Food Franchise Magazine Summer 2016 by MVHmedia

FOOD FRANCHISE FR

Fast food Franchise

QSR Franchise

C AN

HI S E

ITTIIOO I D D E E R NTMEER SWUIM I

PO RT UN

Coffee franchise

Food-to-go Franchise

Pub Franchise

Restaurant Franchise

Be Inspired

FOOD FRANCHISE

Cafe2U founder Tom Acland tells us about his journey into franchising

V3 ISSUE 3 SUMMER

Franchisor Q&A

One to Watch

Leaders in the franchising industry give us an insight into this lucrative sector

Huseyin Ozdemir tells us about his franchising plans for The Vintage Fish chip shop

Print edition £3.99 SUMMER EDITION

Legal

Accountancy

Katee Dias discusses the issue of Modern Slavery and Human Trafficking Statements

We find out about Auto Enrolment from the experts at McPherson’s

Editor’s message

’m very pleased to be able to welcome you to my very first edition of Food Franchise magazine as the group editor of MVH Media. I’m absolutely delighted to be taking the helm of this fantastic magazine and I will endeavour to ensure Food Franchise continues to be the place to go for all your franchise news, views and features.

Editor

Steven Jones scottr@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 Iwan Durnell Office: +44 (0) 333 003 0499

Design

Timeem Taleifeh design@mvhmedia.co.uk

Features Assistant Zoe Taylor

Finance

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

Having worked in regional newspapers for more than 12 years, I’m looking forward to the challenge with relish as businesses face some huge changes in the not too distant future. With the nation having spoken and voted for Britain to leave the EU, the outlook remains uncertain for the franchise market. You can rest assured that the Food Franchise team will keep our eyes and ears open for all the latest news on this and more, and endeavour to keep you informed. However, this is all for a future issue. In this edition, our main feature focuses on the men and women at the helm of some of the UK’s largest franchise opportunities. We find out more about the industry and what the future holds for franchising. We will also be speaking to Tom Acland, the Managing Director of mobile coffee franchise Cafe2U, to find out what inspired him to get into the industry and about the current trends in the coffee industry. In our One to Watch feature, we talk to Huseyin Ozdemir, the owner of The Vintage Fish chip shop. He tells us about his franchising plans for the business and what makes this chippy stand out from the opposition. Our final feature sees Brian Duckett, Chairman of the Franchising Centre, give his advice on how to franchise a business. As usual, we have the latest industry news from home and abroad, as well as legal and accountancy advice. Until next time,

Steven

Publisher MVH Media Ltd.

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

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Front cover image courtesy of Cafe2u Page 58

summer 2016

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Contents SUMMER

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

30 Franchisee Q&A Leaders in the industry give us an insight into the world of franchising and what the future holds for their brands

44 Be Inspired

We speak to Tom Acland, Managing Director of Cafe2U, about his journey into franchising

48 How To Franchise Your Business Brian Duckett, Chairman of the Franchising Centre, offers some guidance on how to franchise your business

52 2016 Show Guide We preview a selection of upcoming shows in 2016

56 One To Watch

Huseyin Ozdemir from The Vintage Fish tells us about his franchising plans for the fish and chip restaurant

52 4

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62 Introduction to Franchising

We look at the basics of franchising and explain what you need to consider before getting started in this lucrative market

70 Accountancy McPhersonâ&#x20AC;&#x2122;s tell us what employees and employers need to know about Auto Enrolment

72 Legal Katee Dias tells us about Modern Slavery and Trafficking Statements

78 International News

We round up the latest developments from brands from around the world

82 Market Watch

A look at how some of the largest food franchises are performing on the stock markets summer 2016

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News

round-up Costa names Jason Cotta the new UK Managing Director Costa has appointed Jason Cotta as the new Managing Director for the UK and Ireland. Jason has extensive retail experience having worked as Operations Director, International and Development for Travelodge and Operations Project Director for Care UK. He was also Operations Manager for TGI Fridays. Since joining Costa in 2010, he spent two years as Operations Director for Costa UK Equity stores and two years as Managing Director for Costa Retail from 2013. In 2015 he took responsibility for the Costa EMEA business, with accountability for Costa businesses in Poland and Latvia, France and Singapore, as well as Costa’s International Franchise operations. Christopher Rogers, CEO of Costa, said:

“In his new role Jason will be looking to capitalise on UK opportunities for growth, building the brand and delivering for our customers. “Jason has delivered outstanding results in his previous roles at Costa and brings with him a wealth of relevant experience to support the UK business at this important stage in its development.” In his new role Jason will have overall responsibility for The UK and Ireland. The role has an extended remit that also covers Corporate Franchise, Proud to Serve and Ireland, in addition to the existing UK retail estate of equity and Individual Franchise operations.

Subway® extends partnership with Aramark Sandwich chain Subway® has extended its partnership with food and facilities services company Aramark. The partnership will see five Subway® stores open across Aramark’s UK operations by the end of 2016. Aramark already has four Subway® stores, including at Chichester College, Robert Gordon University, Aegon UK and the newest at Sparsholt College, in Hampshire, which opened at the end of 2015. As the partnership between Aramark and Subway® continues to grow, a fifth Subway® store is currently in development at the John Radcliffe Hospital, in Oxford, which is due to open later this year. In addition, Aramark and Subway® are working together on several other new store projects in the US and worldwide. Greg Madigan, Area Development Manager for Subway® UK and Ireland, said: “We are delighted to have recently opened the brand new Subway® store in partnership with Aramark at Sparsholt College. “The success of our partnership with Aramark is due to the wide range of locations in which the company operates, and how easily Subway® can integrate

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into those locations, whether these are colleges, universities, hospitals or businesses. “Non-traditional locations are a key area of growth for Subway® - the simple operations involved in running a store and the convenience offer make it a perfect fit for these locations.” Frank Gleeson, Region MD, for Aramark

Northern Europe, said: “We are delighted to extend our partnership with Subway®. We are always listening to what our customers are looking for and having Subway® stores as part of the Aramark portfolio allows us to bring high street brands and great quality food offers to our client locations directly.”

McDonald’s franchisee shortlisted for Franchisee of the Year award A McDonald’s franchisee has been named among the 20 finalists at the bfa HSBC Franchisee of the Year Awards. A McDonald’s franchisee has been named among the 20 finalists at the bfa HSBC Franchisee of the Year Awards. Cherry Lewis-Taylor, from Essex, has been shortlisted in the Female Franchisee of the Year section. Ms Lewis-Taylor joined the McDonald’s team following 21 years in the Army as an officer. The awards, organised by the British Franchise Association and supported by HSBC, celebrate business excellence and feature franchisees for many different sectors, it celebrates franchisees working alone from home as equally as those working with teams in offices. Andy Brattesani, UK head of franchising at HSBC, said: “One of the

best aspects of these awards is that they recognise the outstanding work being done by franchisees in their communities right across the country.

Wok&Go opens first franchise noodle bar in London Noodle bar chain Wok&Go has opened its first franchise site in the capital.

“These are local people creating local jobs and generating wealth for local economies.” Pip Wilkins, the bfa’s CEO, said: “With around 45,000 franchise-owned businesses in the UK, we’ve had to make some very tough choices to get down to 20 finalists.” The winners will be named at a ceremony at the end of September. This will follow an event in July where the finalists will have to present their case to a panel of judges.

Tesco sells Giraffe to BRH Boparan Restaurants Holdings has acquired the Giraffe restaurant group from Tesco. The acquisition forms a part of a strategy to build a significant, multi-brand restaurant portfolio. It will sit alongside BRH’s other scalable restaurant brands which are being rolled out; these being Harry Ramsden’s, Fishworks and the Cinnamon Collection. Tom Crowley, Giraffe’s managing director, said: “We are very excited about the acquisition of our business by Boparan Restaurants Holdings. “This now provides us with the opportunity to really focus on developing the giraffe business to its full potential throughout the UK and overseas.” Ranjit Singh Boparan, CEO of BRH, said:

“We invest in businesses that add value to our portfolio and Giraffe represents an appealing proposition for both customers and landlords. “We believe the brand has significant potential for further growth and look forward to working with Tom and his team to develop the group.” Giraffe was started by husband and wife duo Russel and Juliette Joffe, with their close friend Andrew Jacobs in 1998, before being acquired by Tesco in 2013. There are currently 56 Giraffe restaurants in total, 52 of which are in the UK and there are further plans for more.

There are currently has 20 sites across the UK and the business has major plans for expansion. Earlier on this year the company announced that it will double the number of stores by the end of 2016 and expand further internationally, with an opening in Dubai. Des Pheby, Founder of Wok&Go, said: “We started out in the north and are gradually working our way down south. “We have further London sites in the pipeline for this year, as well as multiple franchise openings in Kent and Essex, but also Manchester and Scotland. “We will be supporting our local franchisee with launch marketing, training, and operational support.” Matteo Frigeri, Director of Seeds Consulting, which is responsible for Wok&Go’s national and international franchise recruitment, said: “Wok&Go’s strength lies in the quality of the food. “Old style noodle bars still feature premade noodle dishes sitting in hot cabinets. Wok&Go dishes are all made to order and the added value is the show around the wok station. Matteo added: “Wok&Go is a professional franchise organisation in that it not only knows how to run its own stores, but it is also totally focused on supporting franchisees and getting them the best deal. “This starts with the franchise store project, which is provided as a turn-key solution.”

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News

round-up Pizza Hut puts beer-infused pizza dough to the test Pizza Hut has been trialling beer-infused pizza crusts. The chain has been testing the product to work with the UK’s growing craft brewing scene. The dough was used in two pizzas, the Steak Feast and the American Hot, and trialled at the Finchley Lido Hut. If the pizzas are a hit, they will be rolled out across the company’s 270 UK huts. Kath Austin, Director of HR and Marketing at Pizza Hut Restaurants, said: “We know that craft beers are really popular right now and we’re celebrating this not just by adding craft beers to our menus, but also by adding this to our pizza dough. “We also know that for many of our customers nothing beats enjoying their favourite pizza with an ice-cold beer, so we thought this would be the perfect culinary union. “It took our team many hours to perfect the recipes and flavour combinations, but all of their hard work definitely paid off as we’re thrilled with the results and can’t wait for our customers to try them. “We’re proud to be the first chain in the UK to trial a beer-infused dough base, and look forward to hopefully rolling these out nationwide if they prove popular.” “The beer-infused dough pizzas perfectly complement other new American-inspired menu items including frickles (fried pickles), sweet potato fries, the Ultimate Thin pizza, hot cookie dough and waffles.” “Many new look restaurants also now feature bars selling craft beers, wines, cocktails, mocktails and hard shakes, making these the perfect place to unwind in the evening.”

Harry Ramsden’s opens 50th outlet Harry Ramsden’s, the iconic British brand, world famous for its fish and chips, has signed a new franchise agreement for a further territory in England. The opening marks the brands continued expansion across the UK, with the number of Harry Ramsden’s doubling in less than 18 months. The new store brings 40 full and parttime jobs to the area, with the restaurant providing seating for 145 diners. As well as an array of dishes including fresh, cooked to order rotisserie and grilled

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meats and seafood, the opening will also allow customers to enjoy the fish and chips which have made Harry Ramsden’s famous. Joe Teixeira, CEO of Harry Ramsden’s said: “As the brand continues to go from strength to strength across the UK, carrying on the tradition which Harry himself started in 1928, we are delighted

to be opening in Swanage. “Having served the generations for almost 90 years, Harry Ramsden’s has always been a family brand and that is as true today as it ever was, so as well as engaging with our traditional customer base, we aim to further secure Harry’s legacy by introducing the brand to a whole new generation of fans in in the area.”

Horizons chief in warning after EU exit vote Quick service restaurants could lose out after the British public voted to leave the EU, the boss of foodservice consultancy Horizons has warned. Peter Backman, Managing Director of Horizons, said that the UK economy faces an uncertain future following the result of the EU referendum, with the eating out market looking likely to experience less growth than predicted. He said that quick service restaurants could lose out, with the possibility of reduced sales, increased costs and lower demand from the home market. However, he believes this may be offset to a small degree by more foreign tourists coming here due to the fall in the value of the pound Mr Blackman said: “The UK economy will now face a period of uncertainty, which is likely to be intense over the next few days and weeks, but will be ongoing for five years or so as Britain finds its new way in the world. “Notably for foodservice, the pound will remain volatile and will trade at lower rates than over the last few years. Consumer

sentiment will probably remain depressed, costs will be elevated, and there will be some uncertainty over employment because of our reliance on European labour. “The foodservice sector will be less buoyant than it would have otherwise been – but the impact is likely to be felt differently in different areas of the business. “Sectors that could benefit include tourism-related business including hotels and leisure, while restaurants, QSR and pubs could lose out. However, profitability, and therefore investment in the sector, is now under threat. He added: “Overall we could be facing reduced sales, increased costs and lower demand from the home market. “While this could be offset to a small degree by more foreign tourists coming here due to the fall in the value of the pound, the eating out market now faces less growth than we predicted for this year and next.”

News

round-up Costa goes mobile by launching Android Pay Customers buying food and drink from Costa can now pay with their Android phones. The introduction of Android Pay by the coffee chain aims to speed up transactions and give mobile payment options to almost the whole UK phone market. To ensure customers safety and security, no actual card numbers are stored on the device when a credit or debit card is added to Android Pay. Instead a virtual account number represents account information so that customer’s card details stay safe. Jon Fisher, Head of Mobile and Loyalty at Costa said: “Costa is committed to finding new and innovative ways to improve the customer experience. “The decision to work with Google to roll out Android Pay was an obvious choice. We currently provide other contactless payment methods across the majority of our UK stores, so offering Android Pay will give customers even more choice when it comes to payment”. Spencer Spinnell, Director of Business

Development at Google added “We want to make in-store payments simpler for everyone, so we’ve worked with Costa to enable Android Pay in the majority of their

UK locations. This adds to the list of almost 460,000 contactless payment terminals in the UK where people can seamlessly tap and pay with their Android phones”.

Chefs’ social media habits revealed Chefs are switching on to social media, with one third using it look for new suppliers and 86 per cent using it to generate positive reviews, according to new research. Ninety-eight per cent of chefs questioned said they see the value of social media, with 46% using it to increase sales and 52% aiming to increase footfall. Two-hundred chefs across a range of sectors ranging from QSRs, casual dining and contract caterers through to fine dining were questioned in the study. Over 75 social media sites were mentioned when the chefs were asked which they used. Twitter and Facebook were named by 50% and received twice as many mentions than any other channel. The report, entitled The Social Side of Food, was commissioned by William Murray Communications. It reveals how chefs use social media to communicate with suppliers, customers and each other. Mark Sargeant, chef proprietor of

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Rocksalt restaurant and bar in Folkestone said: “Social media has taught chefs the value of marketing and how it can benefit and support their business and their careers. “It’s a much easier marketing tool for them to use. It’s simple, instantaneous and on most occasions, an easy win.” Anita Murray, Joint CEO of William Murray Communications said: “We commissioned this research to find out how and why chefs use social media. “We’ve seen a major shift in the last couple of years. With 98% of chefs understanding the value of social media, we have a huge opportunity to provide valuable content that helps them increase sales, footfall and generate positive reviews.”

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Awards delight for Roly’s Fudge Pantry Roly’s Fudge is celebrating after winning two Taste of the West Awards. The franchise’s lemon meringue fudge and its hot cross bun fudge both won ‘Highly Commended’ accolades. This makes it the third award that lemon meringue fudge has received, having won a Gold Award in 2009 and a 1 Star Award in 2013. The flavour is made with real Sicilian lemon oil and crunchy meringue nests in order. The hot cross bun fudge, a special flavour for Easter, was introduced in 2015 by the Roly’s Fudge Ilfracombe shop. Made with spices and sultanas, it has been a hugely popular limited edition flavour through many of the Roly’s Fudge Pantries over the past eighteen months. Roly’s Fudge has more than 30 shops across the country and specialises freshly made fudge made with as near natural ingredients as possible.

Pizza Hut Delivery to serve up 3,000 new jobs as part of £40m investment

Sales joy for Muffin Break after launch of Muffin Lab range

Takeaway chain Pizza Hut Delivery is creating up 3,000 jobs following a £40m investment by the company.

Muffin Break is celebrating after seeing sales grow following the launch of a new range of creations to draw in customers. Each month the company release a new flavour combination to be sold at all stores. They are freshly baked each morning using only the finest ingredients. Since launching the Muffin Lab range in January, the company has achieved a sales growth of 28% and this is credited to the innovative creations of the Muffin Lab, which is said to be keeping customers engaged and intrigued. The initiative also allows customers to have their say, and suggest flavour combinations for future months, then the best will be added to the Muffin Lab Hall of Fame.

Takeaway chain Pizza Hut Delivery is creating up 3,000 jobs following a £40m investment by the company. The roles will be created at 200 new stores over the next four years. About 50 of the stores will be quickserve Pizza Hut Express sites, which offer smaller servings of pizza that can be eaten in or as a takeaway. Ralph Miolane, CEO of Pizza Hut UK and Ireland, said: “We’ve built a firm foundation for the business since we opened our first delivery store over 15 years ago.

