FOOD FRANCHISE Fast Food Franchise
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QSR Franchise
Coffee Franchise
Food-to-go Franchise
COFFEE FOCUS
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Restaurant Franchise
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IOONN I T I T I D D E RR E E E T M N M I SWU
With coffee now worth £8.9 Billion in the UK we discuss the evolution of this valuable commodity in the world of franchising
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Pub Franchise
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FOOD FRANCHISE V4 ISSUE 3 SUMMER
Be Inspired We speak to Adnan Jabir, bake&TAKE’s newest franchise
FRANCHISOR Q&A
ONE TO WATCH
We speak to a host of established franchisors to find out what they look for in a franchisee
Print edition £3.99 SUMMER EDITION
We speak to David Hodgetts from Triple Two Coffee and find out why they look set to take the franchising world by storm
NEWS We round up all the latest news from across the industry over the last quarter
MARKET WATCH Our insight into the biggest franchises on the stock market
Editor’s message
Publishing Director
Lewis Wantling info@mvhmedia.co.uk Office: +44 (0) 333 003 0499
Advertising sales
Sandra Bouillet sandrab@mvhmedia.co.uk Office: +44 (0) 333 003 0499
Production Editor
Liam Higgins Design@mvhmedia.co.uk Lili Sipeki lilis@mvhmedia.co.uk
Features & News Writer Susanne Wynne susannew@mvhmedia.co.uk Office: +44 (0) 333 003 0499
Features & News Assistant James Whittaker jamesw@mvhmedia.co.uk
Contributors Gabe Maldoff James Mullock Gurmeet Jakhu Jess Bains
Finance
Laura Williams finance@mvhmedia.co.uk Office: +44 (0) 333 003 0499
W
elcome to the summer 2017 edition of Food Franchise magazine.
The world of franchising has never been more exciting, last year a record number of 97% of franchisee owned units reported profitability. This coupled with the fact that consumer demand for fast food has never been higher, food franchising is becoming an increasingly viable and astute financial option for investors. This edition not only explores the latest industry news, views and insights, we have also included a host of jam packed features, such as our ‘Franchisor Q&A’. We have spoken to expert industry voices from established franchisors such as Papa Johns, Orange Buffalo, Beatons and Chopstix. They discuss what they look for in a franchisee, what you should expect from your franchisor, the current opportunities available and they also give their expert advice on opening up a franchise in the current market. In our exciting ‘One to Watch’ feature we catch up with David Hodgetts, one of the founders of Swindon based coffee shop and eatery Triple Two Coffee. David discusses what inspired him and his partners to set up Triple Two Coffee, where he sees the business going in the future and gives exclusive insight into why you should consider Triple Two Coffee as a franchise opportunity. Popular bakery and coffee shop franchise Bake & Take are this editions ‘Be Inspired’. We speak to Adnan Jabir who has just opened up a new store in Bury. He discusses the new store opening and the benefits of being a franchisee. Also with the snap general election now just around the corner Katee Dias discusses the five employment laws employers should think about in the lead up to the 8th of June, including social media implications. Do you know what your employees are posting online? Finally we also speak to Jess Bains of ‘Franchise Sales & Resales’ the only British Franchise Association (BFA) affiliated broker service in the UK. Jess offers his expert advice and guides you through the services Franchise Sales & Resales offer to both franchisees and franchisors. Would you like to have your say? We want to hear from you! You can tweet us @franchise_food or email us via editor@mvhmedia.co.uk
The Food Franchise Team Publisher MVH Media Ltd.
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.
GET IN TOUCH www.foodfranchisemagazine.co.uk
Front cover image courtesy of Bake&TAKE Page 50
@franchise_food
The opinions expressed are not necessarily those of the editor or the publisher. 3
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Contents SUMMER
06
06 Industry News We round up all the latest news from across the industry over the last quarter.
28 Franchisor Q&A We speak to a host of established franchisors to find out what they look for in a franchisee
50 Be Inspired We speak to bake&TAKE’slatest franchisee Adnan Jabir
28
55 Making Franchising Your Future Gurmeet S Jakhu discusses why Due Dilegence checks are important
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55
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41 One To Watch We speak to David Hodgetts from Triple Two Coffee and find out why they look set to take the franchising world by storm
63 International News We round up the latest developments from brands around the world
59 Market Watch Our insight into the biggest franchises on the stock market
63
38 Data Protection How the ‘General Data Protection Regulation’ could affect your business
70 Legal Katee Dias highlights the five employment laws to consider in light of the snap election
75
46 Coffee Focus We discuss why a coffee franchise could be a great investment
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News Round-up
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WARNING: Outbreak of
Orange Buffalo Fever Imminent An epidemic is slowly but surely spreading across the nation… Recently awarded the “Best Restaurant” in Time Out's love London awards for the Shoreditch/Hoxton area, people all over the country now are starting to develop Orange Buffalo fever! With a permanent truck in Brick Lane, Shoreditch, The Orange Buffalo have now opened their first kitchen at The Joker Brighton. Providing award-winning NY style Buffalo wings, beastly burgers & more. Quoted by many online as being
“The best wings I’ve ever tasted” and “ the best wings in London” Orange Buffalo have also seen recent success in their Brighton branch, being big winners at the Brighton & Hove restaurant awards taking the 'BEST PUB GRUB' award. This continued success can only mean one thing! When will they be heading up north?....
UK GERMAN DONER KEBAB FRANCHISE GOING FROM STRENGTH TO STRENGTH GDK is reinventing the kebab world and has exceeded its expectations since its UK launch last year with many of its stores turning over more than 30,000 a week. The German Doner Kebab franchise GDK is an international franchise was introduced to the UK and Ireland by phenomenon with 45 stores worldwide. It United Brands who acquired the master was created in Germany in 1989, with the franchise. The Sarwar family operate one vision to of Scotland’s most successful business groups. The £230m empire encompasses a wholesale cash and carry business, 532 franchised convenience stores, a chain of pubs, Asian restaurants and a pharmacy group as well as a soft play centre and bowling alley.
create classic, authentic and healthy kebabs, combining high quality produce with excellent customer service.
GDK UK CEO Imran Sayeed explains: “We came across German Doner Kebab on a business trip to Dubai just over four years ago, and were blown away with the quality it provided, so decided to investigate the company further. We visited the HQ in Dubai and discovered they had 25 stores globally. The kebab is very popular in A GDK kebab has less than half the Germany and is considered the number one street food. Our kebabs offer a healthy calories of a regular kebab, as it only uses alternative to burgers as they are lower in 100% lean, succulent, halal meat, along with handmade breads and signature calories. sauces. 7
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NEWS ROUND-UP
Pig out at Burger King
Burger King has launched their new limited edition menu – the Bacon Feast. Consisting of two brand new burgers and a side, the new menu has launched at participating restaurants for a limited time only. The new line-up features the Smokey Baconnaise Angus and the Smokey Baconnaise Tendercrisp, available with a brand new ‘Baconnaise’ sauce. Accompanying the line-up, is Burger King’s brand new snack; Bacon Cheese Bites. The popular cheesy snack with a bacon twist! Leandro Gasparin, Vice President and General Manager North Division at Burger King added:
“Burger King is firmly committed to delivering innovative,
great-tasting food at affordable prices
for all our customers. We pride ourselves on listening to guest feedback and introducing a brand new bacon based line up is part of our ongoing commitment to giving guests what they want.”
Great success for The Franchise Club The Franchise Club recently held its inaugural event in conjunction with FranchiseSales.com and NatWest at the RBS Building in Bishopsgate and it was a great success.
the Franchise Club uses a panel and question and answer structure, meaning that the audience actively participates in the discussions, with the aim of informing and producing lively debate.
The Franchise Club is a forum set up by franchise solicitor, Jasmin Crilly and her colleagues at A City Law Firm Limited for people within the franchise industry, including franchisors and franchisees and those looking to become involved in franchising no matter the sector. The aim is to host 3-4 events a year covering different topical issues, and crucially providing an opportunity for people to network and bounce ideas off of each other. Solicitor Jasmin Crilly added: “We aim to provide something different. Eschewing the idea of long presented talks,
“A range of speakers are invited to participate, on this occasion we were joined by Ian Mckintosh of Red Driving School, Sean Conlon of We Make Footballers. Don Lyon of Time for You cleaning, Jon Fordham of Nat West Bank and Barry Who’s range is freshly baked to Leibovitch of Accountants Tish Leibovitch. order daily and includes a wide variety Jasmin Crilly and Jackie Watts provided a of Waffles, Fresh Fruit Smoothies, Real legal perspective. Fruit Milkshakes, Gelato Ice Cream along with Freshly Baked Jacket Potatoes, “The feedback was excellent and a Organic Soups and Fresh Hot Drinks have networking session to finish meant that announced the opening of a new Kiosk at some fantastic relationships were forged.” the Dockside Outlet Centre Maritime Way Chatham Kent.
WaffleDelight
Their next kiosk is due to open this June at The Mercury Mall in Romford Essex. Expansion for Waffle Delight continues and they are still looking for new franchisees for shopping centre locations across the UK.
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NEWS ROUND-UP
Fatburger announces second UK restaurant
Capitalising on the ongoing gourmet burger-boom, Fatburger, known for its juicy, made-to-order burgers, announces the opening of its second UK restaurant in London, Wembley. Set in the middle of the city’s sporting hub, the fast-casual chain is excited to bring its all-American cuisine to families looking to have a fun-filled day. Fatburger opened its first restaurant in Camden, London back in 2015 and has plans in the pipeline to open another 20 over the next 5 – 7 years. Fatburger and Buffalo’s Café CEO Andy Wiederhorn said: ‘‘As global demand for our product grows, the next logical step is bringing Fatburger and Buffalo’s Express to Europe.
‘London is a bustling, dynamic city and our new restaurant will offer tourists and locals alike a chance to sit, relax and enjoy our delicious American cuisine.’’
So what can you expect from Fatburger? All the food is fresh, the burgers are available in a variety of sizes. These high quality gourmet burgers are very much American in style, so they include a green cucumber relish, gherkin and lettuce, as well as extras, if required. They also have a ‘Skinny Burger’ for people who are more health-conscious and a ‘Veggie Burger’ – there are options to cater for everybody. The Buffalo wings can be served on the side with burgers, if desired, and there is also a chilli option. 10
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Just Eat under investigation over multi million pound takeover of Hungry House The Competition and Markets Authority is investigating the potential of the proposed merger to curb competition in the takeaway food industry. Just Eat serves more than 16 million takeaway customers and some 60,000 restaurants in more than 10 countries. The acquisition of Hungryhouse is expected to add up to £15m to its earnings. London-based Just Eat provides an online platform and delivery drivers for restaurants that pay for the service, in a growing sector that also includes Uber and Deliveroo. The CMA said both Just Eat and Hungryhouse were close competitors because of the similarity of their service and their broad geographical coverage. It also said the likes of Deliveroo, UberEATS and Amazon Restaurants
represented less direct competition because they target different types of restaurants. Just Eat has until the 17th May 2017 to try and resolve the concerns otherwise investigations will be referred to a step-2 investigation.
ONE STOP’S LUNCHTIME MEAL DEAL JUST GOT COOLER At a time when most convenience stores are increasing the price of their lunch time meal deal, One Stop continues to improve their offer for customers, whilst maintaining a market leading £3 price point. Over the past few years, One Stop has improved several of their ‘Meal Deals’ to give better value to customers across a variety of meal occasions. The latest enhancement is to their renowned £3 lunchtime meal deal, which sees the introduction of 14 ice cream lines aimed at driving sales when the weather is hot, both over the summer months and during pockets of good weather throughout the year. Further to this, it provides an opportunity to encourage customers purchasing an ice cream to shop the wider meal deal. Starting from the 26th April customers will be able to add selected handheld ice creams (up to the RRP £2.29) as a ‘snack’ in their meal deal, with the best value combination offering a massive £4.69 saving! The introduction of premium sandwiches and hot drinks last year, alongside ice cream, could see One Stop’s lunch time meal deal become the best value lunchtime meal deal in the market,
as it now offers customers the choice of hundreds of combinations. Some of the ice cream lines added include favourites such as Ben & Jerry’s ‘Wich Sandwiches, Wall’s Max Duo, Cornetto, Solero and Oreo.
“It’s a win, win for both customers and franchisees explains Galen Levi, Head of Proposition for Franchise, ‘This great initiative ensures that customers now have a huge choice of meal options and our franchisees enjoy a great footfall driver courtesy of what has become a real destination for customers – where else can you pick from such an extensive range of sandwiches, snacks, confectionery, hot and cold drinks, Slush Puppie and ice cream from just £3!
When questioned about the career change, from TV to buffet catering, Feliciano explained: “It might not be as dramatic as my previous line of work, but customer service runs right through my professional life and is in my DNA. “I am hungry for a fresh challenge and believe that owning a Jaspers’ Catering business is the right progression for me. I want to own a franchise with an established brand, covering a wide geographical area and Jasper’s will provide the support and marketing that isn’t available to a sole trader. “My diverse experiences of people, in addition to the proven Jasper's systems and processes, will help me confidently on my way. “Jasper’s is a well established catering business with branches in Birmingham, Manchester, Newcastle, London, Brighton and other areas across the UK so we have a good network to share with. The training has been intense on all areas of the business but we are well prepared now to start serving our customers. “One of things we love so much about Jasper’s is the range of buffet food on offer: so many bread types, sandwich fillings, finger foods and desserts; and different ranges to match any occasion, number of people or budget: Classic buffet catering; Tapas buffets; Bamboo bowl food buffets; Picnic catering; Hot Food and even healthy workplace snack and fruit deliveries. “And everything is underpinned by the Jasper’s Guarantee so customers can feel reassured. “We can’t wait to get out there to show the businesses in and around Epsom what we have to offer them. If they want to know any secrets about what makes a great soap opera storyline I will be happy to discuss that too!”
New business owner rewrites his future with Jasper’s Catering Feliciano
Torres, originally from Argentina, is the latest business owner to join the Jasper’s Catering network. Feliciano has moved with his wife Paulina from Mexico to the UK, to open the new branch of Jasper’s, serving buffet catering to business customers in Epsom, Leatherhead, Tadworth, Coulsdon, Sutton,
Purley, Chessington, Esher, Walton on Thames, Morden and most of Surrey. It’s quite a change for Feliciano who worked as a script writer for Mexican soap operas as well as a TV producer in the US and Latin America for the past 20 years! The birth of their daughter Nina in 2014 encouraged the couple to settle permanently in the UK, and led to Feliciano rewriting his plans for the future, to create a better life for his family. 11
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NEWS ROUND-UP
McDonalds home delivery coming to the UK in June The fast-food giant has announced it is to trial a home delivery service this summer. McDonald’s will soon be trialing delivery models to compete with market giants such as Deliveroo and Just Eat. UK Chief Executive, Paul Pomroy told Sky News:
“What’s obvious to us now is that customers now would like McDonald’s to look at delivery. “The market’s growing – I’ve been looking at that market for 18 months now – customers are starting to ask us when McDonald’s are doing delivery. “We think we’re going to start probably in June. We’ll start in a small, controlled way.” A company spokesperson told The Independent: “It is no secret we have been looking at the potentially of delivery in recent months. This service is offered in other markets around the world and its growth within the UK, continues to gather pace. 12
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Listening to our customers, we know that this is a route they would like us to explore, and I can confirm that we are looking to launch a delivery pilot this summer.”
bake&TAKE targeting 100 new UK stores in next five years bake&TAKE UK, Europe’s number one self-service bakery franchise, is targeting over 100 new stores in the UK over the next 5 years. They currently operate a flagship company owned store in Ashton, Manchester, with further franchisee owned stores in Telford, Lewisham, Hounslow, Bury and others about to open in Aberdeen and Eastbourne. The latter are set to open throughout late Q3 and early Q4 of this year. Robin Page explains: “The everexpanding UK food market is booming currently, and this is one of the main reasons why we decided to launch Bake & Take over here. After two years of developing and testing our franchise product we are now in a position to fully begin the recruitment process, and the plan is to have 100 new UK stores in the next five years. We are actively searching for high-calibre franchise partners, and are particularly interested in hearing
from multi store food or retail operators. There are also single and multi-site area development opportunities in hot spot areas in England, Scotland, Wales and Northern Ireland.” Page adds: “We supply every support necessary to help the franchisee succeed from helping with site selection and store design to training and the latest IT equipment and business systems. The stores stock over 150 fresh, delicious and inexpensive bakery products, and have access to over 1000. Stores also serve drinks, soups and market leading coffee which customers select on a self-service basis. All products are baked throughout the day and the freshness window on all products is unmatched by other operators. The European business has won many awards including Franchisor of the Year in 2011 and a Franchise Bakery Award in 2013.
