Food Franchise Magazine Autumn 2016

FOOD FRANCHISE Fast food Franchise

QSR Franchise

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Coffee franchise

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Food-to-go Franchise

Pub Franchise

Restaurant Franchise

Be Inspired

FOOD FRANCHISE

Franchisee Steve Mullarkey tells us why he’s enjoying a slice of franchising life with Papa John’s

V3 ISSUE 4 AUTUMN

FOCUS ON FRANCHISE SECURITY

TOP 50 FOOD FRANCHISES

What factors should be considered to ensure you make the best possible start in franchising

Print edition £3.99 AUTUMN EDITION

Find out who’s leading the way when it comes to UK food franchises

LEGAL

ACCOUNTANCY

Katee Dias rounds up some of the recent developments in employment law

McPherson’s tell us about the key drivers of SME success

Editor’s message

W

elcome to the autumn edition of Food Franchise Magazine.

It has been a fascinating few months, with plenty going on.

Two interesting stories that have caught my eye in recent weeks both relate to the use of technology.

Editor

Steven Jones stevenj@mvhmedia.co.uk Office: +44 (0) 333 003 0499

Commercial Manager 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

Design

Timeem Taleifeh design@mvhmedia.co.uk

Finance

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

First came the news that Just Eat was trialling self-driving robots to deliver food to customers.

The second story was on a similar subject, with Domino’s in New Zealand planning to launch the world’s first drone delivery service.

Both stories highlight the growing use of technology in helping to drive efficiency and increasing the delivery reach of businesses operating in the foodservice industry.

They also show how franchises are looking to high-tech solutions to stay ahead of the opposition.

Anyway, back to the issues at hand.

In this edition our main feature sees us counting down the top 50 food franchises.

The list is a comprehensive look at the diversity and the size of the food franchising market in the UK. All the figures have been provided by the franchisors or their representatives and ranked on the number of units, or the number of franchisees, each business has in the UK. Included in the top 50 are pubs, noodle bars, milkshake bars, coffee houses, sweet shops, meal delivery services and of course burger bars, pizzerias and chicken shops.

In our latest Be Inspired feature we speak to Papa John’s franchisee Steve Mullarkey, who operates eight of the company’s outlets and is helping to grow the brand in the north west.

In this issue we will also find out how you can set your business up for a secure and successful future as we turn the focus on franchise security.

We find out what legal pitfalls potential franchisees need to avoid and what your rights are when it comes to running a franchise.

As usual, we have all the latest industry news from home and abroad, as well as legal and accountancy advice. We will also be taking a look at the financial climate in Market Watch.

Until next time,

Publisher

Steven

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.

The opinions expressed are not necessarily those of the editor or the publisher.

GET IN TOUCH www.foodfranchisemagazine.co.uk @franchise_food /foodfranchisemagazine1

Front cover image courtesy of Papa John’s Page 50

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Contents SUMMER

06 Industry News We round up all the latest news from across the industry over the last quarter

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32 Top 50 Food Franchises Find out which brands make our list of the UK’s top food franchises

50 Be Inspired

We speak to franchisee Steve Mullarkey about what attracted him to join the Papa John’s family

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54 Focus on Franchise Security

We find out about all the factors you need to consider to ensure your franchise makes the best possible start

58 One To Watch

Patrick Duffy tells us what makes Beatons Tearoom & Bookshop stand out from the competition

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62 Making Franchising Your Future

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We look at the decisions you have to make before setting off on your franchising journey

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

74 Market Watch A summary of how the franchises in the food sector are preforming on the Stock Exchange

80 Legal

Katee Dias rounds up some of the recent developments in employment law

82 Accountancy

McPherson’s tell us about the key drivers of SME success

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84 Franchise Sales and Resales

Jess Bains steers you through the sales and resales process AUTUMN 2016

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NEWS

round-up Chopstix opens Welcome Break noodle bar Oriental fast food restaurant Chopstix has opened a noodle bar at Welcome Break’s Birchanger Green service area on the M11.

Chopstix Noodle Bar blends authentic Oriental-inspired fresh and nutritious fast food with a casual, convenient dining experience at affordable prices.

In addition, Chopstix’s chefs cook the food on site to ensure each dish is served as fresh as possible and deliver chef theatre.

Welcome Break Chief Executive Officer Rod McKie said: “We are proud to be partnering with Chopstix Group.

“Its restaurants focus on serving fresh, nutritious and healthy Oriental cuisine using the finest ingredients.

“As well as great food and affordable

prices, customers will be able to enjoy the theatre of the chefs preparing and cooking the food in front of them.”

Chopstix Group Chief Operating Officer Max Hilton Jenvey said: “We are delighted to welcome the Welcome Break Team into the Chopstix family.

“Welcome Break and Chopstix Noodle Bar share a passion for foodservice excellence and are dedicated to satisfying hungry customers on the move.”

Chopstix will be open from 10am to 10pm, seven days a week, 365 days a year.

Runny eggs back on the menu for all Pregnant women, babies and older people have been told they can finally return to eating runny eggs - as long as they have the British Lion stamp on.

The Food Standards Agency (FSA) and Food Standards Scotland say they will no longer advise against the consumption of raw or lightly cooked eggs by vulnerable groups.

The new advice follows the publication of a detailed review by government food safety advisors, which concluded that the major reduction in risk from UK eggs in recent years meant the FSA should amend its long-standing advice for eggs produced under the British Lion scheme.

A spokesman for the FSA said: “The reason for this is that in recent years the presence of salmonella in UK hen shell eggs has been reduced greatly, this is particularly the case for those eggs produced under the Lion coded quality assurance scheme, which comprises a suite of additional control measures.’

The FSA had warned that vulnerable groups should avoid raw or lightly cooked eggs following the Edwina Currie salmonella scare in 1998.

Andrew Joret, Chairman of the British Egg Industry Council, which runs the British Lion scheme, welcomed the change in advice. He said: “This is a great success story for British agriculture. The investment we have made in eliminating

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salmonella and the safety record of British Lion eggs means that we have been confident for some time that even vulnerable groups such as pregnant women, babies and elderly people should be able to consume them when runny.”

The new advice follows a yearlong review by a specialist sub-group of the Advisory Committee on the Microbiological Safety of Food (ACMSF) to assess improvements in UK egg safety.

The report acknowledged the ‘significant

efforts’ undertaken by the UK egg industry to reduce Salmonella Enteritidis in laying flocks, which it says has made a ‘remarkable impact’ in reducing the levels of Salmonella Enteritidis infections in humans.

It concluded that: “There has been a major reduction in the microbiological risk from Salmonella in UK hen shell eggs since the 2001 ACMSF report. This is especially the case for those eggs produced under the Lion Code quality assurance scheme.”

Just Eat proves it’s got the X Factor after agreeing sponsorship deal Online food ordering platform Just Eat has taken over as the sponsor of The X Factor App 2016, allowing millions of viewers Anyone using the app can access exclusive content and Just Eat rewards, as well as order their favourite food while watching the show, which features Simon Cowell, Nicole Scherzinger, Sharon Osbourne and Louis Walsh as judges.

In addition to having extensive branded presence on The X Factor App, which is available to download, the sponsorship deal includes second screen takeovers in the ‘fifth judge’ area, where viewers can play along with the show, watch exclusive contestant content and play bespoke games.

Just Eat, which has over eight million customers, has developed a wide-ranging social strategy for branded posts and Tweets, and has also created a content hub on their own website.

The content of the app will expand and grow as the live finals and voting kicks off. Media spend will also be upweighted at key junctures in the series.

Ben Carter, UK Marketing Director for Just Eat, said: “Just Eat is delighted to be sponsoring The X Factor App. “The X Factor has become a Saturday night icon in its own right and together we are an essential part of Saturday night.

“After a record first half of the year for Just Eat in the UK, the second half of this

year promises to be one of the biggest in our history.

“This sponsorship is a great opportunity for us to showcase the diversity of food choice that we offer through our platform from our talented restaurant partners in every corner of the UK.” Just Eat has over 27,000 restaurant partners and for the live shows will be working to supply them with branded X Factor collateral.

The partnership was negotiated by m/SIX, on behalf of Just Eat, and ITV Commercial, Syco Entertainment and FremantleMedia UK.

Crolla’s Gelateria opens ice cream parlour in Aberdeen Italian dairy ice cream franchise Crolla’s Gelateria has opened its latest shop.

The new outlet, which has opened in Aberdeen, serves a variety of ice creams, as well as hot and cold food and drinks.

Customers can choose from a huge variety of flavours of ice cream, enjoyed in either a traditional cone or an indulgent sundae.

Crolla’s Gelateria represents an awardwinning family company that has been producing traditional Italian ice-cream in Glasgow for over 120 years.

Today, as well as having its own ice cream parlours, the firm also supplies ice cream vans, cafes, wholesalers, restaurants and hotels.

Food-to-go sector worth an estimated £16.1bn in UK The food-to-go market in the UK is estimated to be worth £16.1 billion, new research has revealed.

According to figures from food and grocery research and training charity IGD, the amount the sector is worth has risen by 6.8% since 2015, driven by changing consumer lifestyles.

The data revealed that the quick service restaurant segment was worth an estimated £5bn and had evolved in recent times, with premium burger chains expanding, and operators increasing their focus on health and nutrition.

The research also revealed that the foodto-go specialist segment was worth around £4.6bn and was growing in scale and impact, with more outlets moving outside of London.

According to the date, coffee specialists were also continuing to expand, with this segment now estimated to be worth £2.7bn.

The analysis also showed that many convenience, forecourt and other retailers had introduced specialist food-to-go counters to tap into that sector of the market, which is now worth £2.5bn.

Supermarkets and hypermarkets are also getting in on the act, with this sector of the market estimated to be worth £1.2bn.

Joanne Denney-Finch, IGD chief executive, said: “Food-to-go represents a strong opportunity for suppliers, but it’s a different market to grocery retail, requiring a very distinct approach to succeed.

“Suppliers looking to expand into this area must first and foremost broaden their understanding of the different types of foodto-go shopper.

“What drives them to purchase? What excites them? How can you work with your food-to-go customers to keep shoppers coming back for more?

“Those suppliers who really develop their knowledge of this unique market will be best placed to make the most of the growth opportunities available.”

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NEWS

round-up U-Select launches advice centre to help and inspire customers U-Select, PKL’s flexible catering equipment financing option, has launched an online advice centre with equipment advice, business tips and guidance on using the company’s services.

The guide has launched with a number of articles, including the advantages of using a combi oven, understanding single and three phase electrical supply, how renting catering equipment affects your tax bill, hints on buying the best food display for your business and advice on reading and understanding equipment warranties.

The aim is to give U-Select’s customers both advice and inspiration that will make a real difference in their business day to day.

U-Select has also sought out guest articles from experts in other fields that affect the catering industry, including credit monitoring company Experian, who explain how to achieve a better commercial credit rating, PRS for Music, who clear up common misconceptions on venue music licences, and ice cream machine maker Carpigiani, who

have provided tips on how to make money from an ice cream machine year-round.

The advice centre will be updated regularly with new articles, market trend analysis and equipment advice, and U-Select’s team hope it will become the go-to place for catering professionals looking for guidance and ideas.

U-Select Sales Manager Jon Steward said the new information hub had been inspired by customer questions and the company’s desire to help as many businesses as possible.

He said: “We talk to business people each and every day who are working very hard to make their dreams a reality.

“As part of our normal customer service we provide this type of information on a variety of subjects all the time and we realised it would be really useful to lots of businesses,

so decided to make it public.

“We’ve worked with our suppliers and other experts to create more content that we think could help people across the whole catering world, and we’d love to hear what else people want to know.”

PKL and U-Select Managing Director Lee Vines said: “We have built our success on being experts in kitchen equipment with great customer service, so it seemed a natural step to create a place that explained some of our knowledge in a way that was accessible and easy to understand. We love the thought that anyone who is interested can easily get access to this knowledge and use it to benefit their businesses.”

To access the advice centre, visit http://uselect.co.uk/u-select-blog/.

McDonald’s serves up 5,000 new jobs McDonald’s UK is to create 5,000 new jobs in the UK by the end of 2017.

The news came as the burger chain celebrated the completion of the 500th restaurant transformation.

McDonald’s currently has a workforce of 110,000, having added more than 15,000 new employees during the past five years.

Paul Pomroy, Chief Executive Officer, McDonald’s UK, said: “I am pleased to announce that McDonald’s UK is to create over 5,000 jobs by the end of 2017. These new jobs build on the 8,000 we announced in 2014, which have taken our workforce to over 110,000 ahead of schedule.

“As a major UK employer, we have added more than 15,000 people to our workforce during the last five years as a result of our sustained business growth and long-term investment in recruitment and training. Growth has been driven by investment and innovation in the restaurant experience, new restaurants and extended opening hours - over half of our stores are now open 24/7 throughout

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the week.

“Together with our franchisees, our multi-million pound investment into the next chapter of the McDonald’s story continues, and we are celebrating the completion of our 500th restaurant transformation. We are on track to convert a further 250 stores by the end of this year.

“Innovations like table service, where customers place their order via our new digital kiosks and have their food brought to them, are proving incredibly popular and in place in over 350 restaurants across the UK. “This focus on continued investment and innovation has seen another strong quarter performance for the UK business. We have now delivered 41 consecutive quarters of sales growth in the UK, by delivering what matters most to our customers - freshly prepared, great tasting food at affordable prices.

“These remain challenging economic conditions but I’m pleased that, together with our franchisees, we remain committed to the UK, and our continued focus on serving quality, affordable food and giving our customers a great experience is enabling us to keep investing in our business and creating jobs.”

Riverford still delivering on ethical values and ethos Riverford has come a long way from its humble beginnings, 29 years ago as a one-man band delivering vegetables locally to a few friends in Devon.

As one of the UK’s pioneering vegbox delivery schemes, Riverford now packs and distributes over 47,000 boxes a week to homes around the UK via their network of franchisees.

Riverford began in 1987 when founder Guy Watson left behind his management consultant career in London to return to his parents’ South Devon farm and started growing veg. Early days saw the produce grown and delivered using only three acres and a wheel barrow. Fired by a determination to find a better way of getting healthy, sustainable produce from grower to consumer, Guy launched the home delivery scheme.

As the Riverford business expanded, so did the challenge of how to meet demand without compromising on their commitment to local growing and employment.

The solution was to team up with a cooperative of small scale local farmers who shared the same beliefs. There are now four Riverford farms across the UK and one in France.

In 1999 Riverford launched its franchise network, which now has 60 thriving

franchisees who are Riverford’s brand ambassadors across the country; building relationships with, and delivering ethically grown organic produce to, thousands of loyal customers each week.

Guy Watson explains, “Our idea is to retain the social, environmental and economic advantages of small, local businesses, whilst sharing the advantages that scale gives.”

Riverford continues to develop its existing

model by extending its current ranges, developing new products and investing in IT solutions and marketing.

With 29 years of experience, Riverford is a successful and independent business model which has remained loyal to its ethical values and ethos of ‘good food, good farming and good business’. It’s an exciting time to become a Riverford franchisee.

NEWS

round-up Healthy dishes growing in popularity on menus as eating out sector bids to keep up with trends Healthy dishes are competing with foods such as burgers, burritos and barbecue foods for menu space as consumers’ appetite for nutritious fare continues to grow.

New research has shown main course salads have seen a surge in popularity - up 54 per cent on last year and now rank at number four in the top 20 most frequently listed main course dishes.

The use of pulses and fruit has also seen one of the largest year-on-year increases, and the term ‘superfood’ is being used 75% more often than it was this time last year.

Vegetarian dishes are also increasing in popularity, now having twice the share than in 2010, according to data from foodservice consultancy Horizons’ Menu Trends Report.

The research also revealed that vegan dishes were becoming more popular, with 21% of the eating out brands surveyed now offering a vegan option.

Gluten-free terminology is also more common, having risen 89% over the past two years and wheat-free options are up 80% on menus since last year.

Despite the rise in the popularity of healthy options, beef burgers, pizzas and

chicken burgers remain the top three most frequently listed menu items.

Beef burgers have seen a 7% decrease in menu appearances since last summer and hot dogs have now been knocked off the top 20 list in favour of burritos (up 56% since summer 2014). Fish & chips have also shown a slow decline in menu appearances over the past two years, with a drop of 26% since 2014.

Many meat-based dishes now appearing on menus are inspired by the long ‘n’ slow cooking of the deep south such as pit wings (at Handmade Burger Co), slow-cooked beef brisket (Best Western) and TGI Friday’s pork belly in a Jack Daniel’s glaze.

Peter Backman, Horizons’ Managing Director, said: “The trend for healthy and lifestyle eating is becoming more popular and high street menus are now reflecting this. Operators now have to make a difficult decision about what to keep on their menus.”

Horizons’ Menu Trends Report contains

data from 800 menus from 121 brands including pubs, restaurants, quick service restaurants and hotels.

Tea sales fall as young Britons shun traditional cuppa Tea sales are estimated to have dropped by five per cent to £614 million as young Britons shun the traditional cuppa, new research has revealed.

Just 16 per cent of those aged between 25 and 34 drink five or more cups of standard black tea a day, a study by market intelligence agency Mintel has revealed.

This compares with one in three (35%) of people aged between 55 and 64.

Almost half (48%) of those aged between 25 and 34 say that too much standard black tea can stain your teeth, while 23% of this age group say that the beverage has too much caffeine for them to drink it in the afternoon or evening and one in five (21%) say black tea is not good for hydration.

Instead, it seems young Brits are keen for more extravagant options as two in five (32%) say they prefer more indulgent hot

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drinks to tea.

Brits aged 25 to 34 are almost twice as likely to drink speciality teas in comparison to Brits over the age of 55, with half (50%) of those aged 25 to 34 drinking speciality black tea, compared to 26% of consumers over the age of 55.

Furthermore, 49% of Brits aged between 25 to 34 drink green tea, compared to less than one quarter (22%) of those aged over 55.

They’re also more partial to fruit tea, with almost half (48%) of those aged between 25 to 34 drinking this variety, compared to just 28% of those aged over 55.

As a result, Mintel research reveals that

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sales of ordinary tea bags are estimated to have dropped by 14% between 2013 and 2015.

Sales of green bags grew by 39%, speciality bags by 8% and fruit and herbal bags by 13%. Overall, tea sales in the UK are estimated to drop by 5% in 2016 to reach £614m.