“We are proud to be on a path for continued growth in the UK, with ambitious plans to open a further 200 Pizza Hut stores by 2020. Our Pizza Hut Express portfolio will play an important role in this strategy, with at least 50 taking this format. “We wouldn’t be where we are today without our franchisees and we are looking forward to growing our existing relationships, whilst also developing new partnerships to achieve our ambitions.”

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News

round-up Harry Ramsden’s unveils new restaurant format Fish and chip chain Harry Ramsden’s has unveiled its newest format at the opening of a restaurant in Edinburgh.

Esquires serves up a taste of Rio to celebrate Olympics With the Rio 2016 Olympics just around the corner Esquires Coffee has launched a new range of ice cold granitas – The Rio Trio.

The UK’s first Harry Ramsden’s City restaurant has opened on the world famous Royal Mile, bringing 25 new jobs to the city. The Harry’s City model features an urban design and décor, as well as a wide-ranging menu of fresh, cooked to order rotisserie and grilled seafood and meat dishes. Opening in partnership with Harry Ramsden’s Scottish franchisee, Seven Seas Ventures Ltd, the new 3000 sq ft Edinburgh restaurant, at 3 Hunter Square, offers takeaway as well as sit-in facilities with seating for 70 diners. The unveiling of the new look came as Harry Ramsden’s launched its first foray into the Scottish licensed trade sector. The brand revealed its new Pub format at the official opening of Harry Ramsden’s at The Three Bridges, in South Queensferry, Edinburgh. Designed to extend its proposition into the traditional institution of Pubs, the new Pub format retains the local pub identity while remaining true to its own heritage. Harry Ramsden’s at The Three Bridges features an updated interior design to create an ambiance appealing to pubs’ more traditional customer base, while providing a welcoming and inviting atmosphere for families.

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This latest opening comes as a result of Harry Ramsden’s partnership with Punch Taverns. The Harry Ramsden’s team will manage of all aspects of the outlet’s day-to-day operation, serving breakfast, lunch, afternoon tea and dinner. Joe Teixeira, CEO of Harry Ramsden’s said: “We relish this opportunity to enter into new markets and pride ourselves in selecting great locations, surroundings and cities which hold truly international appeal. “For those reasons, we believe Edinburgh is the ideal place from which to unveil our newest models and further extend the modern day face of Harry’s to a new generation of customers.” The Three Bridges is owned by Punch, who has jointly funded the investment with Harry Ramsden’s. David Wigham, Punch development director said: “The Three Bridges is a beautiful pub in a stunning location and its customers, whether locals or visitors, will expect really great food. “We are delighted that Harry Ramsden’s share our enthusiasm for The Three Bridges and are confident that their outstanding food and levels of service will prove very popular.”

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The granitas come in three flavours, zesty lemon, tangy lime and watermelon. The franchise also launched a range of fresh salads - tuna nicoise, chicken Caesar and falafel and cous cous. Along with the salads, Esquires is also serving fruit and granola yoghurts and teaming up with drink brands Savse and Little Miracles in many of their stores. The new additions to the menu follow the chain’s lunchtime ‘Dejeuner Deal’ to celebrate Euro 2016, in which customers can buy a croque monsieur and coffee for £4.95, as well as a coffee and cake ‘café et gateau’ for £3.95 during the duration of the football tournament.

Call for ban on takeaways being delivered to schools Takeaways should be banned from being delivered to schools, the Royal Society for Public Health (RSPH) has said. A report published by the RSPH, The Youth Heath Movement and Slimming World, revealed that a quarter of young people have ordered fast food to school. The Child’s Obesity Strategy report comes as the government prepares to announce its plans to tackle the problem, with nearly one in five 10-11 year olds (19.1 per cent) being obese. The report revealed that almost half of young people (49%) blame fast food takeaways as the companies or brands most at fault for childhood obesity. More than two in five (42%) can walk from their school to somewhere selling unhealthy food in under two minutes. The report also found that half of those questioned had used their smartphone to order a takeaway. It also revealed that four in five (82%) think food manufacturers are misleading people when they provide fat, salt and sugar for single servings rather than for the entire product. In the report, the young people identify a number of steps which could be taken to help tackle childhood obesity. Fifty per cent of those questioned said fast food firms should be banned from delivering to schools, while 87% said

nutritional information on food packaging should be provided specifically for young people, not just for adults. Eighty-four per cent of the young people questioned said the number of teaspoons of sugar a soft drink contains should be displayed on the packaging, while 82% said packaging should display nutrition information for the whole product, not per serving. The idea of a loyalty card that gives points for healthy food choices was supported by 78%, while 33% backed film-

style classifications, such as PG, 12, 15, for food high in fat, salt or sugar. Three quarters of parents (74%) surveyed by Populus also backed the suggestion that there should be restrictions on fast food shops serving children during school hours. Shirley Cramer, Chief Executive of RSPH, said: “Our childhood obesity rates are disappointing, and tackling this must be a priority for the government – there can be no excuses for fudging action on what is our number one public health challenge.”

CESA releases guide to EU ecodesign and energy labelling The Catering Equipment Suppliers Association (CESA) has released a new guide explaining what buyers need to know about new EU regulations. As part of its programme of environmental and consumer protection, the EU is introducing energy labelling and ecodesign directives for commercial catering equipment. In order to helpbuyers of catering equipment understand the new directives, CESA has published a guide. The first group of equipment the new directives will focus on is Professional Refrigerated Storage Cabinets (PRSCs). From July 1 all PRSCs sold in Europe now have to be tested within the framework of the Ecodesign Directives, and carry labels displaying their energy efficiency. Simon Frost, chairman of CESA, said: “Energy efficiency has become a critical issue for catering equipment manufacturers in recent years.

“This new guide provides an understanding and down-to-earth explanations about the new tests and the labelling. “The directives will be important for

any catering equipment buyer or specifier, they will make it possible to accurately compare running and overall lifetime costs of different models.”

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News

round-up Nearly 20,000 restaurants risking survival due to poor food hygiene Thousands of restaurants with low food hygiene ratings are risking their survival, according to new research. Sixty-one per cent of consumers say they will boycott such businesses, a study by food safety technology company Checkit found. This means that 18,379 restaurants, takeaways, sandwich/coffee shops, hotels and pubs in England, Wales and Northern Ireland are at risk, as they currently have a Food Standards Agency Food Hygiene Rating of two or below. The study found that London is the city with the largest number of food businesses at risk (5,092), while Birmingham has the highest percentage (17 per cent) of restaurants scoring two or below. It is followed by Leicester (14%), London (14%) and Manchester (11%). Overall, 7% of cafes, canteens, restaurants, mobile caterers, pubs, takeaways, sandwich shops and hotels in England, Wales and Northern Ireland fail to meet the hygiene standards that consumers demand, according to figures from the Food Standards Agency’s website. Across the UK takeaways and sandwich shops are the sector in most danger of being shunned by diners, with 14% of them having a food hygiene rating of two or below. This figure rises to 28% of Birmingham and Manchester takeaways, and over half (52%) of those in the London borough of Newham. Given that 64% of consumers say they’ would avoid takeaways with low food hygiene ratings, this will have a major impact on the sector’s revenues and individual business survival. The research also revealed that three quarters (75%) of consumers said they wouldn’t risk dining at a restaurant that had been implicated in a food hygiene incident, even if recommended by someone that they trust. Customers would even rather put up with poor service from rude and unhelpful staff than eat at dirty restaurants. Sixty-six per cent of respondents rated unclean or dirty premises as the first or second reason for not returning to a restaurant. Just 16% cited slow or poor service and 32% said rude or unhelpful

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staff would stop them coming back to a restaurant. David Davies, Managing Director of Checkit, said: “The food business is incredibly competitive, with nearly 60% of restaurants failing in their first three years of operation. “Our research shows that good food hygiene is the number one factor in where diners choose to eat – and that they simply won’t return to places where there has been a food hygiene incident.

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Yet our analysis finds that nearly 20,000 restaurants require improvement to meet basic Food Standards Agency standards. Owners of food businesses are risking their revenues and survival, as well as the health of their customers, by not taking hygiene seriously.” One thousand people were questioned as part of the Checkit study, which was combined with analysis of the Food Standards Agency’s Food Hygiene Rating Scheme website.

‘Church-themed’ restaurant hoping to be worshipped by burger lovers A church-themed burger restaurant has opened its doors in Wolverhampton following a £250,000 investment.

Telepizza aims to take a bite out of UK pizza delivery market Spanish pizza delivery company Telepizza is expanding into the UK market, with a target of 300 stores in the next 10 years.

A church-themed burger restaurant has opened its doors in Wolverhampton following a £250,000 investment. The Burger Priest, which prides itself on ‘real honest’ burgers aims to replicate burger joints in the US and Canada. Designed to be reminiscent of a church, all the elements of the restaurant have been carefully considered from the names of the dishes to the smart interior. Diners will select their food from hymn boards and sit on church pews, and even the toilet cubicles are set up as confessionals. The Burger Priest prides itself on serving premium 100 per cent Aberdeen Angus beef, which is gluten and hormone-free with no additives or preservatives. It also offer a number of vegan options served on gluten-free brioche buns. The Burger Priest concept is the brainchild of Cannock-based bar entrepreneur Scott Murray, the man behind the popular Bar Sport franchise. Scott, the Managing Director of The Burger Priest, has a wealth of industry experience and has set up multiple

franchises and is keen to grow The Burger Priest brand nationwide. Since launching as a franchise model, The Burger Priest has received countless enquiries and has exciting plans to launch managed sites in Staffordshire and the West Midlands as well as new franchised sites in Edinburgh, Birmingham, Chatham, Manchester and London. Scott Murray said: “The inspiration behind the restaurant came from various holidays to the United States and Canada, both nations of burger lovers. “I was always disappointed not to find the same calibre of restaurant here in the UK, which led me to launching the Burger Priest concept. We will only be using the best ingredients in our food, with all our burgers made fresh on site and never frozen. “We want to create an experience for the customer and we have got great confidence in the brand and its identity. “The feedback regarding franchising has been really exciting with over 200 enquiries and we are really looking forward to opening restaurants nationwide later in the year.”

Karali Ventures LTD has been chosen as the first master franchisee and will open 80 stores, with the first outlets serving up pizzas in late 2016. A further 20-30 master franchisees will be recruited by Telepizza. Pablo Juantegui, Executive Chairman of Telepizza, said: “We are very pleased to announce our first UK master franchisee partner, which marks an exciting step in our expansion into the UK market. “Our international expansion is gaining momentum after a strong launch, which has been reinforced by international partners who are interested in growing our brand globally.” Salim Janmohamed, Chairman and Managing Director at Karali Group said: “I am really looking forward to introducing Telepizza to the UK market and I am confident that the brand will receive a warm welcome using fresh ingredients in pizzas that are handmade on demand for the UK consumer, which is what is missing in the pizza delivery business”. The Karali Group is a group of companies specialising in the QSR industry. It one of the largest Burger King operators in the UK, and has developed other brands, including Chamama, Traditional Favourites, Caffé Italiano, and Cafe Select. Based in Madrid, Telepizza currently has outlets in 15 countries and is the largest non-U.S.-based pizza delivery company in the world by number of stores.

summer 2016

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News

round-up McDonald’s legal review could hit delivery businesses McDonald’s has warned food delivery businesses that they could face legal action if they take their burgers to people’s doorsteps without permission. The fast food company’s legal team is currently reviewing the situation and anyone found to be offering the service could face action. A McDonald’s spokesperson said: “We are committed to serving our customers hot food, fresh from the kitchen. “If an unauthorised company were to set up a service delivering McDonald’s food, we would not be able to guarantee the quality of the food or that it would be delivered with the high level of customer service we would expect. “In addition, operating a delivery service which advertises our menu and products using McDonald’s intellectual property without a licence from McDonald’s would constitute trade mark infringement.”

Diners getting a taste for vegetarian dishes Restaurants are being encouraged to raise their game when it comes to vegetarian menus as seventyfour per cent of diners say they are willing to sample meat-free dishes when eating out. Restaurants are being encouraged to raise their game when it comes to vegetarian menus as seventy-four per cent of diners say they are willing to sample meat-free dishes when eating out. A study commissioned by Vegetarian Express also revealed that 60% of people questioned found typical meat-free sausages and burgers unappealing. With the vegetarian market predicted to be worth £882.4m in 2016, caterers are being encouraged to raise their game when it comes to meat-free menus. The independent research, commissioned by vegetarian food supplier Vegetarian Express, highlights an increased opportunity for foodservice outlets to profit from meat-free menu sales – in fact, 39% of diners want to see more vegetarian options, particularly when it comes to pasta dishes (51%), curry (36%) and stir fries (32%). This is particularly important for operators as the increased demand is not just coming from the veggie camp, but

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also from the 51% of meat-eaters who would try more vegetarian dishes when eating out in the next 12 months. With vegetarian cuisine clearly broadening its appeal and attracting more interest from meat-eaters, as well as the growing number of meat reducers or ‘flexitarians’, caterers who liven up their offering stand to benefit greatly. Will Matier, Managing Director at Vegetarian Express, said: “Following National Vegetarian Week, the spotlight is very much on vegetarian cuisine but the fact of the matter is that more needs to be

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done by caterers to meet diners’ demands. “It’s important to remember that you don’t have to be vegetarian to love vegetarian food. Meat-eaters and flexitarians are increasingly seeking out vegetarian dishes if they sound interesting and look appetizing – limited, uninspiring choices such as veggie burgers, meat-free sausages and vegetable lasagnas just don’t cut it anymore. Caterers that meet this demand will not only create more choice for their customers, but also more profits for themselves.”

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round-up American-style restaurants set for UK expansion American-style restaurants such as barbecue pits, smokehouses, burger bars and diners could replace Mexican outlets as the largest area of growth on the UK’s dining scene, according to Horizon’s latest Ones To Watch research. The biannual Ones To Watch report tracks the growth of emerging brands which have shown a growth of over 20 per cent in the past three years, the latest report lists a number of US-themed outlets in its top 10. Dunkin’ Donuts has topped the fastest growing brands chart with a growth of one to 20 stores from 2013 to 2016. Nicola Knight, Horizons’ analyst, said: “We have seen a significant rise in the numbers of Ones To Watch and Bubbling Under brands (those that have yet to reach five outlets) offering US-style dining including barbecue pits, smokehouses, burgers bars and classic American diners. “They are opening across the UK on high streets in affluent market towns and secondary cities, many in converted pub premises, which offer the size, location and parking facilities that suit these all-day diners. “American casual dining certainly isn’t new to the UK but we are seeing a steady resurgence in its popularity as operators have modernized and upgraded the concept. “They appeal to a broad range of consumers, whether dining as a couple, a family or a group of friends. “Not only that, but they are good value, often offer a broad range of dishes of various cuisines, with friendly service and

sophisticated marketing.” It seems other US restaurants are catching on, Smashburger has opened its first UK

outlet, while Fat burger and Shake Shack have both announced their intention to seek UK expansion.

Restaurant group confirms senior management changes The Casual Dining Group (CDG) has made a number of senior management changes as it continues to develop the business both overseas and in the UK. Café Rouge managing director James Spragg will assume the newly-created role of chief operating officer, while Simon Wilkinson will take up the Café Rouge & Belgo managing director position. Las Iguanas managing director Mos

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Shamel will assume responsibility for La Tasca, overseeing both restaurant brands. Steve Richards, CEO, said: “These developments will further enhance our leadership team and help underscore our growing momentum.

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“James’s appointment will help us to deliver our wider strategic ambitions and I am delighted to welcome to the CDG board someone of Simon’s calibre, who will continue our work to build the Café Rouge brand.”

McDonald’s launches Follow our Foodsteps campaign McDonald’s has launched a national campaign to champion the farming industry. Statistics show that the food, horticulture and engineering development areas of farming are in need of fresh talent and it is predicted over 100,000 recruits to the food industry are required by 2022 due to an anticipated population rise. The Follow our Foodsteps campaign uses technology to give the public a real-life glimpse of the growing, production and preparation of food for the UK McDonald’s menu through VR (virtual reality) headsets with 360° video. A cinema experience, tractor virtual reality challenge and a ‘guess my job’ challenge will also be a part of the experience. The Follow Our Foodsteps roadshow will travel 2,000 miles visiting seven locations between May 11 and December 10, 2016. Connor McVeigh, McDonald’s UK Director of Supply Chain, said: “By bringing together tech developments with farmers and food experts, we have created an immersive virtual reality experience that will allow people to follow in the footsteps of farmers, suppliers and our crew.” Elizabeth Truss, Environment Secretary, said: “McDonald’s is a fantastic example of the vision, creativity and innovation running through our food and farming industry today. As a nation we are now far more plugged into where our food comes from.”

