cooking process back-of-house is seamless? Can food be collected by delivery partners in a way that won’t negatively affect in-restaurant processes?

4. Know your return on investment when it comes to providing a delivery service To analyse the return on investment, it’s important that delivery data is tracked correctly and integrated with the EPoS data to give an informed understanding of how customers use the various channels, such as eat-in, collection and delivery, together with how they purchase. These insights will also enable operators to develop channel-specific communication to ensure consumers return again and again.

5. Avoid long-term commitments. Conduct regular performance checks and set out clear expectations Many restaurants use multiple delivery providers, partly to cover their risk in case one fails to perform or indeed goes out of business. Operators must not be afraid to drop a service if the delivery doesn’t mirror the quality experience diners receive when visiting the restaurant. In summary, restaurant operators need to consider all options and to remember that many delivery companies are doing a great job. The advantages for an operator include broadening the customer base, building incremental sales and brand loyalty on days when the customer doesn’t usually come into the restaurant, which can be all the incentive needed in the quest to drive brand loyalty.

News

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Cedar Dean Group Secures UK Debut Restaurant for American Sandwich Giant Multi award winning American brand Which Wich Superior Sandwiches is launching its UK debut in central London. The restaurant has secured a 750 sq ft prime West End unit through CDG Leisure in the St Giles Plaza, Central St Giles, to kick-start its national expansion. Mark Wright and Kiren Dhesi at CDG Leisure, which brokered the deal, said: “As one of the largest mixed-use developments in the West End, occupied by some of the world’s leading companies, this is the ideal location for Which Wich’s London flagship. The chain is the first concept to use an interactive, fully customizable bag ordering system and with more than 40 toppings to choose from, it is guaranteed to be popular with occupiers as well as becoming a standalone lunch destination.” Founded in 2003 by entrepreneur Jeff Sinelli, Which Wich is best known for its customizable sandwiches, creative ordering system, and personalized sandwich bag. Guests use red Sharpies to mark their choices from a preprinted menu of breads, fillings and toppings,

on brown sandwich bags. All the sandwiches are served hot, with more than 40 toppings to choose from and the first UK restaurant will feature a revitalised look and a bespoke London menu. Which Wich UK is led by Rami Awada of AAA Investment House, an entrepreneur with a strong track record of investments in UK and Canada. The launch is overseen by industry leader Kevin Todd, formerly MD at Mitchells and Butlers, and is supported by leading design house Design Coalition. “London is a truly international city with tons of energy and the Which Wich brand is just the perfect fit,” said managing director Rami Awada. “We have looked at every aspect of the guest journey and taken each element apart and built it back again with ‘quality, speed and fun’ in mind. The brand is famous for its ordering system which we have enhanced, and our menu

Subway® to sponsor E4 smash hit The Big Bang Theory Channel 4 today announces a significant new partnership with Subway® stores that will see the brand sponsor all episodes of E4’s award-winning US smash hit series The Big Bang Theory from Thursday 1st February 2018. The partnership will run for 12 months and also includes sponsorship of brand new The Big Bang Theory prequel series Young Sheldon on E4. This marks the first time the world’s largest Quick Service Restaurant has invested in TV sponsorship with Channel 4 and the deal, negotiated by 4Sales’ Nations and Regions team in Manchester and Mediacom Scotland, extends to All 4 and repeat shows on E4. To celebrate the launch of the sponsorship, the Subway® brand has created four different idents, produced by creative agency McCann London, around space and science, staying true to the themes of The Big Bang Theory. The Big Bang Theory is E4’s most popular

show, with series 11 currently averaging a massive 2.3 million viewers an episode and an impressive 23.7% share of 16-34 year olds – the digital channel’s key demographic. Rupinder Downie, Partnership Controller, Channel 4 said: “The Big Bang Theory provides the perfect environment to showcase the Subway® brand to E4’s biggest 16-34 year old audience right across the year, with fans looking forward to the much anticipated launch of Young Sheldon.” Sacha Clark, Marketing Director Subway® UK & Ireland, commented: “We are really excited to be working with Channel 4 as sponsors of The Big Bang Theory through 2018 and beyond. It’s a programme with a

innovation from breakfast through to lunch and even dinner is very exciting. ‘’We feel the market is saturated with cold grab-and-go sandwich offerings, and Londoners will welcome a change in pursuing their beloved sandwich habit. We have witnessed the highquality burger revolution and we now feel London is perfectly placed to receive our hot, premium quality sandwiches. ‘’With Brexit coming along, a lot of the exaggeration in the London market has been exposed with extremely high rents and business rates driving some chains out of business. Other chains are scrapping expansion plans and shutting down multiple units. Rather than worry about these developments, we actually feel this is a great opportunity for us to enter this exciting market with long lasting business terms. “We have the utmost trust and confidence in the quality of our sandwiches and the Which Wich brand, and we are excited to enter the market now when most are pulling out.’’

large and dedicated fan base, and with the launch of Young Sheldon it is going from strength to strength. “Tonally the show is a great fit with the Subway® brand, with research showing that it is one of the most popular programmes among our customer base. We are confident that through this association we will drive brand affinity and deliver our key messages consistently and with impact over the next 12 months.”

Spring 2018

Food Franchise

News

round-up

Work attire: Tips to help you pick the perfect uniform for your staff Choosing the correct uniform for your business is a big investment and something that will require a lot of thought before you make a decision. The perfect uniform should not only be the face of your brand, but also needs to be comfortable for staff and able to endure the everyday wear and tear of your business’ environment. However, with all these different elements to contend with, how can you make sure you make the right decision when planning a new work uniform? To help, Alex Grace, Managing Director of personalised clothing retailer Banana Moon, has some hints and tips for businesses on how to make the right choices when picking a work uniform.

Colour is key Colour can play a major role in how your business is perceived, so it is important to get it right. Start by thinking about your company’s logo and brand colours, but if you don’t think your logo colours would work then the next step is to think more about the image certain colours project. If your team wear all black for example then they may project authority, while lighter colours can give a calmer and cleaner image. Ask yourself what you want people to think and feel when they see your team in uniform and use this as your guide. Even if you don’t believe your logo colours will work as the base colour of your uniform, choosing safer base colours for the uniform can allow you to use the colours in your logo and branding to really make your uniform stand out, and will ensure your brand is at the forefront when your staff interact with customers and clients.

Try choosing darker colours for tops and t-shirts as these tend to hide sweat more easily, and pick breathable fabrics such as lightweight cottons or more technical wicking polyester to make clothes more comfortable to wear. Not only will this help your employees look more presentable, but it can aid job satisfaction - if workers feel comfortable in their uniform this can only have a positive effect on their happiness in the workplace.

Comfort over style

When it comes to choosing a uniform, comfort should always be a priority, so it’s vital you carefully consider what tasks your staff will be carrying out while at work. Working in restaurants, for example, often requires physical work and long hours in a hot environment, so ensuring you pick the correct colours and fabrics is essential.

Food Franchise

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Fit for purpose Buying uniforms for a team is an expensive task, and as such it’s one that business owners will not want to do on a regular basis. To ensure your uniform stands the test of time, increase longevity by selecting materials that will hold up over constant wearing, washing and activity, ensuring you give each staff member more than one uniform so items get worn out by washing and wear and tear less quickly. It also helps to order uniforms in bulk to get the best deal from suppliers. If you are personalising items with brand names and logos, most suppliers will give you a discount on bulk orders, meaning you can save money upfront and will need to order new uniforms less frequently, saving you time and money.

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round-up

Wrap It Up! Wrap It Up’s self-proclaimed mission is to make gourmet wraps and fresh salads in front of the customer, all of which are inspired by food from around the world. They also say that they’re revolutionising fast food by putting wraps on the map as a tasty, healthy alternative. Judging by the menu and the queues outside the shops, they’re doing it. One of the key things to think about when opening a new business is getting your brand and your offering right, especially if you are starting your operation in the heart of central London. Wrap It Up have done this by looking at current market trends and incorporating a variety of foods and flavours from around the world into their wraps. Some experts in the food and drink industry have suggested that the fast-food arena is at breaking point with so much choice available, this means that delivering a quality, consistent product that can be versatile and healthy is vital. McDonalds and Subway continue to dominate the landscape of food franchising many would argue that they lead the way, however in the last 10 years there have been a number of brands and exciting new concepts enter the playing field, all offering a fresh take on overseas cuisines. Founders Faisal Haque and Afnan Bashir are two such businessmen who have seen a gap in the market and introduced a concept. Their early endeavours may have been responsible for introducing the humble tortilla wrap to the British fastfood market, but it is another man that has turned it into such an intriguing business proposition, Tayub Mushtaq. The business is currently headed up by Managing Director, Mushtaq, who was incidentally the brands first franchisee, taking over the Liverpool Street site in 2006. When he became the firm’s first franchisee in 2010 after turning around the fortunes of its flagship store he instantly saw the scope for the business. Soon enough he was overseeing four

franchised outlets and Haque and Bashir decided to let Mushtaq drive the brand forward. Mushtaq explains that the idea of a world gourmet wrap business originally came from the adventures of the co-founders, saying: “Faisal and Afnan came up with the idea through travelling the world, seeing the different forms of street food, how it is served and the ingredients that are used,” “They came up with the idea of putting together a combination of global products under one roof, which are served and prepared fresh for each and every customer.” After taking the helm and turning around the fortunes of the store, he began to grow his own interests by recording record profits in all of his franchise locations. It was at this stage a long with the founders of the business, Haque and Bashir, that he appeared on the popular TV show, Dragons Den. Whist on the show, the team from Wrap It Up pitched professionally and offered the Dragon’s 11% of the business for £500,000, such was their belief in the scale of the brand. The Dragon’s declined the chance to come on board, questioning the valuation but it could be a move that they live to regret, with the businesses now operating 12 sites, offering franchises and looking at huge growth following the build of a new development kitchen. Following their appearance on the show, where the potential investors acknowledged that they were filling a gap in a competitive market, Tayub said: “This was the best PR we have ever had.” But added that they would be missing out, saying: “We have the potential to be the next Subway, we are going to be a global business.”

“We’ve managed to expand and stayed true to our original philosophy of sourcing only fresh natural ingredients to bring our customers authentic world food at an affordable price. “Our focus is firmly on authenticity, we employ chefs from around the world to keep our food true to its origins and we work hard to find the best suppliers meaning we offer a high quality product that can be served in all of our units. “We have 12 stores and all of these are in London and we plan to grow bigger with our first store outside the capital, opening in Manchester in the coming weeks. We also have the acquisition and redevelopment of a large commercial kitchen, this is a huge project that has seen substantial investment.” Last year the turnover for the business rocketed 50% to £2.5m and those in charge are ‘comfortably forecasting growth of 30-50% year-on-year until 2018. Wrap It Up have seen lines outside their stores as the public look for healthy alternative to other lunch offerings. Tayub said: “Consumers have never been more knowledgeable about the links between food and health.” Asked about the future and whether the interest was there Tayub said: “The interest is certainly there with almost 15 new franchisees already having paid their deposits. “We do feel that our concept and the product goes hand-in-hand and can compete with the likes of Subway, Burger King, and McDonalds. “Wraps are the next big thing.” It appears as though these are all the assurances you need so all that’s left to say is….. All hail the wrap!

Spring 2018

Food Franchise

News

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McDonalds reveal plans for 100% recycled packaging by 2025 McDonald’s has announced goals to improve its packaging and help significantly reduce waste to positively impact the communities the company serves around the world. By 2025, 100 percent of McDonald’s guest packaging will come from renewable, recycled, or certified sources with a preference for Forest Stewardship Council certification. Also by 2025, the company has set a goal to recycle guest packaging in 100 percent of McDonald’s restaurants. McDonald’s understands that recycling infrastructure, regulations and consumer behaviours vary city to city and country to country around the world, but it plans to be part of the solution and help influence powerful change. This expands upon McDonald’s existing goal that by 2020, 100% of fibre-based packaging will come from recycled or certified sources where no deforestation occurs. “As the world’s largest restaurant company, we have a responsibility to use our scale for good to make changes that will have a meaningful impact across the globe,” said Francesca DeBiase, McDonald’s Chief Supply Chain and Sustainability Officer. “Our customers have told us that packaging waste is the top environmental

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issue they would like us to address. Our ambition is to make changes our customers want and to use less packaging, sourced responsibly and designed to be taken care of after use, working at and beyond our restaurants to increase recycling and help create cleaner communities.” To reach these goals, McDonald’s will work with leading industry experts, local governments and environmental associations, to improve packaging and recycling practices. Together they will work to drive smarter packaging designs, implement new recycling programs, establish new measurement programs and educate restaurant crew and customers. As Tom Murray, Vice President of EDF+Business at Environmental Defense Fund noted; “Nearly three decades ago, McDonald’s and EDF teamed up to tackle solid waste and accelerate innovation in packaging. “Along the way, we pioneered a new partnership model for companies and nonprofit organisations. Today, McDonald’s continues to raise the sustainability bar by

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setting ambitious goals and collaborating with partners across the value chain for maximum impact.” “McDonald’s global preference for Forest Stewardship Council (FSC) certified materials demonstrates their far-reaching commitment to source packaging that benefits people and forests around the world,” said Kim Carstensen, director general of the Forest Stewardship Council. “The partnership between McDonald’s and FSC – the world’s most trusted certification of forests and forest products – also creates a uniquely powerful opportunity for McDonald’s to engage customers about simple ways to protect forests,” he added. Adds Sheila Bonini, Senior Vice President, Private Sector Engagement, World Wildlife Fund, “Smarter waste management begins with improved sourcing, increased value chain collaboration and better communication with customers. Today’s announcement demonstrates McDonald’s strong leadership in developing packaging and recycling solutions at a scale that can extend the life of our natural resources and push its industry toward more sustainable practices.” McDonald’s first began its focus on sustainable packaging nearly 25 years ago with the establishment of the groundbreaking partnership with EDF. The initiative eliminated more than 300 million pounds of packaging, recycled 1 million tons of corrugated boxes and reduced waste by 30 percent in the decade following the partnership. In 2014, the company joined WWF’s Global Forest & Trade Network program and set its fibre sourcing targets, including FSC preference for packaging made from wood fibre. Currently, 50 percent of McDonald’s customer packaging comes from renewable, recycled or certified sources and 64 percent of fibre-based packaging comes from certified or recycled sources. Also, an estimated 10 percent of McDonald’s restaurants globally are recycling customer packaging. “We look forward to doing more and continuing to raise the bar on what it means to be a responsible company committed to people and the planet,” DeBiase said.