Richard Caines, Senior Food and Drink Analyst at Mintel, said: “UK retail value sales of tea have been in decline in recent years, with growth in sales of green, fruit, herbal and speciality teas not enough to make up for a fall in sales of standard black tea, which dominates the market.”

Papa John’s opens two new stores on the south coast Papa John’s has opened the doors of two new franchised stores on the south coast.

The chain is now serving pizza from shops in both Bournemouth and Southampton.

Anthony Round, Papa John’s Business Development Manager, said: “Papa John’s is going coastal. We are super excited to open yet another two stores.

“The popularity of Papa John’s ‘Better Ingredients, Better Pizza’ concept means we are growing rapidly and now have well over 300 outlets across the nation.

“Bournemouth and Southampton, with their population of residents, tourists and students, are great locations for us.

“Sun, sea and pizza will be the catch of the day for visitors to Bournemouth and Southampton’s Papa John’s and it is certain to become the first port of call for hungry locals.

Mr Round added: “These two openings are just a small part of our UK expansion plans.

Because we are focused on growth we have designed a special incentive scheme, to help franchisees setting up new Papa John’s.

“We are ‘making waves’ in the industry by providing a contribution towards marketing, discounted royalty fees plus free equipment to help in the early stages of set up, right when franchisees need it.”

As well as the Bournemouth and Southampton outlets, Papa John’s has also recently opened stores in Rochdale and Blackpool.

Former KFC manager, Vijay Kumar will deliver Papa John’s pizza to customers in and around Blackpool, while Steve Mullarkey, will

run the outlet in Rochdale.

Mr Kumar said: “I worked for KFC for more than ten years, then went on to set up several of my own fried chicken shops.

“However, I became aware of Papa John’s and thought it would be a great idea to become part of such a popular brand through becoming a franchisee.”

“I will be responsible for my own stores and yet have all the support and back-up of a leading brand right behind me.”

Speaking about the Rochdale outlet, Steve said: “With around 100,000 residents, Rochdale is a great location.

“We are very much looking forward to enticing local Rochdale residents to try our top quality Papa John’s pizza.

Costa Express installs 6,000th self-service coffee bar On-the-go coffee brand Costa Express has announced the installation of its 6,000th selfserve coffee bar.

The machine was installed at Tesco, in High Wycombe, and puts Costa Express on track to achieve its target of over having 8,000 self-serve coffee bars in operation by 2020.

Costa Express has grown at an average of 70 new machines every month since the £59.5million acquisition of Coffee Nation, in March 2011, and following extensive rebranding and technological developments.

Costa Express serves barista-style coffee by combining fresh milk with Costa’s famous freshly ground Mocha Italia blend – the same blend enjoyed in stores.

Murray McGowan, Costa Express Managing Director, said: ‘Costa Express has enjoyed tremendous growth from 877 machines in 2011, to 6,000 today.

“We’ve always been confident that we can deliver an unbeatable coffee experience to on-the-go customers by using interactive technology, great Costa coffee and fresh milk.

“This milestone only continues to demonstrate that there is clear appetite for our award-winning coffee brand.

“We’ve also been able to export the intelligent concept to international markets and are encouraged by the results, signifying the appeal of the brand overseas and potential for further growth.”

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NEWS

round-up Study aims to help fish and chip shops serve up business success A third of consumers would eat fish and chips more often if there was a more varied selection of portion sizes available, new research has revealed.

Three out of four people (72 per cent) also said they would like their fish and chips to be cooked in a way that lowered the saturated fat content, according to the study from Seafish and AHDB Potatoes.

The study kicks off a new fish and chip industry campaign called Enjoy Fish and Chips, designed to help fish and chip providers understand what their customers want and giving industry access to the latest nutritional analysis on takeaway fish and chips.

The aim is to arm outlets with the tools they need to modernise their offering in line with the latest consumer preferences on variety and nutrition, directly combating the declining sales the sector has witnessed since 2010.

The research also discovered a notable disparity in standard portion sizes served across the industry by comparing the fish and chips offered at over 600 businesses throughout the UK. In addition to the insight into portion sizes, the findings reveal health conscious

consumers want more readily available nutritional information and a wider selection of meal options.

As part of the Enjoy Fish & Chips campaign, Seafish and AHDB Potatoes have created a web hub and produced a summary report to provide guidance and tips on how shops can use the data to their advantage.

Tom Pickerell, Technical Director at Seafish, said: “Fish and chip outlets serve their communities with tasty, nutritious, convenient, good value for money food.

However, it must evolve with changing consumer preferences to remain relevant, otherwise it is in danger of falling behind.”

Rob Clayton, Sector Strategy Director at AHDB Potatoes, said: “This research is the most comprehensive piece of insight into the fish and chip industry ever produced.

It is full of valuable information that can help businesses make simple changes that will make a huge difference to their bottom line.”

Businesses can visit the Enjoy Fish & Chips web hub to download the full report and get more information on the research and how it can help them.

Starbucks to open as part of £4m university project Coffee chain Starbucks is to open a store at the University of Wolverhampton as part of a £4m redevelopment project.

Work at the Millennium City Campus, in the centre of Wolverhampton, is currently underway and due to be completed by the autumn.

The new Starbucks store will offer a mixture of bench seating, high stools and soft furnishings.

Emma Furnival, Assistant Director for Hospitality and Accommodation Services at the University, said: “We’re really excited about opening the new Starbucks store.

“The investment at the City Centre Campus is focused on improving and

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extending catering facilities providing more choice for students, staff and visitors, as well as creating a more

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attractive environment for everyone who uses the campus.”

Britons get a taste for European fare post Brexit British diners have been flocking to European restaurants following the vote to leave the EU, new data has revealed.

Half of Britons blame drinks for oral health decline Almost half (46%) of adults believe drinks such as tea, coffee, juices and cola are to blame for the decline in their oral health, a new study has found.

Research by restaurant booking service Quandoo found there has been a 10 per cent week-on-week rise in demand for European cuisine since the referendum.

Comparing booking numbers the week before and after the referendum, Quandoo found Spanish restaurants had enjoyed the biggest increase in booking numbers, with a 39% week-on-week rise, while German restaurants in the UK saw bookings go up by 18%.

However, the growth in interest in European food has come at the detriment of cuisines from further afield. American diners and international food venues both had 16% less bookings the week after the referendum.

Matt Simpkin, Vice President Western Europe at Quandoo, said: “With Brexit dominating the headlines, Brits appear to have been taking a closer look at what our

European neighbours have to offer in terms of food.

“Whether you voted to remain or leave, it’s clear there is a desire, as Boris Johnson says, to have our ‘EU cake and eat it too’.”

Mr Simpkin added: “Only time will tell whether an exit from the EU will impact on the amazing diversity our nation’s food scene has to offer, however, we can only hope it continues to thrive!

“The great variety of restaurants we currently enjoy, all add to the cultural richness and diversity on our local high streets across the country.

“We’re incredibly proud to be working alongside some of the best restaurants in the business and are delighted to see such a colourful mix of restaurants join the Quandoo team from across the whole country.”

According to market research provider Mintel, 24% also say foods such as potatoes, blueberries, cherries and sweets are affecting their teeth, with 35% of 16-24 year olds thinking the same.

Other than from food and drink, Brits blame a number of other things for the decline of oral health, including ageing (46%), tobacco (23%), teeth grinding (21%) and poor dental hygiene (24%).

Jack Duckett, Senior Consumer Lifestyles Analyst for Mintel, said: “Perhaps encouragingly, just a quarter of Brits attribute a decline in the appearance of their teeth to poor dental hygiene.

“However, the high proportion of consumers that cite dietary factors as having a negative impact on their teeth is a testament to ongoing diet issues in the UK, particularly with regard to high sugar consumption.

“With young adults typically among the biggest consumers of processed sugars, and are more likely to agree that poor dental hygiene has negatively impacted the appearance of their teeth, it follows that the young are also more likely to indicate that they experience oral hygiene concerns, such as staining, bad breath, cavities and tooth pain.”

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Costa celebrates Good Housekeeping Food Awards glory Coffee chain Costa is celebrating after being named the Favourite High Street Coffee Shop at the 2016 Good Housekeeping Food Awards.

The Favourite High Street Coffee Shop category was introduced in 2015 and Costa has won the award two years in a row.

The prestigious annual food awards are in their twelfth year, with the magazine’s readers voting in 24 different categories for the most popular food brands and products.

Jason Cotta, Managing Director at Costa UK and Ireland, said: “We are delighted to have been named the Favourite High Street Coffee Shop for the second consecutive year and to have been awarded the title from thousands of Good Housekeeping readers and customers makes the win all that more special.

“We would like to thank our fantastic team of baristas in showing outstanding pride, passion and personality in what they do to help earn us the title and we will continue to listen to customers, working hard to ensure that they will continue to choose Costa as their favourite coffee shop.”

Muffin Break introduces healthier menu options at hospital stores Artisan bakery Muffin Break has introducing healthier food options and promotions at its stores based in the University Hospital Lewisham and Whittington Hospital.

The selection of alternative nutritious food options have been introduced in support of NHS plans to impose a 20 per cent ‘sugar tax’ in hospital cafes by 2020.

These new options include four different salads, and a smoked salmon, hummus and olive wrap.

As well as alternative food options, Muffin Break will also be changing its point-of-sale strategy by removing cookies and crisps from the till points and replacing them with bowls of fruit and a new porridge option.

Lisa Brook, Muffin Break’s General Manager, said: “We have long been committed to expanding our product portfolio and providing our customers with more healthy alternatives and the NHS move has strengthened our resolve.

“Our strategy in Lewisham and Whittington has been reviewed and we are already making positive changes to encourage visitors to consider healthier

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options as impulse buys at the tills.

“Our changes are just the beginning and we plan to roll-out further positive strategies in the near future.

“All of our stores, including our hospital stores, serve freshly baked goods using

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high quality ingredients, which are made by our in-store bakers every morning.

“We pride ourselves on the food that we serve and continue to improve our dining experience to respond to changing consumer needs.”

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round-up Get voting to see your favourite food outlet honoured at the British Takeaway Awards The British Takeaway Awards are back to recognise and reward the dedication of local takeaway owners.

For the second year running, the awards will celebrate the diverse range of cuisines and the amazing contribution a nation of high street heroes make to our economy.

Voting is now open for the British Takeaway Awards 2016, which are run in association with Just Eat, the world’s leading digital market place for food delivery.

If you fancy winning the coveted title of Best Takeaway in Britain, as well as a £5,000 prize, then it’s time to make sure your customers put you forward.

Members of the public have until midnight on October 6 to nominate their favourite local takeaways.

And the backing of the public does matter.

After the nomination process closes, a shortlist of ten takeaways in 13 different regions of Britain will be announced on October 10.

The public will be then asked to vote for a favourite in their region, with voting starting at 9am, on October 10, and closing at midnight, on November 24. Any votes cast outside of these times will not be counted.

The five takeaways in each region that receive the most votes will then be placed in the final shortlist and invited to attend the star-studded awards ceremony.

The British Takeaway Awards 2016 will take place on December 5 at The Savoy, in London, where the most celebrated names in British takeaway food will come together to celebrate the success of Britain’s best

independent takeaway businesses.

In total, 14 awards will be presented.

Each of the 13 regional winners will receive £1,000 and free sign up to Just Eat, or their sign-up fee returned if they are already a partner. But one of the 13 will be extra lucky as they will win the coveted award for Best British Takeaway in Britain and also receive a cheque for £5,000.

Graham Corfield, UK Managing Director of Just Eat, said: “The British Takeaway Awards are about celebrating the huge role

that takeaways play in the fabric of British society and the contribution that the industry makes to the UK economy.

“Across the length and breadth of the nation are local heroes who are producing amazing food, delivering great customer service and making amazing contributions to their local community - it’s only right that we recognise that hard work and dedication.”

To vote in the British Takeaway Awards, visit www.thebtas.co.uk.

Pokémon Go draws gamers to Costa stores Coffee chain Costa has seen footfall increase by 30 per cent across two of its stores after Pokémon were spotted there following the UK release of gaming app Pokémon GO. Pokémon have been sighted in outlets in St Martin’s Quarter and on The Cross, in Worcester.

On the day Pokémon GO was launched in the UK the stores saw sales rise by 10%.

Pokémon GO player Jordan Scriven, 21, from Dudley said: “I came down to

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Worcester on the train and noticed there was a Pokéstop at Costa. In the last hour I’ve caught about 50 Pokémon!”

Jordan also identified that the St Martin’s Worcester store is a PokéGym, a location where Pokémon can be trained.

Caroline Harris, UK Marketing Director

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at Costa said: “Our stores are proving to be the perfect place for Pokémon across the country to hang out. With our free Wifi and irresistible coffee, we’re looking forward to seeing more Pokémon finders and Pokémon characters come through our doors over the summer.”

Food for thought for businesses on combi oven maintenance Businesses have been given food for thought on taking care of combi ovens after a study revealed a lack of knowledge regarding water treatment.

According to research by The Craft Guild of Chefs and BRITA Professional, over half of professional chefs (59%) admit that their knowledge of water treatment to be poor or average Almost three quarters of chefs surveyed (70%) said they were unaware that combi oven manufacturers won’t cover breakdowns caused by limescale.

The study also found that over half of chefs surveyed (59%) aren’t aware that water filters need changing regularly.

The survey of 164 professional chefs also found that almost two thirds (63%) of chefs don’t know that untreated water can cause a combi oven to breakdown, while nearly half (45%) of chefs didn’t think that water filtration needs to be part of their regular housekeeping programme Andrew Green, Director of Operations at the Craft Guild of Chefs, said: “The right water treatment is key to combi ovens functioning effectively, but these results have highlighted a serious knowledge gap.

As a vital piece of equipment in professional kitchens, a breakdown mid-service would have a serious knock on effect, for both the customer and the business’ bottom line.”

Miles Dawson, sales director, BRITA Professional, said: “These findings demonstrate that there’s a job to be done to educate the industry on water filtration –

what it is, what it does, and how it needs to be looked after in order to keep equipment running smoothly.”

Papa John’s serves up lower-fat cheese option.

Pizza chain Papa John’s has launched a lower-fat cheese option for health conscious customers.

The company’s new offering is one third less fat than regular cheese and is available as a topping on all of Papa John’s pizza.

It has been introduced following feedback from customers who wanted the choice between the chain’s regular offering and a lighter option.

John Schnatter, Founder, CEO and President of Papa John’s, said: “As a pizza maker, my goal has always been to bring people together around quality pizza that everyone can enjoy.

“We want to accommodate different preferences, so we added lower-fat cheese to give people more options, while still delivering the same better ingredients that make for better taste.”

Gareth Davies, Regional Vice President for Western Europe and Papa John’s UK, said: “We’re always tinkering with new menu items and recipes, and this is a great option for people who prefer pizza on the lighter side.

“You won’t find any processed, lowcalorie ingredients because our menu items are made from the same better ingredients our customers expect from us.

“This means new and existing

customers can now enjoy high quality, lower-fat cheese pizza, combined with other lighter options on Papa John’s menu, such as the SNOG frozen yogurt, or the new chargrilled Corn on the Cob.”

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round-up Chopstix Noodle bar trials new brand Identity Oriental fast food restaurant Chopstix Noodle Bar has launched its new look brand identity at the opening of its newest outlet.

The shop, at the Trinity Centre in the heart of Aberdeen, is the fifth in Scotland.

The opening of the restaurant created ten new jobs and saw the introduction of Chopstix refreshed brand livery, which was created and developed in partnership with Mystery Design.

The brand’s new look and feel will be assessed over the next few months in preparation for the launch of Chopstix Group’s flagship restaurant in Oxford Street, London, later this year, where a full unveiling of the new store concept will take place.

Max Hilton Jenvey, Chief Operating Officer of Chopstix Group UK said: “The Trinity Centre is an ideal central location for our Chopstix Noodle Bar. “Our location on Union Street will allow us to serve the Aberdeen community in a

high footfall city centre, with longer opening hours, from 11am to 11pm.

“We will provide our guests with faster, fresher, healthier authentic Oriental fusion cuisine in a cool, casual and relaxed family environment.”

Linda Stewart, General Manager of the Trinity Centre said: “It is great to see another empty unit on Union Street filled with a great brand, I am sure that the Aberdeen public will respond positively to the fabulous restaurant and takeaway offer.”

Papa John’s opens at Peterborough Planet Ice Pizza franchise, Papa John’s has opened its latest outlet at the Planet Ice complex in Peterborough.

Papa John’s already has stores at the ice leisure brand’s complexes in Milton Keynes, Uttoxeter, Coventry, Basingstoke and now Peterborough.

Andreas Petrakas, Brand Business Development Manager for Planet Ice said: “Planet Ice now serves one million customers a year across all our ice rinks in the UK and we have ambitious plans to grow, both in the UK and overseas.

“We first introduced Papa John’s in 2015 and pizza has now been fully integrated into our proposition in five key venues, proving particularly popular!

“Customers can buy tickets to skate and eat which is a great every day offering and also ‘goes down well’ for special pizza parties for birthdays or a family evening out watching one of our exciting Ice Hockey matches.”

Anthony Round, business development manager, Papa John’s said: “Papa John’s concept of ‘Better Ingredients, Better Pizza’

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means we only use the best ingredients and fresh dough for a better natural flavour.

“We are delighted to be able to bring our

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top quality pizza to a wider audience and be associated with such a well-respected leisure brand: it’s a recipe for success.”

NEWS

round-up Domino’s Facebook Messenger bot aims to help make ordering easier for customers Pizza chain Domino’s has launched a new innovation to make ordering easier - a bot called ‘Dom’ on Facebook Messenger.

Pizza chain Domino’s has launched a new innovation to make ordering easier - a bot called ‘Dom’ on Facebook Messenger.

Dom is an artificially intelligent customer whiz designed to help customers who are signed up to use the system order pizza simply by messaging the word “PIZZA” to ‘Dom’ via Messenger.

Domino’s is one of the first brands to use the Messenger platform in this way.

Nick Dutch, Head of Digital at Domino’s, said: “We’re delighted to allow our customers to order direct from Messenger, it’s the obvious choice for Domino’s.

“We want to make ordering our freshly handmade pizza as easy as possible so we’re always on the look-out for new ways in which we can do this.

“Just message pizza - or send an emoji. It really couldn’t be easier. What’s next? That’d be telling. Pizza on the moon perhaps… Now that would be something.”

The announcement follows a period of exponential growth for the pizza company, which saw a 30 per cent rise in online orders last year, with digital sales accounting for 80 per cent of all UK deliveries.