Papa John’s opens latest shop in Grantham Leading pizza franchise Papa John’s has open its latest shop in Grantham. New franchisee and former insurance loss adjuster Peter Gill recruited and trained 20 members of staff to deliver pizza to the Lincolnshire community. Mr Gill said: “Working in the insurance industry involves meeting lots of clients and I am anticipating my experience in this customer facing role will be helpful managing my Papa John’s franchised store. “It is a bit of a career change, but I’ve always wanted to be my own boss and franchising represented a good way forward to achieve my goal and I decided to go for it in Grantham. “Grantham itself is a great location for Papa John’s, there are plans for expansion of the town and yet it is rurally positioned.” This newest opening follows openings in Southport and Exeter. Franchisee and former wine merchant Steve Mullarkey added the Southport location to seven he already runs. Mr Mullarkey said: “I targeted Southport

as it is an established tourist destination and also has a broad residential demographic.” Former accountant, Harry Dhaliwal opened the Exeter location alongside

his two existing outlets in London and Plymouth. He said: “I am delighted to open in Exeter, it’s is a big university town with a large student population.”

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round-up Costa introduces rainbow coffee to the UK Coffee group Costa flew Instagram star Mason Salisbury from Las Vegas to train five UK baristas the art of how to make the Rainbow Flat Whites in time for this summer’s Pride celebrations. The barista has become a hit on his social media channel with 25,500 followers due to his visually stunning coffees and enthralling pouring technique. The five chosen baristas from across the UK spent a day with Mr Salisbury learning the skills to create the rainbow art in the milk poured into a Flat White. The Rainbow Flat White was introduced ahead of London kicking off their Pride celebration on June 25. It will be served in three other cities to demonstrate Costa’s support for Pride and the LGBT+ community including Bristol, on July 9, Brighton, on August 6 and Manchester, on August 27. John Kerslake, Costa’s UK & Ireland Operations Director and co-founder of Costa GLOW, said: “We’re delighted to have Mason fly over from Las Vegas to train our baristas to make Rainbow Flat Whites. “We believe that it’s not just our coffee but the people that make Costa so great and Mason definitely shares that mentality. “He pours his bright and colourful

personality into every cup and we’re so pleased he could share this skill with our baristas. “Being an open and fair employer is extremely important to Costa: we’re proud to champion equality, diversity and inclusion in the workplace. “We hope to demonstrate our forwardthinking ethos with our Rainbow Flat Whites and will continue to show our support for Pride and the LGBT+ community.”

Mr Salisbury added: “Coffee is my biggest passion, so I was really excited when Costa invited me to come to the UK to show their baristas how to make rainbow coffees. “The baristas were all fast learners, highly skilled and fun to work with, so we had a great time. “Pride is such an incredible event and I’m thrilled that my rainbow coffees get to be a part of it.”

Over half of loyal customers are millennials Fifty-two per cent of loyal customers to restaurants and coffee shops are millennials, research has shown. The study by Aimia, the data analytics company, found that in comparison 39% of 45-54 year olds say the same. Jan-Pieter Lips, president, International Coalitions at Aimia, said: “Millennials are a key market segment for restaurants. Our research shows they are willing to share their information with restaurants in return for offers and rewards which are tailored to their preferences and habits. “This will strengthen restaurants long term relationships with millennials, enabling brands to benefit from this captive audience. “At the same time, our data shows the opportunity for restaurants to engage with older generations is as yet under-utilised.” Subway’s Subcard was the most popular scheme among millennials who are members of a restaurant loyalty programme.

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The research also showed that the Costa Coffee Club (54%), Nando’s Loyalty Card (46%), Caffe Nero Loyalty Card (35%), and My Starbucks Rewards (26%) were also popular amongst the millennials. Another finding was that millennials

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are willing to share their information with restaurants in return for offers and rewards. A customer loyalty scheme is an award programme that gives regular customers access to new products or special sales/ offers.

33 per cent of consumers are bored with lunchtime food choice according to survey A third of workers are bored by the lunchtime food offer in high density working hotspots, according to a survey by investment company Piper Private Equity. The survey found that one third of workers buy their lunch from on-the-go or quickservice food brands more than three times a week, but two thirds only decide where to buy just before leaving the office, a further third don’t make the decision until they’re walking down the street. Speed is the most important factor to workers when choosing to eat lunch (87%), alongside proximity to the office (70%), range of dishes (73%) and healthy lunch options (59%). Yasha Estraikh, customer research and insight lead at Piper, said: “For lunchtime operators to succeed in this space, they need to shift from being operators to being brands and from serving a need to creating memorable experiences. “The lunchtime market needs to take more lessons from the casual dining industry, which in its own right is now impeding on the space through its own takeaway services as well as through Deliveroo.” Two thirds (67%) of Londoners spend £5 or more on lunch compared to just 42% of those in Manchester. Half of coffee drinkers also said they were ‘more likely’ to revisit an outlet if it has good coffee. The survey also found that almost a quarter (23%) of Londoners buy breakfast at least once a week from an on-the-go

operator and Piper believes breaking out of the 12-2pm bubble is becoming a necessary differentiator both in terms of attracting customers and improving site performance. Mr Estraikh added: “Ultimately, the research has shown us that brands that are

able to stay relevant throughout different day parts and offer a strong branded experience will prevail in the long-term. “No matter how bored, fickle, spoilt and impatient we are, they’ll have something to keep everyone satisfied.”

Wrap It Up! opens new store Wrap It Up! has opened its latest outlet at Habour Exchange, in London. The store, next to South Quay DLR station in the heart of Canary Wharf’s financial district, will be open seven days a week. It will be the company’s 13th store in London and 14th in England. The outlet will serve a breakfast menu, including flatbreads, breakfast wraps, pastries and hot drinks, as well as the 10 classic Wrap It Up! wraps, which include the Caribbean Roti and Lebanese Falafel. The new store will also offer vegetarian and salad box options. All Wrap It Up! food is prepared in the company’s centralised kitchen, while fresh produce is bought daily. This means Wrap It Up! has control over quality.

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round-up KFC launches new store design concept KFC has introduced a new design for its city centre restaurants, following the opening of its Newcastle-Upon-Tyne site. The design, which is the smallest yet for KFC, has been specifically designed to fit into the tighter spaces more commonly available in busier locations. Jade Swaby, creative design manager at KFC UK & Ireland, said: “This latest restaurant look was created especially for city centre locations and reflects KFC’s updated look and feel. “The emphasis in these restaurants is more on lunchtime and takeaway trade so customers will notice that it’s more compact than our drive-thru restaurants. The smaller design does not compromise on style and customers can enjoy high quality fittings such as copper lighting, quirky artwork and wiremesh model chickens.” The design aims to push a more contemporary, informal atmosphere, and features bar stool seating, new artwork and wire-mesh chicken installations perched in the lobby. KFC, which celebrated its 50th anniversary last year, revealed ambitions to reach 1,000 sites in the UK and Ireland by 2020. The fast food chain currently has around 880 sites.

Former McDonald’s director takes on MD role at Leon McDonald’s senior director John Upton has been appointed managing director of naturally fast food chain, Leon, with the task of boosting its senior leadership team in the areas of people management, operational support and supply chain. Leon chief executive John Vincent, said: “John Upton will bring more method to our magic. We want to create a company we’d be happy to pass on to our grandchildren, and John’s huge experience and strength of character are going to help us grow up big and strong.” John Upton said: “This is an incredibly exciting time to join the Leon family. I was personally drawn to the brand by both the delicious food and its core mission of helping everyone to eat and live well. “I also really like Leon’s disruptive and optimistic attitude; it innovates,

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bucks trends and places huge store on developing its people and helping them achieve their goals. It is a testament to this that 38% of its head office team have been promoted from the kitchen floor. “I feel fortunate to join a company with such a rich people culture; my role will be focused on how we can support and develop our people even more and, importantly, to delight our customers each and every time they visit us. Keeping everything we do simple, easy and enjoyable for both our people and our customers will be a key priority for me.”

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Basilico chefs honoured for wood oven skills Chefs at a branch of pizza takeaway and delivery chain Basilico are celebrating after being honoured for their skills using a wood oven. Staff at the Basilico outlet, in Lavender Hill, London, have been presented with a Woody Award. The Logs Direct Wood Awards were launched to reward wood-fired chefs who tickle their customers’ taste buds with the finest pizza, and sometimes other dishes, cooked in the wood oven. A Biasilico spokesperson said: “We are delighted to be awarded a Logs Direct ‘Woody’. “Our pizza excellence depends on having

excellent wood and that’s what we get.” Basilico Lavender Hill opened in 1998. It has 10 sister sites located across London. The business chose to cook pizza in a real wood oven, believing that the amazing taste that cooking with wood gives to the food simply cannot be replicated by gas. Customers will now be able to see the Woody Award in situ at the Lavender Hill restaurant and tuck in to their pizza, understanding all the skill that goes into cooking it the wood-fired way.

Wafflemeister to triple UK stores Belgium waffle outlet Wafflemeister is aiming to triple the number of its stores in the UK. The business has signed up six multi-site franchisees for a total of 13 stores, with another six franchisees looking to come on board. Most of the new stores will be developed in the London area and in nearby locations, such as Brighton and Oxford. However, a northern cluster is also being established, with cities like Leeds and Manchester being targeted for expansion. Alexander Troullier, Founder and CEO of Wafflemeister, said: “We appointed Seeds Consulting earlier this year to roll out our franchise proposition. Since then we have signed up six qualified multi-site franchisees for a total 13 stores, with another six looking to come on board. “This is a testimony to our time and effort in making Wafflemeister a highly systemised and branded proposition, in preparation for roll-out” Matteo Frigeri, Seeds Consulting’s Business Director, said: “Wafflemeister is taking franchising very seriously. Not only have they developed valuable know-how, but they also have a professional training programme and franchise manual in place, dedicated franchise liaison staff and infrastructure such a full-blown training centre and they are fully committed to providing outstanding support to their franchisees. “No wonder there is such huge interest in their franchise opportunity”. Mr Troullier added: “The pace of expansion will be dictated by site availability. This is where our strong relationships with landlord and agent representation comes in handy.” Mr Frigeri added: “Franchising is a crucial

part of our brand expansion strategy. We are keen to work with the best partners to secure the best sites available. “The franchisees that have joined

Wafflemeister so far are all experienced business people and some of them are large multi-site franchisees of well-known brands looking to diversify their portfolio.”

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round-up McDonald’s claims innovation accolade at bfa HSBC Franchisor of the Year Awards Fast food giant McDonald’s is celebrating after claiming a prestigious accolade at the 2016 bfa Franchisor of the Year Awards. The company picked up the Innovation Award at the event, in Nottingham, after impressing judges with its commitment to customer service and innovation, following the 2015 launch of the ‘Experience of the Future’ programme. The project was McDonald’s UK’s biggest investment in restaurant conversions to date, with the business introducing digital ordering kiosks, tailored refurbishments and table service. Gareth Pearson, Head of Franchising, at McDonald’s UK, said: “The recent NatWest Bfa survey highlighted that the UK franchising sector continues to go from strength to strength. “As an established franchisor that this year celebrates 30 years of franchising in the UK and 25 years membership of the BFA, I feel very proud that McDonald’s, our franchisees and suppliers have been recognised for our innovation and engagement.” Pip Wilkins, bfa Chief Executive, said: “We were blown away by the colossal scale of innovation and the results it is achieving.

In listening carefully to its customers and then working in close collaboration with its franchisees and suppliers to achieve its goals, McDonald’s has displayed an incredible agility for a business of this size.” Andrew Brattesani, UK head of franchising for HSBC, said: “McDonald’s has continually evolved its business in the UK and its ‘Experience of the Future’ programme is taking it to another level again, leading the brand worldwide. The extent to which franchisees are involved is commendable, from strategic planning to trial and rollout. The result is a business that has truly embraced the digital age and technological advantages with one simple aim – to

enhance the customer experience.” McDonald’s, which has been franchising in the UK for 30 years, has 151 franchisees in the UK, who between them oversee 880 outlets. Ten years ago, 35 per cent of the McDonald’s UK network was franchised. Today that number has doubled to over 70%, with 3.7 million customers visiting McDonald’s every day. The British Franchise Association (bfa) recognises the UK’s most exceptional operators in a range of categories, for their business growth and development, service excellence and ethical franchising practice.

KFC relaunches the Supercharger to celebrate out of this world achievement Fried chicken chain KFC has relaunched its Supercharger sub. The product returns to restaurants to mark British astronaut Tim Peake landing safely back on Earth after six months in space. It will be on sale for just six weeks. The Supercharger features two mini fillets in a soft sub roll, along with mayo, cheese, lettuce and a tangy ‘supercharged’ sauce. There is also a Supercharger mini fillet burger on sale, for those with smaller appetites. A KFC spokesperson said: “Space travel is a brilliant achievement and something to be celebrated, so we are marking this historic moment with the return of the Supercharger.”

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Android Pay now available at KFC KFC is now offering its customers access to Android Pay. Diners can now pay with their phones at nearly 800 of KFC’s 890 UK restaurants, by seamlessly using their handsets at contactless payment terminals. KFC believes that the speed and convenience of Android Pay will make ordering easier, without compromising their security. To use the contactless payment system, KFC customers will need to download the Android Pay app from the Google Play Store and sign up a preferred credit or debit card.

Once setup, they simply have to unlock the phone, hold it near a contactless terminal and the payment will be complete. Brad Scheiner, Head of IT at KFC UK & Ireland said: “At KFC, we pride ourselves on convenience, so we are delighted to embrace Android Pay, which is a quick and easy way for our customers to make a payment. “As a future focused business, we’re really excited to be at the forefront of its launch here in the UK.”

Spencer Spinnell, Director of Business Development, at Google, said: “We want to make in-store payments simpler for everyone, so we’ve worked with KFC to enable Android Pay in a number of their restaurants. “This adds to the list of almost 460,000 contactless payment terminals in the UK where people can seamlessly tap and pay with their Android phones.”

Food and drink industry giants back recycling manifesto Food and drink giants Costa, McDonalds, Starbucks and Yum! Brands are among the businesses that have lent their support to a manifesto aimed at increasing recycling rates of used paper cups by 2020. Food and drink giants Costa, McDonalds, Starbucks and Yum! Brands are among the businesses that have lent their support to a manifesto aimed at increasing recycling rates of used paper cups by 2020. The manifesto was drawn up by the Foodservice Packaging Association (FPA) and Paper Cup Recovery and Recycling Group (PCRRG) in response to consumer concern More than 30 businesses representing each stage of the paper cup supply chain raw material suppliers, cup manufacturers, retail high street brands, waste and recovery operators and paper reprocessors - have signed the manifesto. It pledges that: “The paper cup supply chain agrees to work together to ensure paper cups are designed, used, disposed of and collected to maximise the opportunities for recycling by further investment and funding of recycling, disposal and collection projects.” Martin Kersh, Executive Director of the FPA, said: “The Foodservice Packaging Association has long been promoting the importance of its members’ products which have played a vital part in the growth of the economy but has also provided a wide range of benefits in hygiene, safety and convenience that is often overlooked. “That said, it also recognises the demands of today’s society and consumers, and is pleased to be able to work on this important project to support and increase the sustainability of the industry.” Neil Whittall, Chairman of the PCRRG, said: “Whilst previous work has given a good insight into what is required it is recognised

that it is only through an increased industry collaboration that the pace of change can be increased to meet the challenge that has been set out.

“We are grateful for the recognition and support that Defra has given the project, and to all the signatories who will make this happen.”

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round-up McDonald’s aims to draw the crowds with Good Times campaign McDonald’s has launched a new campaign to get customers flocking to outlets over the summer period. The burger giant will give away tickets to football matches and music festivals as part of its 75-day Good Times promotion. Actress and model Jorgie Porter helped to launch the campaign at London’s South Bank. The campaign will see customers get the chance to win tickets to festivals, Euro 2016 and the FA Community Shield, as well as free fun experiences. Emily Somers, Vice President of Marketing at McDonald’s UK, said: “Our Good Times campaign allows us to celebrate the existing good times that are taking place in McDonald’s every day, and create new good times that can be experienced in our restaurants and in parks and city centres across the UK. “Regardless of the weather, the summer is worth celebrating, which is why I am delighted we will be giving our customers as many good times as possible with exclusive events instore, tickets to the summer’s hottest events and free fun family and football activities in parks and cities across the country with our good times squad.” McDonald’s has also joined forces with Bauer Media, to share the good times with millions of radio listeners across the UK by giving away more than 500 tickets to music events T in the Park, in Scotland, Key 103 Summer Live, in Manchester, V Festival, in Chelmsford and Fusion, in Liverpool.

Shakeaway introduces new menu

Leading milkshake bar company Shakeaway has introduced a new nationwide menu. The menu features a number of new flavours including avocado, Biscoff, NY vanilla cheesecake, red velvet cake, white Toblerone, Caramac, brandy snaps, Fruit Pastilles, pecans, Raffaello, salted caramel, shortbread and sticky toffee pudding. These new flavours are being added to the already 180-strong list of flavours to create a number of combinations of shakes, smoothies, shaved ice and frozen yogurt. There are also low fat crispy fries available in some stores. Shakeaway offer dairy free shakes, gluten free shakes, protein powder shakes and muscle builder and energy shakes.