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Bad weather has impacted sales at Marston’s Marston’s have reported ‘disruption’ to the business in their latest trading update, due to the heavy snow and icy conditions that hit the UK in the 16 weeks up to the 20th of January. They say that while they continued to make progress in the period with growth in both sales and underlying earnings - thanks to the acquisition of the Charles Wells Brewing Business, as well as from the 19 pubs built last year - snow and icy weather towards the end of the period, both in early December and between Christmas and New Year, caused some unavoidable disruption to the business. Meanwhile total sales for the period are

up 4.9% reflecting the contribution from the estate expansion in 2017. Like-for-like sales in the period, excluding the impact of the two snow-affected weeks, are up 1.1%. The weather impact on like-for like sales was around 2%, and on an unadjusted basis like-for-like sales were down 0.9% in the period. Marston’s have estimated the profit impact of this to be £1 million stating; ‘We continue to maintain a disciplined approach to operating margins without recourse to the significant discounting which has remained prevalent in the sector.’ Additionally margins remain in line with expectations and are slightly below last year reflecting cost increases as previously guided. There are no changes to the cost guidance previously provided in November 2017. In their taverns like-for-like sales for the period are up 2.6% benefiting from the performance of franchise-style agreements and an improved drinks range. The leased estate has performed well, with profit growth in the period estimated to be 2%.

Auntie Anne’s to open first store in the North West Auntie Anne’s has revealed expansion plans for the next year, and will open its first store in the north-west of England. The pretzel joint will open a total of 11 sites in 2018 -they currently have 34 stores across the UK, including Wales, Scotland and Northern Ireland. In a new twist the company will also launch food-to-go vans in the UK, according to marketing manager Victoria Gale. Many sites are also to be refitted to bring them up to date with Auntie Anne’s new style. Gale said: “As a grab-and-go snack food business, we rely on impulse purchases and therefore are affected by footfall levels in the shopping centres in which we trade. “In the first quarter of 2017, we were impacted by the macro influences thought to be caused by Brexit which affected consumer confidence.” The Auntie Anne’s chain was founded in 1988 in Pennsylvania, US, and now has 1,800 shops across the world, run by master-franchisees. The Burton family hold the UK and Ireland franchise.

round-up

The franchise has opened three pubrestaurants and two lodges in the year to date, including a 104 bed lodge in Ebbsfleet. Ralph Findlay, Chief Executive Officer, commented: “We are pleased with our progress, which included record total retail sales in our pubs of £4 million on Christmas Day – 5.4% higher than last year. “We continue to achieve growth against tough market conditions and are benefiting from investment in both pubs and brewing. “We look forward to continuing to provide our customers with a great pub experience and excellent service, as well as delivering value for shareholders, over the year ahead.”

Fast food chain Wimpy begins major UK comeback Fast food chain Wimpy is to return to Shrewsbury as part of a major comeback across the UK. The multi-national hamburger chain moved out of Shrewsbury more than a decade ago but will now open a new restaurant. The firm’s current owners are Famous Brands, based in South Africa. Toby Shaw, who handled the letting for Towler Shaw Roberts, said: “Having secured planning permission just before Christmas, it is pleasing that the letting has now successfully concluded and fit-out works are due to commence very shortly to create the iconic Wimpy facility and brand. “This will be a fantastic addition to the town reflecting Shrewsbury’s continuous popularity providing a diverse range of catering establishments.” The fast food brand had over 500 outlets across the UK with a restaurant in every town and city, but the arrival of McDonald’s sparked a decline in the 80s.

Spring 2018

Food Franchise

BUSINESS PROFILE

Dum Dum Starts Search for UK Franchise Partners Dum Dum Donuts is the world’s first artisan baked donut / croissant donut brand and is now looking for franchise partners to secure territories in the UK and help grow the Brand. The team already have 12 territories secured in the UK and have ambitious growth plans. Made with only natural ingredients and yet uncompromising on irresistible deliciousness, Dum Dum Donuts offer beautifully baked (not fried) handmade donuts to a growing legion of our loyal of fans across the UK. We use the very best in cooking technology to control ingredients rather than the method of simply floating product in oil. Dum Dum Donuts are significantly lower in fat (half the fat in some instances) than our competitors thanks to our traditional patisserie-

Food Franchise

based baking process – so unique that it is patented in Europe and the US. A concept 20 years in the making, Artisan doughnut chef Paul Hurley, the Founder of Dum Dum Donuts, explains that in 1997 he had the vision to create ‘The Best Donut in the World’. Although a grand

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statement, Paul believes this has to be at the heart of the brand and from its launch in 2013 Dum Dum Donuts became an ‘overnight’ success. So why is that? Paul puts part of the success down to their ability to capture the way social media is leading the way in food trends but rather than being a here today, gone tomorrow trend, donuts are a traditional product – What’s different about Dum Dum Donuts is that they have taken a traditional market and applied a modern twist, a new look with flavour options and trends that pique the imagination of a loyal & growing Dum Dum fan base. In addition to all this Dum Dum Donuts are training high end coffee roasters ready to support franchisees with franchise roll outs across the UK. Dum Dum

“Dum Dum Donuts offer beautifully baked (not fried) handmade donuts to a growing legion of our loyal of fans”

BUSINESS PROFILE

Donuts has grown substantially in the international market with 4 stores already in place in Dubai with further stores planned in Qatar, Saudi & Lebanon, with established and professional partners already in place. Closer to home, with successful outlets already up and running in Box Park Shoreditch and Box Park Croydon, Dum Dum Donuts is also the only doughnut brand in Harrods. Over the last 12 months the team have been testing their franchise opportunities and working with high end branding company Innovare and their new branding will go live very soon at Lakeside and will be followed shortly after with another new site at Westfield. Travellers can also look forward to new stores at London Euston & London Bridge Stations due to open in April 2018, plus there is a multi store agreement in place for Manchester. Significantly, the team at Dum Dum Donuts are now looking to attract Multi unit operators especially as it can offer a low labour business model with products made and delivered direct to store. So itâ&#x20AC;&#x2122;s exciting times ahead for Dum Dum Donuts and for those who are looking to get on board with this innovative company. Key territory opportunities are now available across the UK with franchise fees set based on the number of stores a franchisee is looking to open. Could this be an option for entrepreneurs out there to grow their business with Dum Dum Donuts?

Spring 2018

Food Franchise

Top 25 g n i m o C Up &

Food Franchises

We speak to some of the UK’s freshest franchises who we have hand-picked as our ‘ones to watch’. These franchises are either embarking into the world of franchising or are established brands looking to further cement their stamp onto the food and beverage sector. You may ask yourself…do I have what it takes to open a franchised business? Well we aim to answer that, as our top 25 give you details on what they expect from you and what you should expect from them! We have included cocktail, burger and pizza franchises and many, many more in our definitive list of the UKs Up and Coming Food Franchises….

Food Franchise

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Top 25 Up & Coming Food Franchises

Spring 2018

Food Franchise

Top 25 Up & Coming Food Franchises

Beetle Juice Set up by brothers Jonathan and Julian Gomma in 2012, this fun and exciting cocktail bar franchise has established itself as one of the top contenders in the mobile bar and events industry. With their exciting neon signage and branding, their quirky VW Campervans are available for hire at a whole host of events, from weddings and christenings to gatherings with friends and festivals! The brothers have created a truly unique concept – one that has catapulted them full-throttle into the burgeoning events and festival scene. With 14 vans currently operating in the UK the talented duo have successfully replicated their business plan, with the scope for the future remaining strong due to the explosion in popularity of music and food-based festivals and events up and down the UK. The Beetle Juice franchise package

consists of: • • • • • • • • •

Exclusive use of one of our fleet of iconic VW Beetle Juice Bars converted, branded and kitted out to get you up and running. The bar package includes: The Beetle Juice bar itself, based on an original 70’s VW (Bay window) van An all-weather cover for protecting the van when not in use Breakdown cover (and replacement vehicle if required for major repairs) Collection and delivery once per year for an annual MOT and major service Insurance for the van and road fund license A built in drinks fridge, music play out system & mood lighting A gazebo, menu boards and cocktail making equipment Starter pack of ingredients and materials to get you going

Coyote Ugly At Coyote Ugly Saloon, they are focusing on aggressive Global Expansion in non-US Territories; that means huge opportunities for potential Franchisees! Our Business Model Coyote Ugly Saloon has a simple and unique business model, as the Founder Lil figured out over 20 years ago, Beautiful Girls + Booze = Money! Our carefully engineered, proven systems simplify the Coyote Ugly Saloon operation, empowering franchisees to dominate our segment and take advantage of the most famous bar on

Food Franchise

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the planet and a brand known to the world. Becoming a Coyote Ugly Franchisee We award franchises to only the best candidates in each market that we believe will represent the brand with integrity and follow our proven process to be successful. The continued growth and success of our brand depends on finding the right franchisees, and our highly experienced, amazing team works side by side with them to deliver the support needed to dominate each market.

Top 25 Up & Coming Food Franchises

Kaspa’s Kaspa’s are a chain of exciting new dessert houses that offer the world’s favourite hot and cold desserts under one roof. The emphasis is on high quality desserts, good customer service and an overall amazing dining experience for their customers. The menu boasts a mouth-watering selection of ice creams, gelatos, waffles, crepes, milkshakes, smoothies and sundaes. At Kaspa’s Desserts, their mission is to create an environment where enjoying authentic desserts with family, friends and loved ones is an unforgettable experience. Striving to continuously provide guests with irresistible products and unrivalled customer service. • Currently Kaspa’s trade in busy high-street locations, drive-to locations and retail parks • Costs - £10,000 license fee – £175,000 + average start-up cost and 5% loyalties • Kaspa’s can assist you with bank funding via their approved lending partners, HSBC and Metro Bank • They are currently recruiting franchisees who are capable of establishing a multiple unit operation • Kaspa’s place a priority on maximising profits for partners, with the intention to ensure long-term profitability and on-going growth

Bottega Bar Bottega is a unique prosecco bar which combines the charm and ambience of yesteryear with a well-known brand of Prosecco, wonderful cocktails and afternoon teas. Bottega Bar is a special place to meet, socialise or do business at any time of the day. A lucrative business model has been honed and developed over the last few years and Bottega is now ready to roll out around the UK. Total investment varies upon the characteristics of the site itself but probably between £70k and £90k in most cases. Bottega’s flexible format can accommodate any location above 2000 sq feet.

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Food Franchise

Top 25 Up & Coming Food Franchises

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

Food Franchise

weekend, was to reserve one. 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 opened their first ever franchised location in September 2017.

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Top 25 Up & Coming Food Franchises

Coffee Blue No matter what business you are it’s always best to be in a high growth market place! Over the past 5 years the UK coffee market has experienced exceptional growth with the market now worth over £3.4Billion per year! The business is owned by the UK’s leading vehicle converter, Vantastec Ltd who have many years of mobile catering experience behind them. The coffee beans and all the equipment used are the best quality available and the franchise itself has been put together by a highly experienced team of franchising professionals with decades of experience behind them. No other coffee or mobile catering franchise comes close. The Coffee Blue franchise package consists of: • You’ll offer all places of work in your exclusive area a high quality coffee served directly from your Coffee Blue vehicle. • Our own brand coffee blend is unique to us and roasted in the UK by one of the most respected coffee

roasters in the industry. As part of your training we’ll show you how to find profitable daily locations and establish the first ones for you as part of your training course. • Locations include business parks, office blocks, factories and even building sites - in fact anywhere where people are found every day will be the foundations of your coffee round • Coffee Blue’s management team has extensive experience in van conversions within 5 star rated hygiene environments. Our chariot of choice is the bullet proof Ford Transit, skilfully converted to provide a beautifully engineered vehicle that has greater reliability and lower initial and ongoing costs than any other coffee van. • Every Coffee Blue vehicle runs off either LPG (liquid petroleum gas) which is widely available, silent and safe. Each vehicle can also plug in and run off 240 volts using a long reach weather proof cable so irrespective of the location you can run off grid or plug in!