Dum Dum Donutterie serves up the world’s most expensive doughnut creation Artisan doughnut maker Dum Dum Donutterie has created the world’s most expensive doughnut hybrid priced at £1,500.

The doughnut-croissant creation, named the Luxury Zebra Cro, was developed with takeaway platform Just Eat to celebrate the inaugural Just Eat Food Fest, which was held in Shoreditch, London, over the summer.

It contains Iranian saffron infused butter croissant dough, Cristal Rose Champagne Caviar, gold leaf decoration, French delicacy Normandy butter, powdered Nutella and the world’s most expensive Amedei Porcelana Chocolate.

The creation was named the Luxury

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Zebra Cro due to its striped layers.

Dum Dum Donutterie Founder and creator of the Luxury Zebra Cro, Paul Hurley said: “After months of testing flavour combinations with some of the world’s rarest and specially sourced ingredients, I’ve created the most luxurious Cro I’ve tasted.”

Dum Dum Donutterie has established itself as one of the most popular doughnut brands in the country with the launch of its latest craze, the Crone, a croissant doughnut cone filled with ice cream.

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Water softening warning for pubs and bars Pubs and bars are being urged to urgently check the water softening in place for their glasswashers to avoid equipment breakdowns.

Catering equipment distributor U-Select has revealed a recent surge in enquiries from pubs and bars left without glass washing facilities after breakdowns caused by mineral build up inside the machines.

U-Select Sales Manager Jon Steward said: “This summer we have fielded a lot of calls from bars and pubs urgently requiring new glasswashers, in fact more than ten per cent of our enquiries have been dishwasher related.

“Most of these failures can be marked down to a lack of proper water softening. It’s one of the big issues across the catering industry.

“Water filter manufacturers Brita claim 75 per cent of all catering equipment breakdowns are due to insufficient water softening. From our perspective, the pub industry seems to be having lots of breakdowns at the moment. It’s a real concern.”

The problems are caused by the minerals carried in hard water, which is formed when it passes through limestone and chalk.

More than two thirds of England and half the UK as a whole are listed as ‘hard water areas’, with more than 200 parts per million of calcium or

magnesium carbonates in the water supply.

When water flows through catering machines these particles are deposited and build up to form a hard layer which can block pipes and cause equipment malfunctions and failures.

Jon said water softening problems are particularly dangerous for businesses because they cause lots of damage very quickly.

He said: “When an item of kit breaks down because of water softening problems, the results can be catastrophic. It can often need to be replaced. I’ve been amazed by how quickly mineral deposits can build up and cause issues with equipment in the areas with the hardest water.”

Jon urged pubs and bars to check what water softening they had in place or to check with distributors what water softening is best for their equipment before purchasing.

He said: “The great news is the solutions are easy to install and maintain, and many newer glass washers have inbuilt water softeners or even clever ‘reverse osmosis’ systems which remove even more impurities that traditional water softening.”

SUBWAY® joins Instagram to help keep customers in the picture

Sandwich chain SUBWAY® is aiming to keep its UK and Ireland customers in the picture via its new Instagram account.

SUBWAY® hopes that joining the social media platform will help it build on the success the brand has had on Facebook, Twitter and YouTube.

The chain has a combined total of 484,000 fans and followers on social media.

The Instagram account adds a new creative channel, with food art posts, influencer collaborations and sharable content planned.

The launch ties in with the expansion of the brand’s premium range, which sees the addition of two twists on the popular Steak and Cheese Sub. Sacha Clark, Marketing Director for SUBWAY® UK and Ireland, said: “We’re extremely proud and excited to be launching on Instagram as it’s a platform that is important to our audience.

“Our creative content will emulate the choice and variety that the SUBWAY® brand stands for, starting of course with the tasty expansion of our Big Steak Range.”

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round-up Fish and chips the number one buy on UK’s ultimate shopping list Fish and chips has been voted the top item Britons like to buy.

Food and drink dominated the top ten of items on the list, which was compiled by Barclaycard following almost a quarter of a million votes in its interactive Great British Shopping Showdown.

Sunday roasts came second, followed by tea in third, fry-ups in fourth and scones in fifth.

The rest of the top ten included strawberries and cream, Victoria sponge, chip butties, crumpets and 99 ice creams.

With more than 10,500 specialist fish and chip shops in the UK, the British public consumes 382 million portions of fish and chips each year, helping the annual spend reach £1.2 billion.

Professor Isabelle Szmigin, consumer behaviour expert, from Birmingham Business School said: “What is so interesting about the top three items in the Great British Showdown is that they represent different and enduring aspects of British life. Fish and chips are Britain’s archetypal fast food that everyone can enjoy. The Sunday roast represents our social life when family and friends get together at the weekend. Finally, tea is our all-time comfort drink; whether

we have had a hard day at work or want a gossip with friends, tea provides the perfect accompaniment.”

Katherine Whitton, Chief Marketing Officer for Barclaycard, said: “Shopping has long been a favourite pastime of the British public so it was encouraging to see almost a quarter of a million people get behind this national digital debate. As a nation of

Muffin Break opens its doors in Blackburn Artisan Bakery chain Muffin Break has unveiled its newest outlet in Blackburn.

The opening of the store, at the Mall Blackburn, has seen the creation of 15 jobs.

The outlet will serve up freshly baked goods and delicious hot and cold drinks in a rustic, yet modern-styled interior, with comfortable seating for around 70 customers.

Muffin Break Blackburn franchisee, Nasriya Shaffi, said: “I’m delighted to be bringing Muffin Break to Blackburn and to offer shoppers freshly baked goods, which are all handmade in-store daily, with premium ingredients, by our fully-trained bakers.

“Muffin Break has something for

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everyone and caters for a wide range of dietary needs, so everyone will be able to find something that makes their taste buds tingle.

“The team and I are confident that the quality of our food and drinks will entice customers to visit us again and again. We look forward to welcoming everyone.”

Muffin Break Blackburn serves the limited edition ‘Duffin’ creation, which is a hybrid of a muffin and a doughnut.

Shoppers can also treat themselves to one of the recently launched ‘Muffin Shakes’ or a cup of Muffin Break’s exclusive blend of espresso, which is made from 100% Arabica beans.

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foodies, this top ten 10 list proves once and for all that the way to our hearts really is through our stomachs.

“Barclaycard has been helping people buy and sell for the last 50 years and while we’ve seen many trends come and go in this time, the Great British Shopping Showdown results show that some British favourites are firmly set to stay.”

Burger King and Starbucks on the menu at revamped Welcome Break services A revamped Burger King and new Starbucks café and drive-thru are among the outlets who have welcomed customers at the new Sarn Park motorway services.

The Welcome Break complex opened its doors following a £6.5 million transformation project.

The service station had been closed since November 2015.

It will be open 24 hours a day, 365 days a year. The transformation has also created 30 new jobs.

The services on the M4 (junction 36) also feature a Deli-2-Go, which offers hot and cold food and drinks 24 hours a day, seven days a week. The state-of-the art Starbucks

drive-thru is also open 24 hours a day Welcome Break Chief Executive Officer, Rod McKie, said: “The investment in Sarn Park highlights our commitment to the region.

“We are confident that our customers will welcome the new-look services and that it will be a great asset to the area.

“Our General Manager Rob Thomas and his excellent team are committed to offering customers the best experience possible when they visit Sarn Park.”

Sixty one per cent of people flexible with dogs being allowed in eateries Sixty one per cent of people said that they are flexible with dogs being allowed in eating locations, research from The Restaurant Club has revealed.

This does however include 11% being only happy in cafes and not restaurants, 8% believing only guide dogs should be permitted and 5% wanting a dog only area.

The question was asked to The Restaurant Club’s 11,000-member fine dining group, and through popular demand the club has now added a dog-friendly section to the website, advising diners where to eat alongside their canine friends.

Louisa Walters, founder of The Restaurant Club, which supports local restaurateurs, said: “I love the fact that I can take my shih tzu into my local newsagent, post office, chemist and hairdresser, so it follows that I would want to take her with me into local restaurants too.

“Every high street needs at least one dogfriendly eatery, however, there does need to be a dog-friendly code of conduct.

“For instance, dogs should only be taken out to eat if they are well trained and don’t disturb other clientele – unless of course the next table is happy to engage with your pet!”

Morfudd Richards, owner of Greenberry Café in Primrose Hill said: “I spend a lot of time in Europe and dogs in restaurants simply aren’t an issue.

“I was brought up on a farm and animals were part of the family, we wouldn’t dream of leaving the dog at home or outside a restaurant when we went for a night out.

“When I opened Greenberry three and a half years ago I wanted to create a relaxed all-day dining atmosphere for grown-ups, while also being family friendly… and the family also includes dogs.

“Hygiene is incredibly important to us. The

moment a staff member gives a dog a treat, he or she will immediately wash their hands.

“Dogs are kept on leads and there is a strong sense of owner responsibility over their dog’s behaviour. Occasionally we have

noisy dogs but we also have some noisy customers – that’s restaurants for you! But we do prefer both our human and canine customers to be well behaved!”

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round-up Britons and Americans oceans apart when it comes to dining out When it comes to dining out Britons are more impatient than their US counterparts, new research has revealed.vealed.

Speed of service is the biggest frustration for 44 per cent of diners in the UK, with only 31% of US customers being bothered by this, according to the GO Technology report from Zonal Retail Data Systems and research and insight company CGA Peach.

For Americans, the biggest frustration is the wrong order being taken, with 32% of diners complaining about this compared to 24% of the British diners questioned.

Not being able to pay quickly enough was also a bugbear in the UK, with 145 of respondents citing this as their number one pet hate at restaurants, whereas in the US only 9% express this as a major issue.

Zonal’s chief executive Stuart McLean said: “From our experience of the US hospitality market they are definitely behind the times when it comes to adopting technology to support the customer journey.

“In the UK technology is considered central to an operator’s infrastructure and this is supported in our research findings.

“In the UK we experience fewer mistakes when it comes to orders being taken, so it’s less of an issue. In the US, where there is huge service culture, consumers are less forgiving when it comes to receiving incorrect orders.”

However, the biggest opportunity for food

operators is take-out.

The research revealed that in the US, 40% of consumers order food to go at least once a week, with 54% choosing to collect their order from the restaurant.

Only 29% opt to have their food delivered.

In the UK there are signs that we are adopting the take-out trend, but still fall short of the US with only 14% of consumers having food delivered at least once a week (6.7 million or one in seven British consumers).

As the demand for take-out is on the up, so is the use of smartphone delivery apps such as Just Eat, hungryhouse and the fastest

growing app, Deliveroo.

Around 5.6 million people are opting for these third party delivery services.

Jamie Campbell, director of CGA Peach, said: “High street restaurant brands have recognised the potential of takeaway as part of their overall service offer and we will see this grow in the coming months and years as the market matures with more delivery providers entering the market.

“To support this, the demand for app technology is also on the up with consumers feeling increasingly comfortable to book a table, order food and pay for it from their personal devices.”

Deliveroo set for expansion after raising $275m investment Online food order and delivery service Deliveroo has raised $275 million in a new round of investments.

The company raised the funding from two existing and two new investors.

The latest round of investment was led by private equity group Bridgepoint, and included US venture capital firm Capital General Catalyst and existing investors DST Global and Greenoaks.

The new funds will be used to expand the service in both new and existing markets, as well as provide further investment in projects such as RooBox, a pioneering remote kitchen initiative.

RooBox gives restaurants access to delivery-only kitchens in key locations, accelerating geographic expansion.

Since the last round of investment in

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November, Deliveroo has achieved over 400 per cent growth and reached profitability in a number of its established markets.

It has also launched in 29 new cities, added an additional 9,000 new restaurant partners, and created opportunities for 6,500 riders, all while continuing to improve its already strong customer retention rates and maintaining a 30 minute average delivery time.

The company has also hit key milestones such as expanding its service to cover breakfast, express lunch, alcohol and corporate ordering, and striking deals with major partners such as PizzaExpress.

Deliveroo was founded in 2013 by Will

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Shu and Greg Orlowski. The company is headquartered in London and operates in 84 cities across 12 countries.

Will Shu, CEO of Deliveroo, said: “After seeing strong growth in the markets we launched in November, our new focus is to drive further innovation in food delivery.

“In particular, I’m excited about exploring completely new ways to solve the hardest problems restaurants face when offering delivery.

“RooBox is the first illustration of this approach, and innovations like these are at the heart of our mission.”

BUSINESS PROFILE

200 DEGREES

200 Degrees Coffee are going from strength to strength in the rapidly expanding UK coffee market. Started as a small roasting business, they now own two shops in Nottingham with the latest addition being on Birmingham’s exclusive Colmore Row. MD’s Rob Darby and Tom Vincent started roasting coffee primarily to serve in their own bars after they had grown frustrated with local suppliers. Seeking a holy grail of outstanding taste from small roasters but with consistency and customer service comparable to the major players, their first roast was in 2012 and two years later this simple philosophy flowed into their award winning and critically acclaimed shops.

Tom puts it as a relatively straight-forward model, “It really has been a case of doing something we love to as high a standard as possible, we are independent specialist roasters but we feel the new customers for coffee shops want excellent coffee served in a comfortable environment and above all they want really good, friendly service”.

Their plans are to expand their operation with new shops in the pipeline for major cities and a booming wholesale business serving tiny cafes to Michelin starred restaurants alike. End of the 2016 will also see a subscription service open up for UK customers to get coffee delivered to their door “through their door would be more accurate, we put the beans into a postal pack” says Tom, “it will help make 200 Degrees known throughout the country which will be great for the shops”.

200 Degrees are new to franchising but are keen to get involved with people who understand coffee and need the help of an established company to realise their dream of running a successful, high quality coffee shop. Tom sums it up, “Rob and I have been

in hospitality for over 20 years and with the added expertise we’ve brought in we can only get better, it’s as much about the people as the beans and we’re very proud of retaining most of our team for a long time.

When it comes to working with suppliers and franchisees we aim to treat them as we would like to be treated. When you consider the company started because we were frustrated by poor service, terrible marketing and inconsistent standards, it would be really, really stupid to fall into the same traps”. 200 Degrees Coffee are going from strength to strength in the rapidly expanding UK coffee market. Started as a small roasting business, they now own two shops in Nottingham with the latest addition being on Birmingham’s exclusive Colmore Row. MD’s Rob Darby and Tom Vincent started roasting coffee primarily to serve in their own bars after they had grown frustrated with local suppliers. Seeking a holy grail of outstanding taste from small roasters but with consistency and customer service comparable to the major players, their first roast was in 2012 and two years later this simple philosophy flowed into their award winning and critically acclaimed shops.

For more information about 200 Degrees, our Coffee Shops and the franchise opportunity please contact us at enquiry@200degress-franchise.co.uk

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NEWS

round-up Papa John’s goes antibiotic-free All of Papa John’s chicken pizza toppings and chicken poppers now consist of antibiotic-free poultry, fed on a vegetarian diet.

The company announced plans to make the switch in December last year.

This change comes as part of the company’s ongoing efforts to address consumer preferences.

Over the years, Papa John’s has been the first national pizza delivery chain to announce the removal of preservatives BHA and BHT, flavour enhancer MSG, cellulose and partially hydrogenated oils, artificial flavours and synthetic colours, and high fructose corn syrup across its entire food menu.

As well as these, Papa John’s is committed to converting to cage-free eggs by the end of 2016.

John Schnatter, Founder, Chairman and CEO, of Papa John’s, said: “When Papa John’s opened its doors in 1984, I had one goal in mind: Better Ingredients. Better Pizza.

“Today, our clean label journey remains an essential part of that promise, and our commitment to our customers is as strong as ever.

“The completion of the transition to raised-without-antibiotics chicken toppings on our pizza and poppers is just one better ingredient moment, and we’re excited to show our customers what we have in store for the future.”

Sean Muldoon, Papa John’s Chief Ingredient Officer, said: “We’ve taken a lot of steps to bring our customers transparency around our ingredients.

“Since December, hundreds of hours were

spent on product development and testing to bring our better grilled chicken pizza toppings and poppers to consumers.

“This is a proud day for Papa John’s.”

Starbucks introduces new express format Coffee chain Starbucks is introducing an express format at a new Canary Wharf store to offer even quicker, high quality service.

The store is the first Starbucks express outlet in Europe, and features an open layout which offers customers a walk-through experience allowing them to order, pay and pick-up faster.

The menu focuses on brewed coffee, espresso beverages and a selection of popular food items including breakfast sandwiches, which are displayed on digital menu boards that rotate throughout the day.

For customers who choose to order ahead, mobile order and pay is also integrated.

Rhys I‎ ley, Vice President of Operations, Starbucks Europe, Middle East and Africa,

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said: “We’re excited to bring this unique store format to the UK, the first time for Starbucks outside of the U.S. and Canada. This follows the digital innovations we have rolled out to improve convenience for customers.”

“The new express format is the latest in our evolving store portfolio, which aims to meet the needs of our customers while keeping our baristas at the heart of the customer experience.”

The London launch follows the successful express format store openings in New York, Toronto and Chicago.

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Just Eat to deliver takeaways with self-driving robots Customers of the online ordering platform Just Eat could be soon to find their food being delivered by self-driving robots.

Just Eat has partnered with Starship Technologies to trial the delivery robots on the streets of London.

Starship Technologies was established in 2014 by the co-founders of Skype.

The robots have been developed to deliver food, packages and goods within a short radius of their point of origin, the customer will then be sent a secure code to enter into the robot and access the meals.

The robots will drive around autonomously whilst being monitored by human operators who can take over if needed.

Since the end of last year the robots have driven close to 5,000 miles to meet over 400,000 people successfully without a single accident using cameras, sensors and other technology to navigate their way through the streets.

Fernando Fanton, Chief Product and Technology Officer at Just Eat, said: “This is another example of how we are pushing technology boundaries to provide our customers and restaurant partners with more choice and flexibility.

“We’ve always been committed to offering our customers new ways to order and pay for their food and now we’re right

at the heart of a new way of delivering food which is as exciting for us as it will be for those who find a robot on their doorstep.”

David Buttress, CEO of Just Eat, said: “As soon as we met the Starship team, we found their passion for their product infectious.

“With scalable innovation at the core of their business, they are the perfect partner for us at Just Eat as we continuously look for sustainable ways to use technology to make our customers’ and restaurant partners’ lives easier.

“We can’t wait to bring the delivery robots to local high streets very soon.”

Dum Dum Donutterie launches The Crone Doughnut brand Dum Dum Donutterie has introduced its latest creation, The Crone.