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Taco Bell to open tenth UK outlet Mexican-style restaurant chain Taco Bell is preparing to open its tenth UK restaurant. The new outlet will open at Meridian Point, in Cleethorpes, in July. The Cleethorpes location features an innovative design, the same as Taco Bell International, with a youthful and urban look. The restaurant will have room for 50 diners and feature an open kitchen to allow customers to watch their food being made. It will also offer free Wi-Fi and will be the first Taco Bell in UK to offer a drivethrough service. Nick Dawson, General Manager of Taco Bell Europe, said: “This is the sixth Taco Bell restaurant that our franchisee Northgate Fast Food have opened in the UK. “We are proud to have such a great

local partner, with a strong synergy to the brand and a vision to continue to bring Taco Bell to the people of the UK.” Arjun Patel, Northgate Fast Food, said: “We have had such a great response from each of our Taco Bell restaurant openings and are really excited to be able to bring that enthusiasm to Cleethorpes. “Along with being able to provide our signature Mexican-inspired eats to both holidaymakers and locals alike, we have created an additional 30 jobs for the locals in the area. “Being a part of the community is such an important thing for us and the Brand, so we look forward to Bringing Más to Cleethorpes!”

Yum! reveals new Vice President

Muffin Break expands drinks offering with the ‘Muffin Shake’ Bakery chain Muffin Break has launched a range of muffinblended milkshakes. Bakery chain Muffin Break has launched a range of muffin-blended milkshakes. The Muffin Shake drinks are on sale in stores nationwide. They are made by blending a traditional milkshake, with one of Muffin Break’s freshly baked muffins and topped with lashings of cream. The range includes Chocolate Chip, Apple & Cinnamon and Blueberry. Gemma Sandells, Muffin Break Marketing Manager, said: “We always deliver fresh and exciting flavour combinations that are on trend and keep our customers enticed with new menu options. “The Muffin Shake really reflects this and will further complement our freshly made food range, especially through summer months.”

Yum! Brands, Inc. has announced that Keith Siegner will join the Company as Vice President, with responsibility for investor relations and corporate strategy, Mr Siegner takes up the role on July 11, reporting to President and Chief Financial Officer, David Gibbs. In this role Mr Siegner will assume responsibility for the company’s relationships with the analyst and investor community. He will also play a key role in shaping YUM’s long-term growth strategies as the company moves toward the separation of its China business by the end of October. Mr Gibbs said: “Keith is an excellent addition to Yum! Brands. He brings to this important position nearly 20 years of financial expertise and a deep understanding of the restaurant industry and our company. “Keith’s insight into franchisee economics and benchmarking to uncover areas for improvement, coupled with his knowledge of Wall Street, will enable him to make a meaningful impact on our business and our interactions with the investment community. “This is an exciting time at YUM as we separate into two powerful, independent companies – Yum! Brands and Yum! China – with unique investment profiles, capital structures, and compelling growth potential. We

are thrilled to have someone with Keith’s experience and knowledge join our company.” Mr Siegner joins YUM from UBS Securities, LLC, where he served as an Executive Director in securities research, analysing and publishing investment advice for restaurant companies with a combined market capitalization of $300bn, including YUM. He previously spent over 12 years at Credit Suisse Securities USA, LLC, on teams covering the environmental services and specialty chemicals sectors before assuming lead coverage of the restaurant sector in 2007. Mr Siegner “I am thrilled to be joining the world-class YUM team as the company moves toward its next chapter. Greg Creed, David Gibbs and the team have a clear vision to transform YUM for the future by capitalizing on the extraordinary strength and growth potential of the KFC, Pizza Hut and Taco Bell brands.” Yum! Brands, Inc, based in Louisville, Kentucky, has nearly 43,000 restaurants in almost 140 countries and territories. The Company’s restaurant brands include KFC, Pizza Hut and Taco Bell.

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round-up How you eat fish and chips reveals where you are from in the UK Choosing to smother your chips in curry sauce or religiously ordering cod over a battered sausage can actually reveal where in Britain you are from, online food ordering platform hungryhouse.co.uk has found. Research from hungryhouse revealed that despite being the nation’s favourite dish, ordering habits vary from place to place in the UK. The survey found that two thirds of Londoners favour the classic cod, in Scotland more than half of those surveyed regularly opt for skate, while West Country fisherman are out to catch pollock, as 60 per cent of people in the area prove it is now their catch of choice. Ordering a side of chips is a must for everyone, but what you smother them with also varies, unlike Londoners who once again stick with people in the North East piling on cheese and gravy and those in the Midlands firmly sticking to Curry sauce (73%) while Scotland sees 68% slapping on their unique chippy sauce. Not only do orders differ in each corner of the nation, but also the language you use to describe your fish & chips can determine where you’re from. The study found a clear divide, with Londoners and people from the South, firmly sticking to the traditional ‘fish ‘n’ chips’ while the more casual ‘chippy’ is most common in the North. As Scots know all too well, there are many options when you want something extra, with 58% ordering battered sausage, while a chunky pie is favoured in the North East,

specifically Newcastle. In Wales 32% will choose to have a helping of scraps. An extra item that that is loved by all corners of the nation continues to be a serving of mushy peas, with over 70% of Britons choosing to accompany their dish with the vibrant green edition. FIsh and chips have become a firm British favourite following the first shop opening its doors in 1860. Now 10,500 chippies can be found around the nation. Indian restaurants take second place with roughly 9,000 in the UK.

Alice Mrongovius, CEO at hungryhouse. co.uk, said: “Fish and Chips has been a staple takeaway in people’s homes for years and many are passionate about how they choose to enjoy it. “I think our data really proves that this is a nostalgic cuisine with everyone religiously sticking to the traditions they grew up with. “With these findings we’ll continue to ensure we cater to everyone so they can have the perfect ‘fish’n’chips’ or ‘chippy’ delivery with hungryhouse.”

McDonald’s reiterates commitment on sustainable fishing practices McDonald’s has reiterated its commitment to only sourcing its fish from sustainable fisheries. The restaurant chain renewed its pledge on protecting marine wildlife following reports that a leaked New Zealand government memo had raised doubts on the sustainability of fish used by the business. A McDonald’s spokesman said: “We understand the importance of protecting marine wildlife, especially endangered species that share the ocean with the fish we use on our menu. “That’s why we’re proud of our global commitment to only source fish from a

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Marine Stewardship Council (MSC) certified sustainable fishery, including in New Zealand. “The New Zealand Hoki Fishery is considered one of the most well maintained and controlled fisheries in the world and was one of the first fisheries in the world to be awarded MSC certification for sustainable fishing. “All MSC certified fisheries meet their high standard for sustainable fishing, which is grounded in scientific data and research and is widely recognised as the world’s

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most credible and robust assessment of the sustainability of wild fisheries. “There is no guesswork in ensuring these standards are met and maintained because the MSC has an independent team of scientists regularly examine data on these fisheries, including data on population changes. “If these evaluations indicate a potential impact or change to the population of other marine species, an expedited audit would immediately be requested to ensure the fishery still meets the MSC standards.”

business profile

PAPA JOHN’S OPENS UK & EUROPEAN CAMPUS IN MILTON KEYNES

Leading pizza franchise, Papa John’s, has announced it has re-located all its head office functions to its newly refurbished UK and European Campus in Milton Keynes. The project which took eight months to complete and houses over 100 employees on site, now features an impressive new reception atrium and entrance hall. “The creation of a central UK and European base marks a significant investment into the continued future expansion of Papa John’s into the UK and Europe,” confirms Anthony Round, business development manager, Papa John’s. “Our Milton Keynes location is also home to Papa John’s fresh pizza dough factory, our state-of-the-art facility which supplies well over 300 franchised units across the UK on a daily basis. With all head office staff and functions now on one site, we can gain logistical efficiencies in addition to providing the best training and meeting facilities for our visiting franchisees too.” The opening of the newly refurbished premises was marked in true Papa John’s style with a pizza party for all personnel and contractors. Gareth Davies, regional vice president for Western Europe, addressed the staff and thanked them for their effort and continued commitment to growing the Papa John’s brand throughout the UK and Europe. The Papa John’s concept of ‘Better Ingredients, Better Pizza’ has proved popular

since set up in 1985. Today, the Papa John’s franchise operates around the world with over 4,800 stores in more than 40 international markets and territories.

roll your sleeves up and get stuck in, which means everything from making pizza through to managing staff.”

“From our perspective the pizza industry continues to expand,” continues Round. “We are experiencing unprecedented growth through new store openings and our product is ever growing in popularity. Therefore, Papa John’s is currently recruiting for franchisees across the UK. “Papa John’s founder himself, John Schnatter, has a story which is an inspiration to any aspiring franchisee,” explains Round. “At high school, he worked as a dishwasher at Rocky’s sub pub in Jefferson, Indiana, later selling his prized car to fund used restaurant equipment to make and sell his own pizza from a converted broom closet in his father’s tavern. “To follow in John Schnatter’s footsteps and become a successful Papa John’s franchisee you need to be motivated, enthusiastic, hard-working and want to be part of a growing team. Exceptional interpersonal and people skills are essential, as you’ll be dealing with customers as well as leading your team on a daily basis. In addition to excellent written and spoken communication skills, you you’ll have to be an organiser with a can-do attitude, someone who gets things done. You’ll have to be dedicated and passionate enough to adapt to a proven way of working. And you’ll need the ability to

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 therefore deals can include marketing support, some free equipment and reduced royalty payments. As a franchise, the Company supplies all the training and assistance needed to get your successful Papa John’s up and running including help with location selection and shop fit-out full training and a full turn-key solution to opening the store. Papa John’s was recently named as the UK National Pizza Delivery Chain for the sixth time.

For further franchise information please visit: www.papajohns.co.uk/franchise call: 0844 567 0937 or e-mail: enquiries@papajohns.co.uk

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Food Franchising is a massive industry with the competition between franchisors growing all the time. Each business aims to attract new investment, with the aim of opening more units and, in turn, gaining more profits. With more than 250 franchises in the UK, the choice for anyone looking to invest is astounding. We speak to the men and women involved in some of the nationâ&#x20AC;&#x2122;s largest franchise opportunities to find out more about the industry and what the rest of 2016 will bring.

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Q&A Clockwise from top left: Greg Madigan, Area Development Manager, SUBWAY® UK and Ireland; Anthony Round, Business Development Manager, Papa John’s UK; Max Hilton Jenvey, Chief Operating Officer, Chopstix; James Breslaw, Founder and CEO, Neds Noodles; Joe Teixeira, CEO, Harry Ramsden’s; Matteo Frigeri, Director of Seeds Consulting, which is heading Wok&Go franchise recruitment, and Gareth Pearson, Head of Franchising and Field Services, McDonald’s UK

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GIVE A BRIEF OVERVIEW OF YOUR BUSINESS, INCLUDING WHERE YOU SEE YOUR BUSINESS IN THE FRANCHISE MARKET. Wok&Go: Wok&Go is the UK market leader in the noodle bar segment with 22 locations from Hull to London and opening in the region of 10 new locations every year, making it one of the fastest growing food franchises in the UK. It serves noodle boxes made to order to eat in, take away or have delivered. In the UK food franchise opportunities are restricted to either coffee/dessert concepts or traditional fast-food, including sheer takeaway and delivery pizza or Asian food concepts.

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No opportunities in the fast-casual segment (a hybrid between fast-food and casual dining, also named ‘better fast-food’) are available. In the Asian food segment, noodles are offed by other brands as a fast-food rather than as healthy and theatrical alternative to it. Noodles are pre-made and sit on hot cabinets rather than being made to order. This affects flavour and it lacks theatre. Two areas where Wok&Go is strongest. SUBWAY®: The SUBWAY® brand is the largest quick service restaurant franchise in the world with over 44,000 stores in more than 110 countries worldwide. In the UK and Ireland alone, there are over 2,300 stores, each individually owned and operated by franchisees in their local communities.

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The SUBWAY® brand concept is to keep franchisee investment low, the operation simple and to offer customers food that is fresh, great tasting and made the way they want it. Papa John’s: Papa John’s was founded in the USA in 1984 and there are now well over 300 stores across the UK and over 4,800 stores in more than 40 international markets and territories. 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. Papa John’s, was recently named as the UK National Pizza Delivery Chain for the sixth time.

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Harry Ramsden’s: As a result of successful repositioning, ongoing investment and a forward thinking strategy, many industry commentators acknowledge that the reinvigorated Harry Ramsden’s is now one of the most of exciting food brands around. Worldwide, we remain the brand most closely associated with fish and chips which, in the UK alone, sell in excess of 350 million portions each year. Today, Harry’s offers a much more extensive menu thus guaranteeing something for everyone, regardless of age, taste and budget. 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. Chopstix: Chopstix Noodle Bar is quick service restaurant that stands out both nationally and internationally. With contemporary and cohesive brand interiors, we smoothly deliver a faster, fresher and healthier food offer for the quick and time short customer. Our consistent quality and service offers an accessible orientalcontemporary brand that is great value for money. McDonald’s: McDonald’s has been franchising in the UK for over 30 years and we consider ourselves to be one of the leading franchisors in the sector. Our vision is to continue being at the forefront of franchising and provide franchisees with the experience and tools to run a successful business. Neds Noodles: We are a ‘Dine In - Take Out – Delivery’ Asian noodle bar. We also serve rice.

We have signed a contract with Fransmart, a US consultancy company that specialises in franchise development.

Wok&Go: We have a strong pipeline of sites to be opened in the next 12 months across the country, from Manchester to Canterbury.

We use no MSG or GM products and also serve gluten-free dishes.

We have competition from other similar brands who are racing to roll out as many units as possible, in the shortest possible time. We are choosing our franchisees patiently and we are interested in relationships with franchisees who have an interest in food and restaurants.

SUBWAY®: The future for the SUBWAY® brand in the UK and Ireland continues to look positive, with more and more people considering franchising as a career path and customer demand growing for quick, convenient and nutritious food options.

All our food comes in the original ‘take out’ pailor boxes from the USA. We have been trading for over 15 years and in the last two years we have changed some of our systems to accommodate the franchise market. Our first franchise opened in January 2015 and another two will open in 2016.

WHAT ARE YOUR PLANS FOR THE REMAINDER OF 2016 AND BEYOND?

We have a strong pipeline of stores in construction, and we are confident that we can replicate the success achieved in previous years.

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In fact, we’ve already opened over 90 new stores this year, and we’re on track to reach our target of opening 250 stores in 2016. However, we are also very focused on ensuring we are opening quality stores in great locations to enable our franchisees to operate successful businesses. Papa John’s: Papa John’s is expanding! We are currently recruiting for franchisees across the UK to continue to grow our operation. Harry Ramsden’s: Growth remains our firm ambition during 2016, both at home and abroad. Franchise agreements are already in place for Scotland, Yorkshire, South West Sussex, Hertfordshire, Essex, Cambridgeshire and with Welcome Break, which has resulted in the opening of 21 new outlets in locations all across the UK with more to follow. Internationally, agreements are now in place in Qatar and the Kingdom of Saudi Arabia

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and new outlets have successfully opened in all territories. Chopstix: Our plan for 2016 is to acquire two more master franchisees, and to successfully launch our two new brand extensions: Chopstix Express and Chopstix Metro. In the long term, our goal is to have 300 sites by September 2018. McDonald’s: We currently have over 150 franchisees in the UK, who between them oversee more than 860 outlets. Ten years ago, 35% of the McDonald’s UK network was franchised; today that number has doubled to 70% and we will continue to build on that. Our plans for the remainder of 2016 are to attract more great calibre franchisees into the business and continue to evolve our offering for customers, to ensure we remain true to our vision of being a modern and progressive burger company. Neds Noodles: We hope to open two stores

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in 2016. One inside London and one outside. We are also working hard with our delivery plans. We are already working with UberEATS and have another large US company coming on board later in the year. Delivery is a very big part of our strategy.

WHAT TYPE OF PERSON/ INVESTOR ARE YOU IDEALLY LOOKING TO WORK WITH? Wok&Go: The franchise is available to both experienced multi-site franchisees, with other established and non-competing food franchises, and to 100 per cent passive investors or investor groups thanks to the managed franchise option whereby the franchisor, us, runs the store on behalf of the franchise investor. SUBWAY®: The SUBWAY® brand prides itself on being made up of local entrepreneurs from very diverse backgrounds across the UK and Ireland. We

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have a very strong support network in place that offers ongoing training and support, making the SUBWAY® franchise accessible to people from all walks of life.

and customer service, ideally with some expertise in the food and beverage industry, knowledge of operational procedures and working within a corporate structure.

However, all our franchisees need to be hard-working and have a drive to succeed. We look for people who have a passion for the product, as well as a good general understanding of business, food safety laws and regulations.

McDonald’s: Our franchisees come from all walks of life, but the main thing they all have in common is a drive and passion for success. Many of our franchisees were already operating successful businesses before they came to us, whilst others have come from prominent careers in the public sector and city, to start a whole new career with us.

Many of our franchisees are local entrepreneurs with a keen interest in the SUBWAY® brand. It isn’t necessarily a problem if they don’t have a background in the food industry, as the comprehensive training that the SUBWAY® brand provides, ensures that all new franchisees are well prepared to successfully operate their SUBWAY® store. Good customer service skills are also important – and the ability to manage people.

is a 20 year commitment, which is why we’re so selective – we want to work with the right people. Of course, running a successful restaurant business demands a particular set of skills. Whilst you don’t need experience in the food industry, it’s important that you have the ability, passion and determination needed to lead your business and your team from the front. As a franchisee, you’re building your own business – and taking ours to a whole new level.