BUSINESS PROFILE
Two Tearooms Please! Double Delight as Beatons Signs its First Lady Franchisees
Tisbury based tearooms and bookshop group, Beatons, have signed up two new franchisees in the space of a week! The signings – marking Beatons’ first two female franchisees – were prompted by serendipitous visits to Beatons Blandford and to the group’s stand at The Franchise Show at London’s Excel. It takes the number of Beatons Tearooms to six, extending their reach into South Dorset and neighbouring Hampshire. The search is now on to find two perfect premises to roll out the successful model which makes hotel-style afternoon tea an elegant but affordable high street pleasure. With three franchises all run by men, the new signings to the two ‘first ladies’ have delighted M.D. and Founder, Patrick Duffy who said, ‘It’s great to have confirmation from the largest group within our customer base that Beatons conjures up their dream tearooms business as well as being the place to enjoy quintessentially English Afternoon Tea.’
interest in becoming a franchise owner.
‘I just left smiling inside and out, feeling absolutely restored.’
The prospect of owning an elegant Beatons – its name and interior styling is inspired by costume designer and Royal photographer Cecil Beaton – will fulfil a life-long wish to own a business which is service and community focused. Hot on the heels of this signing, Beatons welcomed its second ‘first lady’ franchisee who successfully applied after visiting the group’s stand at London Excel’s Franchise Show and was enchanted both by its mockup tearooms and with Beatons ethos. She will be looking to find suitable premises in one of Hampshire’s market towns.
The future looks bright – probably ‘Beatons In the case of Bournemouth resident, pink’ – for the group whose unmistakable Angela Thorn, it was a visit to Beatons brand of gracious hospitality has just seen Blandford as a customer which ignited her its flagship Tisbury tearoom enjoy the
busiest week in its history. The smiles on the ‘First Ladies’ faces during afternoon high tea ‘the Beatons’ way’ after the formal signing of their Agreements suggest it’s a colour they can’t wait to adopt as their own.
Further information: www.beatonstearooms.co.uk If you would like to know more, please contact the Beatons team on 01747 871819 or e-mail franchise@beatonstearooms.co.uk.
NEWS ROUND-UP
Telepizza launches first outlet in the UK
The multinational pizza delivery company opens its first UK store in Hounslow, London. The new Telepizza store located in the Food Court of Treaty Shopping Centre, Hounslow, is the first of ten new stores and two new Master Franchises that are planned for the UK in 2017. The Spanish based company is the world’s largest pizza delivery business outside of the US, and currently operates in 20 countries with a recently declared $517 million in chain sales and $63.6 million in EBITDA.
McDonald’s launch new mobile ordering app in the UK
Free app allows customers to browse the menu and order their meal at 22 McDonald’s restaurants across London and Wales. The McDonald’s app is set to simplify the ordering process and allow customers to avoid large queues. Once downloaded from the app store, customers can simply select their nearest restaurant, choose a meal and then checkin by scanning one of the QR codes at the participating McDonalds upon arrival. The new app will be available in all stores nationwide within 18 months. Participating restaurants include: • 4 Harben Parade (Right), Finchley Road, Swiss Cottage, NW3 6JP • 102 High Street, Barnet, EN5 5 XQ • 127/129 Kilburn High Road, Kilburn, NW6 6JJ • 10 Luton Mall, 46/48 George Street Luton, LU1 2AZ • 14/20 North Walk, Cwmbran Town Centre, Cwmbran, NP44 1PR • Neasden Lane, Neasden, NW10 0EA • 157 Colindeep Lane, Colindeep, NW9 6DB • 873 St Albans Road, Garston North Watford, WD25 0NH • Whalebone Lane South, Dagenham, 14
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RM8 1AT • Ballards Road, New Road Dagenham, RM10 9LU • 772/774 High Road, North Finchley, N12 9QH • Longwood Drive, Coryton Cardiff, CF14 7HY • Interchange Retail Park, Race Meadows Way Kempston, Hardwick, MK42 7AZ • 270 Marsh Road, Leagrave Luton, LU3 2TU • The Bell, Bell Lane London Colney, AL2 1 BX • Afon Ebbw Road, Rogerstone Newport, NP10 9HZ • Bow Flyover, 4 Payne Road Bow, E3 2SP • Unit 2B, Chaul End Lane Luton, LU4 8EZ • Jarman Fields Leisure Park, Jarman Way, Hemel Hempstead HP2 4JS • 35 High Street, Newport, Gwent, NP20 1GF • 112 High Street, Camden, London NW1 0LU • 164-168 Barking Rd, Canning Town, London E16 1EN
Commenting on the news, Telepizza International President, Giorgio Minardi said: “The launch of our first UK outlet marks an exciting step in our international expansion which continues to gain momentum. “The UK is a hugely important market for us, with two new Master Franchise relationships and a further 10 stores planned in the next year. We know our Mediterranean heritage, outstanding customer service and focus on quality local ingredients, innovative flavours and great value will appeal to British consumers.” Have you tried a pizza at Telepizza? Let us know what you thought by tweeting us @franchise_food
Heavenly Desserts to open 200 more stores in the UK Dessert specialist, Heavenly Desserts, which offers diners an array of sweet treats, has launched a franchise concept for its stores and anticipates continued growth throughout the UK.
All Roads Leeds to Taco Bell Taco Bell, pioneers of Mexicaninspired cuisine is continuing its Live Más march across the UK with the opening of its sixteenth UK restaurant in Leeds, on Thursday 8th June 2017.
allow customers to see their food made fresh to order, with the option to enjoy a Sol Cervezas beer with their tacos and the convenience of free wifi and charging stations for portable devices.
The 56 seater restaurant will launch with the Cheesy Double Melt Burrito, a ‘new restaurant exclusive’ (it’s beefy, cheesy, it’s everything you need), alongside its already-popular menu of tacos, burritos, crunchwraps, loaded fries, quesadillas and nachos.
Ellen Gault, Marketing Manager, Taco Bell UK & Europe said,
The long-awaited Taco Bell opening, will bring a burst of flavours, colours and excitement to the city, with the first 100 fans receiving a FREE Taco Bell t-shirt exclusive to Leeds, plus more surprises throughout the day. The fun doesn’t stop there, two lucky locals will also win a year’s supply of Taco Bell, simply by finding one of two Golden Tacos hidden across the city centre, with clues revealed on the Taco Bell UK social media channels. The open kitchen restaurant has created 35 new jobs for Leeds locals and will
“We’ve noticed a real hunger for Taco Bell across the UK
and we’re really excited to be able to open in such a vibrant city. The whole team is very proud of this restaurant and we’re looking forward to welcoming Leeds customers through our doors.” The new Taco Bell restaurant Leeds will be opening on Thursday 8th June, at Upper Mall, St John’s Shopping Centre, Leeds, at 10am.
The business, which was founded in 2008, has stores in Nottingham, Birmingham, Leicester, Preston, and Intu Derby, and uses the finest ingredients to create edible works of art. The stores are unlike any other concept in the UK, focusing on quality of food, shop design and customer service. Fiona Boswell, head of franchising and commercial services at Nottingham based Fraser Brown Solicitors has supported Heavenly Desserts on its UK franchise expansion providing advice on all the legal documentation required to launch a franchise, whilst working alongside its franchise director Paul Davies, who advises the brand on franchise issues. Paul Davies, franchise director of Heavenly Desserts, said: “We’re overwhelmed with the reception the launch of our franchise stores has received and anticipate another five stores will be coming on board in 2017, followed by strong but steady growth throughout the UK. He continued “We offer all of our franchisees financial support, training and recruitment, store development, operational and marketing support and future planning advice so each store reaches its full potential.” Yousif Aslam and Mohammed Imran are the directors of Heavenly Desserts and have been involved in the company since 2012. Yousif Aslam, said “Heavenly Desserts is a well proven brand and concept and we have worked hard over a number of years perfecting it. Our stores appeal to a wide range of customers, from families and couples to parties, our demographic breakdown is wide and varied.” Highlights of the Heavenly Desserts menu include cookie dough smothered in Belgian milk chocolate to the smoothest Madagascan vanilla gelato. Fiona Boswell from Fraser Brown Solicitors, said: “There is a great demand from the public for the Heavenly Desserts concept. I’m looking forward to being part of the team assisting the company in the future as more stores begin to open, I expect them to continue to be extremely well received across the UK.”
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NEWS ROUND-UP
Food lover Jessi opens new branch of Jasper’s Catering in Wolverhampton Jasper’s Catering Franchise is celebrating the expansion of its network and first 2017 opening, with Jessi Birring’s new branch in Wolverhampton, serving the city and the Black Country. Jessi has come to the business from a role in incident management for Skanska and WS Atkins so quite a change…but his love of food and desire to fast track his professional career has propelled him into the world of business ownership with Jasper’s Catering. Having travelled across the world, with a particular love for Italy and its cuisine, Jessi had a real desire to go into a food business. The high quality of Jasper’s buffet food, prepared to order from fresh ingredients from trusted suppliers and always underpinned by the Jasper’s Guarantee, really appealed to Jessi, who loves to cook from scratch at home for himself and his wife.
I am really excited about what Jasper’s has to offer, as well as the potential to innovate and develop its products and services. I am also genuinely looking forward to honing a wide variety of business skills - Jasper’s is very versatile compared to other businesses.” Jasper’s Director and Nathan Siekierski said:
Co-founder
“We are delighted to welcome Jessi to the Jasper’s family. We started out here in the West Midlands with our Birmingham branch, so it’s great to extend our reach further into Wolverhampton and the Black Country. Jessi is already made a cracking start and we look forward to helping him realise his business ambitions.”
Being new to business ownership, Jessi was also attracted by a franchise with strong, tried and tested systems and processes in place for everything from packaging to sales and invoicing. Jessi said: “I knew I wanted to go into business for myself and looked at lots of opportunities, from post offices to accountancy franchises. Jasper’s really appealed to me as it is a food business and
everyone needs to eat!
Also the market for corporate buffet catering is outstanding, with repeat, high value orders from business customers. “I knew there was a lot of risk attached with other food businesses like restaurants and the hours are very unsociable, where as with Jasper’s there is no working evenings or weekends. Jasper’s also guarantees a very good baseline income.” “I was also very drawn to the franchisors and head office team at Jasper’s. They are the real deal: open and down to earth, and there is no hard sell. 16
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UKs largest KFC franchise set for growth strategy The Herbert Group, the UK’s largest
KFC franchise, has made a deal with Lloyds Bank to support its merger and acquisition strategy. Lloyds Bank has provided The Herbert Group with a £20m debt facility for the expansion and a £2.5m revolving credit facility to support working capital. Jason Carlisle, Finance Director for The Herbert Group, said: “The Group remains extremely active in seeking out opportunities to grow and develop our existing store and brand portfolio. To support these plans and with the support of Lloyds Bank we have the funding structure and resources to
identify suitable acquisition targets and consolidate our position as the largest KFC franchise in the UK and Ireland.” Sharon Murphy, Relationship Director at Lloyds Bank Commercial Banking, said: “The Herbert Group is a longstanding client, which has achieved significant scale in recent years as a result of its ambitious management team and targeted growth strategy. “Facilitating an expansion plan requires careful financial planning, which is why we work with firms like The Herbert Group to help support their growth as part of our wider commitment to help Britain prosper.”
Husband and wife team raring to Live Life on the Veg Husband and wife team, Grant Hughes and Elizabet Caminade-Lavault are the latest franchisees to join Riverford’s network of veg box delivery teams. The pair relocated from Zambia in 2016 with their young son and will be delivering to customers within the Chester and Wirral area, which had previously been managed by Riverford’s in house team. They explained, “On returning to the UK, it had always been our intention to work for ourselves and run our own business. We focused on franchising opportunities, looking for companies that were successful, had good branding, longevity and had purpose. Riverford stuck out for us, ticking all the right boxes and though we understood it would be hard work we knew it would be something we would enjoy doing. For us both, one of the over-riding reasons we chose Riverford is due to something we call ‘the buzz’. During our research phase, we spoke to many in the Riverford organisation and their commitment to the business and enjoyment in what they each do was infectious. It made us smile, and gave us ‘the buzz’. Work takes up so much of your time so it’s really important to ensure you
enjoy it.” Whilst in Zambia, Grant was manager of a large mixed vegetable farm, “My involvement in vegetable farming in Zambia gave me direct experience that I felt would transfer over to running a Riverford franchise. I was involved in developing the veg box sales for a portion of the farm’s produce, another reason why I felt drawn to Riverford,” he continued “Elizabeth and I are firm believers in making a difference, either to something or someone.” Riverford’s concept of a fair deal for all adds tremendous marketability to the brand and we know from experience how increasingly important values are in successful businesses. “We are very excited about running our own franchise, there are great
opportunities for a local veg team to get stuck in and expand Riverford’s market within Chester and Wirral. We intend to transform the territory from a good performing in-house territory to a great performing franchise.” The Riverford box scheme began when Guy Watson started delivering vegetables locally to 30 friends in Devon. They now deliver around 47,000 boxes a week to homes around the UK from their regional farms.
NEWS ROUND-UP
SUBWAY exceeds targets at NHS franchised stores Subway announces its 12 NHS franchised stores have met the relevant criteria for food and drink sold on NHS premises for the 2016/17 Commissioning for Quality and Innovation targets. The world’s largest submarine sandwich franchise, has proudly announced that it has met and exceeded the forthcoming CQUIN target announcement for its hospital based franchise stores. The brands implemented changes have exceeded the deadline for voluntary implementation detailed in the 2017/18 CQUIN targets, set out by NHS England. Subway partnered with Britvic and PepsiCo to serve only no sugar and reduced sugar beverages.
Rob & Meenu Bains open second One Stop Franchise
The NHS franchised stores also implementing the following changes to Following the success of Rob and comply with CQUIN: Meenu Bains’ first store, which has seen sales rise by 25% since joining One Stop • Removal of bundle offers available for in 2014 and remains the closest franchise cookies or crisps to One Stop’s hub of operations in • Removal of ‘help yourself impulse buy’ Brownhills, they have opened their second cookies and crisps from the till area store in Parkhill Road, Burntwood. • Healthier ‘crisps’ options including lower fat Baked, Sunbites and popcorn Their second store ‘One Stop Parkhill varities Local’ is located at Ryecroft Shopping • Alternative snack options Centre in Chase Terrace and officially opened its doors on the 6th April. Since Peter Dowding, Country Director for the taking over they have extended the UK and Ireland said: “This action builds opening hours and are now open seven upon the strong days a week, from 6:30 am until 9:30 pm every day, to better serve the needs of the local community. In addition, the store has created 4 new jobs in the local area. Although it has changed hands several times over the years the convenience store has been serving local customers credentials the brand already has in place. for over 20 years, so it was important It further demonstrates our commitment for it to not only remain trading, but to providing a better food environment in to improve the range of products and hospitals to patients, staff and visitors.” services explains franchisee Meenu, “We
healthier-foryou food-onthe-go
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have been overwhelmed with the positive feedback and just how welcoming the local residents have been, we were aware that the store had been trading for over 20 years but didn’t appreciate the extent of its role as the hub of the local community. Many rely on the store for daily goods as there is no other shop within walking distance, especially for a lot of the elderly customers. We are delighted to have been able to breathe new life into the store and look forward to fulfilling the needs of the local community.” The store boasted a grand opening weekend to celebrate, with local residents Mr Peter Tams (85 years old) and his wife cutting the ribbon. A launch featured a range of activities which included, face painting, complimentary snacks and drinks, Easter raffle, Easter egg treats, colouring competitions, and much more with all the money raised on the day going to the Stephen Sutton Trust in aid of Teenage Cancer.
Crollas Gelateria plans UK expansion Crollas
Gelateria, which launched into the franchising world in 2016, is currently looking to expand its 'family of franchisees' and has top property opportunities available in prime locations across the UK. Someone who is already taking full advantage of the Crolla brand is Carol Cordiner, who recently bought the Aberdeen franchise. She explains: “I have always wanted to open my own ice cream parlour and I felt that the best way of doing this was to team up with a company with lots of experience in the industry. My family used to own a couple of ice cream vans years ago and its always been a big interest of mine. I tried several other ice cream companies and I preferred the taste of Crolla's. They are also one of the only ice cream companies that offer a franchise in Scotland. Crolla’s Director, Peter Crolla, explains: “For more than 120 years, the Crolla’s recipe for success has been simple –
great customer experiences, hard-working employees and mouth-watering gelato.
We decided to franchise the business as it is a proven growth strategy that works. A Crolla’s Gelateria franchise opportunity offers a great new career for entrepreneurs or passionate ice cream loving individuals. We are looking for people who have a passion for building the Crolla’s brand and we offer several unique ways to become a franchisee, based on your passion and financial resources.
“We have all the strategies and operations in place to assist a franchisee in every aspect of their business, and also provide first class training and support. Ideally we are looking for someone who is passionate about the product, has good knowledge of the market and its competitors, possesses business acumen and awareness, and is a good communicator and a people person.” Crolla’s was founded in 1895 and over the years it has grown to the business it is today. By the 1950s the Crolla family had started up an ice cream factory and had 30 vans selling their delicious ice cream around the streets of Glasgow. The firm still supplies ice cream vans but has expanded to supply shops, cafés, wholesalers, restaurants and hotels. Although they are as firmly committed as ever to producing top quality ice cream, the range of products Crolla’s now supplies is now far greater and includes sandwiches, panini, desserts, delicious gelato and speciality coffees.