Broccoli Pizza and Pasta Broccoli serves up great tasting pizzas, pastas and salads, with a focus on fresh ingredients, fast and friendly service, and an amazing customer experience. The brand cook their delicious meals to order, and pride themselves on giving the customer a huge range of choices, with endless combinations available to suit every taste. Broccoli Pizza & pasta offers freshly prepared Italian food and personalized meals for a healthconscious community. The name Broccoli speaks for itself- this nutritious vegetable is a symbol of our dedication to healthy eating and quality produce. Made the Quality Way A big part of the fun and satisfaction of the Broccoli experience derives from ordering your own personalized meal and seeing it cooked in front of you by our friendly and professional staff. The quality of the interaction between staff and customer is hugely important to us. Their mission is simple and unique. They are genuinely committed to delivering exactly what we believe in – healthy, nutritious and affordable meals for an energetic and active community and want to share their passion for healthy lifestyles with the local community.

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Food Franchise

Top 25 Up & Coming Food Franchises

Froth Shop The Froth Group can franchise any retail business in the food and drink sector. If you have a concept or a cool little brand that has been successful over the last 2 years and you’re looking to expand then get in touch! They understand the hardship of retail growth, and with a database of over 5,0000 investors looking for retail opportunities, in-house designers, marketers, and retail operators FrothShop can deliver growth for you and your franchise business. If you’re looking to become a Froth Shop wholesale franchisee, we’re looking for people who are dynamic, hardworking and can demonstrate a strong background in sales and customer service. It is their aim to support Froth Shop franchisees to become market leaders in the retail

sector it is a great opportunity to build up a database of clients who will be placing regular orders on products that are exclusive to your area. Package: £3,000 plus VAT for 10 years Includes: • Dedicated franchise manager • Exclusive territory • Exclusive brands • 2 week training course • 1 x 1000 brochures • 1 x 1000 business cards • 3 x sets of uniform • Lead support • Marketing support What you will need: • Small – medium van wrapped • Phone • Laptop/ tablet • Financially stable up to 6 months

The Orange Buffalo The Orange Buffalo are the first ‘wing only’ street food business in the UK specialising in New York style fried wings tossed in their signature sauces. After winning both awards at the UK’s first wing competition and after years of festivals and pop ups that ran alongside their permanent truck in Shoreditch London they soon opened up their first permanent kitchen in Brighton that also went on to experience huge success. Dedicated to recreating the flavours, tastes and experiences of their US road trip and their favourite bar snack, more recently they have taken up residency at Hoxton Square Bar & Kitchen - a natural progression for owners Mike and Nick. The self-proclaimed dive bar has a string

Food Franchise

of regular live music events, great cocktails, and a no-frills attitude that makes this move somewhat of an ode to the New York haunts serving up buffalo chicken wings both Mike and Nick pay homage to. The Orange Buffalo franchise package consists of: • Highly professional Franchise support system through our own organisation and our partner FGD • Access to the unique sauces and opportunities to develop custom sauces with the OB development chefs • Highly defined & recognisable branding image • Access to the different marketing platforms of the group

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Top 25 Up & Coming Food Franchises

Oink Oink was launched in Edinburgh’s Victoria Street in the Summer of 2008 and has been serving delicious hog roast rolls to hungry workers, locals, students, festival goers, shoppers and tourists 7 days a week ever since! They opened their second shop in the summer of 2013 in the Canongate area of Edinburgh’s historic Royal Mile, and in 2017 a third shop in the heart of Edinburgh on Hanover Street. With an OINK franchise, you can have a business exactly like ours! We’ve been working on this business for years, learning what equipment works best and how to source it; getting our pricing right and our branding perfect. We’d be crazy not to want to really capitalise on the obvious strength of our brand, our systems, methods and quality ingredients, but micro managing staff all over the UK is not our strength. This is what led us to franchising; we want every branch of OINK to be owned by someone with a real passion for the business, someone who will uphold the company ethos of uncompromising quality and service.

The franchise options are: • A retail store (which has the ovens inside depending on the size of the store) and a van capable of transporting the pigs to the store and events • Or a retail store with an external lock up for ovens, storage, refrigeration, prep etc., and a van capable of transporting the pigs to the store and events • Or any of the above plus a catering trailer for outside events Start-up costs • The franchise fee is £15,000 plus VAT. • Working capital is between £20k and £30k – to get up and running, pay rent, deposits, buy equipment, hire some staff etc. • Store fit-outs start from £60k and will vary depending on the size of the store and seating capacity. • Launch marketing budget £5k (Lease packages are available for equipment and ovens). • To give you a rough idea of performance: our average weekly sales per store is £9,236.

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Food Franchise

Top 25 Up & Coming Food Franchises

Doners and Gyros The Doner story began in 1971, when Mehmet Aygu adapted the traditional Iskandar-style kebab of NW Turkey to a more ‘Berliner’ taste, which today is perhaps the most historical and popular street food in Europe.

everyday food and crave-able sandwiches to UK residents. With the first location now open in Aylesbury, they will be looking to expand further with Doner and Gyros - Canary Wharf to open in 2018.

The Titan of a sandwich, the gyro, which originated in Greece and arrived on the streets of Chicago on 1965, made George Apostolu, owner of the Parkview Restaurant, a famous man. Doners and Gyros have now combined the two popular foods in the UK to offer affordable, healthy and delicious

Kobe Sizzlers Kobe Sizzlers aims to be one of the UK’s largest independent restaurants over the next few years. However, we firmly believe the significant potential, which exists for the growth of Kobe Sizzlers in many of our target cities across the UK, has not yet been fully realised. We are always keen to hear from potential new franchisees that showcase: • Strong belief in the Kobe Sizzlers brand • High levels of passion for food • Entrepreneurial flair • Management experience • Good social skills • Broad business experience • Commitment to leading and

Food Franchise

developing people • Understanding of the importance of customer service A minimum capital requirement and with access to additional funding to suit growth requirements We desire companies or individuals who have a passion for food, who understand the Kobe Sizzlers business and brand values combined with good working experience. To become an approved franchisee, their business plan will need to demonstrate commitment and dedication. Kobe Sizzlers has a commitment to provide all our franchisees with the best tools required to become successful in their business. We support all our network partners from inception and offer world class training programs, complete marketing support, and business

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management tools while taking an inclusive approach. Kobe Sizzlers also has a specialist team dedicated to support our franchise partners in development, acquisitions, operations and training. Our franchise agreement grants the right to use our trademarks, logos, our system and system property of the brand at the agreed upon location.

Top 25 Up & Coming Food Franchises

Tracks and Records Tracks & Records has pioneered the evolution of Jamaican culture and contemporized one of the world’s coolest brands… Jamaica. However, it is also fuelled by the power of Brand Bolt. Tracks and Records represents its namesake, Usain Bolt, well with a dynamic brand that goes beyond your expectations, much like the man himself. In a laid back hub of entertainment, live music, sports and incredible Jamaican fusion cuisine, it brings together the best of Jamaica in a one-of-a-kind entertainment destination. Founded by a group of young entrepreneurs in Kingston, Jamaica in 2011, Tracks & Records redefines casual dining and reinvents the sports bar. The first location, in partnership with Jamaican track legend, Usain Bolt, is now an iconic part of the Jamaican social scene. With the strength of high quality and consistency in its

operations, this marketing driven brand is taking its ‘taste of real Jamaican vibes’ to the world through franchising. Brand concept: • Full service casual dining restaurant and bar • Indoor structure (free standing optional) • Approx 5000 – 8000 square feet required • Dedicated retail merchandise area • Meet décor and design parameters utilizing key iconic elements to brand specifications • Ability to have live shows and performances • Traditional casual dining food & beverages featuring Jamaican fusion cuisine utilizing signature spices, sauces and core menu items • Use of technology and state-of-the art audio visual to deliver the experience

The offer: • Join a unique restaurant concept that is like no other • Brand recognition of one of the world’s coolest brands… Jamaica! • Ethnic themed restaurants are among the fastest growing trends globally • Receive 360 degree franchise support in all key business functions

The Stottie Company The Stottie Company was established by entrepreneurs Sharon and Dave Chapman - in 2013 and they soon grew a base of commercial clients who were impressed by their high quality corporate catering – now the fastest-growing parts of the business. Our chosen franchisees will operate from high street stores around the country to serve sit-in customers, take away consumers and outside catering, all using the same staff and kitchen. The result is maximum output from one site, helping to reduce costs and eliminate downtime. The franchise model has been refined and developed to ensure franchise owners get the most out of the property, the people and the performance. Getting Started

• • • • • • • • • • •

Help and guidance on site section Help and guidance on property lease negotiations Project management of store fit out Help and guidance on staff numbers and selection Legally compliant personnel documentation and practices Initial stock and training on recipes and menu control Comprehensive business training Integrated EPOS system Pre-launch marketing campaign Business launch On-site support for first week of trading

• Unlimited telephone and email support • Your own web and social media pages • Regular store visits from head office support staff Business Development Support • Help with financial plans and predictions • New product development • Improved buying power • Market and support maximisation training

Everyday Support • Full and exclusive rights to operate the brand in your chosen territory

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Food Franchise

Top 25 Up & Coming Food Franchises

Coxtails Coxtails offers a unique mobile cocktail bar business opportunity for people looking for that franchise which is a little bit different but very exciting! Coxtails offers a unique franchise where you can join our expanding Coxtails family. Established since 2009 and has fast become one of the leading cocktail bar companies in the UK. We offer numerous bar service for events in the UK & Europe. We are looking for fun, enthusiastic and driven franchisees to drive the Coxtails brand forward who will run the franchise in your own territory. Appearing at some of the biggest events in the UK from private parties to VIP & Celebrity events, if you are a budding entrepreneur, who would like to have fun and run an exciting and fast paced business party whilst making money and you want to be part of our brand then this is the franchise for you. Coxtails are currently looking for franchisees to run areas of the UK along with the rest of the world. They say:

such as shakers, strainers, muddlers, speed pourers etc • A starter pack of ingredients & stock “Having our base in Surrey means that when we quote clients in Newcastle for example, we then have to charge travel from Surrey which can be expensive for clients. “We want to offer clients affordable cocktail bar services throughout the UK with bases across the main areas of the UK.” The franchise offer: Vintage Mobile Bar Van & Bar Service Package • The rental of our of our vintage Renault Estafette vintage mobile cocktail bar vans which has been converted to a high standard with a fridge, LED lighting, signage, menu holders, a sink system & power • Van insurance, Tax, breakdown cover, a yearly MOT and a yearly major service • All literature needed for quoting, menu’s, invoice templates and any other documents you will need • A 3M Black bar structure with LED lighting for use as an additional bar or a second bar service along with an gazebo for cover • All cocktail making equipment required

Griller GRILLER® the healthier option have been established on the wealth of knowledge and vast experience of its originators. The people behind the brand have been in the fast food industry for decades, having built a reputation for the provision of high quality products and attractive outlets. As key players in the expansion and development of a well- known chicken chain since 1995, we gained invaluable insight into the business and its growing needs. By May 2002 we had noticed a change in consumer demands and trends towards healthier choices. Whilst retaining all the flavour and

Food Franchise

taste expected of fried chicken, the objective was to produce a non- fried alternative. With this as our goal, we had a vision to set up a new fast food outlet with unprecedented products. We set about exploring the possibility of providing chicken with all the taste of a fried product, but with a new and innovative cooking procedure, eliminating the element of frying. Over time our healthy fast food concept grew in structure and popularity. With an extensive menu perfected, GRILLER® The Healthier Option was launched in 2005. A definitive brand identity and image was created to market GRILLER® healthier approach.

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Mobile Bar Service Package: • Rental of our 3M black bar structure with LED lighting to handle events of up to 120 guests • Rental of our full circular LED bar which can be hired as a fully circle or semi-circle. This can also be hired as a mirrored bar which is ideal for weddings • All cocktail making equipment required such as shakers, strainers, muddlers, speed pourers etc • All literature needed for quoting, menu’s, invoice templates and any other documents you will need • An outdoor events Gazebo for a sheltered bar service

Top 25 Up & Coming Food Franchises

Big John’s Two brothers kept together by a Mother’s ambition and her values coupled by a desire to become something one day. Both brothers dared to enter the business market at a time which had challenges of its own. Everything we do at BigJohn’s demonstrates our deep-seated foundation of values and illustrates our firm belief in providing fresh food at an affordable price. Our customers reside at the core of our business and are of utmost importance to us. We value our customers and their feedback and make our best efforts to incorporate their thoughts, compliments and criticism in our strategies. Our strap-line is; “ALL YOUR TAKEAWAY FAVOURITES UNDER ONE ROOF”, evidently, we endeavour

to provide a range of high quality food options on our menus and provide a variety of choice in a clean and welcoming environment. BigJohn’s source food from its central distribution to all stores and make sure that the freshness of all our food items is preserved till it reaches our customers. BigJohn’s works with suppliers who share similar business and ethical values. We ensure that our food is always fresh and our supply chain is sustainable. We at BigJohn’s cater to all needs, occasions and customers from different ethnic backgrounds.

the fast food industry. As BigJohn’s continues to expand its unique brand, an expert management team has been assembled to provide a unique and individual franchise opportunity which includes full training, guidance and support along with the strength of the BigJohn’s brand and philosophy. There has never been a better time for self-motivated individuals, couples or groups to join the success of BigJohn’s.