The Crone, which has been created by Chef Paul Hurley, is an ice cream cone made with Dum Dum’s patented baked croissant doughnut dough and then filled with fruit, chocolate or ice cream.

The Crone is available at the Dum Dum Donutterie, in Boxpark, Shoreditch.

Since opening in 2013, Dum Dum Donutterie has been causing media frenzy, and now it is international, following the launch of the first of ten planned stores in Dubai earlier this year.

Mr Hurley, who is also Dum Dum Donutterie CEO, said: “We owe a large part of the success of Dum Dums to Boxpark.

“It was our first home and allowed us to develop our concept whilst getting exposure of the brand across London.”

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round-up Next Generation Harry Ramsden’s opens in Blackpool Tower A new ‘next generation’ Harry Ramsden’s restaurant has opened its doors at the Blackpool Tower.

‘Harry Ramsden at the Tower’ features a modern take on the seaside design, which has been specially created for Blackpool and its iconic landmark.

A total of £2.1 million has been invested in the venture by the owners of Harry Ramsden’s, with Blackpool Council contributing £0.4m towards building works.

The opening of the new restaurant has seen the creation of 100 new jobs, in addition to safeguarding 30 existing jobs in the town.

As well as a wide ranging menu of fresh, cooked to order rotisserie and grilled seafood and meat dishes, together with Harry’s world famous fish and chips, the new outlet will provide takeaway as well as sit in facilities for over 200 diners.

In addition to this, the new look outlet includes Gin & Craft Beer bars and a standalone cocktail bar for adults as well as smoothie and juicing stations for all ages.

Joe Teixeira, CEO of Harry Ramsden’s said: “Harry’s is moving into the next phase of its evolution, where we book-end our classic and most loved favourite dishes with a new range of innovative, tasty and great value options served in modern day, seaside surroundings, and we are thrilled to showcase this brand new face of Harry Ramsden’s in the north’s favourite town.

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“We believe Blackpool’s most iconic landmark is the ideal location from which to unveil the modern day face of Harry’s, as both brands combine the proudest of heritages wrapped up firmly in a family focus.

“Just as the Tower itself recently enjoyed a major revamp, with this new opening we will unveil a totally new look which retains all the key elements which Harry himself introduced, but better reflects the modern day face of Harry Ramsden’s.”

Councillor Mark Smith, Cabinet Member for Business and Economic Development, said: “The private investment being made in Blackpool’s most prominent public asset and the jobs it creates is yet another demonstration of the steps the town has taken in creating a vibrant economy. This is a clear message to potential developers – Blackpool is the town to invest in.”

Kate Shane, Head of the Merlin Blackpool Cluster, added: “The new restaurant and eateries perfectly complement the Tower attractions, will enhance the customers experience significantly and of course, completes the ground floor refurbishment of this very special building. This development represents yet another feature cementing Blackpool as the UK’s number one family destination. ”

AUTUMN 2016

Esquires Coffee opens in Buckingham Coffee shop chain Esquires Coffee has opened its newest store in Buckingham.

The outlet is the 25th opening for the franchised coffee chain, and is situated in a charming listed building on 30 West Street in the town centre.

Franchise owner, Chris Rance is said to be, ‘ecstatic to be bringing this premium, organic and Fairtrade coffee brand to Buckingham.’

The store has created eleven new jobs in the area and aims to become the number one organic and Fairtrade coffee destination in Buckingham.

Along with Esquires’ usual range of gourmet beverages, delicious cakes and fresh sandwiches the new store will be one of the first in the Esquires chain to feature their new ‘Equatorial Espresso’ a blend of 100% Fairtrade, organic and Arabica beans from Peru, Honduras, Indonesia and Ethiopia.

Esquires are also set to open a minimum of five new locations by the end of 2016; including sites in Yate, Dartford, Guildford, Bradford and the brands first site in Newport, Wales.

BUSINESS PROFILE

NEW PAPA JOHN’S FRANCHISE HAS THE RIGHT INGREDIENTS FOR SUCCESS

Papa John’s, was recently named as the UK National Pizza Delivery Chain for the sixth time.

For further information please visit: www.papajohns.co.uk/franchise call: 0844 567 0937 or e-mail: enquiries@papajohns.co.uk Leading pizza franchise, Papa John’s, has announced its newest franchisee, Vijay Kumar has opened the Company’s latest store in Blackpool.

Former KFC manager, Vijay, will now deliver Papa John’s superior pizza to customers in and around the Lancashire seaside town.

“I worked for KFC for more than ten years, then went onto set up several of my own fried chicken shops,” explains Vijay. “However, I became aware of Papa John’s and thought it would be a great idea to become part of such a popular brand through becoming a franchisee. I will be responsible for my own stores and yet have all the support and back-up of a leading brand right behind me. Papa John’s is growing rapidly and this represents a great chance to cash-in!

“I have been able to take advantage of the current Papa John’s franchisee incentive scheme designed to help with setting up,” continues Vijay. “This means some free equipment including the pizza oven plus help with marketing and discounted fees. Any new business enterprise needs all the help it can get at the outset and so the incentive scheme is brilliant timing!

“I chose Blackpool as I know the area well,” confirms Vijay. “My local knowledge

combined with my experience of the fast food industry plus the excellent training provided at Papa John’s newly refurbished headquarters, means I feel confident I have all the right ingredients to make my Papa John’s franchise a success!”

Anthony Round, business development manager, Papa John’s confirms: “Papa John’s was founded in the USA in 1984 and there are well over than 320 stores across the UK and over 4,900 stores in more than 40 international markets and territories. We are currently recruiting for new franchisees across the UK. “We supply all the assistance needed to get your successful Papa John’s up and running by providing all the necessary training, help with location selection and full turnkey solution to opening the store,” continues Round. “Papa John’s also has a dedicated marketing team which works tirelessly to support its franchisees.

Specialist promotions are regularly being developed, plus advertising campaigns and sponsorships. Combine popular pizza with excellent customer service, rapid delivery times, a strong brand, comprehensive staff training and some hard hitting marketing support, backed by national TV advertising and the franchise serves-up a fantastic offer for those looking for a quality investment opportunity.”

Tempting incentive deals give franchisees a helping hand at the outset to ensure they will be quick to taste success. Papa John’s is aiming to attract more enthusiastic and business minded franchisees and for the right people Papa John’s is offering development incentives for opening new stores that include free equipment as well as discounted royalty fees and a contribution towards marketing spend.

Anthony Round continues: “To become a successful Papa John’s franchisee you need to be motivated, enthusiastic, hardworking and want to be part of a growing team. Exceptional interpersonal and people skills are essential, as you’ll be dealing with customers as well as leading your team on a daily basis. In addition to excellent written and spoken communication skills, you’ll have to be an organiser with a can-do attitude and someone who gets things done. You’ll have to be dedicated and passionate enough to adapt to a proven way of working, plus you’ll need the ability to roll your sleeves up and get stuck in, which means everything from making pizza through to managing staff.”

Papa John’s is the only branded pizza chain to use only 100% fresh dough, giving a better natural flavour and our unique tomato sauce is made from the best Californian tomatoes, picked and packed from vine to can in just six hours.

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FOOD FRANCHISES THE FOOD AND DRINK MARKET IN THE UK IS GROWING AT AN ASTRONOMICAL RATE. SO TOO IS THE CONCEPT OF FRANCHISING. WHEN YOU PUT THE TWO TOGETHER, IT’S A VERY POTENT COMBINATION WHICH CAN BE EXTREMELY PROFITABLE FOR THOSE OPERATING WITHIN THE SECTOR.

The opportunities in the food industry have never been greater for both franchisees and franchisors.

With convenience a top priority for hungry consumers, it’s not hard to see why food-to-go businesses are so popular in the franchising sector.

In our list of Top 50 Food Franchises, we aim to look at the key influencers in the market, the big brands that appear on high streets in towns and cities around the country, the regional franchises who have cornered their market, or the newcomer that has come up with a simple idea which has proved a big success.

Included in the list this year are pubs, noodle bars, milkshake bars, coffee houses, sweet shops, meal delivery services and of course burger bars, pizzerias and chicken shops.

The top 50 is a comprehensive look at the diversity and the size of the food franchising market in the UK. All the figures have been provided by the franchises and ranked on the number of units, or the number of franchisees, each business has in the UK. Looking down the top 50, you see the variety of world cuisines available to consumers, as well as the different levels that food franchises operate at.

In the list there are business that have more than 2,000 units and those that have just 17 sites. However, you will recognise many growing brands, which over the next 12 months will add to the number of units or franchisees they have and find themselves higher up the top 50 in 2017.

FRANCHISEE Q&A

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Wrap It Up! – 17

Inspired by food from around the world, the ‘global wrap artists’ at Wrap It Up! continue to serve delicious wraps made fresh in front of customers. Offering flavours from Mexico, Turkey, the Caribbean, India, Lebanon, Greece, Portugal and America, the food on offer is proving hugely popular. Since opening the first outlet in 2006 outside Liverpool Street Station, in London, the company now has 17 units. And with the demand for grab and go fare showing no sign of slowing, it’s likely we will see more Wrap It Up! outlets appearing across the UK.

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49

Jasper’s Catering Services – 19

Corporate catering is big business and Jasper’s is one of UK’s leaders in this sector. With an offering that includes traditional buffets, hot food, tapas buffets and select-your-own picnic food, it’s easy to see why. Providing buffet food for office catering, business lunches and events, the company prepares all of its food fresh to order in professional kitchens and it is delivered in refrigerated vehicles. Jasper’s currently has 19 franchisees in the UK, with branches from Newcastle in the north, to Brighton in the south.

45 Greene King – 21 It may seem a little unfair to find Greene King as low as 45 in the Top 50 Food Franchises, as they currently operate the most units out of every business featured on the list. However, the team at Green King were more than helpful when saying that 21 of their units were run by franchisees. With a range of sites in towns, villages and city centre high streets across England, Wales and Scotland, the group offers top quality, traditional food and drink which continues to prove popular with customers and franchisees alike.

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Dallas Chicken & Ribs – 20

47

From small beginnings of just one outlet in Tooting, London, Dallas Chicken & Ribs has now grown to 20 units in the UK. Priding itself on being a pioneer of the Halal fast food movement in the capital, the company has taken its menu of fried chicken and ribs around the company. As well as the 20 units Dallas Chicken & Ribs has open in the UK, the business has decided to spread its wings and open units in Europe and Asia, where master franchises have been granted.

El Mexicana – 20

47

With its goal of being the leading provider of ‘over the counter’ Mexican food in the UK, El Mexicana is definitely heading in the right direction. Serving handheld favourites, including burritos, tacos, nachos and quesadillas, the food is right on trend. At 47 in our top 50 with 20 UK units, it seems that the promise of good quality, good value, authentic, Mexican street food served quickly and consistently, is proving very popular.

Due to this we should expect more El Mexicana franchised units appearing in towns and cities around the country in the not so distant future.

Chozen Noodle – 21

With consumers demanding more than just burgers and fried chicken, Chozen Noodle has taken advantage of the growing popularity of Asian cuisine and now has 21 units operating in the UK. Serving a range of dishes that reflect the diversity of Asia, the menu sees favourites from Thailand matched with recipes from Japan, Malaysia and China. In terms of locations, Chozen Noodle offers potential franchisees a variety of format options from high street, to food court and transport hubs, with most of its outlets currently in operation being at motorway service stations.

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Wok&Go – 22

Serving noodle boxes made to order, to eat in, take away or have delivered, Wok&Go has 22 units from Hull to London. However, speaking to Food Franchise last month, Matteo Frigeri, the Director of Seeds Consulting, which is heading Wok&Go’s franchise recruitment, said that the company has ‘a strong pipeline of sites to be opened in the next 12 months, from Manchester to Canterbury’. If this comes to fruition, Wok&Go could be much higher up the list of Top 50 Food Franchises come this time next year.

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Chesters – 22

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Launched in 2004 to fill a gap in the market between wellknown brands on the high street and the halal and diverse markets, Chesters now has 22 units in operation across the country. Appealing to all age groups and backgrounds, the fried chicken shop, with its motto of ‘Great Tasting Chicken’, promises investors high returns and the potential for strong future growth. With its popular menu of chicken, burgers and pizzas, expect to see even more Chesters outlets popping up in areas beyond the company’s stronghold in the north.

Oakhouse Foods From its head office in Wiltshire, Oakhouse foods operates one of the nation’s leading ready meal delivery services.

Established over 20 years ago, the business has more than 300 recipes on the menu for its franchisees to take to market, including main meals, desserts and soups. With a network of branches across the country, the business helps thousands of older people to live independently at home through its food delivery service.

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Oast House Farm Snacks - 24 Sitting at 40 on our list of Top 50 Food Franchises is Oast House Farm Snacks. Oast House franchisees deliver Muffins, flapjacks and cookies to offices to meet the snacking needs of all those who work there. The snack box operates on an honesty policy, whereby you pay for what you take. A proven concept, which offers flexibility without large fixed cost, becoming an Oast House Farm Snacks franchisee is an attractive proposition. Due to this we should expect to see the business add to its 24 franchisees in the next 12 months.

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Dunkin’ Donuts – 24

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Esquires Coffee – 25

Launched in Quincy, Massachusetts, in 1950, Dunkin’ Donuts is now making itself at home here in the UK with 24 units currently up and running.

As well as offering franchise opportunities for those looking to open a store, Dunkin’ Donuts’ cabinets can also be found in supermarkets and retail spaces, where they are operated under licence.

Very much a growing brand on this side of the Atlantic, it is highly likely that Dunkin’ Donuts will add to the number of UK units as it continues to grow globally.

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Oggy Oggy Pasty Company - 28

With the grab and go sector going from strength to strength at present, it’s no surprise to see Oggy Oggy Pasty Company in the Food Franchise Top 50 with 28 outlets. Established in 1993, in Penzance, the business went on to launch its franchising operation in 2003.

Serving traditional Cornish pasties and other bakery products, Oggy Oggy Pasty Company shops are now spread across the south west and further afield. Offering a bakery and coffee shop franchise model, along with a van sales model and retail concession opportunities, would-be franchisees have plenty of options.

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Opening its latest shop in Buckingham last month, Esquires Coffee now has 25 units open in the UK, with more on the horizon. Indeed, there are five new openings planned for 2016, with sites due to welcome customers in Yate, Dartford, Guildford, Bradford and the brand’s first site in Newport, Wales. Founded in Canada in 1993, Esquires now has a strong following in the UK, attracted by the 100% Fairtrade and organically-grown coffee, and the comfortable surroundings in which customers can enjoy it. For anyone looking for a franchise opportunity, Esquires provides bespoke solutions for every partner’s needs.

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Auntie Anne’s 31

Despite the pretzel market in the UK not being anywhere near as big as the market in the US, Auntie Anne’s is doing its best to change that. Founded in Pennsylvania, in the US, in 1988, it wasn’t until 2003 that the company landed in Britain, opening the first store in Cheltenham.

Serving both sweet and savoury pretzels, Auntie Anne’s now has 31 sites in operation in the UK. And with on trend flavours including spicy jalapeno, garlic, cheese and pepperoni, and salted caramel, you can see why pretzels are gaining in popularity in Britain.

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Café Ritazza – 31

Helping to revive tired travellers, Café Ritazza now operates 31 units at train stations and airports around the country.

Serving coffee, tea and alcoholic drinks, alongside freshly prepared food, it’s easy to see why a Café Ritazza franchise would be an attractive proposition. With a steady stream of potential customers looking to grab a drink and a quick feed before or after their journey, it’s a business opportunity which could be highly profitable.

Roly’s Fudge – 32 The idea for Roly’s Fudge was cooked up in a West Country kitchen in 1987. Now with a range of fudges, with flavours including maple and walnut, lemon meringue, strawberries and cream, and vanilla clotted cream, the business finds itself firmly in our top 50. All of Roly’s Fudge shops use traditional recipes, with the fudge being made every day in full view of customers. This has led to a dedicated followi

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Creams – 34

Having grown rapidly since launching in 2012, Creams Cafe sits at 34 in our top 50, with 34 units in the UK. Serving coffee, crepes, milkshakes and ice creams among other things, it’s no surprise that the business is growing in popularity. Due to this, it’s unlikely the company will have 34 units for very long, as it is aiming to surpass 75 units by December 2017. And if you thought this is ambitious, CEO Paul Haworth believes there is capacity in the market for more than 200 Creams Cafes nationally.

32 Tops Pizza – 40

Shakeaway – 40

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The demand for milkshakes continues to rise in the UK, with a whole host of restaurant chains offering them on their menu. Therefore it should come as no surprise to see Shakeaway in the list of Top 50 Food Franchises. Since launching in Bournemouth, in 1999, the business has seen the opening of 40 units and has found its way to 32th in our list. With more than 180 flavours and millions of possible combinations to choose, we should expect Shakeaway’s fanbase to continue to grow, along with it the number of outlets feeding the demand.

Starting life in 1989, Tops Pizza now operates 40 units around the UK, with the vast majority of these being based in the south west. Despite facing very tough competition from brands arriving from across the pond, Tops Pizza franchise continues to grow, finding itself at 32 in our top 50. This is due to the fact the business offers quality and consistency, which means its customers keep coming back for more.

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Sam’s Peri Peri Chicken – 42

With the demand for spicy seasoned or marinated chicken continuing to grow, we were bound to have a few food franchises on our list that are making a name for themselves in this market. One of these is Sam’s Peri Peri Chicken, which sits in 30th spot with 42 units.

Starting out in 1990, the franchise’s main presence is in London. Operating as both a restaurant and a takeaway, Sam’s prides itself on offering quality food and service, and this is reflected in its continued popularity among its customers.

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Harry Ramsden’s – 42

One of the most recognisable names in the top 50, Harry Ramsden’s has been serving up fish and chips for more than 85 years. Having introduced a new urban ‘City’ brand and also entering the licenced trade arena, the chain aims to continue its growth and add to the 42 units open in the UK. Joe Teixeira, Harry Ramsden’s CEO, said: “Within the franchise arena, Harry’s is still a relative newcomer, however, with our internationally-renowned brand name, increased options of outlet formats, reputation for service and quality, as well as great value and product range, we are continuing to make serious inroads.”

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Pepe’s Piri Piri – 50

Brands like Nando’s may have put spicy seasoning and sauces on the map, but in terms of franchises, Pepe’s Piri Piri is leading the way. The home of fresh, flame-grilled chicken, the company sits in 28th spot in our top 50, with 50 units open in the UK. Tempting customers with grilled chicken available in five flavours – mango and lime, lemon and herb, mild, hot and extra hot – it’s easy to see why Pepe’s Piri Piri is so popular.