Becoming a McDonald’s franchisee is not for everyone – taking on a McDonald’s franchise

Neds Noodles: We like to take our time choosing our franchisees. I think it is important to have a background in the

Papa John’s: Successful Papa John’s franchisees are motivated, enthusiastic, hard-working and want to be part of a growing team. Exceptional interpersonal and people skills are essential, as franchisees deal with customers, as well as lead a team, on a daily basis. In addition to excellent written and spoken communication skills, franchisees need to be organisers with a can-do attitude - someone who gets things done. Franchisees have to be dedicated and passionate enough to adapt to a proven way of working, with the ability to roll up sleeves and get stuck in, which means everything from making pizza through to managing staff. We particularly welcome applications from ambitious individuals who are interested in multi-unit franchising. Harry Ramsden’s: We tend to deal with reputable operators and businesses who like ourselves are customer focused and experienced in multi-unit operations. We prefer that potential franchisees already have an understanding and knowledge of the territory they are interested in, and of course, have the liquidity to fund multi-unit launches. Chopstix: We are looking to work with people who are passionate about great food

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catering industry, no matter what capacity that is in. I’ve seen how shocked people are when they see just how hard this business is.

details away would be telling. However, I can confirm we are well on target to reach our goals for 2016 and beyond.

Energy and personality are important components too. Multi-franchise operators are also a plus as they have a great understanding of how to manage people and how to grow their company. Lastly, we sell food. Our passion is food. You have to have a love for food, otherwise you are not for us.

Harry Ramsden’s: We have already opened seven new Harry’s outlets this year in locations including Birmingham, New Brighton, Newquay and Newmarket. We have introduced new formats including our urban City brand which was recently unveiled in Edinburgh’s Royal Mile in partnership with our Scottish franchisee. We have also entered the licensed trade arena and have outlets now operating successfully in Chesterfield and South Queensferry. Before the end of the calendar year, we anticipate opening up to 10 further new outlets.

IS THERE A NUMBER OF OPENINGS YOU PLAN TO ACHIEVE? Wok & Go: We should open at least 10 restaurants this year and 10+ the next. It all depends on how quickly we get through change of use with some sites. SUBWAY®: We are very focused on ensuring we are opening quality stores in great locations and have a target of opening 250 stores in 2016. Papa John’s: Naturally the team is working towards a carefully crafted plan, but to give

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Chopstix: Our goal is to have 300 Chopstix sites by September 2018. Beyond that, the sky is the limit! McDonald’s: We don’t have specific numbers, but our objective is to continue to offer franchising opportunities to dedicated, ambitious and customer focused individuals. This might be people who have perhaps

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reached the summit in their current career and who are looking to make a long-term commitment to an area, at the same time as taking on a fantastic new challenge. Neds Noodles: We would like to have 20 Neds in this country at the very least. We would like to have a presence in Northern Europe and the Middle East, but we dream of the USA and South America. However, we will take this all in our stride. When we are ready, it will happen.

WHAT MAKES YOUR BRAND DIFFERENT AND WHY SHOULD A POTENTIAL FRANCHISEE CHOOSE YOUR BRAND? Wok&Go: Wok&Go is market leader in the noodle bar segment and noodles are the only food that fits all main trends in consumer foodservice: health, convenience, theatricality, product personalisation and the immense appeal of Asian food with the UK consumer. SUBWAY®: The SUBWAY® brand’s concept is to keep franchisee investment low, the

Franchisee q&a

operation simple and to offer customers food that is fresh, great tasting and made the way they want it. Our stores are efficient, convenient and provide a quick service, which makes it perfect for local entrepreneurs. The SUBWAY® brand actually has one of the lowest start-up costs for a franchise of its size, making it more accessible for prospective candidates. Due to the simplicity of our operation, we’re also able to have an adaptable approach to the size and physical layout of its stores. We now have over 650 stores open in non-traditional locations, such as within convenience stores, on petrol forecourts, hospitals, transport hubs or at universities and colleges. Our corporate partnerships with the likes of Blakemore Retail, Euro Garages, Applegreen and Welcome Break, is continuing to extend our growth throughout the UK and Ireland.

recognised and respected nationally and internationally, which is an enormous and immediate plus and this is coupled with the fact that we are the largest fish and chip operator in the UK – and offer the ONLY fish and chip franchise in this country Additionally, Harry’s offers the opportunity to select from a variety of formats to trade in differing locations and markets, and as our model is relatively new, we have territories available unlike many others Chopstix: Chopstix stands out from the rest for a number of reasons. As a concept, we provide fresher, faster and healthier food to customers who are short on time. Operationally, our versatility and flexibility to adapt to various sectors, including high streets, shopping centres, food courts, forecourts, motorway services and convenience retail, make us an eye-catching proposition to potential franchisee. In particular, our two new sub-brands, Chopstix Express and Chopstix Metro are able to operate with a footprint of under 8m square

- capitalising on space and maximising profit. McDonald’s: As a business, we are doing remarkably well. We serve 3.7 million customers a day, and only recently celebrated 40 consecutive quarters of sales growth. At McDonald’s we are constantly evolving to meet our customer’s needs, whether that be providing customers with a modern and updated restaurant with digital self-ordering kiosks, or bringing tried and tested initiatives such as table service to over 280 of our UK restaurants. In addition to this, our training and support is second to none with our franchisees receiving some of the best in the industry. Franchisees can look forward to support from our Franchisee Consultants as soon as the training programme commences. They’ll help optimise sales and profitability while keeping quality, service and cleanliness standards high. Franchisee Consultants usually work with a small number of franchisees and have many

Papa John’s: Papa John’s founder John Schnatter knew that there was something missing from national pizza chains: a superior-quality, traditional pizza delivered to the customer’s door. His dream was to open a pizza outlet that would fill that void. This focus on ‘Better Ingredients, Better Pizza’ has led to the popularity and growth of the Papa John’s franchise throughout the world. The demand for our pizza is such that we need franchisees to help us satisfy our growing customer base throughout the UK. Papa John’s provides all the necessary training, help with location selection and full turnkey solution to opening. Papa John’s is also currently offering a franchisee incentive scheme to help with set up, which includes deals on equipment, marketing and discounted fees. Harry Ramsden’s: Investment and repositioning makes us one of the most re-energized brands around however, we are extremely proud of our reputation as arguably, the most iconic food brand this country has ever produced. Harry’s is also

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provide very detailed information to enable any prospective franchisee to assess the viability of the franchise, however they should not rely solely on us, we encourage them to seek independent advice and speak with existing franchisees. SUBWAY®: We find that our most successful franchisees are those who have done the most research, you must look thoroughly at any potential areas where you’re thinking of opening a franchise; think about who your customers would be and who your competitors would be. The SUBWAY® brand offers a comprehensive training course for new franchisees as well as continued support from planning and building, all the way through to setting up, staffing and ordering. This level of support is essential when you’re starting your own business and is key to the SUBWAY® brand’s success. Once set up, it’s simple – work hard, learn and understand every role within the business and be dedicated to making your business as successful as it can be. Papa John’s: Choose a franchise with a popular product! In the food industry particularly, repeat business is essential to fuel growth and in-turn, reach new customers, so you must have a ready market for your offering. From my point of view, past success is always a pretty good indicator of the future so ensure you understand the figures and openly discuss the turnover of similar sized franchised businesses with your franchisor. At the end of the day, you are in business to make a living. Ensure the sums add-up!

years of experience in our industry. Their operational knowledge is second to none. They really know our business, inside out, from the top down. And because they’ve run restaurants they know exactly what you’re going through and how to help you. So there’s nothing they don’t know about getting the very best out of large teams.

important person on the premises. Great customer service is a must. Be friendly, be different - the public love it and it sets you apart from the competition.

Neds Noodles: Food, food, food, food, food and food. That’s what sets us apart. A close second is the customer is the most

Wok&Go: To conduct a thorough due diligence on the franchise they are considering to purchase. At Wok&Go we

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WHAT ADVICE WOULD YOU GIVE THOSE CONSIDERING FRANCHISING?

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Harry Ramsden’s: A franchise should offer high levels of brand recognition, as this delivers an immediate competitive advantage. We would also suggest that thorough research is undertaken into the geographical territories available to confirm that these can be supported by the size of the potential customer base. Chopstix: Becoming a franchisee is not an easy task and choosing between thousands of franchise options can be a daunting prospect. We believe there are seven key points to keep in mind:

Franchisee q&a

• Make a personal assessment: Know your strengths and see if your professional goals are compatible with your personal life • Choose your industry: Pick and area that you’re passionate about; the more you enjoy something, the more motivated you will be to persevere. • Finance: It is crucial to have at least the minimum capital required, if not review any loan options • Select your franchise: Do as much research as you can and know your company inside out. Get information from the internet, trade exhibitions, magazines, etc. • Elaborate a business plan: This is essential to assess the feasibility of your project and your chances of a return on investment

• Find your location: Think about visibility, footfall, competition - be strategic •Trust your franchisor: Business is built on trust and relationships, if yours is good with your franchisor - you have every opportunity of being successful. McDonald’s: When looking for a franchisor, research is key. A good franchisor will support you both in starting your business and in maintaining and growing your business in the long run so it’s important to check their credentials, including the training, fees, daily operations and current franchises. Prospective franchisees should look for a franchise that has a BFA membership. This ensures that the franchise has high standards and is measured against a code of ethical franchising.

A franchisor should also be experienced with a good track record. McDonald’s has over 30 years’ experience in franchising so we’re confident we can guide you to making your business a success. Neds Noodles: Be prepared to work hard. Be prepared to fail. Be prepared to pick yourself up and start again. Everyday. Don’t take NO for an answer, Go and get whatever you want in your life. You’re the only person who is stopping yourself. Believe in Karma and look after your family and staff.

HOW WOULD YOU DESCRIBE THE FOOD AND DRINK MARKET IN THE UK AND DO YOU THINK THIS HAS CHANGED IN THE PAST YEAR? summer 2016

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Wok&Go: Once exotic foods have now become mainstream. One of the consequences of this is the growth of the out-of-London market, especially for A3licensed operators traditionally appealing to the cosmopolitan London consumer. A further sign that consumer habits are changing. The constant growth of branded restaurant concepts at the expense of no-brand independents is another important trend, partially fuelled by the fact that branded restaurants provide an experience alongside the food. SUBWAY®: We have noticed an increase in the more health-conscious customer and in response to this demand, we offer a wide range of great tasting food-to-go options. More than 40% of Subs sold in the UK and Ireland are from the SUBWAY® brand’s Low Fat range, which includes nine Low Fat choices available as a Sub, flatbread or salad. All contain less than 3g of fat and 1.5g of

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saturated fat per 100g. Our most popular Low Fat Subs are the Chicken Teriyaki and Chicken Tikka. As such, the SUBWAY® brand is committed to improving the nutritional quality of our products and providing detailed nutrition, diet and healthy lifestyle information. We are a committed partner to the UK Government’s Public Health Responsibility Deal and the only Quick Service Restaurant to have endorsed all of the relevant nutrition-related pledges: 1. Out of home calorie labelling 2. Salt reduction 3. Non-use of artificial trans fats 4. Calorie reduction 5. Improved access to fruit and vegetables 6. Saturated fat reduction 7. Out of home salt reduction 8. Salt reduction 2017 targets. Papa John’s: The UK pizza industry is booming. There is an ever increasing

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demand for Papa John’s pizza. However, I think customers are becoming more discerning. They want quality and because there is so much choice available, only those brands which recognise this and focus on providing the best quality product combined with the highest quality customer service will profit long-term. Harry Ramsden’s: The casual dining market within which we operate is thriving across the country and indications suggest its popularity is continuing to grow. We are finding that the under 25s are eating out more than ever and from our own research, as well as fish and chips, our rotisserie and grilled meats and seafood are exceptionally popular with diners of all ages. In terms of food franchising we continue to enjoy ever growing levels of interest in our brand because Harry Ramsden’s offers a franchise opportunity that is genuinely unique.

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Chopstix: The food and beverage market in the UK is one that constantly grows year-on-year, and is particularly exciting because it results in a constant stream of new, innovative ideas that are added to the industry. Today, new product developments are changing the way people eat and drink and many companies in the UK are now focusing on functional food development - including us at Chopstix! Consumers have busy lifestyles and food on the go is on the rise, but customers are also more conscious about what they eat in regards to health and general well-being. With our fresher, faster and healthier food offer - we think Chopstix is able to match all these trends. McDonald’s: The food and drink market is an extremely competitive market which is ever-changing to meet customer’s demands and needs. What’s really interesting is that more people now want to know where their food comes from and are beginning to ask for more transparency from retailers. This is something we’ve been working on for a while now, and through our ‘Good to Know’ campaign work, we’ve built up strong UK provenance that customers are resonating with.

factors. Returns are between 2 and 3 years, a bit longer if we manage the franchise on behalf of the franchisee.

proprietary information. In addition there is a franchise royalty fee of 5% of the net sales and a marketing fee of 5%. Franchisees are responsible for the rent, rates and utility costs of the store for the term of the franchise agreement. We are happy to discuss the likely returns with any interested franchisee.

SUBWAY®: The SUBWAY® brand offers one of the lowest start-up costs in the UK, with investment from around £100,000. There is a multitude of support available for franchisees to help grow their stores, however success is down to each individual franchisee. We currently have over 2,300 SUBWAY® stores open in the UK and Ireland, all of which are individually owned and operated by franchisees – they run their stores as independent businesses, under the SUBWAY® brand. Papa John’s: 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%) for each franchise unit; this gives you 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

Harry Ramsden’s: The investment depends on the particular format best suited to the location, however, our assisted service restaurant provides an excellent value way to join the Harry Ramsden’s family and the average required investment ranges from £250k - £350k with £100k liquid funds required. Harry Ramsden’s Restaurants focus on full service dining, with many including a separate takeaway counter to maximize passing trade. The typical investment ranges from £300k - £500k, depending on a number of factors including size and location. Regardless of the franchisees’ preferred model, we can demonstrate figures which confirm extremely healthy returns on investment for each.

Neds Noodles: Exciting and saturated are two words that come to mind. The market needs a shake-up. I think it has become tougher out there, but most of those factors are external. Staffing problems, the European question, too high overheads and the terrorism threat to tourists. The strongest always survive and look after your cash in the bank. The delivery market is also changing daily and by this time next year, I believe the market will look quite different.

HOW MUCH WOULD A POTENTIAL FRANCHISEE EXPECT TO INVEST FOR A BUSINESS AND WHAT SORT OF RETURNS COULD THEY EXPECT TO ACHIEVE? Wok&Go: Anything between £150,000 and £200,000, depending on the size of the restaurant and other location-specific

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Chopstix: A potential franchisee would expect to invest between £95,000 and £120,000 depending on the size of the fit-out. The majority of our estate reaches breakeven within six to nine months of launch. You require good footfall to drive an average net profit of £90,000 (30%). Franchisees can earn more, however, we do not guarantee footfall or turnover. McDonald’s: At McDonald’s, training costs around £750 and prospective franchisees will need to pay a one-off £30,000 franchise fee. Once training is complete, a restaurant typically costs in the region of £150,000 to £400,000 and 25% of this needs to be from encumbered funds. Lastly, we ask for a £5,000 security deposit when training begins, however this is fully refunded when you buy your first restaurant. If up to the challenge, the rewards can be worth it – the average restaurant has a cash flow of between £95,000* and £200,000. *Restaurant operating profit + depreciation + interest. Neds Noodles: We look for our franchisees

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to invest £250,000 to £300,000 all in. We want our stores to look great and it pays to pay a premium to be in good locations and benefit from high footfall. If you break even in your first year you have done well, but in year three, bottom line figures can reach £80,000 to £100,000 if you stick to our systems.

SUCCESS IN BUSINESS IS NOT GUARANTEED, BUT WHAT SECURITY ADVICE AND SUPPORT DO YOU OFFER? Wok&Go: The concept is proven and we assist the franchisee with site selection and in the day to day management of the business, with a bi-weekly visit by an area manager on top of any daily contact from remote. No business is risk-free, but we try and minimise the risk by excelling in supporting our franchise partners in any areas of their business. SUBWAY®: With franchisees all over the world, the SUBWAY® brand has developed a franchise system which is both efficient and effective, ensuring all franchisees get the support they need when starting their

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new venture. This support system and the robust processes of operation are some of the key strengths behind the success of SUBWAY® stores worldwide, including: • Regional Development Agents have specific experience in opening and developing SUBWAY® franchises and offer support and assistance to franchisees with site selection, leasing, operations and much more • Each franchisee receives a comprehensive two-week training course at the SUBWAY® Training Centre in Cambridge. There is ongoing support to keep franchisees and staff continually informed of all the latest information and operational updates • The University of SUBWAY® offers simple to follow interactive training and development for franchisees and their staff • Regular franchisee conventions are held to keep them up-to-date with best practice and offer a chance to meet with SUBWAY® staff and fellow franchisees • Franchisees in the UK and Ireland actively

Franchisee q&a

participate in the running of the Franchise Advertising Fund. National and regional advertising boards are elected each year; the board members are elected franchisees that serve to make marketing decisions and ensure franchisee funds are used to benefit all franchisees equitably •,A franchisee owned purchasing company, European Independent Purchasing Company, manages the purchase and supply chain activity for all food, packaging, equipment and services in the UK, Ireland and other European countries. It’s this successful franchise model that has enabled thousands of individuals to fulfil their dreams of becoming their own boss. What’s more, the fact that 70% of new franchises sold are to existing franchisees is testament to the popularity and success of the business model. Papa John’s: Papa John’s has well over 300 franchised stores in the UK and many of our franchisees own multiple units. A few run more than 15 stores. Our tried and tested formula, which is based on a top quality product and the best customer service, is a recipe for success. However, franchisees do need to be committed and be prepared to work hard. Currently, we are running a special incentive scheme to help franchisees with set up, which includes deals on equipment, marketing and discounted fees. It is in our interests our franchisees do well and so we go all-out to provide all the support necessary to help them run a successful franchised business. Harry Ramsden’s: We work in partnership with our franchisees, so they immediately gain access to everything we offer. This includes advise on funding sources, mapping and site selection, recruitment and bespoke staff training, access to Harry Ramsden’s operations, brand and franchise manuals and systems, access to Harry Ramsden’s supplier base thus benefits from our buying power, as well as Ongoing Director Level Input from our Franchise Team and marketing, promotions, HR and IT Support. Chopstix: We believe a franchisee’s hard work and effort, combined with our expertise, is a recipe for success.