FRANCHISE OPPORTUNITY BigJohn’s is an award-winning business which has a growing reputation for quality, variety and value for money in

Shaketastic Over the ten years since Josh and Amir opened the first store they have learned a lot about the milkshake and smoothie business. They say: “We’ve made mistakes, won awards, created systems and processes that work and established a way of doing things which is highly profitable and a lot of fun. “We’ve taken our time to get everything just right and we’re now perfectly placed to help support our franchisees achieve success.” By joining the ShakeTastic franchise family you get the right to: • Operate in a specific protected territory • Gain expert assistance in finding locations and in negotiating sites • Receive initial and on-going training for you and your staff

• Receive a comprehensive Systems Manual and a Business Operations Manual • Receive an initial stock of all your marketing materials • Day to day guidance and support and all your marketing materials at cost • Trade under the ShakeTastic name and list of trademarks and copyrights • Utilise the ShakeTastic® logo and slogans as appropriate According to Shaketastic it is possible to open a single ShakeTastic for approximately £50,000 investment depending on the condition of the unit. • £10,000 licence fee per store. • £5,000 training fee. • £35,000 for fit out, store

equipment, legal fees and everything else. • We would expect you to get your initial investment back within 12 18 months of opening your franchise. • A more detailed breakdown of the financials can be accessed once you have completed an application form and signed a Non-Disclosure Agreement.

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Food Franchise

Top 25 Up & Coming Food Franchises

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 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. The traditional Wimpy offering has recently gone to market with a new design. These restaurants feature around the country and these Wimpy franchises are currently upgrading in stages across the country over the next few years. Table Service • Table service is a simple, well proven and effective concept where customers are served by a waiter/waitress at the table. Branded crockery and cutlery is used, making Wimpy stand out as a full-service restaurant.

Food Franchise

• •

A wide menu is offered including breakfast, desserts, quality coffee and of course, our famous Wimpy 100% beef hamburgers. All meals are freshly cooked to order. Take away service is also offered from these outlets.

Site Requirements • 1,500 ft² - 2,000 ft² (139.35 m² - 185.81 m²) with a minimum of 1,200 ft² (111.48 m²) on the ground floor and a minimum frontage of 20 ft. • Premises should have A3 usage or be in a non-contentious area for change of use. Investment • Initial investment for a 60 seat restaurant starts from £220,000 including a franchise fee of £10,000 for a 10 year agreement. Express • The Wimpy Express unit is one of the major growth areas for the brand. • This type of outlet is suitable for theme parks, leisure venues

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and food courts. • Express units offer customers a quick and efficient service from a take away menu, displaying a full range of meal deals. Site Requirements • Express From 500 ft² (46.45 m²) retail space Investments • Initial investment starts from £80,000, including a franchise fee of £7,500 for a five year agreement. Re-Sale Opportunities Owning your own business is not only about setting up a franchise from scratch. There are always franchisees who wish to sell their franchised business for a wide variety of reasons and this creates opportunity for those who wish to enter the franchised arena via the acquisition of an existing business that has a proven track record. These opportunities will still require participation from Wimpy head office but more importantly will involve successful negotiation with the seller of the franchise holder.

Top 25 Up & Coming Food Franchises

Selekt Chicken 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.

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. 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 complete a Brand Audit to ensure each store meets

our requirements. 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, and we believe this is an easier way to manage your budget and finances.

Delightful Desserts The Delightful Desserts concept started in 2015 and has gone from strength to strength with strong brand recognition in the Midlands and surrounding areas. They are a unique and independent, quality food brand, providing an unforgettable eating experience for all customers with dine-in and take-away options. The décor and theme is inviting, relaxing and offers a comfortable experience for customers of all ages. Delightful Desserts will provide you with a ready-to-go solution for each store. Including interior design, operational planning, marketing materials and most importantly support in training you and your staff. As a franchisee you buy the right to develop and operate your business with our trademarked brands in a defined

geographical area. A Delightful Desserts franchise package consists of: • Right to use the Delightful Desserts trademarked brand name • Support searching for the right store in the right location • Discussion into what type of store is best for you and the area; Restaurant, Express or concession instore • Assistance with the shop fitting • Full access to our menu and suppliers • Induction training in all areas of the business from operations to customer service • Marketing and launch support • Exclusive franchise territory • On-going support and regular product and business updates

• Easy terms and payment options • Easy terms and payment options • One-off franchise fee per site is dependent on the size of the store; starting from £5k • Royalty fee 4% gross sales • Marketing fee 1% gross sales • Minimum contract term 5 years

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Food Franchise

Top 25 Up & Coming Food Franchises

U Food Grill UFood Grill is leading the rapidly growing fast casual segment of franchising. With a sleek, inviting design and setting that serves fresh and delicious food fast, UFood Grill is meeting the current and increasing demand from its customers. UFood Grill’s menu consists of dishes that are fresh, ALWAYS baked, NEVER fried, as well as under 700 calories, and 950mg of sodium. UFood Grill also offers a customizable menu with Better-For-U food that can meet all dietary needs and restrictions. “Made with fresh ingredients that taste great, we truly are where delicious meets nutritious.” One of the fastest growing segments in franchising are fast casual restaurants. The fast casual segment is showing a

projected double digit market growth. Forbes has reported the potential of fast casual restaurants by citing the techonomic 2014 top 500 chain restaurant report. While QSR’s only grew 2% in 2013, the fast casual restaurant chains grew a whopping 11% while store count grew by 8%. The overall industry has grown 1.3% in the last 12 months while fast casual has grown 2.6%. Fast casual restaurants have been the consistent winner in the market share battle being waged in the chain restaurant industry since the recession. At the forefront of the rapid expanding industry is UFood Grill. At UFood Grill, we are with you every step of the way: • Site selection • Submittal/Negotiation of LOI/Lease

Rockets Fast Casual. Better Burgers Rocket’s is a fast-casual, better-burger brand with an urban edge, developed by one of Ireland’s leading restaurants groups, Rocket Restaurants. Ireland’s hamburger specialist, Rocket Restaurants provide a fastcasual service that expertly balances convenience with quality. They use premium ingredients with all-natural Irish meat that is always fresh, never frozen. Delicious meals are made-toorder with a 6-minute order-service time and can be enjoyed in the upscale urban restaurants or picked up by foodrunners. Rocket Restaurants present two brands for franchise business opportunities: Rocket’s and Eddie Rockets, dependent on location and

Food Franchise

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investment available. The award-winning franchisor provides a wide menu for customers with plenty of great choices for breakfast, lunch, or dinner. Its use of Fast Casual as the sole purchasing, warehousing, and distribution group ensured reliable consistency across 2.5 million burgers sold in 2016. • Segment: Fast Casual • Menu: Upscale burgers and hot dogs, salads, milkshakes, beer & wine, coffee, brunch. • Number of Stores: 49 (Group) • International Presence: Ireland, UK, Germany • Location type: High street, shopping malls, concessions and other non- traditional • Footprint: 450 -3,000 sq ft • Usage: A3

draft • Store design • Construction • Training • Grand Opening Support • Ongoing operational support • Ongoing marketing support

Top 25 Up & Coming Food Franchises

COOK Cook is a company focused on making healthy ready to eat meals. We specialise in food with ingredients and techniques that are used by good cooks at home. A wide variety of food offerings is available with specific cuisine options such as beef, land, pork, chicken and fish meals. But more than that, we also have options for our customers that have vegetarian, gluten free and dairy free diets. Simply put, we have food that caters to every type of person with or without special needs who don’t have the time to cook on their own. Aside from creating and selling ready meals, it is also our company’s goal to be a shining beacon to its suppliers, employees and most especially to the customers and the community. To achieve this, we have become one of the first certified B Corporations in the UK. This means that we strive to

meet the high standards of social as well as environmental accountability, performance and transparency. Our efforts was more than fruitful as we bagged the “Franchisor of the Year” award from the British Franchise Organisation HSBC Awards as well as placing No. 1 in the “Best Companies to Work For” given by the Sunday Times. More than the awards from prestigious institutions, we boast that we have been voted by our employees as one of the very best companies to work for. Training and Support We believe that following our core values and why we do our business is the ultimate key to our national success. That is why we provide training to new franchisees ensuring that the quality of products as well as the services offered are on par with our standards. The 3-week training programme will include guidance in the kitchen and shops as well as orientation in the head office and logistics centres. Moreover, two weeks will be spent by the new

franchisees in our training stores ensuring operational competence. The ideal COOK franchisee As our business seems to grow in scales that we never imagine, we need more people to help us reap larger success through franchising. What we offer is a prestige brand that will help you earn a six-figure income. Cook has already designated territories of towns and cities over where our next franchises would be. Interested franchisees need to be passionate about food and in delivering the best customer service, and have great social skills. If you want to join us, a £30,000 is needed for the license fee and about £70,000 for the shop fitting costs.

Wolf Street Food Wolf is a stylish, urban concept serving freshly-baked piada (an Italian wrap) baked on a hot stone and then filled with meat, fish and seasonable vegetables. The range is complemented by other Italian street food classics, including pasta, freshly-baked breads and salads. Wolf also sells coffee, pastries and a savoury and continental breakfast range. Wolf is a “better fast-food” concept suited to office and high street shopping locations where consumers value speed of service but do not want to compromise on the quality and freshness of the food and thus prefer a product that is made to

order and that they can personalize to their requirement. The Wolf can flex and trade from as little as 500 square feet. It does not require extraction and it is a completely de-skilled operation made of simple processes and management systems, all of which adds to its scalability. • Segment: Quick Service • Menu: Piada, pasta, pizza, salads, Italian panini, coffee. • Number of Stores: 4 • International Presence: Not yet! • Location type: Office locations, Urban high streets • Footprint: 500 – 1,000 sq ft • Usage: A1

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Food Franchise

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Be Inspired The

Orange Buffalo Hailing from Hull, Mike So and Nick White, set up The Orange Buffalo after a road trip to the U.S. which landed them in a plethora of American dive bars, eating some of the most unfussy, satisfying, and moreish bar foods that only those who have travelled to the USA will understand.

Food Franchise

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Be inspired

edicated to recreating the flavours, tastes and experiences of their US road trip and their favourite bar snack, taking up residency at Hoxton Square Bar & Kitchen is a natural progression. The self-proclaimed dive bar has a string of regular live music events, great cocktails, and a no-frills attitude that makes this move somewhat of an ode to the New York haunts serving up buffalo chicken wings

both Mike and Nick pay homage to. They’ll be serving up their wings with their range of six sauces in varying degrees of spicy; from their Original tangy sauce made with Dutch chillies, to Woof Woof made with Scotch Bonnets, Dutch chillies and a hint of Naga; as well as the notorious ‘Snake-In a basket’ – a sort of Russian Roulette of Original or Woof Woof wings including one loaded with a Viper – their

spiciest sauce made with Scotch Bonnets, Naga and chilli extract that is often served with an ‘anti-venom’ (Mini Milk ice cream) to cool you down after. All wings can be ordered with a selection of sides: Curly Fries, Onion Rings or Deep Fried Pickles, plus more We catch up with owner and co-founder Mike and Senior Advisor to The Orange Buffalo brand Jan Delden….

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Be inspired

Could you tell us a little bit more about yourselves?

Jan – Mike is a graphic designer which I think shows in our menus and my background is more multi-site operations and developing companies and so on. And immediately when the boys first approached me one of the things that really stood out is the branding and how everything is presented.

How is the franchising coming along? Jan - We are making our first steps on the franchise front we have the food truck franchise in Brighton, and we are in the process of signing the lease for our first proper bricks and mortar site. We are also in the process of helping our second franchise, with his financing from the bank so we are pretty ahead of the game, so to say.

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The two franchisees that we have on board, came on board specifically because we are at the start of the road. And our product is still in development, the real franchise product is still in development, and this (the new pop-up in Hoxton) is the benchmark of what we want to do with the rest of our sites, in terms of the branding and the serving hatch style etc.

How has the pop-up in Hoxton been received? Mike – It’s been going really well! What is great about this place is that they have such a varied set of events on, around five days a week they have got bands on and it’s great! There are people visiting us that would never find us, and it’s surprising, they come round the corner and boom, what’s this! And because we are serving through the hatch, people see it and say – I want a bit of that! It’s been really good so far.

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Jan – its early days of course, we don’t want to risk overreaching. The weather has helped massively with the opening, and Brighton is still growing month on month, so all of the signs are very positive. The interest that comes through Whitney (of Franchise Growth and Development Ltd) is over our expectations, even interest for a significant number of sites, people want to buy whole territories. Mike – There are so many customers who say, I want to get involved. Jan - I am stoked by all of this, and to already have a deal in place is ahead of the curve.

What is the USP of The Orange Buffalo? Jan – If I had to describe one USP of the brand it’s the sauces…. Mike – Which has been proven for five years now. Because our concept is so ‘sauce-

Be inspired

centric- there is not a great deal of technical process involved in the cooking process, fryit and cover it in sauce is basically it! Our ‘Original’ sauce and ‘The Woof Woof’, ‘The Vincent’ and ‘The Viper’ - we have been running them for five years at the truck, that is all we have been doing and they keep coming back week after week for the same sauces.

How have your regular customers of your truck reacted to this new concept? Mike – Oh they love it! Some of them have said “We have been coming to you for four years and this is the first time we have had a beer with the wings!” More so, because they all know us – the truck is very intimate and you get to know them quickly. They can tell the subtle differences between the heats, because the chilies come from different countries and so forth, so we have got a really great relationship with them. They are really supportive, and really keen for us to do well! They have seen how hard we have grafted and we are also open, even in the snow, the rain, whatever the weather! I know it’s not great in terms of sales, but those opportunities are so valuable because someone will come, travel from miles away and you can give them the best portion ever, give them the full narrative and you form a really good relationship with them.

The pop-up in Hoxton has kept true to the roots of The Orange Buffalo in service style and branding,

and behind closed doors, it’s a bit of a thankless task, but with maintaining this premise for dialogue (between us and our customers) it keeps it quite intimate still.