Scunthorpe McDonalds reopens after a ‘digital makeover’ The reopening is a boost to the local economy and has created 25 new jobs in the area. Self-service kiosks have been installed and table service provided, to improve the eating out experience of its customers. Customers will now be able to search for relevant nutritional information and will be able to order their meals more efficiently. Franchisee Bob Meadowcroft contributed a ‘significant investment’ to improve customer experience. Bob commented “These changes have been designed to make our customers' experience as positive as possible and the new technology benefits everyone – whether that's providing people with a chance to get to grips with using a tablet in a relaxed environment, or providing a quick and easy way of ordering food. We're really proud of the new look and it's great to see customers interacting with the new technology in such a positive way." So far customer feedback has been encouraging, Bob added: "We have been overwhelmed with the positive response from customers and employees in other restaurants and we're sure we will see the same here. Our restaurants are able to suit the needs of anyone who wants to come in grab a bite to eat or drink and enjoy the atmosphere these changes have created. "We're confident that this new look restaurant on Doncaster Road will be a welcome addition to the area. I am looking forward to welcoming our customers in to show off the changes."
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BUSINESS PROFILE
BETTER INGREDIENTS. BETTER PIZZA. The benefits of Papa John’s franchisee incentive deal for 2017 specifically include a 15-month royalty reduction programme, a free pizza oven (subject to terms and conditions) plus a marketing launch package provided by Papa John’s. The targeted support has been designed to help franchisees in their first year of trading, in order to improve cash flow, reduce capital spending and drive sales from day one.
Bringing Home the Dough
Recruitment
Zulfiqar Haidar and his brother Iftikhar run five Papa John’s in Scotland. The pizza loving, business minded duo have been named as Papa John’s International Small Business Franchisees of the year for 2016-7 and also Papa John’s UK Franchisees of the year and have also been twice winners of the Scottish Asian Business awards. Zulfiqar tells his story.
I
joined Papa John’s as a franchisee around 16 years ago. It’s been quite a journey! Originally, I helped run a family convenience store. Then after a few years selling advertising space at The Big Issue, it was a chance conversation which first introduced myself and my family to the world of food and drink and Papa John’s and it soon sparked our interest! A close friend had visited the USA and came back saying ‘everyone was going crazy about this pizza company called Papa John’s!’ We decided to take a look. The now famous food franchise offered the chance for the whole family to become involved in a business. But at the time Papa John’s was in its infancy in the UK so to set up the very first Papa John’s in Scotland needed a huge degree of commitment from both us and Papa John’s. However, we overcame the challenges and set up in Glasgow with my mom making the pizzas, my brother looking after the numbers, my sister on customer service, myself, plus a delivery driver! 20
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At that time, there was little awareness of Papa John’s in Glasgow so news spread by word of mouth. “Wow this is lovely!” was the comment we heard again and again about the quality pizza we turned out and soon we had quite a reputation for creating the best pizza in town! Our focus on quality is key. Papa John’s concept of: BETTER INGREDIENTS. BETTER PIZZA. means customers keep coming back for more, plus they tell their friends. We now run five Papa John’s covering Glasgow, Paisley and most recently Hamilton. Over the years, opening each store has become easier. There is so much more awareness now!
Incentive Scheme Opening stores has been helped by Papa franchisee incentive scheme which is designed to assist franchisees right when they are starting out in a new venture. Some free equipment, discounted royalty fees and help with marketing really means Papa John’s has put its money where its mouth is!
Recruitment of staff has become more straight forward as our business has grown. What you do for one store works for the others. For us, our journey has been as much about the team of people we work with as it has growing a successful and thriving franchised operation. We talk about the Papa John’s ‘family’ and that really sums up our staff, many of which have worked for us for more than ten years! Staff come from all walks of life. Often, they join, then continue to work for us while at college and some come back when they have graduated. Some fall in love in our store and we have had two marriages and one couple has had a baby! One reason we opened in Paisley was specifically due to the area’s high unemployment. We wished to bring lots of new jobs to the local community and offer the opportunity for anyone looking for full or part-time work. We work with our local job centres to help bring the long term unemployed people back into work and offer them a future. We also try to create a fun working environment, where our staff know they are valued and love coming into work and that sums up what the Papa John’s family is all about. We offer job security and a good work/social atmosphere with flexible hours to fit around other commitments. As we expand there are also career opportunities as we will need marketing staff and accounts people as we open new outlets. Our people enjoy being part of the Papa John’s family and we certainly couldn’t do it without them!
BUSINESS PROFILE Work Life Balance
From
my point of view as our Papa John’s portfolio has developed over the years, I can spend much less time on the business compared to working flat out when we started! However, I am only able to achieve this work-life balance now, due to our great people. Over the five outlets, we have 260 employees and 15 very good store managers and supervisors. To be able to delegate, I need to be able to trust my senior staff 100%, recognise their commitment and give them the space to do their jobs. As a result, this frees-up my time. I’m the first to admit, numbers are not my strongest point, so I have an accountant and book-keeper. I have learned playing to your strengths is an essential part of good business sense. It also means I don’t need to be hunting down invoices or searching through spreadsheets – I leave that up to my experts!
customers as well as lead a team on a daily basis. “In return, our dedicated team supports franchisees through the entire process of opening their franchised Papa John’s including help with location selection and full turnkey solution to opening the store,” continues Round. “Through our latest incentive deal, we are looking forward to working with more new franchisees all hungry to become part of our success story by opening-up more Papa John’s stores throughout the UK.” Papa John's is one of the largest pizza companies in the world and has opportunities for franchisees throughout the UK. Papa John’s which was named as UK National Pizza Delivery Chain for the sixth time, supplies all the assistance needed to get your successful Papa John’s up and running.
...individuals do need to be motivated, enthusiastic, hardworking and want to be part of a growing team.” For further information please visit: www.papajohns.co.uk/franchise call: 0844 567 0937 or e-mail: enquiries@ papajohns.co.uk
Economies of scale and great staff, means my role has changed to business owner and overall supervisor. When we first started we never thought owning more stores would give us more free time, but it does. My wife and family are particularly happy that we can spend more time together. Papa John’s has offered us a secure future. However, it has now become far more than that as it also represents the livelihoods of our people. We will be opening more stores in Scotland soon and this will offer our staff the chance to progress. Our aim is to create more new jobs for the local community as we grow. Anthony Round, business development manager Papa John’s confirms: “Like Zulfiqar, many of our franchisees start out with just one store and go on to open multiple Papa John’s. We now have more than 350 stores in the UK and we are still growing rapidly. “Our fresh approach continues to prove popular and Papa John’s is actively recruiting new franchisees who are keen to bring our superior quality pizza to new areas of the UK,” explains Round. “Franchisees don’t need any direct experience of the industry as we provide all the necessary training. However, individuals do need to be motivated, enthusiastic, hardworking and want to be part of a growing team. Good interpersonal and people skills are essential, as franchisees deal with 21
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NEWS ROUND-UP
Café Rouge tops six figure NSPCC target Popular franchise chain Café Rouge Nigel Spencer, Director of Fundraising has raised more than £100,000 for the at the NSPCC, said: “We are really thankful NSPCC by donating 5p for every cup of for the commitment and generosity of Café coffee sold in its restaurants across the UK. Rouge and the coffee drinking habits of all its customers. The French bistro-style restaurant Never has so much money been raised business is 12 months into a three- through such a pleasurable pastime! “I year fundraising partnership with the hope the coffee continues to flow freely children’s charity, with the monies being over the next couple of years in Café used to protect young people from abuse Rouge’s restaurants enabling us to help and neglect and to help victims rebuild more and more young people in need of their lives. advice, support and treatment as a result of suffering from abuse or neglect.” Simon Wilkinson, Managing Director of Café Rouge said “At the end of February we Founded in 1884, the NSPCC is the completed the first year of our partnership leading children's charity fighting to end with the NSPCC, and have raised a total of child abuse in the UK and Channel Islands. £101,230 for this much-loved, important, It helps children who have been abused, and very worthwhile organisation. He protects those at risk, and finds the best continued “The amount is just over the ways of preventing abuse from happening. target we set ourselves, and bodes well for the rest of the three-year agreement we have with the NSPCC.”
One Stop franchisees experience period of continued growth OneStop’s franchise model continues to reap rewards for its independent retailers, with franchisees experiencing an average growth in their like-for-like sales performance of +7% (during the 2016/17 financial year), in addition to an impressive year-on-year margin growth of +5%
Against the backdrop of a challenging market, the figures reinforce the group’s retail focus and convenience expertise providing independent retailers with a strong competitive advantage. The percentages relate to all franchisees that have been trading with One Stop for over a year. In addition to this Franchisees have grown their basket spend by a further 3.2% and footfall by 3.7%, delivering over £120m of total sales to customers, in just the franchise estate alone. Andrew King, Franchise Director, commented “The figures speak for themselves and support the business decision our franchisees have made in joining One Stop. It’s our objective to ensure that our franchisees’ businesses continue to grow, both in turnover and profitability. Our four-weekly focused BDM business visits and the enhanced reports we produce, one of our many USPs, help us to plan, build and deliver long-term sustainable growth.” The One Stop franchise in Brackenborough Road, Louth is just one of many stores that have seen remarkable growth since switching to One Stop’s franchise model. Husband and wife, Blair and Angela Southwood revealed: “We had tough local competition with a Co-op and
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McColl’s less than 500 meters away, so we needed to partner with an established national brand that had a strong consumer offer in order to survive. I can honestly say that we haven’t just survived since joining One Stop, we’ve thrived as our sales have more than doubled in just over a year! They continued “20% of the sales growth actually came during our transition period, so it was purely down to the promotions being implemented, as well as the gradual introduction of our new product range. However, things really took off once the store was refitted as sales shot up by a further 77% and are still growing. We’re absolutely delighted with our decision to join One Stop and the incredible feedback we’ve had from our customers shows that they are too!” Further signs of the positive impact of switching to a One Stop Franchise are shown by the turnover increases between pre and post refit, with stores experiencing a 23% uplift overall, excluding seasonality. These upturns are generally an additional boost to a store’s turnover, having already implemented One Stop’s extensive promotions, renowned value and ways of working during the transition period building up to a refit.
New Papa John’s franchise opens in South Wales Leading pizza franchise, Papa John’s,
has announced its latest store opening in Llanelli, Carmarthenshire. Franchisee, Umar Malik, now employs around 200 staff across his ten Papa John’s in South Wales including Swansea, Newport, Cardiff and now Llanelli. “Llanelli is the largest town in Carmarthenshire and so is a fantastic location for us,” confirms Umar. “Many customers have been able to try our topquality pizza in our other stores and so are delighted now to have Papa John’s on their doorstep!” The Papa John’s concept of ‘BETTER INGREDIENTS. BETTER PIZZA’ continues to prove popular and there are now more than 350 Papa John’s in the UK and over 5,000 stores in more than 40 international markets. Umar first moved to Wales in 2014 after completing an MBA at Carlisle. He says: “The local community were really friendly and particularly welcoming. Right from the outset when I first opened in Swansea people were enthusiastic to try Papa John’s and now we get so many repeat customers across our stores which has been the inspiration to expand throughout the region. “From my point of view,
it has also been rewarding to be able to create
jobs, which is the life-blood for any community,” continues Umar. “We are always on the look-out for good staff and for Llanelli, like our other stores, we have found people are quick learners and really eager to work. As we have a big operation now, in return, we offer secure positions, full training plus career progression for those who are keen to take on responsibility. “As my Papa John’s portfolio of franchised outlets has expanded, I have been helped by the Company’s franchisee incentive scheme designed to assist when opening up new stores. It offers a few key ingredients including: some free equipment, reduction in royalty fees and assistance with marketing. It makes for a recipe for success during those first few critical months of trading. Llanelli has been really busy since opening so I may be on the look-out for more suitable locations in Wales where I can put Papa John’s on the menu very soon!” Papa John's is one of the largest pizza companies in the world and has opportunities for franchisees throughout the UK. Help is provided with location selection and full turn-key opening of stores. As a franchise, the Company supplies all the assistance needed to get your successful Papa John’s up and running.
Coffee 1-0 Tea Out-of-home coffee outperforms outof-home tea according to report According to a recent report in the Project Café UK Series by Allegra World Coffee Portal, sales in the UK tea outof-home category are underperforming compared to the wider coffee shop market value. Total sale contribution from out-ofhome tea amounted to £308 million in 2016, compared to the coffee shop sector growth of 12% reaching £8.9 billion. It’s not all bad news according to Allegra World Coffee Portal who predict the category will continue similar growth in 2017 by reaching £341 turnover. You can find more about the report by visiting https://www.worldcoffeeportal. com/LatestReports/Project-Cafe2017-UK
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NEWS ROUND-UP
Wine connoisseurs expand franchise in the UK Veeno, the Italian food and drink concept, has grown from one café to 11 in the last three and a half years. The company has experienced rapid growth across the country with another eight openings scheduled for later this year including Reading, Stratford upon Avon and a second café in Edinburgh. Fiona Boswell, head of franchising and commercial services at Nottingham based Fraser Brown Solicitors, supported the business in launching its franchise concept by providing specialist franchising legal advice on the key legal contracts used with its franchisees, working alongside Paul Davies, Veeno’s franchise operations manager who is the operational support for the launch of the Veeno franchise concept. Veeno is a concept built on the love of fine wine and food from Caruso & Minini, an award-winning family vineyard in Sicily. This is reflected in the branding and interior design in each of its venues across the UK. Paul Davies, franchise operations manager of Veeno, said: “Veeno is growing rapidly thanks to its tremendous success, as testified by the growth of the network of Veeno stores across the UK.” Nino Caruso, managing director of Veeno, said: “My business partner Andrea
Banbury Muffin Break customer’s warm to new look store as refurbishment fuels increase in sales Banbury’s Muffin Break is enjoying a sales boost following a refurbishment of its town centre store that is proving as popular with customers as its muffins and other freshly baked products. The makeover of the store, based in Banbury’s Castle Quay Shopping Centre, has helped fuel a 35% increase in sales as customers warm to the new look interior that mixes a rustic feel with more modern furnishings. Visitors to the store are also enjoying the extra space created by the refurbishment - which took three days to complete and has seen capacity expand by a third as seating at the store goes up from 74 seats to 100 seats - ideal for accommodating the increased footfall enjoyed since the re-opening. 24
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Gemma Sandells, Muffin Break Marketing Manager, said: “Our store refurbishment programme has been hugely successful and the increase in sales at the Banbury store really demonstrates this. The revamped modern, yet rustic designs of Muffin Break stores are enticing both new and old customers to come and visit us. Gemma continued “We have every confidence that sales will continue to leap forward in all stores that have undergone recent refurbishment.” For store franchisees, husband and wife team Nilesh and Kelly Patel, it marks another successful step in their 13 year business journey with Muffin Break, having run previous Muffin Break franchise stores in Nuneaton and Leicester. Kelly Patel, who has spent three years based at the Banbury store, said: “Our customers really love the new store and the comments and feedback we have had from everyone has been very positive. She continued “They seem to really like the new look of the store and appreciate the increase in space and seating that we have been able to provide as part of the refurbishment.
and I started Veeno because we missed the Aperitivo culture from Italy and we saw a space in the market for this type of café. We provide our buyers with a fiveyear franchise agreement and support them throughout the process of starting their own business. We’re overwhelmed by the success that each café has had so far and looking forward to Veeno’s continued growth.” Current active locations include Nottingham, Leicester, Bristol, Chester, Liverpool, Manchester, Edinburgh, Harrogate, York and two in Leeds. Fiona Boswell, head of franchising and commercial services at Fraser Brown, said: “Veeno is a great concept and I believe it will continue to receive a fantastic reception throughout the UK,
bringing a piece of Italy to the country for everyone to enjoy.
“I am pleased to have been part of the team assisting the owners of Veeno in the expansion of its brand by franchising and look forward to working with them in the future as more interested buyers come on board.”
Nilesh and Kelly are optimistic about the future of the store and they say their next step is to open up a further franchise store in the Banbury area.
KFC is now delivering! KFC has partnered with Just Eat to bring delivery to 30 KFC restaurants across London. KFC is the latest to introduce delivery from their restaurants, after McDonald’s and Greggs recently joined the trend. For a full list of the KFC restaurants offering delivery, please visit Just Eats’ website: https://www.just-eat.co.uk/ restaurants/kfc?city=All
Sainsburys considering offering franchise deals to independent retailers Sainsbury’s may offer franchise deals to independent retailers as locations for new sites become scarce. The news comes as the second largest supermarket chain said it planned to open just 25 of its own Sainsbury’s Local convenience stores this year, down from 41 last year and 66 the year before as it struggled to find new sites.