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With Thanks – 50

A food franchise with a difference, With Thanks sells sweets and snacks directly through its franchise or in partnership with brands and organisations. A subsidiary of Barnack Confectionary Ltd, With Thanks has attracted 50 franchisees since launching in 2012. Offering a range of investment levels, the business is an attractive proposition for anyone looking for a flexible franchise opportunity and due to this, we should probably expect to see With Thanks moving up the top 50 in the next few years.

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Giraffe – 52

Currently sitting in 27th spot in the top 50, Giraffe could soon be adding to the 52 units it operates in the UK. Having recently been acquired from Tesco by Boparan Restaurant Holdings, there are plans in the pipeline for more Giraffe restaurants, and the chain could soon be moving up our list of franchises. Speaking after buying Giraffe, Ranjit Singh Boparan, CEO of Boparan Restaurant Holdings, said: “Giraffe represents an appealing proposition for both customers and landlords. We believe the brand has significant potential for further growth.”

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Muffin Break - 59

Despite its name, artisan bakery chain Muffin Break offers more than just muffins and its continued growth has been very much aided by its varied offering. With 59 sites in operation and reports of sales growth following recent product launches, the business could very well find itself in the top 20 in next year’s list. Speaking recently after the company introduced healthier food options at two of the its hospital shops, Lisa Brook, Muffin Break’s General Manager, said: “We pride ourselves on the food that we serve and continue to improve our dining experience to respond to changing consumer needs.”

Chopstix - 57

The demand for Asian food continues to grow in the UK, thanks largely to the popularity of street food. One business taking advantage of this is Chopstix, which now operates 57 units across the country. Having recently launched a new look brand identity at the opening of its latest unit in Aberdeen, the company has big plans for the future, with Chief Operating Officer, Max Hilton Jenvey recently stating in this magazine that Chopstix aims to have 300 sites by September 2018.

Therefore, it looks like we could see the noodle bar chain much higher up the top 50 this time next year.

Soho Coffee - 61

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With 61 sites across the UK and in 23st place on our list, Soho Coffee is a food franchise very much on the rise. After acquiring the Apostrophe chain earlier in the year, Soho has now bought the Euphorium Bakery business from Tesco. The fact that most of Soho Coffee Co’s sites are in high footfall areas or travel hubs also means the brand continues to get great brand exposure and grow in popularity, which will help the company’s rise up the Food Franchise Top 50.

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Riverford – 60

As one of the UK’s pioneering vegbox delivery schemes, Riverford now packs and distributes over 47,000 boxes a week to homes around the UK via their network of 60 franchisees. With 29 years of experience, Riverford is a successful and independent business model which has remained loyal to its ethical values and ethos of ‘good food, good farming and good business’. The company continues to develop its existing model by extending its ranges, developing new products and investing in IT solutions and marketing. Founder Guy Watson explains, “Our idea is to retain the social, environmental and economic advantages of small, local businesses, while sharing the advantages that scale gives.”

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Millie’s Cookie - 69 Sitting in 22th with 69 units, Millie’s Cookies has established itself as one of the countries premium dessert franchises, selling cupcakes, muffins, drinks and ice cream, alongside its range of cookies. Commonly found in shopping centres or close to cinemas, the brand has cornered a unique area of the market where demand is high and choice of operators is relatively low.

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Mr Simms - 77 Different from the majority of the food franchises on the list, Mr Simms Olde English Sweet Shoppe was formed in 2004. The inspiration behind the shop was an etching of an old fashioned sweet shop discovered in a copy of a 1958 confectionary magazine. Now, the Victorian-style frontage allows Mr Simms shops to stand out on high streets in some of the largest cities in the UK, attracting young and old alike. With nostalgia very much the mood at the moment among consumers, it’s no wonder that Mr Simms currently operates 77 units catering for the demand in sweets from yesteryear.

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Wiltshire Farm foods - 78

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Favorite Fried Chicken - 88

Wiltshire Farm Foods has been cooking and delivering frozen ready meals since 1991. Offering more than 300 options, from traditional favourites to more contemporary dishes, the company’s service has seen a rise in popularity in recent years, as consumers look to make life a little easier by ordering quality meals straight to their door.

Wiltshire Farm Foods’ network of 78 franchisees also offer a free delivery service to any address in mainland UK and cater for special dietary requirements and health needs.

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Wimpy - 80

Perhaps one of the most famous names in the UK when it comes to burgers, Wimpy began life as a fast food section of a restaurant on Coventry Street, London, in 1954. Almost 60 years later, Wimpy is still an iconic British brand and is continuing to satisfy hundreds of hungry customers across the United Kingdom.

Despite losing ground to some of the bigger US chain, the company remains in the top 20 on our list, operating 80 units around the country.

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Proudly ‘giving the boys from over the pond a run for their money’ since 1986, Favorite Fried Chicken is committed to bringing great taste, value and service to its customers. With 88 units in operation across the country, the chain’s popularity is testament to the growing demand for fried chicken.

As this shows no sign of slowing, don’t be surprised to see Favorite Fried Chicken adding to the number of units it has open.much higher up the top 50 this time next year.

Chicken Cottage - 80 One of the fastest growing British franchises, Chicken Cottage opened the doors of its first restaurant in 1994.

Now, in 2016, the business finds itself operating 80 units and 17th on our list. Offering fresh, convenient and affordable food, it is no wonder that Chicken Cottage is so popular with customers, while the solid and supported business venture on offer, means that running one of the company’s units is an attractive opportunity for potential franchisees.

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Cafe2U – 80

Launched in the UK in 2004, Cafe2U is the pioneer of the mobile coffee industry. The opportunity to run a coffee van offers franchisees flexibility of both time and location. Often found in city centres where space comes at a premium, Cafe2U now has 80 units in operation. Discussing what makes Cafe2U stand out from the opposition, Tom Acland, the company’s Managing Director, said: “Probably four key things – great looking brand, flexible business model, proven track record over more than 10 years in the UK, and a fantastic product offering, including our own exclusive blend of espresso coffee.”

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Dixy Chicken - 130

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Pizza GoGo - 105

Established in 1986, the quality of Dixy Chicken’s food and franchise offering has seen the company make it to 13th in our top 50, with 130 unit in the UK. With the popularity of fried chicken continuing to rise, as well as the excellent growth opportunities that Dixy Chicken offers to franchisees, you can expect the brand to be in a similar position this time next year.

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Baskin’ Robbins - 151 Pizza is one of the most popular types of cuisine in the UK and a highly competitive market for businesses to operate in. However, one franchise proving a success in this market is Pizza GoGo. Since setting up shop in 1987, Pizza GoGo has expanded rapidly and now operates 105 units. Sitting in 15th spot on our list, the company has worked on the development of many topping options and the popularity of its pizza is what keeps customers coming back for more.

14 The world’s largest chain of ice cream speciality stores, Baskin’ Robbins prides itself on making people smile ‘inside and out’. Part of the Dunkin’ Brands Group along with sister brand Dunkin’ Donuts, the company is making a huge impact on the UK food franchise market. With its mission to make every store a tasty, fun place for its customers, Baskin’ Robbins now has 151 shops in the UK of all different sizes. The demand for its sweet treats continues to grow and this popularity has led to smaller concessions and units popping up in cinemas across the country.

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Upper Crust – 109

Launched in 1986, with the first shop opening in Waterloo Station, Upper Crust now has 109 units operating in transport hubs around the country.

Serving freshly baked baguettes with a range of fillings, along with hot and cold drinks, the outlets are ideally situated in high footfall locations. With this in mind, it’s easy to see why becoming an Upper Crust franchisee would be a very attractive and profitable proposition.

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Papa John’s – 340

The team behind the US pizza delivery chain continues to put everything into growing the Papa John’s brand in the UK. Speaking recently to Food Franchise, Anthony Round, the company’s UK Business Development Manager, said that Papa John’s was recruiting for franchises across the country as the business continued to expand its operation beyond the 340 units it currently has open. He added: “The demand for our pizza is such that we need franchisees to help us satisfy our growing customer base throughout the UK.” With these ambitious plans, and the fact that there are new site openings almost every week, it won’t be very long before Papa John’s breaks into the top 10.

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Pizza Hut Delivery – 419

Pizza Hut Delivery is the franchised part of the Pizza Hut business and has proved highly successful since its inception in 1988, with 419 delivery units now operating in the UK. Pizza is one of the most competitive markets in the UK, with three internationally renowned brands operating in the top 15 places on the list. Looking ahead, it will be interesting to see how the number of units stack up next year and whether any of the three has managed to close the gap on the competition.

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Coffee Republic – 507

With a total of 507 units in the UK, Coffee Republic has made huge gains in the coffee shop market since the opening of the first store in 1995. Operating in high footfall areas and serving a wide range of hot beverages, refreshing iced drinks and fresh food, the chain is continuing to draw the crowds. Concession bars can be found in various colleges, universities, hospitals and cinemas, while self-service units add revenue and increase brand awareness in a variety of business organisations and food service establishments.

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Bargain Booze 720

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McDonald’s - 1,250

Slightly different to other food franchises in the top 50, Bargain Booze operates as an alcohol retailer. Despite Bargain Booze stores being predominantly based in the north west, the company trades across the country and is continuing to expand across the UK, with 720 units now open. The growth in the popularity of off licences began during the recession, when many consumers decided to cut down on their alcohol intake. However, it was the pubs that were hit and not stores like Bargain Booze, which has since gone from strength to strength.

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Starbucks – 882

The fact that Starbucks is one of three coffee chains in the top 10 of our list of food franchises highlights the popularity of premium coffee across the country. Consumers are flocking to these franchises and profits are rising. As well as coffee, the chain also offerS a selection of premium teas, pastries and other treats. And with its mission to inspire and nurture the human spirit – one person, one cup, and one neighbourhood at a time, Starbucks is well on its way to doing just that in the UK with 882 units in operation.

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KFC - 850

One of the most well-known names in our list of Top 50 Food Franchises, Kentucky Fried Chicken (KFC) is as popular as ever, with 850 units in operation in the UK. With its buckets of fried chicken, along with chicken burgers and meal deals, the Colonel’s secret recipe seems to have a big pull on consumers and KFC has amassed a cult following who regard it as the world’s premier fried chicken shop. And after more than 75 years of success and innovation, KFC shows no sign of losing this appeal.

One of the most recognisable brands in the world, McDonald’s has been franchising in the UK for more than 30 years. Serving 3.7 million customers a day, the burger giant has recently celebrated 40 consecutive quarters of sales growth. And despite finding itself fourth on the top 50, with 1,250 units in the UK, the company is not resting on its laurels, with Gareth Pearson, Head of Franchising and Field Services for McDonald’s UK, recently stating: “Our vision is to continue being at the forefront of franchising and provide franchisees with the experience and tools to run a successful business.”

TOP 50 FOOD FRANCHISES

5 Domino’s – 899 Having earned a loyal fan base here in the UK since arriving in 1985, Domino’s now sits in fifth spot in the top 50, with 899 sites in operation. Despite being the top pizza delivery franchise in our list, Domino’s is continuing to grow its presence, with the aim of being ‘the number one pizza company in the world and in every neighbourhood’. Leading the way when it comes to technology, Domino’s has worked hard to develop their online platform, as well as their mobile app, and are extremely proactive when it comes to social media marketing and advertising.

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Marston’s – 1,500

Marston’s has been running pubs and brewing beer in one form or another for more than 180 years. However, it may be a surprise to many to see the company featuring so highly on the top 50. But despite many viewing managed and leasehold pubs to be independent businesses, in truth they are franchises, with those running the pubs paying rent and rates to operate under Marston’s umbrella. The company still owns many of the properties, but the size of the business puts them in third place on the list with 1,500 units in the UK.

Costa – 2,000 Coffee is big business in the UK and the demand shows no sign of slowing. Despite there being a number of coffee shop chains offering franchising opportunities, Costa is leading the way in this market as the largest and fastest growing. With 2,000 units operating in the UK and a whole host of awards, Costa is the most popular coffee shop brand by far. As well as its own stores, Costa also runs the Costa Express service, which allows operators to sell Costa coffee on a smaller scale in convenience stores and petrol stations.

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SUBWAY® – 2,300

1

With 2,300 units, sandwich chain SUBWAY® is sitting firmly on the top of the pile of food franchises in the UK. For regular readers this should come as no surprise, with the brand showing astronomical growth over the past few years. And this shows no sign of stopping. Speaking in the last edition of Food Franchise, Greg Madigan, SUBWAY® UK and Ireland Area Development Manager, said that there was ‘a strong pipeline of stores in construction’ and that the brand ‘was confident that it could replicate the success achieved in previous years’. With SUBWAY® aiming to keep franchisee investment low and the operation simple, it’s easy to see why the brand is so attractive. *All figures were provided by the franchisors or their representatives. Every effort was made to ensure all relevant franchises were contacted regarding this feature.

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TOP 50

FOOD FRANCHISES 1 SUBWAY® – 2,300

26 Chopstix - 57

2 Costa – 2,000

27 Giraffe – 52

3 Marston’s – 1,500

28 Pepe’s Piri Piri – 50

4 McDonald’s - 1,250

28 With Thanks – 50

5 Domino’s – 899

30 Harry Ramsden’s – 42

6 Starbucks – 882

30 Sam’s Peri Peri Chicken – 42

7 KFC – 850 8 Bargain Booze - 720

32 Shakeaway – 40 32 Tops Pizza – 40

9 Coffee Republic – 507

34 Creams – 34

10 Pizza Hut Delivery – 419

35 Roly’s Fudge – 32

11 Papa John’s – 340

36 Café Ritazza – 31

12 Baskin’ Robbins - 151

36 Auntie Anne’s – 31

13 Dixy Chicken - 130

38 Oggy Oggy Pasty Company - 28

14 Upper Crust – 109

39 Esquires Coffee – 25

15 Pizza GoGo - 105

40 Dunkin’ Donuts – 24

16 Favorite Fried Chicken - 88

40 Oast House Farm Snacks - 24

17 Cafe2U – 80

42 Oakhouse Foods – 22

17 Chicken Cottage - 80

42 Chesters – 22

17 Wimpy - 80

42 Wok&Go – 22

20 Wiltshire Farm foods - 78

45 Chozen Noodle – 21

21 Mr Simms - 77

45 Greene King – 21

22 Millie’s Cookie - 69

47 El Mexicana – 20

23 Soho Coffee - 61

47 Dallas Chicken & Ribs – 20

24 Riverford – 60

49 Jasper’s Catering Services – 19

25 Muffin Break - 59

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Be Inspired

PAPA JOHN’S

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BE INSPIRED

The demand for quality pizza has never greater and one franchise that prides itself on ‘Better ingredients, Better pizza’ is Papa John’s. We speak to one franchisee who is spreading the word about this evergrowing US chain across the north west of England.

There doesn’t seem to be an edition of Food Franchise that goes by without Papa John’s adding to the number of its units and increasing the reach of its operation.

Papa John’s is one of the largest pizza companies in the world and has opportunities for franchisees throughout the UK. The company was founded in the US in 1984 and there are now more than 4,800 stores in more than 400 international markets and territories.

Joining the brand’s franchise family is a very attractive proposition, with the company running an incentive scheme to help franchisees in the early stages of growing their businesses. This includes discounted royalty fees, contribution towards marketing spend, plus free equipment for new stores Typically a Papa John’s franchise costs between £177,000 and £225,000 (excluding VAT and freehold), of which £70,000 should be in liquid funds.

The franchise fee is £18,500+ VAT (at 20 per cent) for each franchise unit; this gives a franchisee the right to use the Papa John’s trademarks, its systems for preparing, marketing and selling food products, its information, specifications, knowhow and other confidential and proprietary information.

In addition there is a franchise royalty fee of five per cent of the net sales and a marketing fee of five per cent. Franchisees are responsible for the rent, rates and utility costs of the store for the term of the franchise agreement.

Franchisees also have to be committed and be prepared to work hard.

One franchisee who has benefitted from the incentives offered by Papa John’s and has proved that he is prepared to put the effort into the business, is Steve Mullarkey.

Now Steve is helping the brand to grow in the UK, especially in the north west.

Formerly a wine merchant, Steve, who also worked as a divisional director for leading AUTUMN 2016

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hospitality brand Whitbread, has always had an interest in the food sector.

WHAT MADE PAPA JOHN’S STAND OUT FOR YOU?

However, just one Papa John’s wasn’t enough for him. At present he operates eight Papa John’s outlets, with the possibility of more on the horizon.

“My research showed that Papa John’s was very simply better than the competition.

With Steve’s fantastic enthusiasm for the brand in mind, we decided to find out what inspired him to become a Papa John’s franchisee, as well as his plans for the future.

WHAT MADE YOU CHOOSE THE FRANCHISING MODEL OVER RUNNING AN INDEPENDENT BUSINESS? “Papa John’s is an exciting company that is committed to growth and its concept of ‘Better Ingredients, Better Pizza’ certainly continues to deliver!

“My goal is to open a total of 20 stores over the next few years. It would be tough to realise these ambitions without the support of an established and hugely popular company right behind me.”

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“The product’s freshness, quality and value for money is a recipe for success.

Combine that with great service, and customers just keep coming back for more.”

WHAT MAKES PIZZA SO POPULAR? “Pizza is great value for all the family, plus pizza is fun and great for sharing. Lunch or dinner, you can eat it at any time.

“Currently, our beef brisket pizza is proving particularly popular.”

How long did the process take from making a franchise enquiry to opening your first store and how did you find the process?

“From signing to opening took three months. However, this can be a variable process because speed of opening new stores can be dependent on planning permission decisions.

“In all, my Papa John’s journey so far has been hard work but really enjoyable too.

I have nothing but positives to describe the company and its support network developed for franchisees.

“Fresh ingredients means Papa John’s pizza tastes better and customers appreciate the home-cooked taste.”

“From the training to the product quality, Papa John’s has all the right ingredients to continue to expand here in the UK and I am looking forward to being a big part of that growth.”

WHAT ARE THE CURRENT TRENDS IN THE PIZZA MARKET?

WHAT MADE YOU DECIDE TO OPEN MORE PAPA JOHN’S OUTLETS?

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“Papa John’s office staff’s enthusiasm for the future is impressive. They really believe this company is going places and I have to agree.