The branding of The Orange Buffalo is very strong, how do you feel this will benefit you in such a competitive market… Jan – When the people from Hoxton Square Bar & Grill first approached us there was nothing here like this, the previous operators served from the kitchen and carried it through. There was one sign above the bar saying order food here and a menu hidden at the back, needless to say they didn’t sell much because of that. So it wasn’t clear, and since for us it is necessary to have a bigger presence in the venue, and to put our signage up including a large menu board outside, creating more visibility, we insisted on having something that represented our image. Mike – Plumage! Jan – (Laughs) Yes! And that is also reminiscent of the truck! And if you look at our truck you more or less see the same thing right here. And that was the whole idea, it has to look like a food truck. It is also indeed for potential franchisees who right up until the point that we have a fullblown bricks and mortar site, we can bring them here say look at the hatch, see how we organise the kitchen and that this is pretty much what you can expect if you buy a franchise from us!

From a franchise point of view, have your franchisees mostly been interested in

is this something that you

bricks and mortar sites?

will continue through

Jan – Yes, we are only selling bricks and mortar sites because that is where we want to go to. We know all the pitfalls of street food, it is very seasonal and operationally it is not always easy. It is all part of the whole strategy that we decided on, if you jump into every opportunity now you are probably going to regret it, when you grow to a sizable number and you have four different variations of your product. We want to have bricks and mortar sites, they have to be between 800 and 1200 sq ft, they need to have 20 seats or more – the criteria is there.

franchising? Mike – Yes, I like the hatch, the other thing that works well is that we are using a beeper system. Originally we used a ticket system that just didn’t work at all, you have got to have something that vibrates or beeps so they come running with a sense of urgency! But from the bars point of view, they don’t have to serve it, and customers are aware their food is being cooked, they don’t drift off! I like that system a lot. For us as well, when you are in a kitchen

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Food Franchise

things to consider

when buying a

franchise Most potential franchisees will tell you that one of the main attractions of becoming a franchisee is that they will have the support and backing of an established company (the franchisor) which has a proven track record in the marketplace.

Food Franchise

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10 things to consider when buying a franchise

Spring 2018

Food Franchise

10 things to consider when buying a franchise

ut this should not be taken for granted and it is important to carry out your own investigations. This is because there is limited legal recourse available to a potential buyer in respect of what it has been told by a seller of the business during the pre-contract stage. In addition, there is no overriding duty of good faith in pre contractual negotiations and no franchise specific laws in the UK, which means that a would be franchisee should be very careful about what they are purchasing. One way is for a prospective franchisee to undertake its own due diligence which should include legal, financial and commercial due diligence, before committing to the purchase. Franchising expert, Gurmeet Jakhu, from Emms Gilmore Liberson Solicitors, shares his top 10 tips for would be franchisees.

if you are not the type of person who likes being told what to do and find it difficult to follow instructions you may not be suited to franchising

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Are you the right kind of person to become a franchisee? A franchisee is required to follow the method and system as prescribed by the franchisor in every aspect of the business. So if you are not the type of person who likes being told what to do and find it difficult to follow instructions you may not be suited to franchising. You must also ask yourself: • Can you work hard and take all the responsibilities of running your own business? The success or failure will ultimately depend on your own effort (or lack thereof); and • Will you have the support of your family and will they understand that you are going to be spending a great deal of your time to make a success of the business venture?

2 What is the demand for the product or service? On-going success will only be achieved if there is longevity in the product or service on offer. Therefore, ask yourself: • Is it a product or service which is likely to last the full term of the franchise, including any renewal terms? • Is the market place for the product/ service expanding rapidly, slowing, static or in decline? • Who would your competitors be and how competitive is your product/ service be in relation to them? Having looked at the general market, what do you know of the local market in which you will be operating (i.e. your territory)?

10 things to consider when buying a franchise

3 Is the franchisor offering a tried and tested System? A franchisor should not be expected to guarantee success but it should have demonstrated that it has a tried and tested system, an established brand and a proven income stream before offering it to would-be franchisees. Don’t just rely on what you are being told and carry out your own investigations including, checking the franchisor’s trading history and accounts. In particular you should find out whether the franchisor has carried out a pilot operation, whether its business plan has been proven and that it has the resources to meet any projected growth. You should also look into the individual directors’ experience, to include any previous companies they have been involved in. In addition to enquiring how successful is the franchisor, you should also ask about existing franchisees.

You should find out whether the franchisor has carried out a pilot operation

4 What do the existing franchisees have to say about the business? Request a list of all existing franchisees and speak to them to learn about their experiences. Find out how many franchisees have had their agreements terminated recently and how many are involved in disputes. Whilst there may be legitimate reasons for such terminations, rather than a systemic failing, it is worthwhile finding out in advance as it would provide a good indication of the state of the franchisorfranchisee relationship.

5 Who owns what? Whilst you will be the person who takes on the franchise and the owner and operator of your own business, the franchisor retains control on how the product or service is marketed and monitors the quality and standards of the business. Therefore, it is important to understand what is being licensed to you under the franchise agreement, including any trade mark licences and other intellectual property rights. If the franchisor does not own or have permission to use the trade mark this is likely to present serious problems for you.

How much support will the franchisor be providing? Whilst the franchise agreement will contain pages and pages of obligations setting out what a franchisee should or shouldn’t do, by comparison, there will be very little contractual commitment from the franchisor. Therefore, you need to understand things like what technical, marketing and advertising support is on offer from the franchisor and whether this is provided for in the agreement. Speaking to existing franchisees will help you to understand whether the franchisor has provided such support in the past and to what extent.

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Food Franchise

10 things to consider when buying a franchise

What are the franchisorâ&#x20AC;&#x2122;s plan for growth? You will be committing to a long term agreement of around 5 years with at least one right to renew. Therefore you should enquire about future development of the product/service. If the franchisor fails to develop the system, there is a real risk that competitors will overtake it and your products or services will become outdated leading to the demise of your business. The franchisor should be willing to share its future expansion plans and continually market the business and develop the system.

Food Franchise

Is the franchisor a member of the bfa? The British Franchise Association (bfa) is a self-regulatory body for franchising in the UK. It acts as a guardian of standards in franchising and its role is of added importance, given the absence of franchise specific legislation in the UK. As part of the application process the franchisor will have to show that its business concept has a degree of longevity and involves the transfer of know-how to its franchisees. All members are subject to annual re-accreditation and must comply with

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the Code of Ethics. Whilst membership is voluntary, if your franchisor is not a member of the bfa you should enquire the reasons for this. Lack of membership may impact upon your ability to secure lending from some of the leading banks. Professionals such as solicitors, accountants and consultants involved in franchising, will want to become affiliate members of the bfa provided they can demonstrate that they have the pre requisite knowledge and experience of franchising.

10 things to consider when buying a franchise

9 Business Plan & Financial Matters As mentioned above, it is not unusual for a potential franchisee to place a great deal of faith in what they are being told by the franchisor. This is particularly so when it comes to the financial performance of the business. You must undertake thorough and independent analysis of any business plans, cash flows forecasts and financial projections provided by the franchisor. You should seriously consider using professional assistance

to investigate the basis of the figures being presented and what, if any, assumptions are being made. You will be responsible for preparing your own detailed and comprehensive business plan. The bfa’s Code of Ethics requires franchisors to ensure that any recruitment, advertising and publicity material that contains references to possible results, figures and earnings, is objective.

Have the FA reviewed by a bfa affiliated lawyer Most franchise agreements will run into 40-50 pages or more and are likely to impose personal liability on the key individuals involved in the franchisee business. It is a tough one sided commercial agreement which regulates the parties conduct during the term of the franchise and for a period following termination or expiry. Therefore it is important to have the agreement reviewed by a solicitor who specialises in franchising and ideally is affiliated to the bfa as they will know what to expect in such agreements and more so, will understand the limited scope to challenge its terms. The legal review will help you understand what you are ‘in for’ and your franchise specialist lawyer will be able to point out those terms which are unusual, unworkable and unreasonable that may require further explanation. In addition to the above and as part of your due diligence you should also consider the following: • The bfa has prepared a list of 50 questions to ask a franchisor before taking up a franchise, which is available on its website. Look at this; • The bfa in association with Lloyds Bank has produced a web based Prospective Franchisee Certificate (PFC) which provides a comprehensive overview of what it takes to become a franchisee. Use this free e-learning initiative; • Search the many specialist franchise website, most of which are free, as these will have a good deal of information available; and • Attending franchise seminars, which will give you an opportunity to hear about franchising and speak to franchisors/ franchisees. Becoming a franchisee is one of the biggest financial commitments you will make, so it is important to fully understand what you are purchasing by undertaking comprehensive due diligence before signing on the dotted line. It will save tears in the long run!

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Food Franchise

Advantages and

Disadvantages of a

Franchise Resale

Food Franchise

SPRING 2018

We speak to Jess Bains, a Franchise Resales Consultant at Franchise Sales & Resales. He discusses the key points to consider when considering purchasing an existing franchise including the benefits of buying a resale versus a new franchise, as well as how to assess whether or not the franchise is worth the asking price.

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Food Franchise

Advantages and Disadvantages of a Franchise Resale

1. What are the advantages to buying a franchise resales?

As with any business transaction, it is imperative that you recognize what you are receiving in return for the money paid to the franchisor. While the franchisor does provide assistance in exchange for the fees they receive; not all of them are identical. Franchisors provide value in different areas depending on the strengths and strategy of their business model. You should identify why you are buying one franchise over others and set appropriate expectations before making your decision. A franchise Resale provides advantages in the categories listed below: Established Track Record-When you buy a franchise resale, you are usually investing in a franchise concept which has products and services that have sold successfully. You will have trading history to learn from and to support you forecast for the future. Investing in a franchise resale is based on an already existing business model that, in most cases, has worked successfully for the franchise owner. Brand Recognition- A franchise owner can profit from the name recognition the franchise resale provides. If you start your own business it can take numerous years to build a brand in a competitive market. There are no guarantees that the consumers will identify the brand as a product leader. Franchise resale can provide owners with immediate brand recognition. Instant Cash Flow- An established franchise resale will offer instant cash flow, if you start a new business it may take anything from twelve to eighteen months before your business starts to make a profit. With a franchise resale you have an existing customer base of clients using your services and products. Experienced Staff- Most franchise resales will have experienced staff, who will have been trained and experienced in the day to day running of the franchise business. The existing franchise owner will probably stay on for a period of time, enabling a smooth take over period, ensure you fully understand the systems and working methods of the franchise resale. The franchisor will provide training where appropriate, most will have a five to ten day induction course. Marketing Support â&#x20AC;&#x201C;It can be extremely costly for an independent business owner to market their business. Whereas the franchise resale has the advantage of already having an existing marketing strategy in place, the franchisor will have a franchise agreement which normally works to supply franchisees with marketing campaigns to ensure that their customers identify and remembers the brand. Belonging to a franchise reduces marketing costs which are shared equally with other franchise owners. Reduced Risk - Investing in a franchise resale limits the risks that are involved in business, most banks will look favourably upon lending to a franchise resale as op-posed to a new business start-up.

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2. What should be taken into consideration buying a franchise resale?

When considering a franchise resale, ask your self, why I am interested in this resale, what attracts me to this opportunity, have I enough knowledge of the franchise brand and do I have the required skill set to own and operate this franchise resale? As well as, will I enjoy owning and operating this franchise resale opportunity?

â&#x20AC;&#x153;Franchise resale has the advantage of already having an existing marketing strategy in placeâ&#x20AC;?

Advantages and Disadvantages of a Franchise Resale

3. What financial support is available when buying a franchise resale?

I am not qualified /authorised to give financial advice. Most Banks and financial lending institutions will look favorable on lending to an established franchise resale, the franchise brand will probably have many locations nationwide, if not world wide, the working methods, services and products will be known to them, making lending that much easier. Most Banks will have franchise lending departments with managers who fully understand how franchise businesses operate.

4. What is the best piece of advice you could give to someone looking for a franchise resale? There are many questions that need to be asked when purchasing a franchise resale whilst going through the due diligence process. Make

sure you understand the franchise brand and its offering, be sure to speak to other franchisees. Do calculate the full amount of funds you will need to purchase the franchise resale, one of the biggest mistakes made is when you over stretch your financial capability.

5. What does the future hold for franchise resales?

The future for franchise resales will only becoming greater, as franchise brands become more established, franchisees will have been with the franchise from anything from one year up to twenty years plus, they will have made enough money or they make simple just want a different challenge. Whatever the reason for the resale, a franchise resale is massive business opportunity. Buying an existing franchise has a host of benefits. However, as with any investment, it is important to do your homework and seek expert advice. If youâ&#x20AC;&#x2122;d like to find out more about purchasing a franchise resale contact Jess Bains MICBA email jess@franchisesalesandresales.com

â&#x20AC;&#x153;Do calculate the full amount of funds you will need to purchase the franchise resaleâ&#x20AC;?

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Food Franchise

low investement franchise

INTERNATIONAL

NEWS

Food Franchise

SPRING 2018

INTERNATIONAL NEWS

Broccoli Pizza and pasta plans international expansion Broccoli Pizza and Pasta, a self-operating Italian restaurant headquartered in Dubai, has announced a worldwide expansion, with 79 restaurants under construction. Broccoli said it aims to dominate the Italian restaurant market with over 300 outlets in 2018. Broccoli currently operates 95 restaurants in the UAE, Saudi Arabia, the UK and India. Richard Kay, global franchise sales manager, said: “Within 6 years of the launch, we are proud and excited about our reach, which is set to grow to 12 countries by 2018. We are grateful to our customers and stakeholders for making us a brand to reckon with.” The first Broccoli restaurant opened its doors in Dubai in 2011, with a second restaurant in Jumeriah opening a year later. In 2014, a further nine restaurants were opened.