Tim Hortons® announces UK launch Iconic Canadian café and bake shop brand will open their first UK store in Glasgow. Tim Hortons®, part of Restaurant Brands International Inc., is one of North America’s largest restaurant chains with over 23,000 restaurants in more than 100 countries. With extensive plans for a nationwide roll out in the UK, Tim Hortons® will be opening its first store on Argyle Street in Glasgow later this spring. “We’ve witnessed Tim Hortons® phenomenal success in Canada, and wanted to replicate this in Great Britain,”
says Gurprit Dhaliwal, COO of Tim Hortons® UK and Ireland LTD. “It’s hard to explain just how important Tim Hortons® is to Canadians – it’s not just a restaurant, it’s a way of life and a place of ‘home’, and we’re positive Great Britain will fall in love the brand.” Elías Díaz Sesé, president, Tim Hortons® Brand, said: “Bringing Tim Hortons® to Great Britain and Glasgow, is something we’re really excited about. Great Britain is a nation of coffee lovers, so we’re confident Tim Hortons® will continue to be a leader in the quick service restaurant sector across the pond.”
Mike Coupe, Sainsbury’s chief executive said “When we look at how we grow our business, then a franchising model has some attractions to it if we can maintain control of the brand,” He also commented on how ‘it was becoming increasingly tough to find suitable sites.’ Sainsbury’s is currently testing a franchise arrangement on eight Euro Garages petrol forecourts. Mr Coupe said it could be a ‘lower-cost alternative to leasing or buying its own stores.’ Convenience stores are regarded as a major pillar of growth for Sainsbury’s as shoppers buy less in big stores.
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Five Guys voted the best fast food chain in UK Five Guys has once again been voted the best fast food chain in the UK ahead of their arrival in Chelmsford later this year. The burger chain beat all other brands including McDonalds, Burger King, KFC and previous winners Nando's to the title, as voted for by thousands of Brits. The poll, organised by Market Force Information, puts Five Guys at the top for the second year running. A spokesperson for Five Guys said they were delighted to hear the results, especially as the brand only launched in the UK in 2013. The burger chain opens their brand new Chelmsford store at 6-8 High Street on Monday, August 21. The opening looks set to create 40 jobs in the area. Overall Five Guys came first in many of the polls questions included:
Overall food quality – 58% of the
vote
Cleanliness of stores across the UK-wide store portfolio –56 % of the vote
Staff friendliness –53% per cent of
the vote
Speed of service –46% per cent of
the vote
John Eckbert, Five Guys UK CEO commented "We're thrilled that Five Guys has ranked so highly across all of the categories and the British love affair with our burgers and fries has remained yearon-year,” he continued "Five Guys was built on a couple of very simple principals:
cook perfect burgers and fries, keep our restaurants unbelievably clean and take care of customers who come into our restaurants.
When we launched back in 2013, we were the favourite American burger in the US, and we are now the UK's favourite American burger." 26
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SOHO Coffee Co. opens third store in London. SOHO Coffee Co, has opened a brand new store in London. This takes their total footprint in the capital to three stores. Opened on the 8th May and located at 19 Baker Street it is the 38th store for the artisan coffee chain and is both the third store the brand operates in London and the third store that the chain has opened this year. The other London outlets are in St Paul's and The Strand, both of which opened in November 2016. SOHO has extensive expansion plans and has already opened three of its planned eleven stores this year. The Cheltenham store opened in January at the Cheltenham Brewery Quarter and the second opened at the Bullring in April within Debenhams, which is the first and only store to offer Afternoon Tea.
Subway to cut 3.7 billion calories from British diet From July 2016 to July 2017[i] SUBWAY® stores will have removed around 3.7 Billion calories from Great British diets, after converting to Britvic and PepsiCo beverages. This new partnership provides all customers with a broader product range whilst significantly reducing their overall calorie and sugar intake. As well as nudging consumers towards healthier choices of carbonated favourites, the SUBWAY® brand has added Britvic’s iconic no added sugar Robinsons squash to the dispense options, enabling customers to enjoy their favourite household drink on the go for the first time in the UK. Britvic’s no added sugar Fruit Shoot and low calorie Drench also provide no/low sugar options for kids and adults. Paul Graham, GB Managing Director of Britvic comments: “The removal of 3.7 Billion calories from SUBWAY® stores clearly shows the major impact we can deliver for our customers and consumers, both with our own brands and as the bottler for PepsiCo in the UK. We’re proud to see our industry-leading low and no sugar portfolio in action to drive change and nudge consumers towards healthier choices. Having started out in the 1930s as the British Vitamin Company, bringing an affordable source of vitamins to British people, health is in our DNA and this deal demonstrates our continued commitment to making life’s every day moments healthier and more enjoyable.” Mark Elwell, General Manager of PepsiCo Beverages UK added “With a shared ambition and singular focus on encouraging healthier consumption habits, we have partnered with the SUBWAY® brand to harness the expertise and innovation of our no sugar brands Pepsi MAX® and 7Up Free® to encourage people to switch from full sugar to low/no sugar beverage alternatives. We strongly believe there are still further significant opportunities for PepsiCo and Britvic to do in nudging SUBWAY® stores’ consumers to make healthier choices both through product and dispense innovations and bespoke and powerful Pepsi MAX® marketing campaigns.”
The dynamic design of the new drinks fountains and fridge displays encourages customers to choose more low/no sugar options. This has led to an increase in customers choosing to purchase no sugar Pepsi Max® or Diet Pepsi® over full sugar cola in stores. The stores have also switched from full sugar Lemon Lime carbonated soft drink to only offering 7Up Free, ‘no sugar’ as a dispensed option as well as switching from a full sugar orange choice to Britvic’s lower sugar Orange Tango.
the brand already has in place. It further demonstrates our commitment to providing a better food environment and choice to our customers whilst aiding franchisees to build better businesses.” By choosing Britvic and PepsiCo’s portfolio of beverages, the SUBWAY® brand has achieved an overall 30% reduction in calorie consumption in total, which can be extrapolated out, on average, of a removal of almost Two Million calories per store annually.
Peter Dowding, Country Director for the for the SUBWAY® brand UK and Ireland said: “The Partnership with PepsiCo and Britvic has enabled us to offer our customers
healthier drink options without compromising on quality or taste, reinforcing the strong healthierfor-you food-onthe-go credentials
Chopstix Noodle Bar submits plans for first Suffolk restaurant in Sailmakers Shopping Centre, Ipswich A planning application has been submitted to Ipswich Borough Council for a change of use of the former Total Mobiles unit into a restaurant.If approved it will be the first Chopstix in Suffolk. The plans are currently in the consultation phase and due to be decided on in July. A spokeswoman from agents Pegasus Group said: “We are not able to comment on how many people the restaurant will seat, however, we can confirm that Chopstix are expanding their presence within the Suffolk and East Anglia region having also worked with them on a successful application for a further venue in Cambridge. 27
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FRANCHISOR
The food franchise industry is the largest sector of franchising. A daunting prospect for many, investing a large sum of money into any venture can be hindered by worry However, buying into a franchised business is a good idea. There is no doubt about it. Franchising is now a mature marketplace and has become a popular way to expand an established business. These days you can run a franchise selling anything from house improvements to fast food. 28
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& We’ve spoken to some of the nation’s largest franchise opportunities to find out more about the industry and to see whether you have what it takes…
The food and beverage industry is a permanent fixture in the UK’s economy. Worth £30 billion a year and growing at a rate of about 5% a year, the food and beverage sector dominates the franchise industry. Starting a food franchise has many considerations to it, including picking a great location, making sure you meet the codes of conduct and investing in potentially expensive equipment . The rewards outweigh the costs, but when looking to invest in a franchise there are some vital questions you must ask before taking the plunge. .. 29
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FRANCHISOR Q&A
When many people think of franchising, food is often the first thing that comes to mind. Most of the world's biggest restaurant concepts are all franchised businesses. Food establishments have quickly become the most popular sector in franchising. Give a brief overview of your business, including where you see your business in the food & drink franchisee market. ? Newcomers on the scene Orange Buffalo are a Fast-Casual Restaurant specialising in hot wings, hot sauces, sandwiches & sides. They lead with signature sauces and have a cool brand that would sit perfectly on every high street. Mike and Nick, founders, commented: “Our business has proved to be successful both in and out of London and has built up a loyal following. Since we started we have repeatedly been recognized for our fantastic food. We have won numerous awards which helped put us on the map winning 2014 and 2015 London Wing Fest. We envisage the Orange Buffalo outlets everywhere from high streets to airports and be the go-to place for the best wings in the UK”. 30
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A firm favourite in the UK, Papa John’s has more than 350 stores across the UK and over 5,000 stores in more than 40 international markets and territories. Papa John’s is the only branded pizza chain to use only fresh dough, never frozen, giving a better flavour and their unique tomato sauce is made from the best Californian tomatoes, picked and packed from vine to can in just six hours. Asian-inspired, Chopstix Group UK is a quick service restaurant brand, which offers faster, fresher and healthier Oriental fusion cuisine across the UK and Republic of Ireland. Chopstix was conceived over a decade ago, it has picked up pace and rapidly expanded in the last six years. As of May 2017, the chain operates 65 stores across the United Kingdom and Ireland. In contrast, inspired by the style and elegance of Royal Society photographer and fashion designer Sir Cecil Beaton, Beatons Tearooms provides gracious hospitality, charm and elegance in the timeless tradition of a British tearoom. Bringing hotel-style afternoon tea to the high street, they have successfully carved out an enviable niche distinct from the plethora of 'fast noisy coffee' barista style brands. Established in 2010, the business has grown from flagship tearooms in Tisbury, and now has three franchises in Dorset, Berkshire and Cheshire with two more coming on stream later in the year.
Franchising is now a mature marketplace and has become a popular way to expand an established business. How long have you been in franchising? Orange Buffalo have exciting plans for franchising in the future. Mike and Nick reflected on the positive start to their franchising journey: “we launched our franchise program this year... We have had some fantastic response and look forward to growing through franchising.” The first Papa John's restaurant opened in 1985, and the company began franchising in 1986. Today, CEO and founder John Schnatter's dream has resulted in thousands of Papa John's restaurants worldwide.
Papa John’s have had a strong start to 2017 and are leveraging their “strengths to steadily grow the Papa John’s business globally for many years to come,” according to Anthony Round, Business Development Manager. Max Hilton Jenvey, Chief Operating Officer at Chopstix commented: “We landed our first franchise contract with Applegreen in 2015. Thanks to the successful franchise model we have managed to partner with Welcome Break and Henderson who continue to grow our brand.” Reflecting on their long history of franchising Managing Director and Founder of Beatons Tearoom, Patrick Duffy, commented: “the franchise model was conceived way back in 2011. Our first franchise opened in 2014 in Blandford followed a few months later by our first city based Beatons in Chester and shortly afterwards our Tearooms in Crowthorne, Berkshire.”
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FRANCHISOR Q&A
For all businesses it’s essential they partner with the right people who can represent the brand in a positive way...
You'll have to be dedicated and passionate enough to adapt to a proven way of working, plus you'll need the ability to roll your sleeves up and get stuck in, which means everything from making pizza through to managing staff!
With that said, what type of person/ investor are you ideally looking to work with?
The most successful Papa John’s franchisees are also ambitious and go on to open multiple Papa John’s stores and we actively encourage good franchisees to develop in this way.”
Orange Buffalo are looking to recruit new franchise owners who have a passion for wings and the Brand. According to the founders Mike and Nick: “we are looking for those unique individuals who inherently desire to spread that passion…we want to be a family and enjoy the ride!”
According to Max Hilton Jenvey: “Chopstix Noodle Bars are run with the same brand values that we live and breathe day in day out. He continued: “we are looking to work with individuals and corporates who have the same vision and determination to run a successful Chopstix Noodle Bar, by putting the customer at the centre of operations.”
When you are growing as fast as Papa John’s, it’s important to recruit the right people, according to Anthony Round : “to become a successful Papa John’s franchisee you need to be motivated, enthusiastic, hard-working and want to be part of a growing team.” Exceptional interpersonal and people skills are essential, as you'll be dealing with customers as well as leading your team on a daily basis.
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Max finished saying: “we would like to work with individuals who have had exposure in the food and beverage industry, who have locations available, and able to take on an investment of £95k-£120k.” As a Beaton Tearooms franchisor you will have to be “hardworking, dedicated and capable people, with the sparkle and passion needed to turn their dream of owning a tearoom into a reality,” according to Patrick Duffy.
Franchisees will make a significant impact on people’s everyday lives. What are the opportunities available when investing in a franchise such as yours? First up, Anthony Round commented: “Papa John’s is expanding and has opportunities throughout the UK. Papa John’s is also currently running a special incentive scheme for franchisees opening new stores. With assistance with marketing, some free equipment and discounted royalty fees there has never been a better time to invest in a Papa John’s franchise.” Oriental quick-service take away restaurant brand Chopstix also has a sophisticated franchisee programme in place to help potential investors, Max commented: “with a comprehensive franchise support program in place, we provide an online Enterprise Resource planning business software, to implement training and operational standards. The marketing team at Chopstix deliver a 12-month promotional calendar focused on driving sales and brand engagement to your site.
We have an agreement with HSBC to assist with your investment. The offer is subject to status, and you could receive up to 70% coverage of investments/loan. Investors at Chopstix’s, usually make £90,000 net profit from 6 to 12 months from site opening.” “Being at the heart of the community and taking pride in supplying first class service and gracious hospitality is highly fulfilling”, Beatons Tearoom. He continued: “the opportunity is there to join the most elegant and stylish Tearoom group in the country…franchisees create a business for their entire family to be proud of.” With chicken and wings quickly becoming one of the fastest growing segments in the fast-casual sector this year, Mike and Nick owners of believe there are endless opportunities. They commented: “the growth of the wings industry in the UK is great and has a HUGE future. Eventually our brand will be in Europe, the Middle East and beyond. Certainly we would like to see one in Buffalo, New York.”
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FRANCHISOR Q&A
A prospective franchisee should gain as much information as possible from the franchisor about the average start-up and ongoing costs but they should also enquire about the brands’ future… How is the brand looking to grow in the remainder of 2017? Orange Buffalo gave us a brief insight into what’s on the horizon for them over the next year, saying: “we have plans to open a few brick and mortar sites over the year and we are also looking for those unique franchisees who want to join us on this incredible journey.” Max Hilton Jenvey let us in on Chopstix plans : “We are in the process of launching our new brand extensions called Chopstix Express Noodle Bar and Chopstix Metro Noodle Bar, both brands offer practical formats which supplement the traditional restaurant model and maximise sales for operators with smaller square footage and lower footfall.
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He also mentioned: “the latest development around simplifying operational processes and equipment, allow us to deliver a strong brand and commercial proposition that is easy to implement and quick to apply in different settings.” Chopstix opened 17+ restaurants in the past year alone and looks forward to further international expansion across Europe. There has been huge news at Beatons Tearooms over the last few months, Patrick Duffy commented: “we have just signed up two new franchisees in the space of a week! The signings mark Beatons’ first two female franchisees ever! It takes the number of Beatons Tearooms to six and the search is now on to find two perfect premises to roll out the two new Beatons, so we have a busy year ahead launching these. We anticipate more signings during the year and welcome enquiries from people looking to own a successful Tearoom franchise.” Papa John’s has had a good start to the year and according to Anthony Round: “Papa John’s continues to grow throughout the UK. We currently have more than 350 UK stores and will build on that number by the end of 2017.”
The franchise industry in the UK is going from strength to strength, providing a route for many to run their own business.
Support is given at every stage taking great care to ensure you're right for us and we're right for you, so our selection process allows us both plenty of time to ensure you feel comfortable and clear before deciding to go ahead.”
What makes your brand different and why should a potential franchisee choose your brand?
Oriental experts Chopstix has demonstrated an alternative in the food market.
Beatons Tearooms strongly believe that their core ‘ethos’ as a group makes them stand out, critical to delivering the ‘restorative experience’. Influenced by TORCH Award winning restauranteur and hospitality legend, Danny Meyer, “we walk the walk when it comes to taking care of the little things.” according to Patrick Duffy. He continues: “bespoke Villeroy & Boch china is polished until it gleams and teas are served with timers to ensure perfectly steeped tea. The tempting selection of loose leaf teas, all day light menu choices and home-made cakes; with a quirky and imaginative ‘curated’ book selection aimed at Beatons’ market has produced a winning recipe for the group – with success coming on the back of a high percentage of repeat business.” He concludes: “we’re an affordable option for franchising with a deliberately low initial franchisee fee.
Chief Operating Officer Max Hilton Jenvey commented: “we are very unique compared to other QSR franchise brands. There are two key demands that continue to increase within the fast food market, and that is for faster food to keep up with busy lifestyles, and healthy food to keep people well. Both of which are central to the company’s values and ambitions, at Chopstix our serving time of under one minute is unbeatable and quicker than any brand in the market.” According to Mike So and Nick White, founders of the Orange Buffalo: “in the past 5 years we have created a cult like following with rave reviews and lots of awards. This strong reputation is unique in itself and as we grow we want to make sure our franchisees benefit from this. We want to help our franchisees leverage this to make maximize their success with the brand.” Papa John’s continues to thrive in the UK food market, Anthony Round commented: “Papa John’s concept of: BETTER INGREDIENTS. BETTER PIZZA…means we only use fresh dough, never frozen, which gives a better flavour. It means our pizzas continue to prove popular and our franchisees always serve up the best pizza in town!”