“The franchisee incentive deals I was offered have enabled me to commit to opening more stores. I opened my first three stores within a year. Delighted with the sales performance, I now run eight Papa John’s.”

WHAT PLANS OR COMMITMENTS DO YOU HAVE TO OPEN MORE SITES IN THE FUTURE? “You never know what the future holds, but at the moment I aim to open a further two more Papa John’s this year and take this up to a total of 20 over the next few years, all of which will be situated in the north west.”

How did you fund your first franchise venture and how easy was it to secure the capital?

“My first three stores were funded privately. Then, after that Papa John’s assisted with financing new openings once I had proved myself and my commitment.”

HOW WOULD YOU DESCRIBE THE MARKET AT THE MOMENT IN TERMS OF DEMAND, NUMBER OF STORES, COMPETITION AND GROWTH? “From my point of view the market is on fire! Papa John’s recent TV advertising has certainly helped boost brand awareness and I am seeing strong demand for our top quality pizza day-in and day-out. I have also experienced great year-on-year sales growth across my established stores.”

WOULD YOU RECOMMEND FRANCHISING TO OTHERS? “Papa John’s has been a particularly positive experience as an introduction to franchising, so yes, I would absolutely recommend franchising to others.

“The incentive scheme is particularly helpful as it means we can get deals on equipment, discounted franchised fees and support with marketing for new stores right at the time when we need it.”

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FRANCHISE

SECURITY Starting out in the world of franchising can be very daunting with many challenges to overcome.

We find out how you can steer clear of any early problems and set your business up for a secure and successful future.

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FRANCHISE SECURITY

Becoming a franchisee can be full of risks.

There are many pitfalls that can hinder your progress and in some cases, end your dreams of running your own business.

In this feature we find out about all the factors that should be considered to ensure a franchisee’s business has the best possible start and is protected against any foreseeable problems.

With the help of Nicola Broadhurst, who heads up the franchise and retail practice at Stevens & Bolton LLP, and Graeme Payne, a partner in law firm Bird & Bird’s commercial group, we find out what every would-be franchisee needs to know before setting off on their business journey.

They advise on what legal pitfalls potential franchisees need to avoid and what your rights are when it comes to running a franchise.

They will also provide some simple tips on future-proofing your new business to ensure that your investment is safeguarded and your franchise has the best possible platform to launch it on its way to success.

Graeme Payne is a partner in Bird & Bird’s global retail and consumer group, which supports and advises start-ups, entrepreneurs, SMEs and blue chip multinational luxury, retail and food and beverage businesses across the full spectrum of legal and commercial issues. With offices throughout Europe, the Middle East, the Far East and Australia, Bird & Bird’s team are ideally placed to advise growing food and beverage businesses on international expansion, brand protection, reputation management, HR, technology including mobile payments, e-commerce, food regulation, labelling, advertising and marketing, commercial property and corporate issues.

Investing in a food and beverage franchise is a significant decision. Unfortunately many potential franchisees fail to take proper independent legal and specialist franchise advice. This has a number of potential consequences including, not only a failure on the franchisee’s behalf to understand their legal and commercial rights and obligations from the outset of the relationship, but can also mean that the potential franchisee misses the opportunity to negotiate certain legal and commercial amendments to the franchisor’s standard documentation.

Food and beverage franchises often require significant upfront capital invest-

ment commitments including the lease, fit-out, engagement of staff and the purchase of initial stock and equipment.

The investment levels will further increase for those franchisees looking to become multi-unit operators.

It is therefore important that potential franchisees are fully aware and advised of their legal and commercial exposure.

There are a number of inherent risks in franchising and from the potential franchisee’s perspective, can be broadly broken down as follows: Personal liability – Franchise agreements will potentially require both personal operational and financial commitments from key individuals in the franchisee’s business – which could include personal guarantees if the franchisee company fails to comply with its payment obligations.

Financial exposure – In addition to the opening fees and on-going royalty fees, a number of seemingly benign provisions in the franchise agreement can expose the franchisee to significant capital investment requirements. For example, the ability for the franchisor to oblige the franchisee to update or refresh the branding and/or to comply with the franchisor’s refurbishment recycles can have significant financial ramifications as well as consequences for the franchisee’s relationship with the landlord.

Potential franchisees should therefore engage specialist franchise solicitors to review the franchise agreement with these three key areas sitting as the background to any comments/areas of pushback.

Discussed below are just some of the key provisions of the franchise agreement that franchisees need to be aware of and which should be discussed with their specialist franchise advisors.

Potential franchisees should ensure that the franchisor has adequately protected

NATURE OF RIGHTS Franchisees will need to ensure that if they are being granted the right to operate an outlet from a particular location, that other franchisees of the franchisor will not be setting up in close competition or that the franchisor itself will not be setting up a corporate premises within the immediate vicinity. Franchisees will therefore need to check that if they have been promised exclusivity in a certain area that the franchise agreement expressly provides for this.

SOURCING OF EQUIPMENT AND INGREDIENTS

Loss of business / loss of capital investment –A franchisor’s standard franchise documentation will often provide for a number of grounds and scenarios where a franchisee can have its business terminated. In multi-unit relationships there is the potential for a franchisee to lose its right to operate the franchise from all of its outlets even when the breach alleged by the franchisor has taken place in relation to one unit only.

INTELLECTUAL PROPERTY

the key intellectual property rights, in particular the trademarks, which the franchisee will be obliged to use throughout the term of the relationship. The franchisor’s brand is often a critical factor to the success (and value) of a franchise.

In the context of a food and beverage business the trade mark and branding elements will impact upon menus, staff uniform, trade dress and more importantly, the advertising and marketing to be undertaken by the franchisee. Franchisees - particularly of international concepts should therefore ensure that the franchisor has invested properly in its brand.

Otherwise the franchisee is exposed to potential third party claims.

A key area for food and beverage businesses will be the sourcing of equipment, menu items and core ingredients. The franchisee will need to ensure that the franchise agreement adequately deals with the responsibility for sourcing such items and the potential financial implications for the franchisee. A well drafted franchise agreement should also provide the franchisee with the opportunity to source from alternative suppliers (to those nominated by the franchisor) in the event that the franchisee can source either superior quality products or similar quality products at a better price.

COMMERCIAL PROPERTY One of the most significant investments for franchisees in the food and beverage sector will be the lease of the commercial property. The franchisee will need to ensure that the franchise agreement and the lease fit together in terms of term and renewal, permitted use, and avoids potentially conflicting obligations to the landlord and the franchisor in terms of

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refurbishment cycles. The franchisee will also need to consider whether the franchisor wishes to have a step-in right vis a vis the property and the potential consequences for the franchisee (and its right to use the premises) in the event that the franchise is terminated.

TERMINATION GROUNDS From the outset the franchisee, working in tandem with its legal advisors, will need to ensure that the termination grounds are clear and reasonable. A well drafted franchise agreement should clearly define those breaches which lead to instant termination and those breaches where there is an opportunity for the franchisee to remedy. As mentioned above, where the franchisee has invested in commercial property – particularly so in the case of multi-unit operators – the franchisee will need to ensure that it is capable of using the property beyond the term of the franchise arrangements. The franchisee will therefore need to check carefully any post termination or post expiry restrictive covenants that may prevent the franchisee from using the premises as a food outlet following the termination or expiry of the franchise agreement.

FINANCIAL OBLIGATIONS The franchisee will need to ensure that the financial provisions of the franchise agreement reflect the commercial proposition discussed with the franchisor. Franchisees will need to carefully review any exclusivity fees, store opening fees, training fees, support fees, on-going royalties 56

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and advertising and marketing related contributions. It is advisable that the franchisee also reviews the franchise agreement in conjunction with its accountant and factors in both the express fees and costs detailed in the franchise agreement together with other potential capital investments, for example, refurbishment of the premises, into its business plan.

BUSINESS SALE The final key area that a franchisee should pay particular attention to, is the right for both the franchisor and the franchisee to sell their respective businesses.

Most franchise agreements will provide a right for the franchisor to sell the franchisor’s business without consulting with the franchisee and this can have serious implications in the event that the new owners no longer wish to continue with franchising or wish to introduce significant changes which would require further capital investment by the franchisee.

It is also important that the agreement provides a right for the franchisee to sell its business and that the terms of such sale are not unduly onerous upon the franchisee, for example, an obligation to pay a high percentage of the sale price to the franchisor.

SPECIALIST ADVICE In summary, franchise agreements are typically heavily weighted in the franchisor’s favour, and therefore, franchisees who are investing in a franchise business

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must take appropriate legal and commercial advice on the implications of the franchise agreement and consider negotiating amendments to unduly onerous legal and commercial provisions.

Nicola Broadhurst heads up the franchise and retail practice at Stevens & Bolton, regularly advising franchisors and franchisees with a particular emphasis on international expansion. Having served on the British Franchise Association’s legal committee, she currently serves on its Quality Standards Committee and regularly reviews prospective members’ franchise agreements for accreditation purposes. She recently represented the European Franchise Federation at the European Parliament and is a member of the American Bar Association Franchise Forum and International Distribution and Franchising committee. She is consistently ranked as a leading franchise lawyer and in Band 1 UK by Chambers UK legal directory and as a notable franchise practitioner by The Legal 500. She is also ranked internationally as a leading franchise lawyer in Who’s Who Legal and as a leading transactional trade mark lawyer in World Trade Mark Review.

Before you sign on the dotted line it is essential to carry out some due diligence into the franchise business to help avoid nasty surprises later.

It is important to try to establish at the outset whether the franchisor is committed to the long term success of its franchisees, how it deals with challenging market forces, how it intends to stay ahead of the competition and how much

FRANCHISE SECURITY

profit it makes from its franchisees and at what expense.

A franchise prospectus is a recruitment tool so be wary of any that over sell or guarantee a return, such claims need investigation.

A franchisee is not a consumer and does not have the same level of protection under law as consumers when making a purchase. It is a case of ‘buyer beware’ although there are legal remedies to protect a franchisee against misrepresentations but these can be costly and difficult to prove.

The franchisor should confirm how many franchise agreements have terminated over the last three years and the reasons for this.

A high churn rate should provoke closer investigation and a breakdown of the initial franchise fee should be requested.

A franchisor should make its money from its ongoing management fee not from selling franchises. Be wary of sharp marketing tactics to induce a quick signing.

How a franchisor handles queries raised during the recruitment phase is a good indicator of the future working relationship.

The franchisor should provide its marketing plan and latest set of accounts.

An experienced accountant should be instructed to review and advise on the financial projections provided by the franchisor (which should be based on trading history not assumptions) as well as the solvency of the franchisor itself.

Speak to as many of the existing franchisees as possible, to see what problems have arisen and how these have been resolved. The franchisor should provide a full list of its franchisees, not just a cherry picked few.

THE FRANCHISE CONTRACT AND LEGAL REVIEW There is no franchise specific law in the UK and this means that the franchise agreement is critical as it contains the respective rights and obligations of both parties.

Although most franchise agreements are one sided in favour of the franchisor in order to protect the trade secrets and

ensure quality control, there are checks and balances on the franchisor’s powers, which should be included.

current standards and paying a fee (this should not be too high however).

Death and incapacity – The agreement should provide a time period following the franchisee’s death or permanent incapacity within which the business can be sold or a beneficiary nominated to takeover (subject to the franchisor’s approval).

A franchisee should consider whether to nominate a beneficiary under its will to take over in these circumstances.

The agreement is also a good indicator of the franchisor’s commitment to franchising. A well drafted agreement shows a level of investment by the franchisor.

The franchisor’s corporate structure should also be investigated to establish who owns the trade mark and know-how and if not the franchisor, whether these have been correctly licensed to the franchisor entity.

The following are key provisions to look out for in a franchise agreement: Term – Is the term of the agreement long enough to recover the initial investment and make a profit?

Grant of rights - Does the franchisee have exclusive rights to trade from an allocated area without fear of encroachment by the franchisor? What rights are reserved to the franchisor?

Support obligations – Both initial and continuing support should be provided by the Franchisor and clearly detailed. Check if there is any charge for the support and whether this reflects everything promised by the franchisor.

Training – Is there initial and ongoing training provided by the Franchisor. The cost of initial training is usually included in the initial franchise fee and ideally there is no charge for ongoing training.

Manual – Is this provided by the franchisor? A franchise agreement usually relies heavily on the operations manual to supplement the agreement and it has contractual force. While the franchisor is usually free to amend the manual during the term of the agreement the agreement should confirm that the agreement prevails if there is a conflict with the manual.

Right to sell – The franchisee should be able to sell the business usually subject to the franchisor’s consent and approval of the purchaser and there may be fees to pay to the franchisor. These need to be checked to ensure that they are not unfair. The franchisor may also have a right of first refusal but this should be at the fee offered by the purchaser.

Right to renew – Usually the franchisee has a right to renew subject to certain conditions such as not being in breach, serving notice to renew within time periods, revamping the business to the then

Improvements – Typically a franchisee will be prevented from introducing an improvement into the business until it has been approved by the franchisor who is then entitled to roll it out across the network without paying for this.

Termination – Most franchise agreements do not permit the franchisee to terminate (although there is a right at law to do so if the franchisor is in fundamental breach) and such rights of termination are one sided in favour of the franchisor. The list of events which would justify termination need to be reviewed to ensure they are not unreasonable.

Buy back on termination – The franchisor usually has the right to take over the business on termination and often the price paid is extremely small with nothing given for goodwill. This can of course lead to potential inequity and abuse by a franchisor so worth trying to negotiate at the outset if possible.

Non-compete – Nearly all agreements prevent a franchisee from operating a competing business during the term of the agreement and for a period of time following termination. The post termination restrictions need to be carefully reviewed to ensure that they are reasonable and justified. They should not extend beyond the franchised territory nor exceed 12 months from termination.

Instructing an experienced franchise solicitor to review the franchise agreement should form part of any due diligence process, regardless of whether the agreement is stated as non-negotiable or if the franchisor is a member of the British Franchise Association (BFA). The BFA has a list of approved affiliated solicitors who should be able to advise on how standard the agreement is, whether it conforms to the BFA’s code of ethics and whether there are any glaring omissions or unusual provisions that may require investigation.

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ONE TO WATCH

Beatons is built on the passion and enthusiasm that comes with owning your own business A small and friendly tearoom, Beatons has since spread its wings and now has outlets open in Blandford, Chester and Crowthorne.

From its very first days in Tisbury, it was clear that Beatons’ blend of loose leaf teas, books, homemade cakes and food, set in the elegant surroundings of a full table service tearoom, with its own take on elegance, sparkle and attentiveness, was destined to grow well beyond the borders of its ‘birthplace’.

Whether you are looking to relax with a cup of tea, browse the range of books on offer, or meet with friends to enjoy a traditional afternoon tea, Beatons is the perfect spot.

With this in mind, we decided to speak to

Beatons’ Managing Director Patrick Duffy to find out more about the franchise.

course), with everything from ‘health giving’ green teas, through fruit and herb and tea tisanes, and old favourites like Assam, Darjeeling and Earl Grey.

WHAT IS THE ETHOS OF BEATONS? “Every aspect of Beatons is built around giving the customer our own take on ‘Gracious Hospitality’, from the elegant and contemporary surroundings to our bespoke bone china and the full table service so often missing in today’s high street coffee and barista outlets.

“In doing this we have created ‘clear blue water’ between Beatons and other hospitality and coffee brands.

“Importantly, Beatons is about tea and the ever-increasing attention it gets (though we do have a great range of coffee too of

“All Beatons’ teas are served loose leaf, with service tailored around making the whole experience memorable.

“Coupled with home-baked cakes, food and lunch options, and of course our curated selection of books to browse and buy, Beatons is truly becoming a destination of choice for our customers.”

WHAT MADE YOU DECIDE TO START FRANCHISING? “Beatons is built on the passion and enthusiasm that comes with owning your

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own business, and for us franchising is the best way of continuing that ethos into every one of our Beatons tearooms. The attention to detail and commitment to delivering Beatons’ elegance, sparkle and attentiveness to our customers is what makes Beatons special.”

WHAT MAKES BEATONS STAND OUT FROM THE COMPETITION? “Every aspect of the tearooms is built around creating a relaxing, pleasant environment to serve our huge range of loose leaf teas and homemade cakes and food. This in turn is built on the great table service delivered by our staff as we move towards our goal of making service ‘a profession’.

“The addition of our own contemporary styling and our Cecil Beaton inspiration contrasts with the high street barista brands and cafes focussed on high volume and rapid throughput.”

It is the dream of our franchisees to own their own tearoom, being inspired by their own experience and what Beatons has created.

WHAT MAKES BEATONS SUCH A GREAT FRANCHISE OPPORTUNITY? “It is the dream of our franchisees to own their own tearoom, being inspired by their own experience and what Beatons has created. With full training in every aspect of operating the system and a full support package, no previous experience is necessary, and so turning people’s dreams into reality becomes possible.

“With a competitively-positioned total investment requirement, we believe that we are opening this opportunity to as wide a base of franchisees as possible.”

WHAT ARE THE CURRENT FLAVOUR TRENDS IN THE TEA ROOM MARKET? “Beatons carries over 25 different loose leaf teas across the whole range of black; oolong; green; red and fruit/herbal, offering a very real alternative to coffee and very much an expanding market. Augmenting this with homemade cakes, made to Beatons’ own recipes, combines this with the current enthusiasm for home baking.

The ‘icing’ on top is the resurgence of the independent bookshop, giving our customers access to a curated selection of books.

“An allied trend the tearooms are excep60

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As we grow and build on our established presence and system, we will do so with the passion andenthusiasm of our franchisees tionally well placed for is the ‘afternoon tea’ market. This is fast becoming the ’go to’ format for daytime celebrations with family and friends and exemplified in the offerings of major hotel groups, offering homemade cakes, sandwiches, scones, jam and cream, and of course a selection from our range of loose leaf teas.”

WHAT WAS THE THINKING BEHIND THE DESIGN OF YOUR OUTLET? “With the inspiration of one of the country’s pre-eminent designers and photographers comes an entire palette of designs, colours and of course renowned photographic images. It’s these which

form the core of our contemporary and stylish tearooms.”

HOW HAVE CUSTOMERS RESPONDED TO BEATONS BRAND? “The distinct offering Beatons makes is noted over and over again by customers seeking something different, and with it the chance to slow down and experience some ‘offline’ time with friends, or just soaking up the atmosphere while relaxing with a rejuvenating tea. Every aspect of the styling contributes to the repeated plaudits we receive for creating somewhere very special for our customers.”