Chopstix has a comprehensive franchise support programme in place, including our online business management Enterprise Resource Planning (ERP) software aptly called ‘Noodles’, to ensure our franchisees are set for success. We provide trainee programmes and total business and marketing support for our franchisees. They are a part of our adventure and we believe in every member of our team.

After all, their success is our future. Neds Noodles: We hold your hand all the way through. After 30 years in the business we have nearly seen it all. We are at the end of the phone 24/7 and if you want me to do a shift in your store I’ll do it. Refresher training courses are a must, as the business will change while you’re on the journey. My top franchisee managers have worked themselves up from the bottom of the business. They are there to help and give advice whenever a franchisee needs it.

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BE INSPIRED The UK coffee industry is booming with more cafes, franchises, roasters and blenders than ever. However, one franchise has taken the battle for customers on the road with its mobile format. 44

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Business PROFILE

After spending four years in the early noughties in Sydney Australia, Tom Acland fell in love with a coffee culture that simply didn’t exist back home in the UK.

“The UK pilot operation was launched in 2004 in Leeds. The model worked well, and the business has since grown and grown, in line with the growth of UK coffee culture in the high street.”

As a customer of an early Sydney-based Cafe2U van, Tom identified the benefits of a mobile business model, which created a community for its customers outside of work, and this stirred something in him to return to the UK and bring the dream to life.

WHAT MADE YOU CHOOSE A FRANCHISE MODEL?

Fast forward to today, led by Tom in the role of Managing Director, Cafe2U currently serves great coffee (and food!) from more than 75 locations across the UK - and as when it first started, still takes the role of helping to establish an exciting UK coffee culture very seriously! Multi award-winning for its coffee, service, franchise system, and standards, Tom has ensured Cafe2U has always led the way in coffee provision in non-traditional locations, whilst building a market-leading team to recruit, train and support Cafe2U franchisees.

“Following the successful pilot operation over a 14-month period we chose franchising as the model for expansion because (if done well) it allows for a consistent, high quality service to be provided in any geographical location without the difficulties of recruiting, training, and supervising staff.”

WHAT MAKES CAFE2U STAND OUT? “Probably 4 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.

WHAT ARE THE CURRENT TRENDS IN THE COFFEE MARKET? “At the Allegra Coffee Symposium for UK coffee leaders, in February, this was presented as: • Continued rise of branded coffee chains where focus is on quality of products and service

Tom and his team are passionate about the coffee industry, and have been sourcing, serving, and enjoying it for 12 years, building the business to be the fourth largest coffee brand in the UK, and only see more growth ahead for this highly successful business model, and the sector as a whole. Tom still likes nothing better than visiting Cafe2U outlets and seeing the baristas share their coffee love with thousands of people each day, seeing how much pride is taken in what they create and passionately share with their customers, who regularly vote their coffees as the best they have tasted. We spoke to Tom about his journey and his plans for the future of Café 2U.

WHAT INSPIRED YOU TO SET UP CAFE2U IN THE UK? “I first experienced Cafe2U when I was working in Australia between 2000 and 2004, and became a customer of one of the very first Cafe2U vans. The thing that struck me about the experience as a customer was not only the quality of the coffee that I was able to enjoy every day, but also the convenience of having it made fresh, right outside my office!

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Business PROFILE

• Location and quality of coffee are the two top reasons for choosing a coffee purchase

a ‘community’ through coffee, which is what we do every day at every one of our stops.

• Artisan coffee culture, including the emergence of speciality chains, innovation and experimentation taking place to create new coffee based drinks and brewing methods, focus on coffee provenance and processing methods

HOW WOULD YOU DESCRIBE THE MARKET AT THE MOMENT IN TERMS OF DEMAND, COMPETITION AND GROWTH?

• Rise of speciality tea and iced beverage offerings • Focus on health and wellness and ‘eat clean’ produce and ingredients and a wider range of options for dietary needs • Barista-centric trading model, where baristas are pivotal to consumer loyalty. “For me all this comes together to create 46

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“The coffee market is becoming extremely versatile, and generally meets the increased demand from educated customers looking for new world coffee products. “The market continues to grow, and competition is inevitable, but the key is still to serve a great cup of coffee, consistently.”

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WHAT MAKES CAFE2U SUCH A GREAT FRANCHISE OPPORTUNITY? “Cafe2U is a great option for those looking for a good work-life balance and wanting to have a business of their own, but with a strong support network behind it. “Compared to fixed location businesses, the level of investment needed for Cafe2U is not high, and means that the franchise is accessible by a larger range of individuals. “Our experience means that our recruitment process is robust, our training and launch systems are well proven, and our ongoing support is industry leading, which comes together to form a recipe for success.

Business PROFILE

“We have fun too! Our franchisees, our customers and the Cafe2U team always seek to enjoy the business and the service we provide.”

ARE MOBILE FRANCHISES CONSTRICTED BY GEOGRAPHICAL LOCATIONS OR SET TRADING AREAS? “Not at all. Cafe2U franchise partners are actually protected by having exclusive territories. They are trading safe in the knowledge that there will be no competition from within the network as we continue to grow. “Cafe2U territories have been predefined using over 15 years of experience and a specialist territory mapping company, and are also designed to allow our franchise partners to develop further – we have several who operate multiple Cafe2U vans within a single territory!”

WHAT ARE THE ADVANTAGES OF A MOBILE FRANCHISE? “The main benefit that I saw as a customer when I was in Sydney remains the number one benefit today – the ability to go to the customer and prompt the purchase decision, not sit and wait. “This is backed up by low overheads, flexible hours, and service opportunities. In addition, with a mobile business you are able to adapt to changing market conditions quickly and easily – not a simple process when you are committed to a lengthy shop lease.”

WHAT ARE CAFE2U’S PLANS FOR THE REST OF 2016 AND 2017? “To continue to serve fantastic coffee of course, and provide an environment for our customers and franchisees to enjoy themselves, through our product and service. “If we manage this then we will continue to have people approaching us wanting to join the franchise, which will in turn allow us to bring this great Cafe2U business to more and more people around the UK and Northern Ireland.” summer 2016

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HOW TO FRANCHISE

Franchising can be hugely beneficial to your business. However, getting the project off the ground can be a tough task. Brian Duckett, Chairman of the Franchising Centre, offers some guidance. Given how many food businesses are franchised, and given the title of this magazine, I doubt I need to explain here how franchising works. I will however explain how it might benefit your existing business and help it to grow regionally, nationally or even internationally. But beware, you may have heard franchising described as a way of building your business using other peoples’ money and effort. It can be, but you will have to put in a whole lot of money and effort yourself before you get the project off the ground.

Successful franchising starts with a clear vision from the owner of a proven and profitable business for where they want it to be. Franchising is a means to an end; it is not an end in itself. However, whether your vision is to be the biggest or best at what you do within the M25, within the UK, within Europe or within the world, franchising could be the way to get you there. Not every business is suitable for franchising, not even if several other similar businesses are being franchised,

and there is no ‘right way’ to franchise a business. There may however be a ‘right way’ for your business but please be aware that you cannot save a failing business by franchising it. Franchising is about duplicating success; if you duplicate a failing concept you will simply end up with more failures. The first thing to realise is that if you become a franchisor you are getting into a different business. We’ll assume that you are currently in the food business, never

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HOW TO FRANCHISE

mind whether that’s burgers, chicken, pizza, coffee, cake or doughnuts. The business you will be getting into is the franchising business and that means recruiting, training, monitoring and motivating people who want to run their own business using your name and your system. That requires a whole new skill set and that’s where the services of an experienced franchise consultant come in. The next thing you need to know is that if you’re going to franchise your business, the last thing you need is a lawyer. That’s not to say you won’t need one, but they come last, after the consultant has structured the franchise for you, worked out what fees will

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be paid and what costs will be incurred by whom and when they are due. There are a host of other things to consider and how the whole thing will work then has to be detailed in an operations manual. Only once that has been prepared and financial projections have been produced to show that the relationship will be profitable for both the franchisor and franchisee, do we brief the lawyer on what to put in the franchise agreement. Once all the paperwork has been completed - financial projections, business plans, operations manual and franchise agreement - we can move on to implementing the plan and that will start with recruiting franchisees.

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Franchisees come in all shapes and sizes so your consultant will help you develop the profile of the franchisee who will be ideal for you. Will it be an existing food service operating company? Will it be an individual who is entirely new to the sector? How much money will they need both to set-up the business and ensure there is sufficient working capital to see them through the early stages? Where could they borrow from? Having answered all those, and many other, questions you will be ready to generate

HOW TO FRANCHISE

and process enquiries from franchisee candidates. But how will you do it as well as operating your existing business? That again is where a firm of specialist consultants comes in as you can outsource the whole process so that you only have to meet fully qualified candidates. Once appointed those candidates can also be trained and supported by outsourced services that will include franchisee management and accounting software, which highlights areas of under-performance that will need to be addressed by your operational staff for the benefit of all concerned. One of the greatest joys of franchising for you as a franchisor is that you will be paid continuing fees by the franchisee for using the name and system which you have already developed. However, you wonâ&#x20AC;&#x2122;t have to worry about the day-to-day operation of the outlet. Of course, you will need to do regular checks on the quantity and quality of the service being delivered but staff absences and customer issues will not be your immediate concern. You can concentrate on developing your menus and your operations, opening new outlets, maintaining the reputation of your brand and building the value of your business. When the time comes to exit you will find ready buyers these days for established franchised networks, where no doubt once again your consultant will be able to make qualified introductions. Franchising continues to grow as a way of doing business in the UK and around the world and I believe any business which operates as a branch network and which wants to grow should at least consider franchising as one of the options. The Franchising Centre has a team of qualified consultants located all over the UK. We also help with international development using a network of associates covering more than 40 countries to find overseas partners. An initial discussion at your premises is totally free and without obligation. Donâ&#x20AC;&#x2122;t you owe it to yourself to find out if franchising is right for your business?

Brian Duckett is Chairman of The Franchising Centre, Europeâ&#x20AC;&#x2122;s leading firm of franchise advisors. Brian has worked in franchising for forty years as a franchisee, franchisor and consultant to businesses on five continents.

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2016 SHOW

GUIDE 52

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2016 SHOW

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Takeaway and Restaurant Innovation Expo 2016 Excel, London – September 27-28 The Takeaway and Restaurant Innovation Expo is an interactive exhibition aimed at helping takeaway owners run their business better and meet other like-minded professionals to share ideas and improve their knowledge. Designed to give you all the tools you need to grow and develop your takeaway, the event features a whole host of live demonstrations, offering visitors the opportunity to get hands on with some of the most innovative solutions for your business.

fast food will share their recipes, tips and exclusive ingredients for success. The theatre will also showcase some of the most cutting edge and inspiring technological developments in cooking.

There will also be around 300 exhibiting suppliers, 85 free seminars, masterclasses and a wide range of expert advice and guidance on offer.

Another attraction at the event is the Deliver Zone, which will showcase the types of transport available to get food to hungry customers, and the packaging that can be used to keep it safe along the way.

Attractions at this year’s event include the Live Cooking Theatre, where experts in

Brand new to this year’s expo is the Drinks Zone, which will be the home to some of the

most cutting edge and inspiring concepts and developments in drinks products and supplies. Takeaway and Restaurant Innovation Expo also runs alongside The Restaurant Design Show, Restaurant Tech Live, Street Food Live and The Food Entrepreneur Show, which all provide inspiration on different aspects of the takeaway and restaurant industry.

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2016 SHOW

GUIDE

Lunch! The Business Design Centre, London – September 21-22 Attracting more than 6,000 trade buyers looking to source new, innovative products, keep up with the latest industry developments and network with industry colleagues, lunch! is the UK’s essential trade show for the food-to-go industry. The show will once again take place at the Business Design Centre, in Islington, London, which provides a boutique-style backdrop for the show and is located in one of the most vibrant areas of the capital. If you are the owner of a café, coffee shop, deli, sandwich bar, or a contract caterer, wholesaler or multiple buyer then you should ensure you add lunch! to your diary. Since its launch in 2008, lunch! has enjoyed significant year-on-year growth in attendance, with exhibitor numbers now reaching an unprecedented 350 companies,

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showcasing an eclectic mix of food, drink, packaging, catering equipment and technology. The event will see visitors get the opportunity to sample fresh ingredients, salads, breads, cakes, crisps, drinks, juices and smoothies. There will also be thousands of innovative new food-to-go product launches, as well as industry leaders showcasing the latest equipment, signage, packaging and interior design trends.

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Running alongside the exhibition, throughout the two days, lunch!’s free business seminar line-up in the Working lunch! Theatre and new Talking lunch! Theatre includes exclusive keynotes, research insights and lively panel discussions. In the last few years alone the show has featured keynotes from senior directors from Pret, Starbucks, Caffé Nero, Greggs, EAT, Subway and M&S, amongst many others.

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GUIDE

Speciality & Fine Food Fair Olympia, London – September 4-6 The Speciality & Fine Food Fair is an experience for all the senses. With more than 850 UK and international suppliers exhibiting, it’s a chance to see, taste, smell, touch and hear the delights of the fine food industry. It is the place where top retail, foodservice and wholesale buyers source new fine food and drink products from Britain and abroad. The event also provides visitors with the ideal opportunity to learn from industry professionals, with exhibitors on hand to provide inspiration for menu ideas and flavour enhancements, as well as offer advice on sustainable health issues and food provenance. Attractions at this year’s event include the Fine Food Live demonstration Kitchen,

which will see some of the industry’s most experienced chefs and personalities serving up advice and tips to help you keep up with the latest trends. There will also be free one-to-one advice on offer from SME experts at the Business Mentoring Centre, while the Small Business Forum will see a range of topics tackled by small business owners and experts. Visitors with a sweet tooth can head over to the Speciality Chocolate Fair, which is the only event in the UK dedicated to fine

quality chocolate and provides a unique opportunity to taste and source the very best suppliers and chocolate products from a range of gourmet chocolatiers and producers. The event will also feature the Small Producers’ Village, showcasing companies new to the industry and their exciting products.

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ONE TO WATCH

ONE TO WATCH o

high quality traditional Fish & Chips. The fish is delivered fresh daily from Billingsgate Fish Market and is sourced from sustainable stocks.

The design of each new shop will be based on the Blackheath model, which was developed specifically to be customer-centric and ergonomically friendly.

The Vintage Fish recently announced that it will invest ÂŁ1M to start a franchise with four additional sites scheduled to open by 2017.

The Vintage Fish also uses British-grown Maris Piper potatoes, which are specifically selected for their superb taste and texture.

Newly-opened in January this year, the takeaway, which is based in Blackheath, London, has introduced a retro-modern take on traditional fish and chips.

Customers waiting to pick up their food can enjoy a vintage glass bottle of Coke while sitting on quirky leather seats, watching music videos on a 1950s-style black & white TV.

He started running his first fish and chip shop at the age of 14 after his father, a property developer, left him in charge of the familyâ&#x20AC;&#x2122;s Fishcotheque restaurant in Waterloo.

However, with The Vintage Fish positioning its fryers opposite the counters, instead of underneath like many chippies, diners are also able to watch their food fry away.

Huseyin had already started his chippy apprenticeship by peeling potatoes and had worked his way up.

Now plans are in place to open an additional site in London this year, potentially in Greenwich, and three more sites in the capital by 2017. The Vintage Fish prides itself on serving 56

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The Vintage Fish owner Huseyin Ozdemir, 29, got hooked on the fish and chip industry from a very young age.

The Fishcotheque, is still running today.

buying a franchise

THE DESIGN OF EACH NEW SHOP WILL BE BASED ON THE BLACKHEATH MODEL, WHICH WAS DEVELOPED SPECIFICALLY TO BE CUSTOMERCENTRIC AND ERGONOMICALLY FRIENDLY.