Burger King AsiaPac to strengthen its presence in Taiwan Burger King AsiaPac and Nexus Point Management Limited have announced a master franchise agreement to develop and strengthen the presence of the Burger King brand in Taiwan. “Taiwan is one of the largest quick service restaurant markets in the Asia-Pacific region and we’re pleased to announce this agreement as it will help us further develop and grow the BURGER KING® brand locally,” said José Cil, President of the Burger King brand. “We look forward to working with Nexus Point to drive scale and market penetration in this attractive market, so we can

continue to seize great opportunities. “Burger King is one of the most iconic brands in the world and has a successful track record of working with private equity partners,” said Kuo Chuan Kung, Managing Partner of Nexus Point. “We are excited to accelerate the opening of new restaurants in the market and make further investments in technology and operations to better serve our guests in Taiwan.” Today, the BURGER KING brand has a presence across a number of countries in the AsiaPacific region including China, South Korea and India. This new agreement will further expand the footprint of Burger King in Taiwan and strengthen its presence in the AsiaPacific region. Terms of the transaction were not disclosed.

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Food Franchise

INTERNATIONAL NEWS

Pizza Hut to open in Zimbabwe International franchise Pizza Hut has opened its doors in Zimbabwe for the first time in the country. The company have revealed in a press release will open an outlet in Harare in partnership with local Zimbabwean company Silicoade Capital.

“We will open as many as possible depending on the success of the first few Pizza Hut outlets,” it said. In Zimbabwe, Pizza Hut will compete with other international brands such as Nando’s and Pizza Inn, run by Simbisa Brands. KFC also set up shop in Zimbabwe and is currently operating from six outlets with the last one having been opened last year in Bulawayo, Zimbabwe’s second-largest city.

Silicoade Capital owns the franchise for Pizza Hut and also SterKinekor Zim. “Pizza Hut and its parent company Yum! Brands see Zimbabwe as a strategically integral market to its expansion across Africa. “The Zimbabwean market has displayed large potential for growth despite economic challenges,” the company said. Pizza Hut said the amount and size of its investment will depend on the success of its first outlet, which is being opened at Zimbabwe’s premier shopping mall Sam Levy’s Village.

McDonalds to expand further into Philippines

Domino’s plans to open 100 new restaurants in Sweden

The McDonald’s chain in the Philippines sees continued expansion in 2018, buoyed by a growing middle class with a preference for meals on the go.

After a successful launch in Sweden in early 2017, pizza delivery giant Domino’s has announced an aggressive expansion in the country with 100 new restaurants planned in the coming few years.

George Yang, founder of McDonald’s master franchise holder in the Philippines, Golden Arches Development Corp., said the company would end the year in excess of 600 stores nationwide. “This year, we will surpass 600 stores,” Yang said in an interview last week. “We are optimistic because the economy is strong.” McDonald’s mainly competes with home-grown Jollibee Foods Corp. in the massive fast-food segment. Yang noted that the market was rapidly changing and that the group needed to “stay ahead.”

The American chain is first focusing on Skåne region in southern Sweden - where it entered the market last year - and will later take on Stockholm and Gothenburg. Every new restaurant will be looking to hire 15 to 20 new employees. Initially, Domino’s will own all new restaurants, but there will be plenty of opportunities for franchisees to step forward in the next few years, according to the chain’s newly appointed Swedish Managing Director, Mats Åstrand. “Today, there are few brands in Sweden who can deliver [delicious] pizzas in 30 minutes time. That’s why we see there’s great potential in the Swedish market,” says Clive West, International Director at Domino’s. Domino’s, the world’s leading pizza delivery chain, has 14,400 restaurants in 90 countries. The company now aims to become a household name in Sweden.

Food Franchise

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INTERNATIONAL NEWS

Starbucks Q1 2018 results revealed • Global comparable store sales increased 2%, driven by a 2% increase in average ticket • Americas and U.S. comp store sales increased 2%, driven by a 2% increase in average ticket • CAP comp store sales increased 1%, driven by a 1% increase in transactions • China comp store sales increased 6%, driven by a 6% increase in transactions • Consolidated net revenues of $6.1 billion grew 6% versus the prior year

our first ever $6 billion revenue quarter in Q1,” added Scott Maw, cfo. “We are laser-focused on accelerating growth in China and driving improvement across the U.S. business as we move into and through the back half of the year, and remain committed to delivering on the long-term targets we announced last quarter.”

“Starbucks reported another quarter of record financial results in Q1 of fiscal 2018, with consolidated revenues up 6% over last year - up 7% excluding 1% for the impact of streamlining activities in the quarter. China grew revenues 30% in Q1, with the strategic acquisition of East China positioning us to accelerate our growth in the key China market,” said Kevin Johnson, president and ceo. “Today, Starbucks has two powerful, independent but complementary engines driving our global growth, the U.S. and China. Our work to streamline the company is sharpening our focus on our core operating priorities.” “Starbucks delivered solid revenue and profit growth and

Wagamama unveils UAE expansion plan Global brand wagamama has announced plans to expand its presence in the UAE with a new flagship restaurant to open in The Dubai Mall, and two more eateries planned in 2018.

plans for the restaurant brand across the UAE and a growing presence in neighbouring GCC countries. Restaurants in Sharjah and Abu Dhabi are also in development for later this year. Wagamama boasts 180 restaurants across 23 countries worldwide, while the GCC count stands at a strong 11.

Wagamama, which was founded in London’s Bloomsbury district in 1992, said in a statement that its Dubai Mall restaurant will open on January 31, bringing the number of locations across the UAE to five. It is the first wagamama restaurant in the UAE to feature the same interior design as London’s flagship branch in Covent Gardens with a modern interior featuring sleek mirrors and communal tables. Elias Madbak, director of operations at RMAL Hospitality, franchise partner for the brand in the UAE said: “Our strategy is to deliver world-class experiences to the UAE. The arrival of wagamama at The Dubai Mall is a significant milestone for the brand as we continue our expansion across the UAE.” The opening marks a new chapter in the wider expansion

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Food Franchise

INTERNATIONAL NEWS

Dunkin Donuts reveal global sustainability plans As part of its commitment to serve both people and the planet responsibly, Dunkin’ Donuts, a leading retailer of hot, brewed coffee, have announced plans to eliminate all polystyrene foam cups in its global supply chain beginning in spring 2018, with a targeted completion date of 2020. In U.S. restaurants, Dunkin’ Donuts will replace the foam cup with a new, double-walled paper cup. The majority of Dunkin’ Donuts’ international markets are currently using paper cups, and the brand will work with its franchisees to eliminate foam cups from the remaining international markets by the 2020 goal. The move complements Dunkin’ Donuts’ earlier commitments in the U.S. to have 80% of fibre-based consumer-facing packaging certified to the Sustainable Forestry Initiative Standard by the end of this year; eliminate artificial dyes from its menu; build new, more energy-efficient restaurants; and partner with the Rainforest Alliance to source certified coffee. The new, double-walled paper cup is already in use at Dunkin’ Donuts’ next generation concept store, which opened in midJanuary in the company’s birthplace of Quincy, Mass. It will be introduced at all Dunkin’ Donuts restaurants in New York City and California in spring 2018, and will be phased in across the U.S. as supplier manufacturing capabilities ramp up. The double-walled paper cup is made with paperboard certified to the Sustainable Forestry Initiative Standard and will feature the current re-closable lid that Dunkin’ customers know and love. Like Dunkin’ Donuts’ current hot beverage offerings, the new double-walled paper cup will come in four sizes -small, medium, large and extra-large -- and will be used for all of

Esquires Coffee to Open its First Store in Pakistan Esquires Coffee, a New Zealand-based international coffee house franchise, announced on Monday that it would open its first coffee store in Karachi in early March, bringing to the country the very-best in third-wave artisanal, organic and fair trade café culture. The new store at Zamzama Boulevard, Karachi is the first of a planned network of 40 stores to be rolled out across Pakistan over the next 10 years. “New Zealand, where a morning cup of coffee from an artisanal café has been elevated to the status of a national institution, leads the global café culture,” says Bearhug

Food Franchise

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the brand’s hot beverages, including coffee, lattes, macchiato’s, tea and hot chocolate. With heat retention properties equal to the company’s foam cup, the new double-walled paper cup will keep beverages hot while keeping hands cool, without the need for a sleeve. According to Karen Raskopf, Chief Communications and Sustainability Officer, Dunkin’ Brands; “With more than 9,000 Dunkin’ Donuts restaurants in the U.S. alone, our decision to eliminate foam cups is significant for both our brand and our industry. “We have a responsibility to improve our packaging, making it better for the planet while still meeting the needs of our guests. Transitioning away from foam has been a critical goal for Dunkin’ Donuts U.S., and with the double-walled cup, we will be able to offer a replacement that meets the needs and expectations of both our customers and the communities we serve.” In 2011, Dunkin’ Donuts announced that its number one sustainability goal was to find an environmentally friendlier coffee cup. Over the past several years, the brand has worked extensively to find a suitable replacement for the foam cup that met criteria for performance, environmental impact and cost. Dunkin’ Donuts’ transition to paper cups will remove nearly 1 billion foam cups from the waste stream annually.

Chief Executive Jehanzeb Paracha, the master franchisee for Pakistan. “The country’s best coffee houses are at the hub of local communities. They are meeting places for families and friends and a place to informally conduct business from early morning often late into the evening,” added Paracha.

INTERNATIONAL NEWS

Pret A Manger to open at Dubai Mall following success at Dubai airport UK sandwich and coffee chain Pret A Manger will open its first branch in central Dubai later this month at Dubai Mall. Based on the positive reaction the retailer has received to its branch at Dubai International’s Terminal 1, they were looking for new, central locations, Pret A Manger said in a statement. Now, Emirates Leisure Retail, the company’s franchise owner in the UAE, has confirmed the opening of a Pret A Manger restaurant on the ground floor of Dubai Mall towards the end of February, confirming the brand’s official entry in to the market.

JFC takes majority stake in growth focused Smashburger brand Smashburger, the Denver-based “Better Burger” concept, today announced that Jollibee Foods Corporation (PSE: JFC), Asia’s largest food service company, has agreed to acquire an additional 45% of the Smashburger brand for $100M USD, bringing JFC ownership stake to 85%. “Jollibee has been an invaluable strategic partner to date,” said Tom Ryan, co-founder and CEO of Smashburger. “Our momentum in 2017 around improved guest experience, iconic and record-setting product launches, and innovative marketing provide JFC a tremendously strong brand to enter the North American market. Our entire team couldn’t be more excited to grow the Smashburger brand and share the great tastes of Smashburger with the world.” In 2017, Smashburger launched and sold nearly two million Triple Double Burgers setting record levels of mix, sales and traffic. The company also launched the Smash Pass, a subscription model consumer frequency program, a fast casual first.

JFC’s majority stake in Smashburger positions the brand for continued growth. “This reinforced strategic partnership with JFC will allow Smashburger to continue to focus on growth in both existing and new markets including the opportunity to bring our great tasting burgers, fries and hand-spun shakes to Southeast Asia. “We look forward to building upon our successful relationship to further bolster the brand as an international leader in the better burger segment,” said Bradford Reynolds, CFO of Smashburger.

Hooters second German location opens in Hamburg Hooters of America, LLC, today announced the firstever Hooters location in Hamburg, Germany, led by franchisee DDH Gastro GmbH, is now open. The new location will feature a centrally located bar, a wide array of cocktails and craft beers, comfortable seating options, and a top-of-the-line AV package perfect for watching all the games. More than ever, Hooters is the perfect destination for just about any occasion that calls for great food and fun. “With Hamburg being one of the busiest ports in Europe, included in many cruise itineraries, we feel introducing the Hooters concept here is a great fit,” said Mark Whittle, chief

development officer, Hooters of America. “We are confident in our work with the DDH Gastro GmbH team, especially given their wealth of restaurant industry experience. “They are a tremendous asset to introducing the Hooters brand to this area of Germany. We are also very excited to see our resurgence in the growth of new restaurants in Europe, with Hamburg being the third new location opened in the past eight months in the European market.” Hooters continues its acceleration of restaurant openings and is actively seeking qualified franchise partners to open new locations in select markets across the U.S. and around the globe.