WHAT DOES THE FUTURE HOLD FOR BEATONS? “As we grow and build on our established presence and system, we will do so with the passion and enthusiasm of our franchisees. Our mission to deliver great service in the true spirit of the quintessentially English tearoom tradition will, we anticipate, establish us as a recognised brand and standard throughout the UK and in future internationally.”

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AVOIDING FRANCHISE RISK

BUYING A FRANCHISE

Making Franchising your future

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MAKING FRANCHISING YOUR FUTURE

When it comes to operating in the food franchise sector, the opportunities are plentiful and the rewards are many. However, before you take the first steps, it’s vital you make sure you know what’s ahead, are prepared for the challenge and, most importantly, can satisfy a franchisor’s recruitment criteria.

The food franchise sector is in rude health at present, with a long line of businesses looking to recruit people to turn into franchisees.

However, before you set off on your journey into franchising, there are a few big decisions that you must make and hurdles that you must overcome.

Without question, franchising is one of the safest, easiest, and rewarding routes into running your own business.

ABOUT YOU

Food franchising in particular can also be highly profitable, due to the fact that it fulfils an essential need that we all have – the need to eat.

Add to this the fact that there are opportunities to suit people from all walks of life, regardless of budget and lifestyle, and becoming a franchisee is a very attractive proposition.

The first thing that you must think about when choosing a food franchise, is you as a candidate. Do you have what it takes to become a franchisee?

You must consider the skills that you have, what you are good at doing, as well as what you would like to do in terms of running a business in the food franchise sector.

You must also take into consideration your finances, as well as your family situation and whether you can commit the amount of time that is required to get your business up and running and make it a success.

Working in food franchising you will need to be confident dealing with members of the public. Therefore, if this is not something you would be comfortable with, then it might be wise to think again.

You must also ensure that you have a passion for the brand that you choose to be part of and the products you will be selling, as well as the energy and drive to run your own business.

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This is important as you will become an ambassador for that brand and if at any point you become unhappy with your choice, it could have a detrimental effect on your investment.

It is also important you remember that franchising is a two way thing. Both parties, the franchisee and the franchisor, are putting something on the table, whether it be business or money.

Franchisors will also consider your background. Therefore, it is important to be open about any other business interests you have, as well as any financial reasons why you may not be suitable and could harm the running of your business.

Two other factors that you should think about when it comes to evaluating your position as a potential franchisee are: Multiple sights – Many franchisors will offer you a geographical area for your business, but you must be cautious as this may come with a caveat that you have to commit to opening a certain number of branches in a certain time period.

This puts a burden of pressure on you before you have made the initial purchase.

The problem with ruling out this sort of commitment is that you still want the security. Make sure that you check to see if another operator will be able to open in your vicinity and if they have been given a geographical area.

Exit strategy – Leaving a business that you have put your own money into may seem like a strange thing to consider, but you must be wary that the exit strategy for a franchise is not as easy as it sounds. Therefore, this is something you should research before you jump in to franchising with both feet, as once you’re in it could be very costly if you have a change of heart and want to get out of being a franchisee.

CHOOSING A FOOD FRANCHISE Deciding on a food franchise can be a difficult job for any potential investor. There are hundreds of food franchise opportunities available in the UK and the options are limitless.

Researching the market is key when it comes to making a choice. Some areas are considered ‘saturated’ with coffee shops and sandwich shops, but this doesn’t mean there isn’t room for any more.

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MAKING FRANCHISING YOUR FUTURE

Many potential franchisees will be drawn to established names, with big brand presence.

However, if you’re not looking to join a big, established brand, but want to compete, then it pays to do your own brand comparison.

By looking at the growth forecasts of the companies you are considering, along with any revenue information that may be available on the stock exchange and their plans for the future, you may be able to find out if a business is suitable for you.

Franchises that are recruiting often use active marketing strategies, such as advertising online or in magazines, to highlight their opportunities and pass on information about the brand. Other franchises will often be present at trade shows, where you will be able to pick up information packs about the recruitment processes and talk to people who are involved in franchising.

Another important factor that you must consider is what help is on offer from franchisors. This can be vital in ensuring that you are set up to succeed in your chosen business right from the off.

Good franchisors will offer you all the support and advice that you need to set you on your way. Some brands may offer help with training and site selection, as well as deals on equipment and marketing.

It is important that you do your research and find out what help and assistance you can expect to receive from a franchisor.

It is also important that any questions you may have about the franchise or the franchisor are put to them. This is vital if the franchise in question is smaller and less established and you want to know whether you are buying a franchise from someone who has the required experience to drive the brand forward.

Being able to ask questions will also allow you to find out about the control you will have, as well as assess the people who you will be working with.

FINANCE The amount a potential franchisee would need to find to finance a franchise opportunity varies from brand to brand, with investments ranging from under £10,000 to around £500,000.

Therefore, your choice of franchise could depend on what you can afford.

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Make your budget based on the amount you have and the amount you can raise.

Following this it is advised that you invest up to 80 per cent, meaning that you have 20% for any hidden costs that may be incurred.

It is important that you remember to consider working capital requirements. During the initial stages you may not be turning a profit, so you may have to dip into the aforementioned 20% contingency funds to make further investments.

From the very start of the process you need to assess and understand what you can afford to invest and how much you are prepared to borrow is vital.

When considering the financials of a franchise option you have to investigate the predicted returns that a franchise will generate. You must ensure that any figures are based on verified, historical trading figures of outlets that are in operation and make sure the business that you hope to invest in will be able to support your lifestyle if the figures are accurate.

considered all the options, made sure you have the required finances in place and satisfy all the recruitment criteria, then you can look to set off on your journey into franchising.

However, the world of franchising can be very daunting and you may need to seek some assistance when things don’t always go to plan.

HELP IS AT HAND There are a host of professional advisors accredited by various governing bodies and these specialists in the franchising sector are a must for anyone who is thinking about setting up or buying a franchise.

Make sure you have a team of consultants, accountants, solicitors and banks who specialise in franchising available to you.

Having good advice available when you need it should help to ease any worries that you may have and ensure that the investment process goes smoothly.

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Having help available is also invaluable in making sure that you are taking the right steps and don’t miss out any vital information.

This is particularly useful when it comes to reviewing your franchise agreement or any other contracts.

Such assistance is vital as it’s your money and career on the line and making a mistake can be costly.

During the whole process it’s important that you get a full picture of what is ahead of you and what you are agreeing to by becoming a franchisee.

If you have any doubts at all, you have not done enough research and you will need to rethink your decision to invest in food franchising.

If you are organised, well informed and have the right advisors on your side, you will be able to move forward secure in the knowledge that you have a bright future ahead of you in food franchising.

LEGAL

International

NEWS

International

NEWS

Domino’s planning drone delivery service in New Zealand Domino’s Pizza in New Zealand has joined forces with drone delivery specialist, Flirtey to launch the first commercial drone delivery The two companies recently exhibited the first stage of their partnership with a demonstration of pizza delivery by drone in Auckland, New Zealand.

The successful demonstration conducted under Civil Aviation Authority Rules marks a final step in Flirtey’s approval process, following which the partnership will aim to trial a store-to-door drone delivery service from a selected Domino’s New Zealand store with flights to customer homes later this year.

New Zealand was selected as the launch market as its current regulations allow for businesses to embrace unmanned aircraft opportunities, which enable the gradual testing of new and innovative technologies.

Don Meij, Domino’s Group CEO and Managing Director, said: “With the increased number of deliveries we make each year, we were faced with the challenge of ensuring our delivery times continue to decrease and that we strive to offer our customers new and progressive ways of ordering from us.

“The use of drones as a delivery method is designed to work alongside Domino’s current delivery fleet and will be fully integrated into online ordering and GPS systems.”

The reach that a drone offers is far greater than other current options which are restricted by traffic, roads and sheer distance.

Domino’s will look to the results of the trial

to determine where drones are implemented further.

The trial flights are set to commence later this year.

Domino’s will offer Drone Delivery Specials at the launch of the trial, with the plans to extend the dimensions, weight and distance of the deliveries throughout the trial based on results and customer feedback.

Flirtey CEO Matt Sweeny said, “Launching

the first commercial drone delivery service in the world is a landmark achievement for Flirtey and Domino’s, heralding a new frontier of on-demand delivery for customers across New Zealand and around the globe.

“We are getting closer to the time where you can push a button on your smartphone and have Domino’s delivered by drone to your home.”

McDonald’s Chief Administrative Officer to retire after two decades with the brand McDonald’s Corporation’s Chief Administrative Officer has retired after 20 years with the company.

Peter Bensen spoke of his pride in the work he’s done during his time at McDonald’s after standing down from the role.

He said: “After two decades with McDonald’s, few things mean more to me than this brand, but one of those things is family. I’m proud of the work we’ve done here at McDonald’s and, in particular, over the past 20 months.

“I look forward to seeing the system go even further and becoming the modern and progressive burger company we all

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know McDonald’s will be.”

Steve Easterbrook, McDonald’s President and CEO, said: “Throughout his career with McDonald’s, Pete has been a strategic partner, a tireless advocate and an influential contributor to our brand’s success.

“We thank him for his steadfast leadership and his valuable expertise. We know Pete has looked forward to spending more time with his family, and we wish them all the best.”

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Papa John’s announces expansion plans in Mexico Papa John’s International has announced plans to expand in Mexico with the signing of a restaurant development deal with Orquest Food.

The agreement will see the opening of 60 restaurants over the next eight years.

Orquest Foods is owned by the Clariond Lozano family, which has roots in Mexico that date back to 1936 and has been in the food business for the past ten years.

Santiago Clariond Lozano, Chairman of the Board and Executive Officer of Orquest Foods, said: “We are very excited about joining the Papa John’s family and expanding the ‘Better Ingredients, Better Pizza’ brand promise throughout Mexico.

“We respect and admire Papa John’s commitment to quality and look forward to expanding the brand in Mexico.”

In addition to the 60 stores throughout Mexico, Orquest Foods recently purchased 26 Papa John’s restaurants in the Mexico City area.

Mexico City holds a special place for the ‘Better Ingredients, Better Pizza’

brand as it is the site of Papa John’s first international location.

Tim O’Hern, Senior Vice President and Chief Development Officer of Papa John’s, said: “We are honoured that Orquest Foods has chosen to invest in the Papa John’s brand. The Clariond Lozano family has a long history of success and an excellent operational team of executive leadership.

“We look forward to working together as they build upon the 26 stores that have been acquired in Mexico City and develop our brand throughout many states in Mexico.”

Papa John’s International has more than 1,500 international restaurants, including over 350 restaurants in 16 Latin American countries and is looking for potential franchisees in Brazil, Honduras, Uruguay and the Bahamas.

Private equity group buys majority stake in Wetzel’s Pretzels

Domino’s India launches BurgerPizza Pizza giant Domino’s has unveiled its latest creation to tempt diners in India.

The BurgerPizza is mozzarella cheese, tomato sauce, herbs and vegetables inside two oven-fried buns, with the tagline ‘Looks like a burger, tastes like a burger’.

The new product aims to help Domino’s grow its share of the chained Indian foodservice industry.

Dev Amritesh, President and Chief Business Officer of Domino’s Pizza India, said: “Unlike other burgers, the BurgerPizza is comfort food, full of pizza goodness and has been specifically designed for the Indian palette.”

S, Murugan Narayanswamy, Senior Vice President Marketing of Domino’s Pizza India, said: The BurgerPizza is different from conventional burgers in many ways.

“Instead of using fried ingredients, the BurgerPizza has oven-baked ingredients. It is made with generous fillings of herbs and vegetables, tomato sauce, mozzarella cheese and soft buns, all oven-baked together to perfection.”

The BurgerPizza is available in two vegetarian and two non-vegetarian variants.

A Dallas-based private equity group has bought a majority stake in fresh-baked pretzel chain Wetzel’s Pretzels.

The sale to CenterOak Partners, which has significant consumer brand, business service and industrial sector holdings, brings to a close Levine Leichtman Capital Partners’ investment into the brand, which took place in 2007.

Levine Leichtman Capital Partners secured seven times its original investment on the deal.

Wetzel’s Pretzels CEO, Bill Phelps, will remain in his current role, with cofounder Rick Wetzel retaining a seat on the company’s board of directors.

Mr Phelps, who is also a co-founder,

said: “From rolling the first Wetzel’s Pretzel in our kitchens more than 23 years ago, our vision of serving fresh, delicious pretzels in a fun atmosphere has remained the same.

“We’re thrilled to have found a business partner in CenterOak Partners that believes in that vision, and understands our top priority is the profitability of our franchise partners.”

Wetzel’s Pretzel’s currently operates more than 300 company-owned and franchise locations in 28 states and six countries.

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International

NEWS

Dublin-based Wagamama owner seals deal with cost management firm The owner of global restaurant franchise Wagamama has struck a deal with a cost management specialist to help in its efforts to save money.

Dublin-based Press Up Entertainment Group (PUE), appointed Great Annual Savings Group (GAS) to conduct a review of its running costs.

Following the review, the two companies have struck a deal which will see the leisure operator make savings of more than £83,000 across the two year contract.

Bradley Groves, chairman and chief executive of GAS, said: “We’re thrilled to be working with one of Ireland’s most distinguished leisure and hospitality operators.

“During a review of their business, we discovered that some contracts had elapsed and, as a result, many sites were paying above-market, out-of-contract rates.

“We’ve now been able to address this and we’re currently undertaking an audit of individual sites to see where we can make further savings.”

Alexandra Handzlewicz, group cost controller at PUE, said: “We were looking to save money on our running costs but didn’t want the hassle of renegotiating contracts with all of our individual suppliers.

“The appointment of GAS has taken that job out of our hands and the company’s experience in dealing with these issues will enable us to make significant cost savings as we look to grow the business.”

Domino’s opens 13,000th store worldwide Pizza chain Domino’s has opened its 13,000th store in the world.

The landmark opening took place in Auburn, Washington, outside of Seattle, in the US. Patrick Doyle, Domino President and CEO, said: “The tremendous store growth worldwide is a testament to the continued success of our 55-year-old brand.

“Domino’s has opened 3,000 stores across the globe over the past four years, making the story of store growth one of the many phenomenal elements of the brand’s strength.”

Domino’s operates in more than 80 international markets. The company had

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global retail sales of over $9.9 billion in 2015.

Its system is comprised of independent

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franchise owners who accounted for over 97 per cent of Domino’s stores as of the second quarter of 2016.

Tim Hortons to launch in Great Britain Canadian coffee shop chain Tim Hortons is to launch in the UK.

Starbucks bows to public demand and makes almond milk available in stores Almond milk has been made available in Starbucks stores across the US following customer requests for the product.

Coffee drinkers will be will be able to order the non-dairy alternative, in addition to soy milk and coconut milk.

The product was initially made available in the Pacific Northwest, Northern California, New York, Northeast and Mid-Atlantic regions. A nationwide roll-out was due to be completed by the end of September.

It will be available for use in hot or iced drinks and Frappucino® blended beverages.

Yoke Wong, Manager of Starbucks Beverage Research and Development team, said: “We created our own almond milk recipe to complement our hot, iced and Frappucino® blended beverages.

“It was designed so that when steamed, it creates a rich foam for hot beverages and is delicious and creamy when served in cold beverages.”

Starbuck first introduced its first non-dairy milk alternative in 2004 with the launch of soy milk, followed by coconut milk in 2015.

Restaurant Brands International, which owns the company, made the announcement following the establishment of a master franchise joint venture with a British investor.

The joint venture company will be the master franchisee of the Tim Hortons brand in England, Scotland and Wales.

Daniel Schwartz, CEO of Restaurant Brands International, said: “This deal is part of our growth plan to take the iconic Tim Hortons brand around the world.

“Great Britain is an attractive QSR market with a strong and growing coffee culture, so it is a natural fit for the brand.”

Elías Díaz Sesé, President of Tim Hortons, said: “This is an incredibly proud moment for the Tim Hortons brand as we enter this dynamic market.

“We look forward to bringing some of

our signature products to Great Britain and helping our partners build brand awareness and open restaurants to welcome new guests.”

Gurprit Dhaliwal, CEO of the joint venture company, said: “We are thrilled to introduce the iconic Tim Horton brand and Canada’s favourite coffee to Great Britain.

“Our guests in England, Scotland and Wales are sure to be delighted with our focus on delivering great products and an exceptional guest experience.”

Last month, Restaurant Brands International announced a master franchise joint venture agreement to develop the Tim Hortons brand in the Philippines. The brand also has restaurants across Canada, the US and the Middle East.

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NEWS

Krispy Crème reveals new autumn additions Krispy Kreme Doughnuts has unveiled some new additions to its autumn menu.Takeaway.com.

The Pumpkin Spice Cake Doughnut, Salted Caramel Latte Doughnut and Pumpkin Spice Latte are now available at shops in the US and Canada.

Jackie Woodward, Chief Marketing Officer at Krispy Kreme Doughnuts, said: “Each year we always look forward to the classic flavours of fall.

“Our fans crave these seasonally inspired treats, and the pairing of a Pumpkin Spice Latte and one of our doughnuts makes for the perfect comfort food as the weather starts to cool down.”

Krispy Kreme’s pumpkin flavoured products have been appearing seasonally in shops for more than a decade and are frequently noted by our guests as one of the best ways to get a pumpkin fix throughout the season.

Wendy’s recognised for leadership in energy efficiency The U.S. Department of Energy has recognized The Wendy’s Company and one of its franchisees, Wendco Group, for their leadership in energy efficiency.

The Wendy’s Company has made a commitment to reduce energy consumption in US company-owned restaurants by 20 per cent per transaction by 2025.

Wendy’s is also the first restaurant company to include franchisees in the Better Buildings Challenge, a program that aims to make commercial, public, industrial and residential buildings 20 per cent more energy efficient over the next decade.

This means saving hundreds of billions of dollars on energy bills, reducing greenhouse gas emissions and creating thousands of jobs.

To date, six franchisees have joined and more than 570 company and franchisee operated restaurants are participating in this program.

Abigail Pringle, Chief Development Officer for The Wendy’s Company, said: “We’re proud to be among the first restaurant companies to join the Better Buildings Challenge. We see environmental stewardship in restaurant development as a big responsibility, and it connects to our values.

“We believe stewardship is a journey, a long-term commitment. It’s not something we are simply ‘checking off the list’, rather we’re driving purposeful change with bold

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goals that are brought to life through our culture and our business practices of how we plan, design, engineer, construct and operate our restaurants.”