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FRANCHISOR Q&A
Whilst the interest in food franchising is high, what support should potential franchisees expect from a franchisor? Mike and Nick, founders of the Orange Buffalo commented : “we will be as 'hands' on' as possible wanting every detail to be perfect so we build the right foundations to grow in the best possible way. They continued: “we have teamed up with Franchise Growth & Development, who are a team of experienced restaurant franchise professionals to represent us and guide us to maximize the success of our franchisees. We will support you every step of the way: selecting the right real estate; designing the right layout; negotiating with suppliers; training the franchisees; training the staff; pre-opening; grand opening; on-going; advertising and marketing support to make sure that the franchisee is successful.”
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Patrick Duffy and Beatons Tearooms have a similar support approach: “our support differs in that it’s very ‘hands on’ – and continuous (repeat business drives our model). We’re in the position to help with all aspects of running the business as we have the acquired industry and practical expertise over many years. Duffy concluded, saying: “this enables us to give guidance and support at every stage, from finding the perfect location, helping with marketing, with financial and operational aspects, right down to the practical everyday things such as training you and your staff, so you are ready for action.” “Franchise with Chopstix and you won’t be alone” according to Max Hilton Jenvey. He continued: “one of the advantages of owning a franchise is the support of the franchisor. Whether it’s finding the ideal location, staff training or promotions, the company is by your side to support you. The franchisor provides you with all the know-how in terms of working methods, management, administration, and more, meaning you’ll have all the right tools at your fingertips in order to run your store successfully.”
Thorough research will help you make an informed decision about which franchise to invest in, but what advice would YOU give those considering franchising? “Do what you love” that is the key for the founders of the Orange Buffalo. They continued: “find a franchise that fits your personality and passion. Recognize that you have tremendous influence in growing a Brand as much as the Franchisor does but this only happens when you and the Franchisor are in sync. Look for a Brand that you can grow with as it grows, this way you will benefit from more than just the investment you put in.” Patrick Duffy, Managing Director and Founder of Beatons Tearooms points out that it’s not all about the money: “weigh up carefully what it is that you want to get out of a business, it’s not just about earning the money! Achieving the goals that you are most passionate about, be it a sense of belonging in your community or perhaps creating a family legacy makes the journey rewarding.”
He finished saying: “being able to do this, means you’ll create a business which you’re enthusiastic about now and will continue to love in the future.” “Commitment is crucial” according to Max Hilton Jenvey, Chief Operating Officer at Chopstix: “you don’t need a wealth of business experience to become a franchisee. What is essential however is that your chosen franchise is one you are interested in and fully committed to.” He continued: “consider the reasons for your decision and make sure they are valid ones. For example, going into business just because you can’t find another job is not advisable. Once you’ve partnered up with a franchisor, you’ll be taught their own specific methods and procedures of working. It’s a great way to learn new skills and you don’t have to worry about being an expert in the field!” “Research is key” according to Anthony Round, Business Development manager at Papa John’s. He concluded saying: “when it comes to the fast food market go out and try the offering. If you like it then so will your customers!”
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Data Protection Regulation
The General Data Protection Regulation:
What it means for food franchises
Franchises are waking up to the fact that their data – customer lists, marketing profiles and employee performance metrics, for example – is their most valuable asset. But come May 2018, it could become their most significant liability. On 25 May 2018, the General Data Protection Regulation (“GDPR”) will come into effect, bringing with it the potential for significant penalties, up to the higher of four percent of an organisation’s annual revenue or 20 million Euros, for mishandling personal data. Notably for UK franchisors, it will apply before Brexit, is likely to persist afterwards, and could render a franchisor liable for the actions or omissions of its franchisees. For franchise systems, the challenges are especially great. GDPR extends the safeguards that organisations must apply to personal data and creates a host of new rights for individuals in 38
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relation to their data. It relies on a definition of personal data so broad so as to include any information about an identifiable individual. This could be an email address, customer service inquiry, payment card details or even an online identifier. Franchisors frequently provide tools and platforms that centralise the data of their franchisees. They also pass data back to franchisees and hold, at least, contact details for the franchisees’ principles. Many franchisors do much more, including through websites, apps and joint marketing activities. But regulatory change also presents
opportunities. The GDPR will largely harmonize regulation across the European Union (“EU”), eliminating many country-specific requirements and allowing the franchisors to streamline EU expansion. With careful planning and early engagement with customer privacy, franchisors can mitigate data protection risks whilst reaping the benefits that digital business has to offer.
5
Five significant data protection changes To harmonise EU standards, the GDPR cherry-picked elements from each member state’s laws. The result is a massive regulation, which, at more than two hundred pages and 99 articles, delves into the specifics of how organisations process personal data. Here are the highlights: Compliance by accident is no longer sufficient. The GDPR introduces significant new record-keeping and compliance measures, which include understanding and recording all processing activities within an organisation and conducting detailed risk assessments around the use of personal data. Organisations will need to document that they have considered privacy and data protection through the conception and implementation of any activity involving personal data.
Individuals have a right to access, amend, delete and transfer their data to a competitor. An extension of existing rights to access personal data, under the GDPR access rights will be broader, with fewer exceptions, and individuals will also have ability to request that their personal data be deleted or amended within 30 days. This is a short time frame to be able to locate all copies of personal data across an organisation. The GDPR also introduces a new right, the right to data portability, which requires organisations to provide The standard for consent is much higher. personal data in an interoperable format Gone are the days of clicking “I agree” to a so that it can be transferred to competitors novella of terms and conditions. Under the upon an individual’s request. GDPR, it will not count as consent unless it is unambiguous, specific and freelygiven. This means that many services Some organisations will be required to cannot be made conditional on consent appoint a Data Protection Officer. for unnecessary data uses and individuals Organisations that conduct “large must have the opportunity to consent scale” processing or monitoring may be separately to each use. required to appoint a Data Protection Officer with responsibility for overseeing Organisations will have 72 hours to notify compliance. While this may not apply to many food franchises, franchisors should a supervisory authority of a data breach. The GDPR applies a broad definition of consider appointing someone within the data breach, encompassing any breach of organisation to lead compliance efforts. security leading to accidental or unlawful access to, disclosure or destruction of personal data. Sending an email with customer data to the wrong person or accidentally deleting a customer’s data will qualify as a breach, as would a franchisee's inadvertent disclosure of customer card details. All breaches must be reported to the regulator within 72 hours – an incredibly short time frame to assess and understand the breach – unless there is no risk to individuals. 39
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Data Protection Regulation
What can franchisors do? F
ranchisors should not be put off by the volume of work to be done by May 2018. Here a five steps franchisors can take to begin their road to compliance now:
4
1.
U nderstand
what data you and your franchisees collect and ensure that you can justify it under the GDPR’s “lawful bases�. Conduct a gap assessment to see how your orgaisation scores against the new requirements.
2.
U pdate franchise agreements as they come up for renewal to include GDPR-required terms and to mitigate data protection risks. Update agreements with any vendors who will have access to personal data, even if they are merely storing it on your behalf.
A mend
any privacy notices you provide to customers and/or employees to make sure they accurately explain how you use personal data. Where consent is required, make sure it is granular and that individuals have an opportunity to revoke their consent at any point. Above all, be able to document which notice an individual has seen and exactly what language he or she has consented to.
5.
P ut
in place a security incident response plan that includes investigating the facts of an incident, escalating it within the organisation and notifying the appropriate regulator(s) within 72 hours. Plan to pdate notify in stages if all the facts cannot be your franchise manual to ensure that known within this short window. For best practices in place. Amend your data serious breaches, the plan must include protection policies to be able to respond to notification to affected individuals. individual requests and consider providing training to key staff who will be handling The GDPR raises the bar for organisations that handle personal data, but it should not personal data. stand in the way of the promises of new technology. With careful planning and a keen assessment of how your organisation relies on data, your franchise system can thrive under the new regulation. Gabe Maldoff, Associate, James Mullock, Partner Bird & Bird LLP
3.
U
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One to Watch TRIPLE TWO COFFEE
ONE TO WATCH
REAL FOOD, AWESOME COFFEE. T
riple Two Coffee
Are taking Swindon by storm, founded in 2105, the growth of Triple Two Coffee is impressive to say the least. Their knowledge of the industry and passion for excellent quality coffee has resulted in notable growth over a short period of time. This, is a new era of coffee. It all began at the Brunel Centre in Swindon. It is here that their passion for excellent quality, freshly made coffee as well as an endeavour to find high quality ingredients for their ever expanding food menu began. This resulted in, just four months later, the opening of their 3000sq.ft flagship store, also in Swindon. Alongside these huge achievements Triple Two Coffee now looks set to conquer the franchising market. Where their passion for great coffee and handmade fresh food, alongside an excellent infrastructure of support all results in a great recipe for success. Triple Two Coffee has been described ‘as a great alternative to modern chains’ and this is definitely something the owners of Triple Two Coffee set out to achieve. Over the years, their experiences of eating and drinking in existing coffee shops has resulted in a coffee shop to rival many in London. Triple Two Coffee offer a varied menu including a variety of gluten free and vegan options as well as coffee alternatives such as an assortment of herbal teas. As well as Nutella mochas, cappuccinos and lattes all crafted by expertly trained baristas.
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Triple Two Coffee has also benefited from the talents of a multi award winning designer who helped to create an exciting and contemporary space. Also in a nod to the local area, Triple Two Coffee has cleverly incorporated Swindon’s railway heritage into their logo and interior design. The people of Swindon are more than happy with this ‘breath of fresh air’ and have given it rave reviews online. Noting their happy, highly trained staff, expertly brewed coffee and ambience as just a few of the reasons why they keep on going back.
We speak to
David Hodgetts one of the founders of Triple Two Coffee. He explains why Triple Two Coffee is the best new coffee franchise around.
Tell us about Triple Two Coffee Triple Two Coffee is a new era of coffee and we aim to deliver excellence in everything we do, with no deviation! Our endeavour is to provide a better quality coffee than our high street brands and provide fresh food with the best ingredients. All of this is served alongside a modern, stylish and ground breaking interior design concept.
What inspired you to set up Triple Two Coffee? We were inspired after spotting a huge gap in the market! Not naming any names, but we were regular coffee drinkers and used to drink at a number of different coffee shops. It took us 6 months to realise that actually what we were receiving was a poor cup of coffee, food with a 5 day shelf life, uninspiring customer service and the same old brands popping up everywhere! We spent months working with our award winning designer to decide on the
name and motto and many more months sourcing the product from the right local sources and of course finding our coffee blend. This is also from a family coffee roaster but of course is top secret too! After nailing all of these pieces together we were as confident as we could be that we had a concept and product that would stand up against our competition, the likes of Costa, Pret, EAT and Starbucks being amongst them. If you check our social media reviews and general in store ambience, we believe that so far we have definitely achieved that.
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ONE TO WATCH
What made you choose a franchise model? We invested a huge figure upfront before the doors to Triple Two Coffee even opened. This went towards the brand, design, food layout and many other things. We always wanted to keep the model simple so as to set up the foundations that brands of 40-50 stores would potentially have. These had to fit in within one umbrella and then offer all of that infrastructure out to other individuals and groups to become our partners. Because we felt that all of the above was on point we came to the unanimous decision that we should franchise our model out and not waste time in doing so. However, the exciting point is that we will be aiming for all future stores that open to be even better and standout more than ours. We never stand still and will always be looking for that extra 0.1% as it makes a huge difference!
What makes Triple Two Coffee stand out? The fresh, new branding and design also the fact that we offer speciality coffee without taking hours to make it and the quality of our food. Combine all these together and you have what we believe is the current pace setter in the industry.
We are
investors
of people and are genuine about involving and evolving our current team, this is translated in the quality of experience our customers receive, which is proven by our social media ratings. We are also an independently run business, so we naturally care more about everything that goes on within this company!
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What are the current trends in the coffee market? Basically, a number of trends are aimed towards what we have created – the problem the massive brands have is they take so long to change. Therefore it will be a new era by the time they achieve anything. In the meantime we will have evolved with what the consumer wants.
How would you describe the market at the moment in terms of demand, competition and growth? Demand is high, growth is high and competition is fierce. We like to keep things simple though in this industry. Over the course of the coming few years there will be a point where the coffee market may hit saturation point, but as long as you are the best of the bunch this won’t affect you, it will only impact the brands that cut corners and don’t offer the quality of experience customers are learning to expect. Also, a number of independents may then suffer, which is why
franchising with a
new era brand such as ours makes sense.
What makes Triple Two Coffee such a great franchise opportunity? The
fact that you can get the best of both worlds. On one side, you are buying into a brand that is new and not out of date and on the other side you are buying into a business with phenomenal infrastructure, including loyalty systems, design capabilities, a social media office, barista and chef training and much more.
We are
ambitious
and aren’t afraid to roll out numerous outlets but at the same time we will never compromise on the quality of the franchisee, something that is usually music to a franchisees ears!
What are the advantages of a franchise with Triple Two Coffee? Other than all of the above, we offer massive support package to all new stores opening, including assigned shop fitters, a world class designer at the ready and also the presence of one of the directors of Triple Two Coffee who will be onsite around the two weeks of the stores opening.
What are your plans for Triple Two Coffee for the rest of 2017?
6
We look set to be opening
sites this year
and a further store abroad. To be boring though, most importantly we will continue to improve all aspects of our business so we keep up with the high expectations we have set ourselves! 45
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Coffee Focus T
he appeal of the coffee shop has never been greater and coffee shops have never been more prevalent on the high street than they are today. According to the British Coffee Association, UK consumers drink approximately 55 million cups of coffee per day and 80% of people who visit coffee shops do so at least once per week.
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From Lattes, Macchiatos and the simple Espresso, coffee is a hot drink market leader and this is why it makes a savvy investment for the potential franchisor. According to Allegra Project Café17’s report the UK coffee market reached a turnover of a massive 8.9 billion in 2016. They also estimated there are a total of 22,845 coffee shops and outlets in the UK. With such fierce completion it is important to conduct stringent research into coffee franchising if your investment is to reach its potential. Data released during UK Coffee Week in April of this year found that 39% of Brits coffee consumption has increased over the past 12 months and 48% of those surveyed kept their consumption levels at the same rate. Also found was that coffee drinkers are willing to pay an increased premium for quality products, something that looks set to improve the coffee franchising market. Important to remember is that modern consumers don’t just care about the ‘taste and texture’ of their favourite hot beverage but the conditions it was produced. Consumers now require more information on the origins of their coffee beans and complete transparency on this subject by vendors is essential if the coffee market is to continue to boom.
With high street coffee franchises expanding year on year, the UK as a whole is now accustomed to having access to a number of options with regards to where to buy their favourite coffee drink from. Also, with coffee drinkers having a more knowledgeable grasp on where their coffee comes from, as well as expecting more than a quick instant coffee in a polystyrene cup, consumer demand for a fresh take on the coffee market is in more demand than ever. According to further research by Allegra even with leading national franchises Costa Coffee and Starbucks (alongside non-UK franchised Café Nero) dominating the branded market with a 53% share the plethora of alternative coffee franchises available is astounding.
coffee drinkers are willing to pay an increased premium for quality products,
Millennials are a major factor in the surge in popularity of the humble coffee shop and have inspired a change across the board for genuinely nice coffee that doesn’t cost the earth.
The decline in the bars, pubs and clubs’ culture is a direct consequence of the increase in coffee shops in recent years.
Coffee shops now have longer opening hours and some even sell alcohol. According to research conducted by Mintel, a London based market research firm, ‘one third of consumers aged 22-34 want to see more coffee houses serving alcohol in 2017’. This introduction of alcohol into the world of coffee is most probably due, in part to the vast difference in worth between these two industries, the wine industry is valued at 4.2 billion and spirits are valued at 5.8 billion, they are surpassed massively by coffee’s 8.9 billion hold on the economy.
Of course alcohol and coffee is not a new development but the appeal of a ‘one stop shop’ for a relaxed evening out means that owners and baristas alike are constantly searching and inventing new ways to make their evening trade a success. Many combine coffee and alcohol to create drinks such as espresso martinis others have simply added alcohol to their menus such as ever popular tipples gin and prosecco. However it is important not to forget that alongside this emerging market of late night coffee openings, during the daytime coffee shop visitors are generally becoming younger, with outlets now offering better facilities for their younger visitors during this time. Parents and grandparents find salvation in their local coffee shop as large comfy sofas, ambient lighting and a relaxed atmosphere create the perfect opportunity to escape from the bustling high street. 47
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COFFEE FOCUS
Beverage choice in coffee outlets are deviating from the classic filter coffee and flat white, to alternative options in order to cater for their emerging young consumers and have branched out into drinks such as hot chocolates, the ‘babyccino’ (frothed milk with chocolate) and a flurry of decaffeinated options such as iced teas.
it is estimated that coffee is set to bring
The introduction and subsequent popularity of decaffeinated beverages proves that people don’t just flock to coffee shops for a caffeine hit.