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ONE TO WATCH

However, it is Huseyin’s franchising plans for The Vintage Fish that has caught our eye and we wanted to find out what the future holds for this One to Watch:

WHAT IS THE ETHOS OF THE VINTAGE FISH? Huseyin said: “The quality of fish and chips in many chippies has dropped in recent years. “More and more people have been looking to get into the industry, but doing fish and chips alongside kebabs and pizza. “Lots of these people are using frozen fish and chips and being stingy on the temperatures of the oils they are cooked in to save money. “This has meant the quality has died. “The Vintage Fish is aiming to do things

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right and produce traditional fish and chips. “We put 100 per cent into our fish and chips.

“We offer customers the chance to have lemon and coriander on their fish, we make our own beer batter, our own fishcakes and batter our own fish.

“All our chefs are former restaurant chefs and need to have 15 years plus experience to be behind the fryers.”

“We also offer customers extra options in terms of fish. These include skate, pollock and halibut and not just the regular cod or haddock.

WHAT MAKES YOUR FOOD STAND OUT FROM THE COMPETITION?

“The Vintage Fish also gets all its fish fresh daily from Billingsgate Fish Market. The market is closed on Sundays and Mondays and because of this, so are we.

Huseyin said: “We’ve taken one of the nation’s most well-loved meals and given it a contemporary twist.

“However, we also cater for special requests and on one occasion, because we get our fish delivered daily, we were able to provide a customer with fresh salmon that he had asked for.”

“The response from customers has been fantastic.” “We try to add little touches to make everything our own.

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WHAT MADE YOU DECIDE TO START FRANCHISING?

BE INSPIRED

WE’VE TAKEN ONE OF THE NATION’S MOST WELL-LOVED MEALS AND GIVEN IT A CONTEMPORARY TWIST

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ONE TO WATCH

“For this reason, I decided I wanted to work with others and help them to set up Vintage Fish restaurants. “We hope to have four Vintage Fish sites open on high streets around South East London by 2017. They will be restaurants and takeaways. “In the future, we hope to have a restaurant that, as well as offering a takeaway service, also has a shop and a fishmongers inside. “This would allow us to cut fish to size and do our own marinating, so the fish can be 60

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delivered to Vintage Fish shops ready to be cooked.”

that their food has been prepared the right way.”

WHAT WAS THE THINKING BEHIND THE DESIGN OF YOUR CHIP SHOP?

In addition to its unique design, the takeaway has invested in technology to attract orders online via its own app and website.

Huseyin said: “Our staff save a lot of time and energy with our careful positioning of counters and display cabinets. Customers benefit too from the open layout.” With regards to the positioning of the fryers, Huseyin said: “We’re not hiding anything. “We want people to be able to see their food being cooked from scratch all the way to the finished product, so they know

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Huseyin said: “We never have any queues – customers order online and pop in for collection. We spend less time on the phone and more time cooking great food.” If Huseyin’s ambitions for The Vintage Fish are anything to go by, this franchise will definitely be One to Watch.

Huseyin said: “Obviously, having more shops would mean the quality of the food and service would be harder to maintain by myself.

AVOIDING FRANCHISE RISK

buying a franchise

An introduction to franchising

Steven Jones summer 2016

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INTRODUCTION TO FRANCHISING

In the UK, the annual turnover of the franchise industry is substantial. According to the latest NatWest bfa Franchise Survey, franchises contributed more than £15.1 billion to the UK economy. Options in the industry are vast, with nearly a thousand brands operating as a franchise. When you look at these businesses you can see that there are an estimated 44,200 franchised units currently operating, with about 621,000 people employed in franchising, more than half of who are in full-time employment. This employment figure equates to an increase of 70% over just the last 10 years. To put these facts into some kind of context, 20 years ago the industry’s turnover stood at around £5 billion, with less than 400 brands in existence in the UK. The number of stores was also significantly lower, somewhere around the 8,000 mark. Since then we have seen franchising come of age. Hotel and catering have shown much of that growth especially in the fast food sector where a quick service restaurant operating under a franchise is a key 62

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method of delivering a number of major household name brands to the consumer. Franchise coffee has seen considerable growth over the last two years with major brands now using franchising as an active model to expand. These figures prove that franchising is a sector with plenty of opportunities, but the big question is, do you want to be a part of it?

FRANCHISE BEGINNINGS

The concept of franchising took much longer to catch on in the uk Franchising as a concept can be traced back to the 1880s. A man called Isaac Singer, who produced high-speed sewing machines, knew that he wouldn’t be able

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to meet the demand of the US public without a sale team, regular orders and because of all the associated travelling. Singer came up with the idea of selling the product under license to certain geographical areas. He agreed to sell the sewing machine to independent salesmen in exchange for a license fee. The salesmen would then take the orders and sell the machines for a profit giving a small commission back to Singer. All that the salesmen required for the use of the brand and the ability to purchase the machines was a promise that they would give all the necessary training to the customer and that they would take care of any repairs. More and more business owners decided to follow suit and try a similar approach to that of Singer, and from then on franchising was born. In the US the size of the territories were so big, franchising was the only way to do business. Now, it is estimated that there are almost 800,000 franchises in the US.

The concept of franchising took much longer to catch on in the UK, however, the sector is now flourishing, with new franchise concepts popping up all time and existing franchises continuing to increase the number of franchised units. Of the franchises operating in the UK, 80 per cent are UK-owned and developed, according to the NatWest bfa Franchise Survey. This is a vast improvement on 20 years ago, when a great deal of franchise systems were imported from the US. This shows that businesses in the UK have really embraced the idea of franchising in order to expand a brandâ&#x20AC;&#x2122;s reach. Of all the franchise models that are available, those which incorporate food seem to thrive and in this feature we look at what a franchise is and how you can take your first steps on the road to becoming a franchisee.

What is a Franchise?

In essence, the franchisee becomes a self employed outlet for a larger business In short, a franchise is the agreement between two parties â&#x20AC;&#x201C; the franchisor and the franchisee. The franchisor will allow the franchisee to sell products and trade under their brand in exchange for a fee and a share of the royalties. The franchisee will also pay the franchisor a set amount for a shop fit or for the equipment they need to provide the service. In nearly all cases, all of the products that are sold by a franchisee will be purchased from the franchisor. In essence, the franchisee becomes a selfemployed outlet for a larger business. For the franchisor itâ&#x20AC;&#x2122;s not just a case of taking. They will be expected to recruit summer 2016

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INTRODUCTION TO FRANCHISING

the right type of person to be a franchisee. These people must meet a set criteria and are normally expected to have a certain amount of money at their disposal, as well as the experience and drive to promote and build the brand. Franchisors will also receive an administration or marketing fee. This will be used for the promotion of all the franchises and company-owned stores under the brand. The more franchisees there are, the more money goes into the marketing spend and the cycle continues, growing the brand. Types of franchise businesses Despite there being many variations on the franchising model, there are only two actual types of franchising – business format and product distribution. The business format sees a franchisee taking on a business under the branding of a franchisor, they pay a set fee for the right to trade under a brand. The franchisee will also fund a shop fit within their fee and be required to buy all of the products from the franchisor to sell. 64

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Typical examples of this type of model within the food franchise market would be Subway, McDonald’s, Papa John’s and KFC. These franchises all offer menus that are set by the head office and stores that are laid out in a similar way, with similar designs.

There are only two actual types of franchising business format and product distributions The Product Distribution format is when a business independent from a franchise is allowed to sell a franchise’s products. Examples of this format in the UK market are Krispy Kreme Donuts and Thornton’s.

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Shops, service stations and newsagents are able to place display units in their stores and sell products under license alongside their other goods. The franchisor licenses their logo and branding to the franchisee, but does not provide them with an entire system for running the whole business.

Types of franchise agreement When it comes to becoming a franchisee, there are three main types of franchise agreements. 1. Single unit franchise A single or direct unit franchise is the agreement that the franchisee will take on the running of one outlet for the brand. They have the rights to trade from one property or mobile unit as a franchisee. This type of franchise is most commonly sold in the UK and offers great opportunities for anyone who does not want to operate their business as an independent.

INTRODUCTION TO FRANCHISING

2. Multi-unit franchise A multi-unit franchise opportunity is where a franchisee signs a deal to run a set amount of franchise units over a designated period of time. This could be a number throughout the country or across a specific territory. Doing things in this way could see the franchisee gain geographical protection. 3. Master franchise A master franchise is usually when a franchisee signs a deal to open all of the franchise units in a certain area or country. They are responsible for growing the brand and building the companyâ&#x20AC;&#x2122;s reputation. The franchisee, in essence, buys the licence and this allows them to be more involved in making the main business decisions. This is the most costly option of the three, but it can bring with it the biggest financial rewards.

DECIDING TO BECOME A FRANCHISEE

Franchise survey, franchisees can expect to have to invest an average of ÂŁ136,000 when opening their food franchise unit.

When it comes to taking the first steps into the world of franchising there are a few things that you must consider.

This is slightly higher than other franchise sectors, but it is a more profitable industry, so the risks are outweighed by the reward.

Firstly, you must ask if you have what it takes to become a franchisee. Do you have a passion for the business that you will be working for and the products you will selling? Do you have the energy and drive to run your own business? If the answer to these questions in no, then you should give up on the idea of running a franchise. However, if you still think franchising if for you, you will then need to consider your finances.

Franchisees need to have enough funds to pay for the rights to franchise

Franchisees need to have enough funds to pay for the rights to franchise, as well as for equipment, products, training and a property to operate the business from.

According to the bfa study, over half of the businesses in operation claim an annual turnover of more than ÂŁ250,000.

According to the latest NatWest bfa

In the hospitality and catering sector, only 3% of franchise units turnover less than summer 2016

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£50,000 per year, while 23% turnover £50,000-£250,000 per year, 29% between £250,000 and £400,000 and 45% more than £500,000. Altogether, the survey revealed that a record 97% of all franchisee owned units are reportedly profitable.

newly-recruited franchisees in the UK is under the age of 30, with the overall | average age for a franchisee being 49. So, if you’re young, or young at heart, and you have the drive and finances, it’s time to choose your franchise.

It’s clear to see why investing in a food franchise is an attractive proposition

This is a big positive for investors as the security of a high percentage win rate in terms of making money and ultimately a return on their investment, is huge. So it’s clear to see why investing in a food franchise is an attractive proposition. However, the investment in a franchise is more than just a financial one and would-be franchisees must consider every eventuality. You must consider the trading times of the business, the affect running a franchise will have on your home life and the consumer demand for the products you will sell. One thing that you shouldn’t let put you off is age. The bfa survey revealed that one in five 66

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The right choice Looking for 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. Many investors will be drawn to the promise of making huge returns with well established brands.

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The sheer volume of units in franchises like McDonald’s, Domino’s Pizza and Subway means that there is good market coverage and these businesses deserve nothing but praise for their part in the growth of UK franchising. However, there are many smaller franchises that are expanding and doing something that no other business is doing in the market. There are also franchises that offer mobile or street food units. Do you want to work alone, possibly running a mobile franchise like Cafe2U or Coffee Bike? Or do you see yourself managing a team of employees at a McDonald’s or Pizza Hut restaurant? Do you want to hit the ground running, with the benefit of a well-established band? Or do you want to bring something different to your chosen location? Making a decision is very important and you must consider all the possible opportunities on the market. You must also do your research and find out what franchisors offer to help ensure

INTRODUCTION TO FRANCHISING

that you are set up to succeed right from the off. Good franchisors will offer you all the support and advice you need to set you on your way and according to the NatWest bfa Franchise Survey, satisfaction with franchisors has never been at a higher level. The latest figures revealed that nine in 10 franchisees are ‘definitely’ or ‘mainly’ satisfied with their franchisor, with 45% of those falling within the ‘definitely’ satisfied.

LET’S GET FRANCHISING Without question, franchising is one of the safest, easiest and rewarding routes into running your own business, and it is no surprise that more and more people are getting into the industry. Food franchising, in particular, can be highly profitable, due to the fact that it fulfils an essential need that we have – the need to eat.

Without question franchising is the safest, easiest and rewarding routes into running your own business The food franchises that serve the UK public aim to continue to feed this need by opening more and more units. Alongside the need to eat, is the demand for a variety of choices to be available around the clock. Due to this, the food franchise market is very diverse at present and there are franchises to cater to all tastes. These provide opportunities to suit all potential franchisees’ budgets and differing lifestyles. summer 2016

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INTRODUCTION TO FRANCHISING

The opportunities are plentiful and the rewards for running a successful business are many. Therefore there is never a better time to get into franchising 68

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I recently found myself discussing the food franchise industry with someone who has close ties to one of the UKâ&#x20AC;&#x2122;s fastest-growing franchises. He told me how from very humble beginnings, the business had grown to have multiple sites around the UK and was continuing to expand at home and abroad. He said that the business was growing from strength to strength thanks to the franchising form. The story of this franchise proves that

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with a good idea and a lot of determination, you can go a long way. The opportunities are plentiful and the rewards for running a successful business are many, therefore there is never a better time to get into franchising. With the sector being in rude health, there are a long line of businesses looking for people to turn into franchisees. So, if you think franchising is for you, what are you waiting for? Go for it!

Introduction to Franchising 621,000

PEOPLE ARE

EMPLOYED IN FRANCHISING

44,200 FRANCHISING UNITS ARE OPERATING IN THE UK

£136,000

THE AVERAGE AMOUNT

A FRANCHISEE WOULD

HAVE TO INVEST TO

OPEN A CATERING AND

HOSPITALITY UNIT

FRANCHISING CONTRIBUTES

£15.1bn TO THE UK ECONOMY

9 out of 10

FRANCHISEES

ARE ‘DEFINITELY’

OR ‘MAINLY’

SATISFIED

WITH THEIR

FRANCHISOR

AVOIDING FRANCHISE RISK

Auto Enrolment Explained Auto

Enrolment Explained

FOOD FRANCHISE

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Accountancy

The state pension was first introduced in May 1908 by the then recently appointed Prime Minister, H. H. Asquith. The Old Age Pensions Act received royal assent in August of that year and the first payments were made to pensioners in January of the following year. At that time eligible people over the age of 70 were entitled to a maximum payment of five shillings per week – in today’s terms this is equivalent to £20. Comparing the first 100 years of the state pension it’s clear to see why the government’s pension budget is now under strain. In 1908, there were 500,000 pensioners – in 2008 there were 12 million. The £20 per week payment had increased to £90, and the ratio for surviving to age 100 had increased from 1:200 to 1:4. The government decided to push an initiative for us to save for our own retirement to compliment the state provision. In 2008, a revised Pensions Act was made for all eligible employees to be automatically enrolled into their company pension. The membership of this scheme runs between October 2012 and February 2018 by which time every organisation of any size will need to offer a workplace pension to their workers.

EMPLOYEES – WILL YOU BE AUTOMATICALLY ENROLLED? As a worker you will fall into one of three categories, one of which automatically places you in your workplace pension. This most common category covers all UK workers aged between 22 and state pension age who earn over £10,000 per year. If this means you – contributions to your pension will begin at the next pay day after the company’s ‘staging date’ (or after a maximum 3-month postponement period if this has been utilised by your employer). Although you have a right to opt-out, this

can only be done once you have been assessed for eligibility, i.e. after staging date. Pension contributions are based on a qualifying band of income (£5,824 £43,000 for this tax year). Initially you will pay 1% including tax relief, rising to 5% in April 2019. Your employer will pay 1% of your qualifying earnings, rising to 3% in April 2019. These are minimum amounts and you are normally able to increase your contributions if you wish, however your employer is not obliged to follow suit.

EMPLOYERS – IS YOUR COMPANY READY FOR AUTO-ENROLMENT? Choosing a pension scheme for autoenrolment is a complicated and time consuming process. There are a number of steps your company will need to go through; starting with finding out your company’s staging date, assessing your workforce, keeping them up-to-date with the pension changes, and informing the Pensions Regulator that you have met your obligations. Once the pension scheme is up and running you then need to make contributions and manage optouts and new joiners. Furthermore, there are a number of other issues that you will need to consider to practically implement the regulations: •Which product solution will best suit your company’s needs? •What will you choose as your default investment and contribution level? •How the costs and admin burden affect your business?

•How will you retain and maintain your records? •How will you notify your eligible jobholders?

CAN MCPHERSONS HELP? The Pensions Regulator has stated that 7/10 employers are seeking advice on meeting their Auto-Enrolment obligations. If you require assistance, Aron Gunningham is our pension specialist and an independent financial adviser. Aron will be happy to help answer your questions and guide you through your duties. The Pension Regulator has issued financial penalties for company’s who do not comply by their staging date, or for errors in the scheme once it has been setup. Coupled with the admin involved in meeting your duties, it would be prudent to speak to a financial professional. Although we can be excused for thinking that our National Insurance contributions should be paying for our retirement, inevitably the state provision will not be sufficient. Under the newly formed ‘single-tier’ state pension, retirees in 2016/17 are entitled to a full pension of £155.65 per week. Rarely is this seen as enough to live on. Like it or not, we must find alternative ways to supplement our retirement income. Auto Enrolment, although not a perfect solution, is the Governments way of forcing us to think more carefully about funding our retirement. Just call 01424 730000 or email info@ mcphersons.co.uk to arrange your free meeting.

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 p.watters@mcphersons.co.uk or call our Head Office on 01424 730000 for a free consultation at McPhersons’ London, Bexhill or Hastings offices.