Wendco Group, the first Wendy’s franchisee to join the Better Buildings Challenge, operates 43 Wendy’s restaurants in Alabama and Florida and employs more than 1,200 people.

It has pursued aggressive strategies for lowering energy use across their building portfolio, including ongoing equipment maintenance, strategic energy upgrades and high efficiency equipment installation.

Maria T. Vargas, Better Buildings Challenge director, US Department of Energy, said: “The leadership demonstrated by Wendy’s and its franchisee is tremendous.

“Not only is The Wendy’s Company focused on bettering its own corporate-level energy efficiency, it is doing so in a way that can reach thousands more restaurants. This approach with Wendco Group is exemplary of a commitment to continuous improvement, a dedication to greater savings, and proof that partnerships extend energy savings.”

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Just Eat agrees the sale of Dutch and Belgium businesses Online takeaway ordering site Just Eat has agreed the sale of its Dutch and Belgium businesses to Takeaway.com.

Wimpy owner buys Gourmet Burger Kitchen for £120m Famous Brands, the owner of Wimpy, has bought premium burger chain Gourmet Burger Kitchen (GBK).

Just Eat sold the businesses for €22.5 million (£19m), which is payable in cash.

Eighty per cent was paid on completion and 20% will be paid six months after completion, subject to the satisfaction of certain obligations.

David Buttress, CEO of Just Eat, said: “We have always been clear that the competitive dynamics of our industry demand clear market leadership to drive sustainable profitability. The disposal of our Benelux business, where we are number two, delivers on that strategy and comes at the right time for Just Eat. “We are the clear leader in our remaining 12 markets and it is

appropriate that our time and resources are focused on building on the strong growth we are seeing across those businesses in future.”

Jitse Groen, CEO and Founder of Takeaway.com, said: “We are pleased to acquire the Benelux businesses of Just Eat. “These activities are complementary to our operations and will further strengthen our leading positions in Continental Europe. This transaction is in line with Takeaway.com’s strategy to drive sustainable leadership positions in each of the 11 markets it operates in.”

The South African-based business acquired the entire share capital of GBK for £120 million.

Launched in 2001 in Battersea, South London, GBK now comprises 75 company-owned restaurants across the UK. Kevin Hedderwick, Famous Brands’ Group Strategic Advisor responsible for M&A activity said: “In terms of scale and scope, this is the biggest deal the Group has ever concluded, and one which will transform the future of the business. It will be as much of a game-changer for the Group as our acquisition of Wimpy SA was in 2003.

“Quite simply, GBK is a best in class business and brand, with growing consumer equity, supported by a phenomenal leadership team.”

GBK’s team will continue to manage the business, with no changes to personnel planned, and the intention is for the transition in ownership to be effected seamlessly, with no disruption to operations.

Alasdair Murdoch, CEO of Gourmet Burger Kitchen, says “We’re delighted to move onto the next phase of growth with Famous Brands. Since we started dealing directly with the team, there has been real chemistry and a sense of shared understanding and vision.

“GBK has grown rapidly, and has had continuous like-for-like sales growth, but at its heart GBK is much more than that. It’s based on fantastic restaurant teams and critically, a continuous journey towards excellence in our food. We like to call it real burger obsession!

“Our aims remain the same: To continue opening 10-15 restaurants a year in the UK, continually elevate our food, and look at other growth opportunities.

“We feel honoured to be the next chapter of the Famous Brands’ story and we are delighted to be part of the team.”

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MARKET WATCH

MARKET WATCH

Investing in a business within the franchise sector can be daunting. 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 franchises that are listed are performing.

When it comes to food franchises, each franchisee has a responsibility not only for their part of the business, but they have an unwritten duty to the other franchisees too.

If one part of the franchising mechanism goes wrong then it can have detrimental effects on the rest of the group or brand.

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One way to monitor the way that a franchise is performing is to look at the stock market. This gives the investor an insight into the inner workings of a company. It can highlight any changes to the board and any investments by directors.

The businesses also have a public duty to announce any deals that will affect the share price such as expansion,

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closures or takeovers. It is on the stock market that we can gauge the success of a business and see how aggressive they are being in terms of growth.

The share price of a business can act as a guide as to their position in a certain market and as well as highlighting the aforementioned growth. It can also show banking predictions and offer a foresight for the future.

MARKET WATCH

Share in focus – Chipotle Mexican Grill, Inc As always with the market watch section of the magazine, we look at one particular share in detail. In this issue we focus on Chipotle Mexican Grill, Inc. Chipotle opened its first store in 1993.

Now, more than 20 years on, the company operates more than 2,124 units, competing in the ‘fast-casual’ dining sector.

Chipotle’s share price stood at $431.99.

Over the past 52 weeks, the price has reached a high of $757.00, also falling to a low of $384.77.

Announcing its second quarter results, ending June 30, 2016, the company revealed that revenue had fallen 16.6 per cent to $998.4m compared to the three months to June 30, 2015.

The company also saw restaurant sales fall 23.6% compared to the same period last year.

Net income for the second quarter of 2016 was $25.6 million, or $0.87 per diluted share, compared to net income of $140.2 million, or $4.45 per diluted share, in the second quarter of 2015.

“Our most recent marketing efforts, led by our Chiptopia frequency program, are off to a nice start in the third quarter, as customers are embracing the program and nearly 30% of all transactions are engaged in Chiptopia.

During the three months to June 30, 2016, Chipotle opened 58 new restaurants.

“Our entire company is focused on restoring customer trust and reestablishing customer frequency, and rewarding our most loyal customers for visiting more often through Chiptopia is one way to do just that.

Responding to the results, Steve Ells, founder, chairman and CoCEO of Chipotle, said: “We returned to profitability, and saw a modest improvement in comp sales trends in the second quarter.

“While it has only been a few weeks since Chiptopia launched, we are pleased to see that July sales comp trends have already improved by 200 to 300 basis points, and transaction comp trends have improved by an even greater amount.”

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MARKET WATCH

HOT OR

Not

In order to give our readers an overview of the ever-changing markets, we look at how certain stocks have performed over a three-month period and rate them accordingly on our Hot or Not chart.

PAPA JOHN’S (PZZA)

After reporting a strong performance in the last edition of Food Franchise, Papa John’s saw its share price rise again during the past three months. Standing at $65.30 at the beginning of our watch period, the shares rose to $74.56, an increase of 14.18 per cent.

YUM! BRANDS (YUM)

Yum! Brands, the business behind Taco Bell, KFC and Pizza Hut Delivery franchises, saw another rise in its stock during our watch period. Starting at $83.73, it finished at $87.81, an increase of 4.91%

MCDONALD’S (MCD)

McDonald’s again experienced a drop in its share price during the past three months. The company saw a 6.31% drop, falling from a starting point of $122.79 to $115.01.

DUNKIN DONUTS (DNKN)

After experiencing a fall in its share price 76

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fall during our previous watch period, Dunkin’ Donuts’ shares rose 6.64% over the past three months. Starting at $45.38, they finished at $48.35.

130.00p following the Brexit vote in the UK. It has since rallied and stood at 147.50p.

STARBUCKS (SBUX)

Like the previous watch period, coffee shop chain Starbucks again saw its shares slip slightly. Starting at $55.58, they fell to $54.88 during the past three months, a 1.24% drop.

Continuing the trend from the last time we took a look at Sonic’s stock, the share price fell by 12.85% during the latest watch period. Staring at $29.64, the shares stood at $25.83 at the end of the three-month period.

WENDY’S (WEN)

CHIPOTLE (CMG)

MARSTON’S (MARS)

DOMINO’S (DOM)

After reporting on dips in the share price in the previous two editions of Food Franchise, Wendy’s has again seen another slight drop. Beginning the watch period at $10.31, the price fell by 0.29% to $10.28.

The subject of the shares in focus section of the last Food Franchise Magazine, Marston’s had seen a drop in its share price during the previous watch period.

Beginning the latest period at 147.00p, Marston’s share price fell to a low of

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SONIC (SONC)

As you would have seen from our shares in focus section, Chipotle’s shares stood at $431.99 at the end of our watch period. This was a rise of 3.90% from the starting point or $415.79.

After seeing Domino’s share price rise over the previous two watch periods, the last three months has seen a quite dramatic fall post Brexit vote. Starting at 1,064.00p, Domino’s shares have dropped to 359.09p, a 66.25% fall.

PAPA JOHN’S (PZZA)

MARSTONS (MARS)

+14.18%

+0.34%

DUNKIN’ DONUTS (DNKN)

WENDY’S (WEN)

-6.64%

+0.29%

STARBUCKS (SBUX)

MCDONALDS (MCD)

-1.24%

+6.31%

YUM! BRANDS (YUM)

SONIC (SON) -12.85%

+4.91%

CHIPOTLE (CMG)

DOMINO’S (DOM)

+3.90%

-66.25% Correct at time of writing.

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RECENT AND UPCOMING DEVELOPMENTS IN EMPLOYMENT LAW The summer may now have gone but it was an active period for employment law news. Below we look back at some of the happenings to ensure you remain aware of developments that could impact on your business going forward.

The summer may now have gone but it was an active period for employment law news. Below we look back at some of the happenings to ensure you remain aware of developments that could impact on your business going forward.

an employee or a worker”.

Such a provision is unlikely to work in practice and will potentially upset employment relations so think twice before trying to place similar restrictions on your workforce.

EMPLOYMENT STATUS

LIVING WAGE

It was reported in July 2016 that the food delivery firm, Deliveroo, had added restrictions in the contracts with their “self-employed” drivers in an attempt to avoid them arguing that they are either “employees” or “workers”.

Debate has raged as to whether the introduction of the living wage back in April 2016 (namely a minimum rate of £7.20 per hour for those aged 25 or over) has meant that employers have reduced the number of staff they engage or the level of benefits offered to employees.

This is because employees and workers have far more employment rights compared to self-employed individuals, such as the right to be paid at least the national minimum wage.

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However, a survey in July 2016 by Resolution Foundation has suggested that the additional pay is either being passed on to customers in the form of increased prices or the employer is simply making less profit themselves.

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Currently, an employer is able to make an ex-gratia payment of up to £30,000 on termination of an employee’s employment without deductions for tax or national insurance.

After that, income tax applies but not NI contributions.

It was announced in August 2016 that these rules will be revised with effect from April 2018 so both tax and employer’s NI will become payable.

This will make things more expensive for employers.

GENDER PAY GAP REPORTING New legislation on gender pay reporting was brought into force in August 2016, although the final parts of the new legislation are not expected until October.

It is understood that employers with

250 or more employees will become compelled to analyse gender pay gap data (being the difference in levels of pay between men and women at the same employer) and publish their results.

brought by disgruntled employees.

and unfair dismissal are perhaps unlikely to be amended. No one knows what the future may hold but employers will want to keep an eye on developments in this area.

BREXIT

It is expected that the first analysis will be required as at 30 April 2017 and the first report will need to be published a year later.

No new round up would be complete without a mention about Brexit.

We all await details on when and how Britain will exit Europe but certainly some changes to employment law are likely in the long term.

However, savvy employers will want to consider their analysis early and take steps to ensure any pay gaps are equalised or can be explained, before they have to expose the data and run the risk of potential equal pay claims being

There has already been some speculation about changes being made to the rules on working time, the transfer of businesses (often known as TUPE transfers) and the rights of agency workers.

However, laws relating to discrimination

Katee is a senior solicitor in Goodman Derrick’s employment team advising on all aspects of contentious and non-contentious employment law, from recruitment to the end of employment relationship. She has acted for clients in the hospitality and leisure sector for many years. Katee has been recognised as an “Associate to Watch” by Chambers & Partners Guide to the Legal Profession and as a “Super Lawyer” by The Telegraph. Goodman Derrick is a leading commercial law firm in the City of London.

Katee Dias , Senior Solicitor, Goodman Derrick LLP 020 7404 0606 - kdias@gdlaw.co.uk

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Study Reveals UK SME Success

A new report published by insurance and pension provider Standard Life has revealed the key drivers of success for UK SMEs over the next five years. Having polled both SME leaders and employees, the report highlights the fundamental trends of collaboration, empowerment and adaptability as central to growth.

SME leaders said the number one priority is to empower the workforce, by building an environment that encourages creativity and innovation.

Employees agreed, stating that the most desirable quality in a business leader is the ability to empower and trust their colleagues.

The report also found that the traditional five year business planning cycle is largely a thing of the past, with 82 per cent of SME leaders altering their strategy at least once a year and almost three fifths doing so at least every six months.

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Meanwhile, 60 per cent of employees felt ‘adaptability’ is the most important attribute for professional success.

Stephen Ingledew, Standard Life Managing Director of Marketing, said: “SMEs are an important part of our client base, and we wanted to take a closer look at the behaviours these business leaders and their employees adopt to achieve success and fuel entrepreneurship.

“Our research shows that UK SMEs are strongly committed to building working environments that encourage and nurture flexibility and innovation.”

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The report stated that business leaders believed that the most productive workforce can be achieved by offering employees flexible working conditions (41 per cent) and by investing in future potential (40 per cent), with training/ upskilling the number one focus in the next half a decade.

Indeed, at McPhersons, our staff values our flexible working conditions. In fact, some cite this as the main reason they came to us. The work life balance is a key factor to consider and at McPhersons, staff are able to plan their working day around childcare, dog-walking, socialising and other interests.

With employees at every level of qualification and some with us for over 40 years, we understand that development and support with study and qualification are vital as well as necessary for staff retention.

The majority (69 per cent) of leaders also believe the role of CEO/MD will become more diverse and accessible to their workforce in the future, it is a position that is still seen as out of reach by many

employees, with 56 per cent expecting promotion to CEO to become far more challenging over the next five years.

Stephen Ingledew added: “SMEs are generally very outward-looking and focused on retaining strong core values which help them attract and retain the best talent.

“The research indicates that they regard positive contributions to society as an

Need more help?

This feature aims to give some informal hints and tips. Our tax department and

McPhersons Financial Solutions are offering businesses free advice so get in touch now to arrange your meeting.

Simply email Peter Watters - Director at McPhersons Chartered Accountants p.watters@mcphersons.co.uk

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important measure of success, and that they carefully consider how their decisions impact their broader industry, their people and their communities.”

FRANCHISE OPPORTUNITIES

Professional franchise sales and resales service for food franchisors and franchisees An innovative consultancy service has been 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.

The company is headed by Jess Bains MICBA, who previously led the franchise sales and resales division at FDS

(Franchise Development Services), with the service provided based on more than 15 years of experience of the franchise and business sectors, combined with valuable advice and guidance.

We work closely with franchisor and franchisee, ensuring there is no conflict of interest, only an enhanced service essential in the sales and resales process in concluding a positive outcome. We will tailor a programme that is in line with your objectives utilising a portfolio of publications, websites and skills to target pre qualified candidates to promote your franchise for sale.

Specialising in the sale of: • Franchises sales, • Franchise resales, • Multi-unit franchises, • Master franchises, • Entire franchise business, • Franchise acquisition and business sales.

The service provided by Franchise Sales and Resales is further enhanced with support from legal advisers, banks, and financial specialists from within the franchise industry.

For more information, call 01462 685633, email info@franchisesalesandresales.com, or visit http://www.franchisesalesandresales.com.

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FRANCHISE RE-SALES

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 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 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 18 months before returning a profit. With an established franchise resale, the business will have an existing customer base of clients using its service and products.

A new franchisee can profit from the brand identification that a franchise resale specifies. A new business can take many years to establish a brand in a competitive area. There are no guarantees that the consumers will identify with the brand as a product leader. A franchise resale can also provide owners with instantaneous brand recognition.

customers identify with and remember the brand. Belonging to a franchise reduces marketing costs, which are shared equally with other franchisees in the network.

The risk element of acquiring an established franchise resale is a lot less than acquiring a business for sale, for all of the above reasons. So why is the existing franchisee selling? There are no precise reasons although the following are commonplace: •The franchisee has had many profitable years •The franchisee may not be able to fully commit to the business •The franchisee has become bored and is looking for a fresh challenge •The franchisee may wish to relocate

It can be exceptionally expensive for an independent business proprietor to advertise 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 to ensure

The value of the resale will vary on many factors, and different methods can be used to value the franchise resale. The most common method is a multiple of the profit; the multiple used can be anything from 2 to 8 times profit.

For more information, call 01462 685633, email info@franchisesalesandresales.com, or visit http://www.franchisesalesandresales.com.

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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 Returning for its second year, Restaurant and Takeaway Business Live is packed with a range of live features designed to inspire and assist both new and existing businesses.

Restaurant and Takeaway Business Live SECC Glasgow November 10-11- 2016

Café Biz Expo Old Trafford Football Stadium, Manchester September 21-22- 2016

Food and Drink Research and Innovation & NPD Summit National Motorcycle Museum November, 30- 2016

The National Franchise Exhibition NEC, Birmingham 30 Sep - 1 Oct - 2016

You will be able to learn about the latest food preparation techniques and discover fresh cuisine from around the globe.

Café Biz Expo is aimed at the fast expanding coffee sector in the Midlands and the north of England and will provide one valuable intensive day for product sourcing.

The show welcomes trade customers from

The inaugural Food and Drink Research and Innovation & NPD Summit is a conference and exhibition focused on researching, developing and launching new products and brands in the food and beverage industry.

The event will bring together more than 500 senior executives and management

The UK’s largest franchise exhibition, the National Franchise Exhibition will feature dynamic franchise brands in all business sectors, such as food & drink, home-based franchises, fitness, low cost, care, and property. The event will include

The event features more than 50 exhibitors, along with a whole host of seminars, workshops and live demonstrations.

You will also get the chance to network with peers, as well as find more customers to enable you to maximise your profits.

fast-food outlets, facilities managers, café owners and operators through to pubs, hotels and restaurants, and visitors can find the best of everything from coffees, teas and syrups, right through to machines, equipment and water filtration systems.

from the leading food and beverage manufactures, retailers and foodservice companies responsible for research and development, Innovation, NPD, quality, health and nutrition, ingredients, as well as leading suppliers of technologies and services.

free presentations, panel sessions and educational seminars, and be attended by experts from the bfa, along with solicitors, financial and careers advisors and consultants.

IN THE NEXT ISSUE Franchisee Q&A

Making the decision to become a franchisee can be a difficult one. We speak to some of the individuals who have taken the plunge and learn about how and why they got into the industry.

Ten things to consider when buying a low investment franchise

We take a look at some of the most important things you must consider before investing in a franchise.

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