£15billion into the UK economy by 2020. The scope for choosing a franchise is huge, therefore research into the sector is essential and there are many factors to consider before you decide on which one is best for you. According to Mangobean ‘there has never been a greater time to start a franchise’ and this is reflected in the decade of rapid growth coffee franchises have seen. If you are considering a coffee franchise there are many franchise types to choose from depending on your preferences, ranging from coffee bikes and vans to retail vending and of course shops. Mobile coffee options such as vans and bikes are becoming increasingly popular as the thirst for coffee in more remote locations still exists. These options also consist of considerably lower start-up costs than shops and are perfect for those with a more modest investment. With a franchise you can with confidence independently grow your business to its fullest potential with the full backing of your franchisor. The kind of support you can expect is far ranging and consists of but is not limited to financial, on-going site development, training, recruitment and advertising. As well as this support another huge advantage of investing into a franchise (as opposed to starting up on your own) are the lower start-up costs. This is owing to the fact that you are buying into an already established brand with the added bonus of access to national advertising campaigns and of course the continued patronage of its 48
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existing customers. Coffee shops are a home from home with many of the same creature comforts and their popularity does not show any sign of waning. Modern consumers expect new and interesting coffee blends and syrups and associating yourself with a well-known chain and their connections means that you have easy access to new and exciting trends and technologies. Coffees huge popularity and success as a market leader is, for many would be franchisees, an excellent reason to begin the search for the perfect coffee franchise. This, coupled with the added security of belonging to a larger company and the vast amount of support offered to its franchisees makes the coffee industry a perfect investment. The future of coffee also looks bright as by 2020 it is estimated that coffee is set to bring 15billion into the UK economy by 2020. Coffee outlets are therefore also set to increase, creating well over 30,000 by 2025. This estimated growth alongside the proven and continued success of the many existing franchises available today is all testament to the variety of business models offered in the 2017 coffee franchise market.
Coffee Industry THE
IS VALUED AT £8.9 BILLION
2.3 BILLION
CUPS OF COFFEE ARE SERVED IN THE UK EACH YEAR
65% OF COFFEE CONSUMPTION TAKES PLACE DURING BREAKFAST HOURS
BRAZIL PRODUCES AROUND 30% OF THE WORLD’S COFFEE
THERE ARE A TOTAL OF
22,845
COFFEE SHOPS IN THE UK, THIS FIGURE IS SET TO RISE TO WELL OVER 30,000 BY 2025
COFFEE SHOPS ARE SET TO OUTNUMBER PUBS IN THE UK BY
2020
(Sources: UK Coffee Week Survey, Statistic Britain) 49
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Be Inspired
BE INSPIRED
Bake &Take Self-service bakery ‘bake&TAKE’ is fairly new in the UK, however it has a firm grasp on the European market. First conceptualised in Germany (then named ‘backWERK’) their first store opened in 2001 and since then ‘bake&TAKE’ as it is known today, has expanded to over 320 stores across Europe including Switzerland, Romania and The Netherlands with the majority of their stores located in Germany. bake&TAKE currently commands four locations in the UK, the newest is situated in Bury within the Rock Shopping Centre.
Opened by managers and co-owners Adnan and Ruba Jabir, the latter described as the driving force behind shop operations, have introduced Bury to the ‘oven fresh value’ that bake&TAKE prides itself on. The husband and wife entrepreneurs have opened up a shop to
rival many of the markets dominant UK sandwich and coffee shops.
Following an investment of over £250,000 the self-service, continental sandwich and coffee bar
looks set to revolutionise the quick-service food availability in Bury.
Ruba and Adnan commented on the opening of their new franchise “We are extremely proud to bring this wonderful concept to Bury. The bake&TAKE model is truly unique to the UK combining a fine brand of coffee along with an impressive selection of delicious continental sandwiches, savouries and sweet products.” They continued “home to many great bakeries and bakery products, along with its vibrant shopping centre, Bury is the ideal place for us to bring this new concept.
It seems that the secret to bake&TAKE’s success and also what sets them apart from its rivals is the freshness of its products. Many of their products arrive frozen and are baked fresh each morning. Their food repertoire consists of over 250 products including fresh coffee, wraps, doughnuts and pastries. They also provide a variety of bread for their daily selection of fresh sandwiches, from baguettes and flatbreads to German Kaiser rolls, in an appreciated nod to their German heritage. Adnan continued “Freshness is the key ingredient, with all products baked before your eyes all day and every day, thus ensuring excellent quality,”
he added “The self-service element means consumers always enjoy a quick and convenient experience in store, whether they choose to eat-in or take-away, which ultimately results in exceptional customer service standards.”
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H
ere at Food Franchise
we have been following bake&TAKE’s UK bakery revolution closely, back in Autumn 2015 we featured bake&TAKE in our ‘One to Watch. Robin Page, one of the owners of the UK master franchise and the reason why bake&TAKE is coming to a location near you said “We believe that the offering we have, ticks the boxes for all socio-economic groups. We have something for people of all ages, tastes, budgets and above all the eat-in and takeaway options we provide are suited to the lifestyle needs of everybody.” The first of their franchises opened in Manchester in October 2015 and since then bake&TAKE have recruited three more franchises, opening in London, Hounslow and Lewisham, as for the future? Bake&TAKE has plans to open up to 30 new stores each year. 52
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Bake&TAKE’s latest venture in Bury has seen the store fitted out to an extremely high standard, with the support of the master franchisors and features seating to accommodate 75 patrons, an iPad bar and free Wi-Fi. The Bury store aims to cater to all, mothers, pensioners, business men and anyone looking for a bite to eat are able to relax in their booth style comfy seating.
W
e speak to bake&TAKE’s newest franchisee and one half of the couple who look set to shake up the coffee and bakery market in Bury, Adnan Jabir, to find out why he decided to invest in a franchise with bake&TAKE and where he plans to take the franchise in the future. So Adnan, did you have a background in the food and drink industry prior to opening a food franchise? No, I had no industry experience prior to bake&TAKE, however I love eating out and trying new restaurants and I have a good sense of what customers look for generally in a meal out.
What made you choose the franchise model over running an independent business?
What made Bake & Take stand out? Bake&TAKE stood out to me mainly as it is a new concept to the UK with ample opportunity to grow at a faster rate than a brand that has already saturated the market. It does mean a lot of hard and hands on work.
The second reason was the back ground of the master franchisees, both Steve and Robin are veterans in this field and I felt that with their knowledge and experience, Franchising appealed to me as I did not the franchise has the best chance of want to take this step alone. I needed the back up of similar minded business partners who had the framework of operationally running an eatery such as the one we signed up for.
How did you fund the venture and how easy was it to secure the capital? Funding was a combination of a high street bank loan and my own savings. Securing the funding from the bank was straight forward for me but this is dependent on the applicant and individual circumstances. This is one aspect of it, the other is a sound realistic business plan which is crucial, this is something that the franchisor will help with.
developing into a successful high street brand in the not too far future. Managers and co-owners Adnan and Ruba Jabir
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What plans or commitments do you have to opening more sites in the future? I am hoping that we are able to open in other locations within the next 2-3 years if all goes in the right direction.
How long did the process take from making a franchise enquiry to opening your store and how did you find the process? I started thinking about franchising back in June of 2016. We opened our store at the beginning of March 2017. So about 10 months from idea to reality.
Why would you recommend franchising to others? There are many advantages to franchising, as you are able to benefit from a groups experience who all have one goal in mind. Namely to help you succeed and to grow the franchise into a recognisable brand. When you need the help, it is there. You have a sounding board for ideas and in the case of bake&TAKE,
they have shown flexibility in helping to develop the brand to fit the needs of the UK public.
How would you describe the market at the moment in terms of demand, number of stores, competition and growth? The UK loves coffee and food, the demand is there and is only set to grow.
which differentiates us and creates its own appeal.
There is nothing quite like the bake&TAKE experience and this in itself creates a niche that combines a great coffee shop with a great bakery. There are some that will compare us to Greggs and some that may compare us to Costa, however, we are neither, we have taken the best of both and added a twist
With the recent announcement regarding Bake&TAKE’s plans to open 100 new stores in the next 5 years, it looks as if this German brands takeover of the UK bakery and coffee market is moving quickly. With awards under its belt such as Franchisor of the Year in 2011 and a Franchise Bakery Award
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in 2013, bake&TAKE certainly have the backing of industry voices. Robin and Steve have worked hard over the last two years developing new supplier relationships, building efficiencies, carrying out customer research and product testing, ensuring the business model and procedures are in place to give UK franchisees the very best platform for success.
Making Franchising
Your Future // Making Franchising your future Gurmeet S Jakhu, partner at Knights Professional Services
When it comes to investing in a business one of the most important things you can do is to carry out due diligence checks. There are a number of questions which you must ask yourself, your would be franchisor and advisors to check if the investment is viable one. Franchising is no different and in this feature, we look to break down the questioning process, and investigate the things you should clarify before you make an investment.
But first be aware of the maxim,
‘Caveat Emptor’
Caveat Emptor is an ancient cornerstone of the law in England and means ‘let the buyer beware’ Therefore, it is up to a buyer to make sure that what it is purchasing is what it is said to be by the seller. There are some circumstances where there will be limited departure from the caveat emptor rule, for instance misrepresentation and contracts of utmost good faith (like insurance), but these are few and far between.
MAKING FRANCHISING YOUR FUTURE
Further given the reluctance by English courts to recognise an overarching duty of good faith in contract negotiations and performance, coupled with the fact that the UK has no franchise specific laws, means that buyers need to be very careful about what they are purchasing. A potential purchaser, whether of a new franchise from the franchisor or a re-sale of an existing franchise business, must carry out all relevant checks and undertake thorough legal, financial and commercial due diligence.
Tips for potential franchisees Becoming part of a franchise network, with an established brand, if often seen as being less risky when compared to starting a completely new business. The franchisor will have a tried and tested business and its products or services should be widely known and recognised due to the franchisor’s previous advertising and marketing effort. Whilst it is possible for a franchisee to join a new franchisor, as a pilot franchisee, the drawback is that there will not be many other franchisees to meet when evaluating the franchise opportunity, although this may sometimes be addressed in the level of purchase consideration.
The success or failure of a franchise will largely depend on the effort made by the franchisee. A business owner, is likely to be more driven to make a success of the business venture when compared to an employee no matter how well remunerated. It is important to remember that a franchisee will have to follow the method and instructions provided by a franchisor, so if you are not the kind of person who likes following instructions then franchising may not be for you. Due diligence will involve asking questions of a financial nature like:
1. 2. 3. How much total investment will this franchise require?
Whilst the franchisor should provide a response, also ask existing franchisees what their experiences were. A related question is what does this price include and what capital costs will be incurred in addition to the franchise opportunity cost.
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How much will I need in working/ operating capital?
What will be the gross profit margin and what costs will I incur in arriving at a net profit?
Unless you purchase an existing Seek clarification as to whether the business, you will not have any customers figures provided by the franchisor include or revenue when you start trading, but you your salary and depreciation. will have expenses. Until your revenue grows to cover these expenses, you will need access to liquid capital.
4. 5. You may also want to know how many business failures have been experienced by franchisees - and ask for the reasons, as sometimes, it may be down to the individual franchisee rather than a systemic failure.
How long will it take for my new franchise to reach break-even?
This is often met with a potential range of time, but it is prudent to plan that it will take the longest time.
Other questions should include:
• How financially strong is the franchisor company? • How much money will I make in this franchise? • What are the ranges of financial performance of the existing franchisees?
Don’t be afraid to ask questions of existing franchisees. If your access is restricted this could be a sign that the franchisor does not want you to talk to some of its franchisees who may be disgruntled and disheartened with the way the franchise has developed. Ask for a list of all franchisees together with contact details.
Business Plan The franchisor should be able to provide a response to the above and also present you with data and information relating to its franchisees performance and also forecasts. Use the responses to your questions and data provided to prepare a detailed and comprehensive business plan, with the assistance of expert advisors/accountants. Whilst most of the figures for sales and expenses should be available from the franchisor, the franchisor must be very careful when providing such figures to ensure that its set out the basis of the figures and that it has in place suitable safeguards to prevent a claim based on misrepresentation, arising. If you are planning on raising finance from a bank, a business plan will be essential. It will provide a clear direction from the outset and is a living document, which will change along the franchise journey.
Legal Due Diligence This involves asking a solicitor to review your franchise agreement. It is essential that you appoint a lawyer who specialises in franchising and who is affiliated to the bfa as they will know what to expect in such agreements and also understand the limited scope to challenge its terms. I am often asked why have it reviewed if there is no prospect of it being changed. If you do not take legal advice, you will not fully understand what you are signing up to. The solicitor will be able to explain your rights under the agreement, your obligations, any performance targets, the franchisor’s right to terminate (which will be quite draconian), the financial and other provisions which you may not fully appreciate. A bfa affiliate solicitor will be experienced in reviewing franchise agreements and will be able to tell you if there is anything unusual or unreasonable that may require further explanation. 57
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MAKING FRANCHISING YOUR FUTURE
British Franchise Association (“bfa”) The bfa is a self-regulatory trade body for franchising in the UK. In the absence of franchise specific legislation in the UK, the role of the bfa has added importance as the guardian of standards in franchising. It will vet all potential franchisors to ensure that the business, is viable, ethical and franchisable. The franchisor must also be able to demonstrate that the business concept has
longevity and involves the transfer of know-how to its franchisees.
All members are subject to annual reaccreditation and they must adhere to the Code of Ethics. The Code broadly covers advertising, recruitment, precontract disclosure and interactions with franchisees. Whilst membership is entirely voluntary, you can be assured that all 58
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ethical franchisors and professionals affiliated with franchising in the UK, will want to be members, as it reflects a hall mark of accreditation and shows that we are prepared to adhere to what is considered to be best practice in franchising in the UK. So it is always pertinent to ask whether your prospective franchisor is a member of the bfa. If not, you should enquire as to ask why not. The bfa has prepared a list of 50 questions to ask a franchisor before taking up a franchise opportunity and include questions about the financial position, operating methods, costs and your involvement. This is a must see for all would be franchisees. The bfa in association with Lloyds Bank has produced a new free e-learning initiative called the Prospect Franchisee Certificate (PFC) aimed at delivering a comprehensive overview of what it takes to succeed as a franchisee. It is intended to transform the recruitment journey for franchisors and their franchisee prospects.
Summing Up Remember it is a two-way process, make sure that you can speak to any franchisees in the network, prepare a detailed business plan, undertake thorough due diligence and find out whether the franchisor is fully accredited with the bfa. All potential franchisees should complete the e-learning initiative (PCF). Finally, don’t be afraid to ask ‘awkward’ questions - after all it is your future and financial wellbeing which is at risk! FIRST PUBLISHED in FOOD FRANCHISE MAGAZINE (Summer 2017)
Market Watch
%
Food Franchise magazines market insight
As
we slowly progress through Q1/ Q2 (U.S) for many businesses, we have seen the rapid pace of change, the unpredictability of current events and contentious political environments effecting the franchising landscape. With this said the UK economy has continued to perform well relative to other developed nations, although risks remain. This expected growth has supported business sentiment over the last year – the majority of smaller businesses have said that they are confident about growth, with around 56% intending to grow in 2017. As a result, The Bank of England has painted a brighter outlook for the UK economy this year, with faster growth, lower unemployment and a more modest rise in inflation. After further signs that consumers and businesses have shrugged off the Brexit vote, the Bank revised its earlier gloomy forecasts to predict the economy would grow 2% this year - matching its 2016 performance.
Such indicators are prompting many people to re-evaluate their circumstances and particularly, their careers and lifestyle, causing them to explore the franchising sector. What is clear is that the rate of entrepreneurial activity is high. However, that's not to say that businesses or potential franchisees should make rash or knee jerk decisions. With that in mind, we continue our Market Watch feature and bring you all of the latest news in terms of the global financial markets and how the food & drink franchises that are listed are performing. By looking at the stock market, this gives the investor an insight into the inner workings of a company. The price of a company’s shares is often used as an indication of the overall strength and health of a company. As a result, we have compiled our very own Watchlist including “Risers” and “Fallers” as seen on sites such as; Market Watch, Bloomberg and the London Stock Exchange. It's the perfect tool to help you gauge a better understanding of a business…
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Moving onto the rest of our summer edition watchlist, we look at some of the UK’s largest food and drink franchises and how they have performed over the last three months, these are our
“Risers” and “Fallers”…..