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Food Franchise

INTERNATIONAL NEWS

Baskin-Robbins announces expansion in Toronto, Ontario with plans for four new locations Baskin-Robbins, the world’s largest chain of ice cream specialty shops, announced today its continued expansion in the Toronto, Ontario market with the signing of four new store development agreements with three existing franchise groups. The first Baskin-Robbins shop under these new agreements is scheduled to open in 2019. Currently, there are more than 80 BaskinRobbins locations throughout the greater Toronto area, and growing the brand there remains a top priority for Baskin-Robbins in 2018 and beyond. The three franchisee groups and their development plans include: • Baskin-Robbins franchisees Durgesh and Rakesh Sikka plan to develop one shop in Georgetown, Ontario in addition to their existing locations in Brampton. • Baskin-Robbins franchisee James Lin signed a multi-unit deal in Canada with an agreement to develop two units in the Toronto area. • Baskin-Robbins franchisee Chintan Patel plans to develop a single location in the Toronto market. “After experiencing significant growth with our Baskin-Robbins ice cream shops in Brampton, we knew it was time to expand our portfolio with an additional location,” said Durgesh Sikka, Baskin-Robbins franchisee. “We’re looking forward to bringing the brand’s 31 flavour’s to the local community in greater Toronto.” “Our secret to continued growth includes passionate franchisees who provide a high-level of customer service to our guests every day, and we are thrilled that these franchisees will be expanding our brand

further in the Toronto area,” said Grant Benson, CFE, vice president of global franchising and business development, Dunkin’ Brands. “Our hard-working and dedicated franchisees bring our brand, products and promotions to life each and every day and have been essential to our growth, which has solidified our position as a leader in the quick service and ice cream sector.” Franchise opportunities remain available in the Greater Toronto Area. Baskin-Robbins Franchising Managers are available to meet with qualified candidates interested in developing throughout the Toronto area. For additional information, visit the Baskin-Robbins franchising website or contact the Baskin-Robbins Franchising Team at franchiseinfo@baskinrobbins.com or 781-737-5530. Baskin-Robbins combines delicious treats with a simple operating model. Franchisees enjoy convenient hours of operation, minimal equipment and little product waste. They also benefit from awardwinning training programs and comprehensive operating systems designed to help build their business.

Subway franchise operator ‘planning Gulf retail expansion YYT Food Corporation, which is the F&B franchise operator for sandwich giant Subway in the Middle East, has announced new expansion plans across the region. Operating across the GCC, the company said it expects to open 19 new locations by the end of the year. YYT Food Corp said it will achieve a new benchmark of 165 branded restaurants in the region, with an aim to increase its commitment to employment by 20 percent. Owned by Global Capital Management, a subsidiary of Kuwait-based Global Investment House, YYT Food Corp operates established international brands including; Vanellis, Pad Thai, Teriyaki, Subway, Al Mangal Express, Tandori and Menchie’s Yum Yum Tree Brand. M Zakir H Rizvi, chairman of YYT Food Corp, said: “We are proud of our acquisition of the business and steps towards transformation and growth. Global is looking to position YYT Food Corp as an emerging F&B platform.” The company said it aims to double in size - stores and

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revenue - by 2019. Eoin Moore, CEO for YYT Food Corp, added: “We will continue to develop our brand strategy, while focusing on our core values of creating everyday food with fresh ingredients and vibrant energy for our customers.”

INTERNATIONAL NEWS

The Boparan Restaurant Group (UK) to Expand Internationally in Asia The Boparan Group, which includes well known franchise brands Harry Ramsdens, Ed’s Diner and Giraffe World Kitchen, is looking to expand internationally in Asia. Boparan is actively looking for Master Franchisees or Area Developers who have the resources and franchise experience to maximise this exciting opportunity. Harry Ramsdens, Ed’s Diner and Giraffe World Kitchen are all well known and loved UK brands. Following a series of acquisitions, the brands were brought together early in 2017 and have gone through an exciting re-brand and relaunch. All have been evolved, with new menus and fit out and also have exciting new assisted service and quick service options. Brett Bowers, franchise director, Boporan Restaurant Group, explains: “Boparan Restaurant Group is a growing family. We’re a collection of restaurant brands that each

carry their own personality, but share a passion for creating contemporary food and drink experiences that make people happy. Since we purchased these exciting brands last year, following a significant research programme, all have gone through a modernisation process and all have been successfully re-branded and relaunched. To enhance our offering, as well as the traditional full service format, we have developed additional formats that include quick service and assisted service models. “We are delighted with the success of these brands, and as such have decided the time is right to expand further overseas. We are targeting Master Franchisees or Area Developers in Asia, who have the necessary funds and experience behind them to launch these brands and replicate and build on the UK success. Asia is a very exciting growing marketplace with huge potential. Investment levels will vary depending on seating capacity, etc and range from c£280,000 to £1.1 million per unit, plus Master/Area Developer fee, plus local training provision and marketing development costs.

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INTERNATIONAL NEWS

Market

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MArket watch

1. Brand in focus – Yum! Brands (NYSE: YUM) Same-store sales at KFC restaurants rose 3 percent in the Q4, higher than expectations of 2.9 percent. At Pizza Hut, same-store sales rose 1 percent meanwhile at Taco Bell, same-store sales rose 2 percent. The company blamed weaker demand at the two chains in the fourth quarter. The company forecast that samestore sales will grow 2 to 3 percent this year and that net new unit growth will be 3 to 4 percent. Yum commented that at the end of 2017 it was able to become 97 percent franchised and by the end of 2018, it expects to grow to 98 percent franchised.

supports our vision for a ‘World with More Yum!’ and maximizes the creation of value for all Yum! stakeholders.” David Gibbs, President and CFO, continued: “The fourth quarter was a solid ending to a year where Yum! Brands met or exceeded each component of our full-year guidance. “Despite headwinds from refranchising dilution and lapping a

53rd week, we delivered full-year core operating profit growth of 7%. We are on track with our strategic transformation to accelerate growth and made significant progress towards achieving these objectives in 2017. “We look forward to updating you as we continue on our journey to build the world’s most loved, trusted and fastest growing restaurant brands.”

FOURTH-QUARTER HIGHLIGHTS • Worldwide system sales grew 4%, with KFC at 6%, Taco Bell at 3% and Pizza Hut at 1%, excluding the 53rd week. • The brand opened 730 net new units for 3% net unit growth and refranchised 896 restaurants, including 685 KFC, 144 Pizza Hut and 67 Taco Bell units, for pre-tax proceeds of $1.1 billion. • Net refranchising gains of $752 million were recorded in Special Items. As of quarter end, global franchise ownership mix increased to 97%. • 7.5 million shares were repurchased totalling $588 million at an average price of $79. Foreign currency translation favourably impacted divisional operating profit by $9 million. Greg Creed, CEO, said; “As we close the first full year of our transformation, I am very proud of the progress we are making towards becoming a more focused, more franchised and more efficient company that generates more growth. “During 2017, system sales grew a healthy 5% excluding the impact of lapping the 53rd week in 2016, with same-store sales growth of 2% and net new unit growth of 3%. As we move forward into 2018, we are particularly excited about our investment in ‘Easy’ with our new partnership with Grubhub. “We are confident that the continued focus on our four key growth drivers

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MArket watch

McDonalds McDonald’s posted its best same-store sales growth in six years, and its sales were buoyed by value promotions, new menu items and expanded McDonald’s delivery platform. • Global comparable sales increased 5.5%, reflecting positive guest counts in all segments • Due to the impact of the Company’s strategic refranchising initiative, consolidated revenues decreased 11% (15% in constant currencies) • Systemwide sales increased 8% in constant currencies • Consolidated operating income increased 9% (6% in constant currencies) • Diluted earnings per share of $0.87 decreased 40% (42% in constant currencies), reflecting a net tax cost associated with the Tax Cuts and Jobs Act of 2017 (“Tax Act”), which totalled $0.84 per share. Excluding the impact of the Tax Act, diluted earnings per share was $1.71, an increase of 19% (16% in constant currencies.)

Domino’s In their latest trading update the worldwide pizza company has revealed strong results in the UK & ROI, as system sales were up 10.1% in the quarter - or 9.9% excluding currency effects. • • • •

In the UK, system sales rose 9.8%, with new store openings and like-for-like performance both contributing strongly. Like-for-like sales growth, excluding stores in split territories, was 6.1%, driven by strong order growth. UK online sales were up 14.5% year-on-year, representing 77% of system sales in Q4 as their investment in digital capability continues to deliver benefits for customers. They opened 37 stores in the UK during Q4, taking the total for 2017 to a record 95 - comfortably surpassing the previous record set in 2016 and creating more than 3,300 jobs. By the period end we were trading from 1,045 outlets.

Restaurant Brands International In Q4 they achieved improved system-wide sales growth at BURGER KING, driven by accelerated net restaurant growth and continued comparable sales momentum. Meanwhile at TIM HORTONS, we launched our mobile app and our espresso based beverage platform in Canada and the U.S. and also opened our first restaurants in Asia, Europe and Latin America. • Total Revenues of $1,234.2 million versus $1,111.4 million in prior year period • Net Income Attributable to Common Shareholders of $395.0 million versus $118.4 million in prior year period • Diluted EPS of $1.59 versus $0.50 in prior year period • Comparable sales, in constant currency, of 0.1% at TH, 4.6% at BK, and (1.3)% at PLK • System-wide sales growth, in constant currency, of 2.4% at TH, 12.3% at BK, and 6.8% at PLK

Marston’s Marston’s continued to make progress in the period with growth in both sales and underlying earnings, helped by the acquisition of the Charles Wells Brewing Business. However snow and icy weather towards the end of the period, both in early December and between Christmas and New Year, caused some unavoidable disruption to the business. • Destination and Premium: Total sales for the period are up 4.9%. Like-for-like sales in the period, excluding the impact of the two snow-affected weeks, are up 1.1%. The weather impact on like-for like sales was around 2%, and on an unadjusted basis like-for-like sales were down 0.9% in the period. • Leased: Marston’s leased estate has performed well, with profit growth in the period estimated to be 2%. • Brewing: Marston’s Beer Company has achieved good growth in the period to date, with own brewed volumes up 33%. In addition to the acquisition of Charles Wells Brewing Business (“CWBB”) they are benefiting from distribution gains achieved in 2017 and a stronger brand portfolio well represented in the premium ale, craft beer and ‘world beer’ segments.

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food franchise services

Small but perfectly formed Introducing the new Carpigiani 161 The world leader in ice cream and gelato equipment, Carpigiani, has announced the launch of the brand new 161, an innovative, compact, soft serve ice cream portfolio. Available in the UK from January 2018, the new 161 series will feature a 161 G and 161 G SP, a self-pasteurising model, the latter of which is capable of achieving an incredible 42 day cleaning cycle. As expected from Carpigiani, the new 161 portfolio is packed full of state-of-the-art technology, pioneering features and inventive designs, to create the company’s smallest ever soft serve machine. Ideal for cafés, coffee shops, restaurants and kiosks lacking in available space, the unique design of the 161 results in a footprint of just 300mm x

630mm x 850 mm (w/d/h). What’s more, the models in the 161 range will be sold at an all-time low accessible price point of under five and a half thousand pounds for the 161 G, non-pasteurising model and less than six and a half thousand pounds for the 161 G SP, self-pasteurising model. Designed from the ground up, the new 161 uses air cooled technology, generating flow through a removable air filter at the base of the unit, channelling hot air exiting at the top. This not only improves efficiency, but also allows the unit to be positioned directly next to another appliance, delivering even greater space efficiency on a limited countertop. A contemporary stainless-steel counter top design, complete with multifunctional display,

Valoriani To-Go Explodes Mobile Pizza Oven Myths Valoriani UK is heading into 2018 exploding myths about its street food and mobile pizza oven options, aided and abetted by the creation of a ‘Valoriani ToGo’ brand for its mobile ovens. Valoriani UK has supplied highperforming mobile pizza oven options since 2003, when it probably introduced the UK’s first mobile pizza ovens. These have always been competitively priced, despite high-quality credentials. This has not been appreciated, so ‘Valoriani To-Go’ is changing that! Valoriani To-Go is an attention-grabbing range full of personality and ovens that cook quality pizza and other dishes, in superb heat-retaining ovens, swiftly serving a queue. One of the range’s stars is the cult Piaggio Ape pizza van – a breathtaking outdoor wood-fired option, with a Valoriani FVR UK 100 oven at its heart. Valoriani launched these in the UK in 2005 and some have been cooking great pizza for over 10 years’ now, proving that Valoriani ovens are synonymous with longevity. This Piaggio Ape option is perfect for larger catering events, or street

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food vending. It is light, small and weatherproof, and can be flued for indoor use too. It has a hand wash facility, on-board storage, pull-out and folding stainless steel surfaces and specialist insulation, to prevent burns. The stainless steel flue and rain cap are very rust unfriendly! Valoriani customers can commission a wow-factor Piaggio van, or create a bespoke outdoor vehicle talking point. That could be an on-the-road mini Taj Mahal, or an oven housed in a former postal van or horsebox. Virtually anything is possible! The Forno Bici – a pizza oven attached to a fully balanced, geared tricycle conversion – is the quirky and sustainable option, perfect for batch catering or vending. It features a Valoriani Fornino UK 60 al fresco, wood-fired oven, which cooks a 30cm pizza in 90 seconds, has a robust weather resistant construction and comes with hidden stainless-steel work surface, plus discrete storage area. The top-of-the-range, professional Valoriani wood-fired trailer oven features a Vesuvio Igloo UK oven built on a robust twin-axle braked trailer. It’s the choice of

standard 13-amp plug-and-go operation (never before available for a self-pasteurising model) and delivered ‘Teorema Ready’ giving operators the choice of using Carpigiani’s unique remote monitoring and diagnostic software, achieves an easy to use appliance, with an impressive hourly output of up to 15kg. As with the other models the company’s soft serve range, the new Carpigiani 161 is fitted with a unique tank agitator to ensure an exceptional product consistency, while also allowing operators to use the appliance to produce frozen yoghurt, without the risk of the mix separating.

high-volume outdoor caterers handling large events, festivals and weddings, is formed from Valoriani’s acclaimed ‘cotto’ clay and retains heat brilliantly. It cooks five or six 30cm pizzas at once and easily reaches 300-450 degrees centigrade in an hour from cold. It even reaches this temperature, the following day, in just 20 minutes! All Valoriani To-Go ovens have DEFRA licenses for use even in Smoke Control Zones. With a new focus on smog, particularly in Britain’s cities, all outdoor caterers should seek guarantees that their oven is environmentally legal in the same way, and also check it has food safety accreditation. Valoriani is one of the few – perhaps only oven brand - with food safety accreditation and certainly won’t disintegrate and become food-unsafe, after a short period of operation and exposure to bad weather. “Valoriani To-Go ovens are already on many outdoor caterers’ 2018 wish lists,” says pizza oven pioneer, Andrew Manciocchi, “but we need to explode a few myths to make more outdoor caterers aware of their availability, great price, amazing longevity and vital certification. Outdoor caterers need to gear up wisely for the forthcoming season and also try to buy now, before the next recession sets in.”