We’re pleased with our solid start to
Papa John’s (PZZA) 80.72 USD +0.63 (0.79%) 60
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2017, with good comparable sales and earnings growth despite a challenging environment for restaurants,” said Papa John’s founder, chairman and CEO John Schnatter. With that said, Papa John’s trading price has been struggling in 2017. From the figures it is clear to see even though Papa John’s had good Q1 results, their share price is struggling to gain momentum. Since the beginning of 2017, the share price has fallen 6%. In January 2017 it was trading at a healthy $85.1 price per share, since then it has dropped to $80 but is climbing slowly. In Quarter 1 of 2017, Papa John’s (PZZA) posted revenues of $449.3 million, which represents 4.8% growth from $428.6 million in 1Q16. This revenue growth was driven by the addition of new restaurants in the last 12 months, and higher commissary sales. Further to this, the revenues from international franchisees increased 3.9%. This revenue growth was driven by the addition of 145 franchised restaurants in the last 12 months.
In the last 12 months, Papa John’s (PZZA) has increased its overall unit count by 179 units. During the same period, the company increased the number of its North American franchised restaurants by 62 units, while the unit count of international franchised restaurants increased by 145 units. This therefore may suggest the reason for their low dividends suggesting that they are retaining profits to help with expansion plans rather than pay-out stockholders. Looking at what the analysts are saying after Papa John’s better than expected Q1 results, implementation of technological advancements and initiatives taken by the company’s management to improve the quality of its products seem to have encouraged analysts to raise their price targets. On May 4, 2017, analysts expected the company’s stock to reach $90.50 in the next 12 months (Market Realist, 2017).
Since
1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting highquality Arabica coffee. Today, with stores around the globe, the company is the premier roaster and retailer of specialty coffee in the world. The American coffee company and coffeehouse chain has seen its share price steadily rise in the first quarter of 2017. However, interestingly, after announcing that they did not meet Wall Street’s expectations for the second year running on their expected revenue targets, Starbucks shares fell 3.2% to $59.31 after hours on April 27 2017. Since then they have managed to climb back up to the $61 mark. Kevin
Yum! Brands, Inc. is a quick service restaurant company, which engages in the development, operation, franchise, and licenses a system of restaurants. It operates through the following segments: YUM China, YUM India, KFC Division, Pizza Hut Division and Taco Bell Division. Last year Yum! Brands had a total of 43,617 outlets worldwide covering all divisions. The breakdown is as follows: KFC Division: 20,604 Pizza Hut: 16,409 Taco Bell : 6,604 Following the release of Yum! Brands Q1 Earnings, Greg Creed, CEO, said “Our strategic transformation of Yum! Brands is already well underway, helping us deliver a solid start to 2017 with core operating profit growth of 9% in the first quarter. We remain confident that our multiyear strategy to be more focused, more franchised and more efficient will further
Johnson, Starbucks president and CEO commented: “Our success in opening over 2,000 stores around the world annually, delivering record AUV and profit, despite a very difficult period for many brick-and-mortar retailers, is a testament to the 330,000 partners who proudly wear the green apron.” According to the Financial times analysts as of May 4th 2017, they forecast Starbucks Corporation will outperform the market over the next year. The 28 analysts offering 12 month price targets for Starbucks Corporation have a median target of 66.00, with a high estimate of 71.00 and a low estimate of 52.00. The median estimate represents an 8.23% increase from the last price of 60.98.
strengthen our brands, accelerate growth, and increase consistency in our results and increase capital returns.” Interestingly, he also mentioned “weakness at Pizza Hut U.S” which has led to many analysts around the world suggesting that “parting ways” would be beneficial for Yum! Brands. With that said though, this does not seem likely with Yum! Brands announcing a new franchise agreement designed to turn around its ailing Pizza Hut business. This $130 million agreement is relatively modest in terms of Yum however, Chief Financial Officer David Gibbs said this could be the key to “unlocking significant value”. In regards to its future that is uncertain, with shareholders losing confidence and the trading price falling, Pizza Hut is not performing as part of the Yum! Brands contingent whilst other divisions like Taco Bell and KFC are thriving within the market, many are calling for it to be a private enterprise as it has been slowly losing market share for the last twenty years.
Starbucks (SBX) - 60.98USD +0.29 (0.48%)
Yum! Brands 68.50 -0.26 -0.38%
^
£
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+
Share in Focus:
Dunkin' Brands Group, Inc. operates as a franchisor of quick service restaurants, which engages in the service of hot and cold coffee, baked goods, and ice cream. With over 3,100 stores in over 30 countries outside of the US, Dunkin' Donuts has been
“dishing out deliciousness to the world for more than 60 years”. According to their website they on average sell more than 30 cups of coffee every second across the world. With this in mind, the coffee price war that has broken out among US fast food chains has taken the jolt out of Dunkin’ Brands’ first quarter results for 2017.
3,100
As always with the market watch section of the magazine, we always look at one particular share in detail, in this issue we focus on Dunkin Donuts.
stores in over 30 countries
DUNKIN DONUTS (DNKN)
The company behind the Dunkin’ Donuts coffee chain and Baskin-Robbins ice-cream stores saw shares fall in premarket trading on Thursday 4th May after it reported sales that fell short of analysts’ estimates (Financial Times, 2017). This fall in sales has evidently led to a decline in confidence by shareholders who have looked to sell their shares. This is most apparent in mid-April where the share price drops to its lowest in 3 months of $52.1 price per share it has since then recovered and is slowly climbing back up to around the $54 mark. Out of the range of franchises we have chosen for our summer editions’ “Watchlist”, Dunkin Donuts has been under the most pressure in regards to share price, this is a direct result of various internal and external factors. According to Karen Holthouse, analyst at Goldman Sachs “ domestically, unit growth risk and the lack of footfall due to over exposure to Winter storms earlier in the year has led to the fall in sales and decrease in share price for Dunkin Donuts”. This unprecedented decline in value, potentially comes as a result of a relatively “flat” set of Q1 results, with the CEO of Dunkin Donuts Nigel Travis commenting: “In the first quarter of 2017, we achieved mid-single digit operating income growth and double-digit earnings per share growth. 62
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While our Dunkin' Donuts U.S. comparable stores sales were flat in the quarter, these results, delivered against an increasingly-challenging environment for retail and restaurants, demonstrate the benefits of our assetlight, 100-percent franchised business model," He continued: "Going forward, we will continue to execute against our six-part strategy designed to drive growth and long-term competitive differentiation by positioning Dunkin' as a beverage-led, to-go brand. Our goal is to ensure that Dunkin' is a place of positive transition in our guests'
lives, the place that energizes them and sends them on their way to make the most of their day." Revenues for the first quarter increased $0.9 million, or 0.5%, compared to the prior year period, due primarily to increased royalty income as a result of system wide sales growth, as well as an increase in rental income due to an increase in the number of leases for franchised locations. Overall, Dunkin Donuts has had a shaky start to the financial year, however their ambitious international expansion plans could be definitely capitalised on if all goes well.
International News 63
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INTERNATIONAL NEWS
Southern Fried Chicken is landing in South Africa The people of Cape Town can now get their first bite of Southern Fried Chicken as the British brand opens their first store in South Africa. The opening showed the brands commitment to investing in South Africa as they have already across the rest of the continent.
The first Southern Fried Chicken branch finds a home in Cape Town’s bustling Long Street. Another store in the city is already planned in the next few months. They also plan to roll-out to other parts of the country in the next few years. Southern Fried Chicken’s chairman Andrew Withers commented that Cape Town is the best market for the brand “Our growth plan is all over Africa. We just opened stores in Senegal, Tanzania, Ivory Coast, Nigeria and Ghana and would like to expand our brand to many other countries because Africa has great potential to grow.” Southern Fried Chicken also possesses a strong market hold in countries like
Russia, Qatar and Malta. Andrew is not worried about competition from other chicken franchises in the country. “The quality of our dishes proves that another chicken franchise in Africa is indeed a necessity.” He continued “The chicks arrive whole, fresh, unfrozen and are cut in consistent pieces, before finally they are lathered in pressure-fried crunchiness, using the secret Southern Fried Chicken recipe with imported herbs and spices to lock in the juiciness.”
The quality of our chicks make us stand-out. We use only real, fresh chicken, prepared in a good, honest way.” The menu boasts fresh dishes in five flavours (Lemon & Herbs, Mango & Lime, Piri Piri-Mild, Piri Piri-Hot and Piri Piri -Extra Hot) with menu items ranging from succulent burgers, to bucket-deals and wraps- prepared in the signature fried method, or grilled to juicy perfection.
He elaborates,
“We go back to the old-school way of ensuring that chicken is the ‘hero’ of every dish on our menu.
Domino’s opens 14,000th store Domino’s has celebrated its 14,000th store opening in Cyberjaya, Malaysia Malaysia saw its first store in 1997. The new Cyberjaya store marks Malaysia’s 200th Dominos and the 3500th Domino’s store in the AsiaPacific region. "It was just eight months ago that we cut the ribbon on our 13,000th store and here we are already celebrating another milestone – our 14,000th store," said Patrick Doyle, Domino's president and CEO.
"Last
year we were opening, on average, a new Domino's store every 64
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Seven Hours
Our global growth has been tremendous. The story of our brand is clearly one of incredible momentum and brand resonance worldwide." The new store features the pizza theatre store design which allows customers to watch their pizza being made.
"We have been building beautiful new stores around the world at an impressive pace, thanks to the hard work, commitment and passion of our franchisees worldwide," said Richard Allison, president of Domino's International. "Our goal to become the No. 1 pizza company in the world – with the best customer service, serving high quality food, with inviting stores and leading technology – is being executed every day in countries like Malaysia and around world."
Chopped hires 430 new staff for 20 new Irish Outlets and UK expansion -
Wagamama opens its first restaurant in Spain -
Chopped, the health food company has announced the opening of 20 new outlets in Ireland and the expansion of its brand into the UK. The growth brings 320 new jobs Wagamama, the British for Ireland and 110 new jobs for the UK. pan-Asian restaurant group, opens its first Spanish restaurant in Madrid. The new restaurant is to open in the Salamanca district of Madrid with a second site opening in June. Wagamama, in collaboration with Spanish franchise operator, Grupo Vips, have plans to roll out more than 20 locations across Spain and Portugual in the next five years. Alvaro Salafranco, Managing Director of Wagamama Spain and Portugal, said: “Wagamama has 25 years of experience and success and continues to be as appealing and relevant today as in 1992. “Our portfolio of brands is enhanced with wagamama, a concept that responds perfectly to the current consumer demands for transparency, brand personality,
quality and freshness,
healthful and nutritious foods, in a modern and casual environment.”
The news was announced by Mary O’Connor, the Irish Minister for Jobs, and Brian Lee, Co-founder and Managing Director of Chopped. Commenting on the news, O’Connor said: “I welcome this news that Chopped is creating 320 jobs in 20 new outlets across Ireland. Indigenous Irish businesses such as Chopped are important to the national economy as well as making a valuable contribution to local areas through employment and expenditure. Ireland has one of the fastest growing employment rates in Europe and it is home grown companies such as Chopped that are helping to sustain this. I am particularly pleased that this expansion will lead to job growth in regions as balanced regional development is a key priority for me. It's great to see young business people in Ireland build on their success here to fuel international expansion and I wish Brian and Andy and their staff continued success in the future both at home and abroad.”
year we set a target of increasing our staff numbers by 100 and we exceeded that expectation by increasing our employees by 140 in 2016. When we received the keys for our first store five years ago, we knew it was the beginning of something great, but we still believe this is only the beginning for Chopped. Our staff are what makes Chopped the success it has become and we are looking forward to seeing our family grow as we expand across Ireland and beyond.”
Also speaking at the announcement, Brian Lee, Co-founder and Managing Director of Chopped commented: “Last 65
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INTERNATIONAL NEWS
Five Guys plans further expansion in Europe High-end burger chain Five Guys is in talks with its US parent to expand in Europe beyond the five countries it currently operates in. Five Guys’ UK chief executive, John Eckbert, said the company had growth plans for the UK, France, Germany, Spain and Portugal, where it already has sites, but saw scope for the chain to thrive in other European nations.
Pizza Hut Enters Ethiopia in Latest Expansion into Africa -
“We are in discussions with the US business to expand our territory,” Mr Eckbert said. “We think Scandinavia, Austria, Switzerland and Italy would be logical places to go.”
Three outlets due to open in capital by end of this year Pizza
Hut is set to open three outlets in Ethiopia this year, becoming one of the first international restaurant chains to enter Africa’s second-most populous country. The restaurants are scheduled to begin serving in the capital, Addis Ababa, by November, franchisee Aschalew Belay said in an interview Monday. Aschalew’s company, Belayab Foods and Franchise, will run the local outlets of the Yum! Brands Inc. pizzeria and will have invested $5.5 million in the operations by next year, according to his partner, Michael Ghebru. The agreement allows for as many as 10 outlets, he said. Ethiopia is an attractive destination because of its cheap labor and electricity, said Michael, who will run the franchise and initially hold a 15 percent stake.
There are “no major” food franchises in Addis Ababa, making competition “non-existent,”
he said. 66
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Ethiopian openings are part of a wider expansion under which Pizza Hut plans to boost its number of sub-Saharan Africa outlets to 100 by end-2017 from about 70, according to the company’s incoming general manager for Africa, Ewan Davenport.
The UK business is a joint venture between the original US company, which was founded in 1986 and counts President Obama as a fan, and the millionaire founder of Carphone Warehouse, Charles Dunstone.
Five Guys had 59 UK sites at the end of last year. Mr Eckbert said growth would About half of Pizza Hut’s business on continue in Britain: the continent is in South Africa, where it opened in 2015, with outlets in Angola and at Camp Lemonnier, a U.S. military base in Djibouti, the top performers elsewhere, he said in an interview. He didn’t give figures. Ghana, which has three Pizza Huts, is “absolutely firing,” with the partner looking to expand to neighboring countries such as Togo, Davenport said. A well-performing Pizza Hut restaurant will have “well in excess” of 1,000 weekly transactions, according to Davenport. Michael said he’s targeting 2,200 per week, equivalent to about $1.1 million a year, this year and think it’s conceivable to from each outlet. open that many for a few years,” he said.
20
“We’re aiming for
new UK sites
“We’ve got roughly 75 sites identified that we want to be in.
ShakeTastic, Bringing shakes to sheiks A London based milkshake and smoothie company has opened up its third Middle Eastern store in just over 12 months. ShakeTastic, which has eight stores across the capital opened in the Al Saleem Mall in Jeddah, Saudi Arabia, on Friday March 31. The store joins two other franchises which are already trading successfully in Qatar. The company was founded by former school friends Josh Kettle and Amir Darabi in 2009 and there is already plans for further Middle Eastern openings alongside the launch of UK franchise opportunities. Josh said: “Opening in Saudi Arabia is another massive milestone for us as it shows the rapid international expansion and booming popularity of our stores.
We’re now looking to recruit franchisees in the UK who can help us bring the ShakeTastic taste to even more people.
“The Middle Eastern market has a real appetite for premium products from the UK and we see this area as a place we can work with more partners to expand our brand and spread ShakeTastic across the globe.” “Working with our Saudi partners has ShakeTastic won the Best Smoothie been fantastic and everyone involved is award at the British Smoothie excited about the future.” Championships in 2009, 2010 and 2013. Amir said:
“We’ve grown internationally in a totally organic way.
Dunkin Donuts seeks franchise candidates throughout the Southeast Dunkin’ Donuts, America’s all-day, everyday stop for coffee and baked goods, announced today the signing of a multiunit store development agreement with new franchise group SWLA Delights. They intend to develop four Dunkin’ Donuts restaurants in Lake Charles, Louisiana, including one multi-brand location with Baskin-Robbins, the world’s largest chain of ice cream specialty shops. The group’s first restaurant is planned to open in 2018. "We are thrilled to be joining the Dunkin’ Donuts and Baskin-Robbins team to help expand the brands’ presence in Louisiana with our new restaurants in Lake Charles,” said Gul Awan, Dunkin’ Donuts and Baskin-Robbins’ franchisee. “We have passion and loyalty for both brands and look forward to opening our restaurants in the years ahead." In an effort to keep the brand fresh and competitive, Dunkin' Donuts offers flexible concepts for any real estate format. Also, multi-brand restaurants that combine Dunkin’ Donuts with BaskinRobbins under one roof offer even more opportunity to drive traffic during various day parts - from early morning breakfast and coffee all the way to after-dinner ice cream treats. 67
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INTERNATIONAL NEWS
Yum! Brands to invest $130 million in Pizza Hut turnaround Yum! Brands has announced plans to invest approximately $130 million over the next two years to resuscitate Pizza Hut in the United States. This is in a bid to counteract a 7% decline in same store sales in the last quarter. “I’m very pleased to announce that, in the past few days, we secured an agreement with our franchisees to accelerate a bold transformation of the Pizza Hut U.S. business,” said Greg Creed, chief executive officer of Yum! Brands. “This agreement will improve brand marketing alignment, accelerate enhancement to operations and technology and include a permanent commitment to incremental advertising. This is a win-win agreement that importantly includes explicit alignment on aggressive investment in a digital-delivery centric strategy, and in short, we’ll make it easier for our customers to get a better pizza.”
agreement” Greg continued. “Second was implementing the ‘Recolonization’ effort. Operational excellence is at the core of success for any brand and it was for KFC’s turnaround as well, with ingredients and procedures held by very high standards and with upgrades to equipment. “Thirdly, creative marketing around clear value constructs and innovation helped make KFC a distinctive and relevant brand again. Now franchisees are investing in assets, adding new sales layers, and demand from new franchisees has spiked”. Their efforts have resulted in a 2% increase in profits. President and CFO David Gibbs says that while this $130 million is a relatively modest investment in the scheme of Yum! “it is obviously quite significant to Pizza Hut U.S. and we are confident it will unlock significant value in years to come.”
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Yum! Brands was named among the
top
Best Corporate Citizens by Corporate Responsibility Magazine in 2017 and their brands include Taco Bell, KFC and Pizza Hut. They have already successfully turned around its KFC business in the U.S which resulted in a same-store sales increase over 11 consecutive months. This was achieved by implementing a new marketing campaign, revamped décor and an expanded menu.
KFC announced as biggest fastfood franchise in South Africa KFC has come out on top in a list of the biggest fast food franchises in South Africa.
With over 840 stores they are way ahead of the second biggest fast food franchise Steers, which boasts a still impressive, 542 stores. Burger chain Wimpy hold third place with 492 stores while Debonairs follows closely behind with 473. Surprisingly, South Africa’s most successful food franchise globally, Nando’s, is only sixth on the list. Fast-food franchise growth in South Africa has slowed in the past year, with the number of stores declining from over 4841 in May 2016, to around 4,780 in May 2017. This is despite the addition and growth of many new fast-casual food options such as “The first step in the KFC U.S. Dunkin Donuts and Starbucks. turnaround was reaching a clear alignment However, the recent tough economic climate has seen other brands such as with franchisees in early 2015 about the ChesaNyama downsize from 270 stores in 2016 to just over 180 in 2017 and the Fish strategy and entering into an acceleration and Chip Co drop from 360 in 2016 to 160 in 2017. 68
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Taco Bell begins steps to create 100,000 new jobs by 2022 Taco Bell has begun plans to expand to 9,000 new locations in the U.S by the end of 2022 in a move that looks set to create 100,000 new jobs. The move begins this month with plans to create 3,500 new jobs by this summer, they also plan to create 50,000 new jobs throughout the busiest season of the year. “Last year we announced our commitment to
Boost Juice to expand into service stations in Australia Boost Juice is expanding its footprint into service stations with plans to roll out into 12 Caltex’s stations around Australia with the first opening in Padstow, New South Wales. Boost Juice founder Janine Allis said “Boost has always been a convenient graband-go option and it only feels natural to have commuter hubs like services stations, airports and train stations as part of our expansion plans.” “Our partnership with Caltex will allow us to reach a whole new customer and really reinvent the experience motorists have at convenience stores where no longer are they grabbing their juice from the fridge but are getting it made fresh right in front of their eyes.” If the trial with the first 12 stores is
successful the company intends to conduct a broader roll out that will see Boost Juice stores popping up in locations all throughout Australia. “As we continue to open more stores throughout the country we have also been focused in ensuring that our menu features something for every customer from the motorist that comes to see us at our service station store through to the avid shopper at one of our shopping centre locations, Boost needs an offering that fits into the lifestyles of all Australians,” added Allis. Earlier this year Boost Juice also opened their first drive-thru location and has said that its expansion plans over the next 12 months will have a focus on diversifying its portfolio.
hire 100,000 new team members in our system by s 2022,”
ays Brian Niccol, chief executive officer at Taco Bell. “We are now taking that commitment to the next level with recruiting and employment programs to help us and our franchisees invest in our employees, and their experience, in significant ways.” Taco Bell announced plans in November to open 200 stores annually over the next six years or a total of 8,000 stateside and 9,000 global locations. Taco Bell also committed to hiring roughly 1.5 million people between ages 16—24 in the coming decade.
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The General Election: Employment Considerations With the general election just around the corner, below are five employment law issues for employers to think about:
Campaigning in the workplace Employees are paid to work so an employer is perfectly entitled to stop them using their work time and company resources for political campaigning. Also, this might be a sensible move in any event, not just for productivity reasons, but it could help to minimise fallouts
amongst colleagues over which political party should win. Any ban on campaigning in the workplace should be applied consistently to all employees to avoid any allegations of discrimination or unfairness.
Political beliefs The Equality Act 2010 protects employees from being discriminated against because of their religion or belief. The legislation is really aimed at protecting an employee’s philosophical beliefs (rather than their political ones). It is therefore unlikely that support for a particular political party will be covered by this legislation but a strongly held belief in a political doctrine (such as socialism or capitalism) might be.
Social media postings Facebook, LinkedIn, Twitter and the like are an embedded part of life for many employees and often strong views are expressed over social media without a great deal of prior thought. Employers would be wise to remind employees about what is and is not an acceptable posting in
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the run up to the general election, given the likelihood of disagreements over which party should win. This could help to avoid allegations of bullying made by colleagues or alienating business contacts who might not share the employee’s viewpoint.
To be within scope, the belief must be genuinely held, be a belief rather than an opinion or viewpoint, relate to a weighty and substantial aspect of human life and behaviour, attain a certain level of cogency, seriousness and importance and be worthy of respect in a democratic society. Employers should bear this potential protection in mind to avoid claims by employees that they have been treated less favourably or harassed because of their beliefs.
Extreme views Let’s imagine that an employee is seen by some of his colleagues campaigning for a party that holds strong racist views and as a result they feel very intimidated and do not want to work with him. Or perhaps customers have discovered his connection and consequently refuse to put any business your way while he is still working there. What can an employer do? Well, they might have grounds to fairly dismiss the employee. However, caution is needed. Firstly, there are the potential discrimination issues to consider (see above for details of possible Equality Act protection) but it is unlikely that the employee’s belief would fall within scope
(not least because it is not likely to meet the “worthy of respect in a democratic society” threshold). Secondly, employees are protected from being dismissed because of their political opinions or affiliation. An employer would therefore need to be clear that the dismissal is not because of the employee’s membership or support of the political party with the extreme views but because of the effects that his association is having on his work. Otherwise, they could face allegations of automatic unfair dismissal (even where the employee has less than the two years of service that is often required for an unfair dismissal claim).
Katee Dias Senior Solicitor Employment Team Goodman Derrick LLP kdias@gdlaw.co.uk
Time off to vote Employees are entitled to take (usually unpaid) time off work for a number of reasons but to vote in a general election is not one of these. Employers can obviously use their discretion to grant time off work if they so wish but given that the polling stations are open
from 7am to 10pm and employees who work more than 6 hours are entitled to at least a 20 minute rest break (and the reality is that most employers give an hour off for lunch), there is little reason to see why this would be necessary in the majority of cases.
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Professional advice for food franchisors and franchisees We speak to Jess Bains of Franchise Sales & Resales as he outlines the services they offer to Food & Drink Franchisors and Franchisees.
Franchise Sales & Resales innovative consultancy service was launched to help steer food franchisors, franchisees and investors smoothly through the franchise sales and resales process. Franchise Sales & Resales innovative consultancy service was launched to help steer food franchisors, franchisees and investors smoothly through the franchise sales and resales process. Franchise Sales and Resales manages the process from concept through to a successful completion, with a proactive methodology aimed at realising maximum sale value. We work closely with franchisor and franchisee, ensuring there is no conflict of interest, only an enhanced service essential in the sales and resales process in concluding a positive outcome. We will tailor a programme that is in line with your objectives utilising a portfolio of 72
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publications, websites and skills to target pre qualified candidates to promote your franchise for sale. Specialising in the sale of: • Franchises sales, • Franchise resales, • Multi-unit franchises, • Master franchises, • Entire franchise business, • Franchise acquisition and business sales. The service provided by Franchise Sales and Resales is further enhanced with support from legal advisers, banks, and financial specialists from within the franchise industry.
FRANCHISE SALES A Franchise business is a proven business format, which can be replicated by investors also known as franchisees. The Franchisor will grant the franchisee the use of the business name, logo, the right to market and distribute the franchisor’s products or services, in a given location or territory for a fixed period of time (usually five years, although this may vary from sector to sector), the full details of the franchise offering will be in the franchise agreement. Please note that it is essential that when reviewing the franchise agreement, the agreement is reviewed by a franchise solicitor. In most instances the franchise agreement can be renewed for a further term. Certain franchise brands will allow the franchisee to become a multi-unit owner or an area developer depending on the sector of business and availability.
FRANCHISE SERVICES
FRANCHISE BUSINESS IS A PROVEN BUSINESS FORMAT To invest in a franchise, the franchisee must first pay an initial fee for the privileges to use the business, training, and the equipment required by that particular franchise model. Once the business starts trading, the franchisee will usually pay the franchisor an ongoing royalty fee, either on a weekly, monthly or quarterly basis. This payment is usually calculated as a percentage of the franchise businesses gross turn over. After the contract has been signed, the franchisee will open a replica of the franchise business, under the guidance of the franchisor. The franchisee will not have as much influence over the business as he or she would have over their own business, however, investing in a franchise business will require you to follow the proven business format.
Franchise Business offer systems & support
FRANCHISE RESALES
Franchise Resales will offer many advantages over an established business for sale, purchasing an established franchise resale will offer instant cash flow from day one, as opposed to a new business venture which in some instances can take anything from 12 to Typically, the franchisor will command 18 months before returning a profit. With an established franchise resale, the business that the business model stay the same; for will have an existing customer base of clients using its service and products. example, the franchisor will require the franchisee to use the uniforms, business A new franchisee can profit from the brand identification that a franchise resale systems, and signs or logos particular to specifies. A new business can take many years to establish a brand in a competitive area. the business itself. The franchisee should There are no guarantees that the consumers will identify with the brand as a product remember that they are not just buying leader. A franchise resale can also provide owners with instantaneous brand recognition. the right to sell the franchisor's product or services, but buying the right to use the It can be exceptionally expensive for an independent business proprietor to advertise successful and tested business systems. their business, whereas a franchise resale has the advantage of already having an existing marketing campaign in place. The franchisor will have agreed a marketing campaign The franchisee will also usually have to to ensure customers identify with and remember the brand. Belonging to a franchise use the same or similar pricing in order reduces marketing costs, which are shared equally with other franchisees in the network. to keep the advertising streamlined. Aside from using the business systems determined by the franchisor, the franchisee will otherwise remain an independent owner of the franchise business. There will be training given by the franchisor to the franchisee, ensuring that the franchisee fully understands the business concept and systems of the franchise brand. Some franchisors will have a team of area managers, specific trainers and support staff to assist the franchisee, adding value to their franchise brand. As with any investment you make, you should do your due diligence thoroughly before you make any final decisions to purchase. For further advice and guidance, contact Jess Bains MICBA of Franchise Sales and Resales on 01462 685 633 or email jess@franchisesalesandresales.com 73
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Catering Services 75
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Catering Services Equipment Focus Multifunctional cooking technology Frima’s VarioCooking Center can boil, fry, deep fry and confit,
replacing griddles, kettles, bratt pans, large pots and fryers.
Alongside all its cooking processes it can also slow cook overnight and fast cook under pressure. It takes the concept of multifunctionality to a new level, says the company – as visitors to the Show will be able to find out for themselves.
can easily be installed on the work bench, on a stand or elsewhere. The 112L’s two pans offer maximum flexibility. The 50 litre capacity provides sufficient frying surface and boiling capacity even at peak times. The height of the pan base is ergonomically designed to make it easy for Frima’s latest VarioCooking Center is the chefs to work with, which is an important 112L, a twin-pan unit, each with a capacity benefit compared to tilting pans or other of 25 litres. Like the recently launched multifunctional appliances. 112T, the 112L is a counter top model that The 112L bridges the gap between the original, smaller 112 units and the larger 211 and 311 VarioCooking Centers.
Odd shapes and muted colours: tableware jumps outside the box Parsley in Time on tableware trends
If
it’s skew whiff and the colour is dialled way back, the chances are it’ll be coming to a table top nearby soon. The latest crockery trends are all about muted hues and asymmetrical designs, says tableware specialist Parsley in Time.
to be different. Restaurants, especially in the casual dining sector, want to create a stir and the table top is a relatively inexpensive way of changing the face of the dining area – and enhancing the customer experience.”
“For ‘muted’ read ‘natural’ or ‘Nordic’,” says Rob Blunderfield, Parsley in Time’s marketing manager. “Whatever word you use to describe them, greys, off-whites and faded pastels are huge and getting bigger.” Thinking about some blue plates? Look under names like ‘topaz’, ‘ice’ and ‘river’.
Glassware trends reflect this drive to be different. Current favourites range from classic, simple designs to etched goblets and stemless wine glasses. An increasing number of suppliers are creating specialist glasses for specific wine types. Alongside the simple choice of red or white, there are dedicated glasses for Riesling, Viognier, Sauvignon Blanc, Pinot Noir and so on.
Apart from their natural tastefulness, one reason for the popularity of these colours is that they blend well, both with white and with each other. “Two or more colourways in these kinds of shades let operators create a table top that manages to be attention-grabbing, relaxing and chic all at the same time,” says Rob.
Parsley in Time has pulled together lots of these trends in its latest brochure, called simply ‘2017.’ It combines the best and most innovative lines from a wide variety of manufacturers and includes plenty of table top design suggestions
Meanwhile the vogue for off-kilter shapes shows no sign of diminishing. “Ovals that aren’t quite oval, circles that aren’t quite circular, weird rectangles that are well outside the box… It’s all part of the drive 76
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Food Temperature Safety
So you’re starting a new franchise and have an equipment wish 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.
Frying pans that don’t give you stick FEM launches new Pujadas frying pans Quality frying pans are a must have in the kitchen. They need to cope with heavy duty use in the busiest of kitchen environments. FEM’s new Hercules and Ergos fry pan ranges from European manufacturer Pujadas, are designed to give the best performance and long service life in busy professional kitchens. The Hercules and Ergos frying pans are both suitable for induction, gas, vitro or electric cooking and are available in a range of sizes. Like the powerful names suggest, these pans are extremely durable and hardwearing. FEM’s Pujadas Hercules frying pan is 4mm thick and constructed from durable aluminium, with handles constructed from flat iron. Its multi-layer, non-stick coating is long-lasting and offers a high resistance to abrasion, while the handles have a heat resistant Epoxy coating. The Hercules pans are also available as specially designed crêpe and sauté pans, both suitable for gas or electric cooking.
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 colour-coded 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 dilligence by automattically 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 manufactuer 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.
SPONSORED BY
The Ergos frying pans are made from 18/10 stainless steel with a heat-resistant, ergonomic tube handle. They feature the ‘latest generation’ Excalibur non-stick technology, which forms an integral part of the base due to an additional coating of powdered stainless steel, which makes the pan resistant to the effects of the most aggressive kitchen utensils. The pans 0.8mm thick sandwich bottom means it is suitable for induction cooking. A rectangular Ergos pan is also available, specifically designed for cooking fish on gas or electric.
www.tmethermometers.com
01903 700 651 your one stop thermometer shop 77
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DIARY DATES
DATES FOR YOUR DIARY Find out what events are taking place in the world of franchising over the next few months
Discover how to run your own business with the support of an established brand at this key franchise exhibition. Join visitors who are considering the challenge of becoming a franchisee through one of the UK’s most successful business models. The British Franchise Exhibition Event City Manchester 16th & 17th June
With plenty on offer, there is something to suit all tastes and budgets. There are all types of business sectors to consider, including food and drink.
The Franchise Show Dublin RDS Dublin 8th & 9th September 2017
The Franchise Show Ireland 2017 Working closely with the Irish Franchise Association the Franchise Show will be back at The RDS in Dublin on the 8th and 9th of September this year. Why should you visit? For many of us, the thought of escaping the weekly nine to five working to make someone else’s business successful is the
Franchising experts will be on hand to give free advice at more than 40 seminars. Visitors will also be able to get one-to-one guidance from solicitors, banks, careers advisors and the British Franchise Association.
stuff dreams are made of. BUT what puts many of us off starting our own business is the low survival rate – a whopping 50% of start-ups fail within the first 4 years. So why do so many people still choose to go into business alone, even though there is a viable and low risk alternative…. Franchising!
The Number One Event For Business Growth And Expansion In The Food Profession. The Food Entrepreneur Show is THE event for any entrepreneur striving for success in the food and drink industry. This is the event where you find the
opportunity to turn up the heat on your competition and take your business to the next level.
The Food Entrepreneur Show/ Takeaway Innovation Expo Excel London 26th & 27th September 2017
IN THE NEXT ISSUE: Top 50 Food Franchises We take a look at the top 50 food and drink franchises operating in the UK – ranked by the number of stores currently open
Asian Inspiration
We focus on this area of the food and drink franchise market and find out why Asian inspired food is so very popular in the UK 78
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