FOOD FRANCHISE services

Improved Ubert Rotisserie’s already stacking up for Euro Catering Development, testing and refining of Ubert’s convex chicken rotisserie over the last 12 months has resulted in a new, advanced model that innovative catering equipment supplier and dealer network principal, Euro Catering, has already supplied to a leading UK supermarket chain. The double-stacked unit, ideal for use in fast-moving retail units, now cooks thirty-two 2kg chickens at a time, in just 1 hour 45 minutes, to a core temperature of over 85°C, with Ubert having increased its capacity and reduced the cooking time required by the original model. The 8-spit pass-through, self-washing unit uses a combination of convected heat and quartz grilling lamp, to produce crispy, brown chickens that are tender and juicy inside and mouth-wateringly attractive to the shopper’s eye. Rotisserie operators can decide how dark they wish their chicken to be, by increasing suggested cooking time at the

touch of a button. The electric controls are programmable and an automatic motorised steam release vent controls the humidity within the cooking chamber. Other foods, such as roasts and pies, can be cooked within the oven using optional baskets. The new model is also more attractive than its predecessor, with a smarter black laminated glass finish to the doors and an enamelled black finish to the metal surfaces. However, it is the ease of cleaning that kitchen staff will most appreciate, with the former manual cleaning system now being superseded by a five-wash, self-clean system which makes the operation of the Ubert rotisserie more hygienic and less of a strain on the kitchen team’s capacity. Two of Euro Catering’s technical team got up to speed with the Ubert Convex RT616 Rotisserie, during a visit to Ubert’s head office in Germany and have since been sharing their knowledge of the

technologically advanced rotisserie. Given the huge popularity of rotisserie chicken, Euro Catering believes many retailers will take a look at this model. Sales director, Justin Towns, says: “This Ubert rotisserie ticks all the boxes of retailers wishing to sell roast chicken as easily and hygienically as possible. We anticipate a lot of dealer enquiries and wanted to ensure we could offer our dealer network excellent after-sales service. That made it important for our technical team to be fully manufacturer-trained on the rotisserie.” Euro Catering’s development chef and food technologist, Darren Massey, adds: “Every aspect of this rotisserie has been improved and that makes it a real star. Having delivered training on this unit, I can vouch for the fact that the chickens cooked are succulent and pleasing to the eye, however brown the customer wishes to make them. The wash system makes operation pain-free and the reduced cooking time and increased capacity means more opportunity to make sales and keep up with demand.”

FOOD FRANCHISE services

Convotherm Launch New Mini Combi Steamer Models Convotherm is delighted to announce the launch of its brand new generation of Convotherm mini combi steamers. The latest innovation within the combi steamer series, Convotherm’s new models of its revolutionary compact combis feature two newly designed user interfaces – easyTouch® and Standard - both surrounded by a new, modern sleek black control panel and an eye catching metallic body. The ingenious new design also showcases a much larger, observation window making it easier than ever for operators to check on the food cooking within the unit without having to open the oven door. As a pioneer of compact combi steamer technology, Convotherm’s newest generation of Convotherm mini models provides establishments of all sizes, from cafes and bakeries to restaurants and cost sector catering set ups, with a flexible cooking solution – all from a unit with a width of only 51.5cm enabling it to fit in any kitchen space or even on a countertop front of house. Perfect kitchen all-rounders, the new Convotherm mini is able to roast, grill, steam, fry, bake and regenerate providing operators with the opportunity to create an exceptionally versatile menu that can be achieved on a small footprint.

Thanks to its large cooking chamber, the new Convotherm Minis are also fully compatible with gastronorm trays allowing operators to use existing cookware within the compact unit. For those requiring multiple mini units, the Convotherm minis now offer a stacking feature so caterers can expand their cooking facilities without the need for any additional counter or floor space. The new Convotherm mini allows operators to choose from two different user interfaces – the Standard model which is fitted with a manual control panel utilising clear buttons and a tilt selector switch - or the easyTouch easyTouch® option. The Standard model provides a comprehensive selection of manual cooking functions, for those looking to be more creative within the kitchen, or for chefs with a higher skill set. The second control option is the easyTouch® user interface. Consisting of an intuitive colour touch screen these models provide both manual and automatic cooking modes for ultimate ease of use. With one touch operation, any member of staff can operate the appliance saving time and energy when training staff and when using the equipment on a daily basis. Utilising the Press&Go function, the Convotherm mini will

begin cooking the pre-loaded cooking profiles and for those wanting to keep their menus up to date and on trend, operators can create and upload their own cooking profiles using the USB port on the control panel. The cooking profiles can contain steps on each cooking process that aids the operator and reduces error during busy service periods. It also ensures that high quality, consistent products are always achieved. In addition, the easyStart function further simplifies use and offers baking and cooking for six different food categories. The clever cooking profiles provide operators with suggestions for mixed loads and thus ensures the perfect utilisation of the combi steamer, even at peak times.

Ice-O-Matic ‘solves’ historic industry problem plaguing ice machines Classeq has launched a new range of IceO-Matic ice machines to the UK market – and claims to have found a solution to the age-old industry problem of hot-air discharge clearance. The new ‘Elevation Series’ is the brand’s most advanced yet in terms of groundbreaking design, operational excellence and environmental stewardship, according to the company. There are four modular ice cube models in the range and all meet or exceed the 2018 Department of Energy (DOE) regulations with up to 20% more energy efficiency than any other model on the market, Classeq claims. The range is designed with the environment in mind, including BPA-free plastic and

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recyclable parts. Adam Lenton, marketing manager for Classeq, which serves as the exclusive distributor for Ice-O-Matic in the UK, said: “The new Ice-O-Matic Elevation Series range is a step forward for the industry as a whole. Many of the range’s features are a first for the hospitality sector and the design is ‘genius in its simplicity’ allowing for ease of operation, cleanliness and value. Features such as the hot air discharge is a step change for users in how machines can be sited to optimise bar space and increasingly, environmental issues are driving technological advancement and progression.” A dual exhaust feature is standard on every Elevation Series unit and discharges hot air

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from both the side and the top, meaning it can fit tight spaces regardless of air flow requirements. It also negates the need for kits to adjust airflow, making it the only range on the market to not require a kit, according to Classeq. A ‘smart’ LED light on the machines indicates when cleaning is required, while a one-touch cleaning, descaling and sanitising feature ensures food safety.

FOOD FRANCHISE services

Euro-Catering Launches Entry-Level Pizza Oven Dynamic catering equipment supplier, Euro Catering, is importing another equipment solution that will enable start-up operations, and other caterers seeking an entry-level pizza oven, to access first-rate equipment. The Northamptonshire-based supplier is working with Italforni – an Italian manufacturer with which it has a 20-year relationship – to introduce the EK4 and EK44 single and doubledeck electric pizza ovens to the UK market. This provides those hoping to a take a slice of the booming pizza sector with a viable new choice. Euro Catering’s sales director, Justin Towns, says: “We recognised the need for those entering the pizza sector, or offering pizza as a new menu choice, to have an entry-level oven, at a keen price, but to also have the peace of

mind of knowing that spare parts and service will always be available in the years ahead. “Italforni is a well-established manufacturer, with three decades of high quality service to its name. The ovens already come with two years’ parts and one year’s labour protection. Thereafter, the purchaser can rest assured that Italforni will be around to offer any support required. This distinguishes these entry-level ovens from many others in the market.” These high-quality, compact ovens come with an aluminiumcoated, steel plate cooking chamber, high-performance electric heating elements and highly resistant and efficient halogen lamps. They have a refractory baking floor, to create the perfect conditions for cooking

pizza, and separate thermostatic controls to individually control the base of the oven, and its ceiling. A single-tempered glazed door is counterbalanced, to improve opening and closing. The ovens can reach a temperature of 450°C and have a vapour-release feature that ensures excess moisture is removed from the oven chamber during cooking. The EK4 can cook four 13-inch (33cm pizzas) at once, whilst the two-deck E44 doubles this capacity. As with all Italforni ovens, the thermal insulation of the EK4 and EK44 is based on the use of the best materials and the expertise that comes from Italforni having over 30 years’ experience in the pizza oven market.

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FOOD FRANCHISE services

Minister commits to helping tackle the catering equipment skills shortage CESA’s meeting on February 5th 2018 with Rt Hon Anne Milton, the Minister of State for Skills and Apprenticeships, and Semta (the Science, Engineering and Manufacturing Technologies Alliance) has resulted in the Minister committing to host a meeting to help the industry meet the challenge of the skills shortage. “The main discussion looked at the need to develop a responsive, employerled, fit for purpose education skills system for employers large and small,” says Keith Warren, director of CESA. “Just as importantly, it has to work for individuals entering the engineering sector and those already employed within it.” The meeting will involve 2030 organisations, including trade

associations such as CESA, equipment suppliers and major foodservice operators. It will look at how the separate sectors can work together to develop strategies for careers development. “Many people working in hospitality move over to develop a career in the catering equipment supply chain,” Warren points out. “The synergies are clear.” The Minister also offered to attend a round table to stimulate active engagement from employers in the business critical area of skills development. “We need a whole new set of strategies to meet the skills shortage challenge,” says Warren. “We have to improve the employability of those

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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.

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leaving our schools and universities, and encourage them to look at a career in catering equipment.” One key issue raised by CESA members is that some schools and colleges no longer welcome representatives from SMEs coming in to offer careers advice. “There seems to be an increasing focus on getting students into university, as opposed to following an apprenticeship route,” says Warren. “The Minister was very concerned to hear these stories and intends to investigate the issue. “I would be grateful if any other catering equipment companies who have experienced this would contact the CESA Secretariat. Encouraging apprenticeships is a key strategy in meeting the skills shortage.”

Food Temperature Safety The Chef’s Drawer – bulk refrigerated storage, right where you need it Williams’ latest product is a drawer unit that maximises refrigerated storage in any kitchen where space is limited. Available as either a fridge or a freezer, the Chef’s Drawer accepts 2/1GN pans, up to 150mm deep, and offers a capacity of up to 94litres. The Chef’s Drawer is a truly versatile refrigeration solution. It’s designed to fit perfectly with the latest prime cooking suites, such as the Falcon F900, so that the refrigerated ingredients are right where they are needed, at ‘the cook face’. Two drawers can be stacked on top of each other, to double storage in the same footprint and allow a refrigerator / freezer combination. As you’d expect with a Williams product, the Chef’s Drawer is designed to be totally practical and tough, to stand up to life in the busiest kitchen. It’s built with stainless steel interior and exterior and can operate in ambient temperatures up to 43°C. Its drawers and fittings are removable for easy cleaning. Even the cassette refrigeration system is removable, making servicing and maintenance easy, without disturbing the kitchen operation. Low level swivel and brake castors are fitted as standard, making the drawer both totally stable and easily manoeuvrable.

So you’re starting a new franchise and have an equipment wish list as long as your arm. Whatever you do don’t forget one of the essentials: an accurate food thermometer. Sadly, for a number of start-ups this requirement is too often left off the list until it is too late. Routine temperature recording is critical for food safety which is why it is a legal requirement and will feature highly on your EHO’s check list. However good your footfall, a low food hygiene rating is there for all to see and will definitely impact on numbers through the door. Worse still, if you unknowingly serve food which has not reached its recommended core temperature, one of your customers could be unlucky enough to fall prey to a potentially dangerous food bug like salmonella. But hang on a minute – luck doesn’t really come into it, when easy to use, high accuracy thermometers are readily available from under £50. The best digital thermometers are highly accurate and respond very quickly. Those with a front-facing display and few or no buttons to press are the easiest to use. Thermometers with integral fold-away needle probes are popular with many chefs or for a more flexible option, a multi-purpose thermometer with interchangeable probes can be more useful and cost effective. Waterproof thermometers and dishwasher safe probes are more hygienic than relying on a tub of probe wipes. If you already use colourcoded chopping boards and knives, match them up with colour-coded food probes – a much cheaper option than purchasing a different thermometer for each food group. If you have an eye to the future, you could save a huge amount of time at the outset by investing in one of the new paperless temperature recording systems. Barcode scanning thermometers are a proven way to improve due diligence by automatically recording temperatures and downloading the data to your smart phone or computer. No pen and paper required! Of course not all franchises are the same, and there is a wide range of equipment to choose from. Avoid false economies by always opting for robust, high accuracy thermometers that will last - and for advice you can trust, use a reputable thermometer manufacturer or kitchen equipment supplier with expertise in food temperature safety.

Top Temperature Tips

Cooking - Never serve food which has not reached the recommended

core temperature. Fast food favourites like chicken, burgers or reheated ready meals are particularly sensitive. Deliveries - Never accept fresh or frozen supplies unless you are satisfied with their temperature. Why pay for someone else’s mistake? Storage - Store refrigerated food at the correct temperature to avoid contamination and extend shelf life.