Peter Watters, Director at McPhersons Chartered Accountants

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MODERN SLAVERY Does your organisation have a turnover of £36million or more? Are you a supplier to an organisation which has a turnover of at least £36m? Do you provide goods or services to an organisation who is, in turn, a supplier to a business which has such a turnover? If you answer “yes” to any of these questions, read on as you probably need to produce a Modern Slavery and Human Trafficking Statement. 72

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Legal

WHY SHOULD I BOTHER? If you are a large organisation (being one that has a minimum annual turnover of £36m), there is a new legal obligation to publish a public statement on your website about the actions that your business has taken to ensure that the business and your supply chains are free of slavery and human trafficking. If you are part of the supply chain to a large organisation, it is highly likely that you will be asked to confirm the steps that you take to ensure your business operations are slavery and trafficking free.

SURELY SLAVERY AND TRAFFICKING IS NOT PROBLEMATIC? In 2014, the Global Slavery Index by the Walk Free Foundation estimated there were 35.8 million victims of slavery across the world. Slavery and human trafficking can take many forms, from compulsory or forced labour to exploitation or servitude. It was estimated by the Home Office in 2013 that there were between 10,000 and 13,000 victims of modern slavery in the UK. The agricultural, food and hospitality sectors rank fairly highly in terms of modern slavery issues so this is an important subject for you and your suppliers to consider.

WHAT SHOULD A MODERN SLAVERY AND HUMAN TRAFFICKING STATEMENT INCLUDE? The statement should include details of all the actions that your organisation has taken during the financial year to ensure that slavery and human trafficking is not taking place in any part of its own business and in any of its supply chains. There

is no set format that the statement must take but you will probably want to include the following: details about your corporate structure and supply chains and in particular the risk areas specific to your business; your due diligence process and the measures you have taken to ensure that slavery and trafficking is not taking place (for example, you may have insisted on appropriate warranties being included in your commercial supplier contracts, you perhaps have conducted site visits of your suppliers premises to check the conditions of their workforce and/or provided training to your staff so that they are vigilant as to the signs); and the ways in which you will continue to monitor the situation going forward. If your organisation does not take any anti-slavery or trafficking actions, you are required to publish a statement to that effect. Such an admission could result in embarrassment so think hard before doing so.

WHAT SHOULD I DO WITH THE STATEMENT? The statement should be formally approved (for example, approved by the Board of Directors and signed by a director) and then published on your organisation’s website, with a prominent link to the statement on your home page.

WHEN SHOULD I DO THIS? As soon as possible as the new obligation is already in force, with organisations whose financial years end on or after 31 March 2016 being required to publish a statement as soon as practicable after their financial year end. You will then need to update your statement each financial year thereafter.

WHAT HAPPENS IF I DON’T PRODUCE A STATEMENT? If you do not have a statement it is likely to result in potential reputation and brand damage issues which could lead to loss of business (as it is probable that others will not wish to conduct business with organisations who are not publically committed to ensuring their business and supply chains are free from slavery and trafficking). The Home Office may also commence proceedings to compel your organisation to produce such a statement.

SO, WHAT SHOULD I DO IN PRACTICE? Assess your own business to ensure that it is slavery and trafficking free; Map out your supply chain and carry out the necessary due diligence on each of them – which is likely to involve asking them to provide you with a copy of their statement; Produce your Modern Slavery and Human Trafficking Statement, get it approved and publish it on your website, adding a link to it on your home page; and Continue to review and update your statement periodically and certainly at your financial year end.

WHERE CAN I FIND OUT MORE? The Home Office has published some guidance which can be found at www. gov.uk/government/collections/modernslavery” www.gov.uk/government/collections/modern-slavery.

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 - Goodman Derrick LLP - 020 7404 0606 - kdias@gdlaw.co.uk

summer 2016

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LEGAL

International

NEWS

Restaurant group agrees Saudi Arabia deal Leading UK restaurant group, the Casual Dining Group (CDG), has signed a franchise deal to open multiple restaurants in the Kingdom of Saudi Arabia. The agreement with Riyadh-based retail and leisure conglomerate Fawaz Alhokair Group comes as CDG looks to accelerate its expansion in the Middle East and Asia. Bella Italia restaurants will open in the country as part of the deal, which is for an initial 18 sites, over the next four years. Fawaz Alhokair already licences and operates a range of international retail and leisure brands such as M&S, Monsoon, GAP and Zara in the Middle East, and is understood to be opening an outlet-a-day in the region. The agreement’s execution and initial operations will be led by Karim Hajjali, Chief business Development Officer – under the leadership of Kamal Abusara, Chief Executive Officer of Alhokar’s food and entertainment division. Sultan Alhokair, Group Vice President for food and entertainment at Fawaz Alhokair, said: “We were impressed with Casual Dining Group’s portfolio of highgrowth brands, operational support and their various offerings and are excited to begin a long-term relationship.” The new deal, allied to other CDG activity in both the Middle East and Asia, is a statement of intent, with the company recently establishing a Dubai office led by Paul Smith, who

has extensive international leisure experience and was responsible for structuring the franchise deals that took Costa Coffee to China and then Dubai. Mr Smith reports into Mark Nelson, managing director of CDG’s international franchising and concessions arm. CDG CEO Steve Richards said: “We are pleased to announce this strategically-important agreement with such a significant and respected partner. “As a business we are building real momentum overseas – in addition, we are in meaningful discussions over similar partnerships across the Middle East and Asia regions, with further agreements in train.” Fawaz Alhokair, which is listed on the KSA stock exchange, is described as ‘one of the leading groups of companies in the Kingdom of Saudi Arabia focusing on retail and real estate business sectors’. Founded in 1989 by three brothers, it invests in those sectors across six Middle East countries, North Africa, the USA, and Central Asia, representing more than 80 international brands. Last year CDG, which also operates Las Iguanas and Belgo, opened a Café Rouge in Dubai and earlier this year launched a Bella Italia in India, with both restaurants operated via franchise.

Chipotle spices up menu with chorizo Mexican grill chain Chipotle has introduced chorizo to its menu. The company has added the spicy chicken and pork sausage to products served at its restaurants in select US cities. Chipotle’s chorizo recipe was developed by the company’s team of chefs. It is made with a blend of pork and white-meat chicken and is seasoned with paprika, toasted cumin and chipotle peppers. Steve Ells, founder, chairman and coCEO of Chipotle, said: “Since we opened the first Chipotle 23 years ago, our menu has changed very little, and our focus has been on constantly improving the quality and taste of the food we serve. “While we have never been opposed

FOOD FRANCHISE

to changing our menu, we only do so when we think there’s an opportunity to add something that is really unique but that fits within our overall menu, and where we can find ingredients that meet our high standards.” Like the other meat products that Chipotle uses, the pork and chicken used to make the chorizo is ‘responsibly raised’ (from animals that are raised in more humane ways and without the use of antibiotics or added hormones). Chorizo will be available in burritos, tacos, burrito bowls and salads and can be combined with other signature ingredients.

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Papa John’s celebrates Madrid opening International pizza chain Papa John’s has celebrated the opening of its first Madrid location. The new restaurant is one of more than 100 Papa John’s restaurants planned for the city and the surrounding area. The new project is operated by Drake QSR, which was awarded Papa John’s Franchisee of the Year in 2015. Drake QSR is one of the fastest growing partners for Papa John’s International and has over 45 units in Chile. Antonio Rostagno, Managing Director of Papa John’s Spain, said: “We’re excited to continue the momentum of our launch event and introduce Papa John’s legacy of quality to our fellow Spaniards.” Mr Rostagno said that expanding to Spain is providing better career opportunities for local young people. Tim O’Hern, senior vice president and chief development officer, said: “We will be adding much needed jobs to the labour market.” Papa John’s also recently opened its first restaurant in Northern France at the end of May and will be launching a site in the Netherlands in July.

summer 2016

FOOD FRANCHISE

International

News

Brioche Dorée turns to AURES to migrate point-of-sale assets The French-style fast-food chain Brioche Dorée has chosen AURES’ YUNO point-of-sale terminals to overhaul its EPOS management system. The roll-out comprises of over 500 AURES EPOS terminals being placed in all French branches and franchises of Brioche Dorée. Nicolas Bouard, Brioche Dorée’s Head of EPOS Systems, said: “During the analysis phase of overhauling our EPOS system, an in-house working group drew up specifications. The hardware had to meet three major criteria: speed, reliability and user-friendliness. “The test results immediately focused our attention on AURES’ YUNO, which was unanimously approved by our IT managers and operators. “In our chosen configuration, each payment terminal also features a WiFi card and a 10” customer-relay screen for digital signage on sales counters.” Hervé Février, Head of IT Support and Operations at Groupe Le Duff, said: “In March, Brest, Nice, Marseille, Montpellier and Bordeaux became the first towns to migrate to the new solution, training was organised for each region’s restaurant managers two weeks before the migration date. “We sent each site a ‘teaching POS terminal’ beforehand to present the new solution to the teams and train them.” Nicolas Guilbert, Project Manager and

Director of Management Control at Brioche Dorée, said: “We’re very pleased with this new EPOS proposal, its performance exceeds our expectations and the hardware we’ve chosen is exactly what is required by many features of our new TCPOS software platform, in both the front and back office.” Thomas Donnet, Head of Key Accounts

for the AURES Group in France, said: “We’re very pleased with the level and quality of our discussions with Groupe Le Duff and Brioche Dorée, the project is progressing in leaps and bounds and the national roll-out – in four to eight restaurants a week – is going really well.”

Domino’s acquires significant stake in Nordic operations Domino’s has invested £24M to acquire considerable minority interests in the master franchisees for Domino’s Iceland, Norway and Sweden. Following the investment, Domino’s will have a 49 per cent share in Iceland and an effective interest of 45% in both the Norwegian and Swedish businesses. Domino’s Iceland was established in 1993. It currently operates 19 stores and is one of the most successful Domino’s operations on a per capita basis of the 81 countries in which the brand operates. Domino’s Norway started in 2014 and operates 10 stores, with the opportunity for more opening in the future. There are currently no Domino’s stores in Sweden, however, it is anticipated that

FOOD FRANCHISE

the first units will open by the end of 2016. David Wild, CEO of Domino’s Pizza Group, said: “We are delighted to be investing in these exciting markets, which hold great potential for the group. “Our skills in e-commerce, marketing and supply chain will complement the excellent local know-how of our partners in Iceland, Norway and Sweden and help to grow the Domino’s brand. “This is a great deal for everyone concerned and we look forward to welcoming our new colleagues and

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customers.” Birgir Bieltvedt, Chairman and founder of Domino’s Iceland, said: “The combination of two partners in these markets, with our own unique skills and knowledge, combined with the financial strength which Domino’s Pizza Group brings, will create a strong business in countries with significant potential for future growth. “We have a talented and motivated team and are excited to start working alongside our UK partners in further developing the Domino’s brand.”

Domino’s crowns world fastest pizza maker A Domino’s franchise owner has been crowned the 2016 World’s Fastest Pizza Maker.

Arby’s signs development agreement for 25 new sites in Kuwait and Saudi Arabia Arby’s Restaurant Group has plans to open 25 new restaurants in Kuwait and Saudi Arabia. The sandwich chain has agreed an international franchise development deal with Kharafi Global to launch the new sites over seven years. The news follows a strong year of development in 2015 with 69 new restaurant openings globally, along with agreements for 138 new restaurants announced earlier in 2016. Paul Brown, chief executive officer, Arby’s Restaurant Group, Inc. said: “We are excited about the agreement with Khafari Global as we turn our attention to bringing the Arby’s brand to new markets around the world.” “We welcome Kafari Global and their experienced restaurant development and operations team into the Arby’s family and have the utmost confidence in their success.” Haidar Al Naqeeb, Managing Director and Co-Founder, Kharafi Global, said: “We are thrilled to bring the Arby’s brand to guests in Kuwait and Saudi Arabia. “With Arby’s continued strong sales performance, outstanding leadership and robust menu of delicious products, we believe the future for Arby’s is incredibly bright.”

Dennis Tran made three large pizzas in just 34 seconds to claim the title in the competition held during Domino’s Worldwide Rally, in Las Vegas Nearly 8,000 Domino’s team members and franchisees from around the world attended the event. After being presented with $3,000 in prize money and a trophy by Domino’s President and CEO Patrick Doyle, Mr Tran, from Tallahassee, Florida, said: “Vince Lombardi once said, ‘Winning isn’t everything, but wanting to win is’. “We wanted to win. We executed. We left Las Vegas a four-time world champion.” The World’s Fastest Pizza Maker finalists came from Domino’s stores around the world to compete. They had to hand-stretch fresh dough, sauce and top three large pizzas – one pepperoni, one mushroom and one cheese – as quickly as possible. While speed was important, it was only part of the equation in determining the World’s Fastest Pizza Maker.

Quality was scrutinized as two judges, highly qualified in Domino’s standard pizza-making practices, inspected the stretching of the dough, application of the sauce and portioning of toppings during the competition. Domino’s began the World’s Fastest Pizza Maker competition in 1982 to honour pizza makers who best exemplify the company’s philosophy of keeping efficiency in the store to allow sufficient time for safe, timely pizza delivery. Mr Doyle said: “We are thrilled to crown Mr Tran as Domino’s 2016 World’s Fastest Pizza Maker. “Domino’s and its franchisees employ some of the greatest pizza makers in the world. “Our emphasis is on the quality of the pizza, while also using our expertise to get them made quickly. “The World’s Fastest Pizza Maker competition recognises the champions that take pizza-making to an entirely different level.”

summer 2016

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International

News

Leading coffee chain continues UK and International expansion Coffee Republic has opened its newest International Bar in Manama, Bahrain. The Manama bar is Bahrain’s first Coffee Republic and is located in the city centre near the Royal University for Women. It features two levels with two lower floor areas, a mezzanine area, a terrace and meeting rooms, each being air conditioned. Coffee Republic is set to open a second Bahrain location in another city. The opening of this location compliments the company’s international expansion with the latest signing of their Spanish-based Franchises, of which several locations including Menorca Airport, Lanzarote, Barcelona Terminal 1 and Fuerteventura, have opened in the past 18 months. Further on the UK front, Coffee Republic has begun to fit out their third franchise in partnership with Midcounties Co-operative in Stourport, to complement their existing Walsall and Swindon locations. There are plans to open more Cooperative locations during 2016.

Pizza Hut scales new heights to celebrate opening in 100 countries around the world

Papa John’s Scottish franchisee wins international award Leading pizza chain Papa John’s has crowned Scottish store owner Zulfiqar Haidar the company’s international franchisee of the year.

Pizza Hut has celebrated opening locations in a hundred countries by delivering a pizza to the summit of Mount Kilimanjaro. The takeaway giant, which has previously delivered to The White House and the International Space Station, scaled the mountain following the opening of the newest store in Tanzania. The trek took six days from start to finish and was completed by a team of pizza hut workers and professional hikers. Not only has Pizza Hut set a Guinness World Record title for the highest land delivery, but it has also raised money from the event, which will to go to Msasani Primary School in Dar es Salaam to demonstrate how dedicated it is to supporting the local communities where it sets up stores.

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Zulfiqar, who runs four restaurants with his brother Iftikhar, was presented with $20,000 by Papa John’s founder John Schnatter at a ceremony in Orlando, Florida. Zulfiqar now plans to re-invest 75 per cent of the prize money into opening a fifth store before the end of the year. The other 25% will go towards setting up Papa John’s Glasgow, a foundation where £8,000 per year will be donated to develop an organisation which helps other charities in obtaining funding. Zulfiqar said: “Papa John’s has more than 4,800 stores across the world and by winning the International Franchisee Award we really have put Glasgow on the map. “We were selected from hundreds of franchisees due to our sales performance, growth and also community contribution.” As well as being named as Papa John’s international and UK franchisee of the year, Zulfiqar and his team also won Papa John’s marketing award for 2015, which

recognized innovation in marketing through contribution to charity via a fundraising for schools scheme. Zulfiqar also won a Scottish Asian Business Award in 2013 and 2016.

KFC India launches new meal deal box that recharges your mobile phone KFC India has released a limited edition meal deal box which includes a mobile phone charger.

Wendy’s plans expansion in Brazil with joint venture The Wendy’s Company has announced its entry into Brazil, with plans for significant restaurant expansion.

The Watt A Box contains a built-in power bank which charges your phone while you enjoy your food. Lucky customers at select KFC stores in Mumbai and Delhi will get a chance to have their 5-in-1 Meal served in a Watt a Box and will be able to take them home too. Lluis Ruiz Ribot, KFC India CMO, said: “We launched the 5-in-1 Meal Box in March this year with the objective of providing an abundant complete meal and at an affordable price for our customers. “With the launch of Watt A Box, we have gone a step ahead and also introduced an element of utility into the box. “Each one of us spends a considerable time on our smartphones daily and the phone battery going dead is almost like a

nightmare! No longer so with Watt A Box around.” KFC co-created this innovative concept with their Mumbai-based digital agency, Blink Digital. Dooj Ramchandani, Co-founder and Chief Creative Officer of Blink Digital, said: “In today’s day and age, smartphones have become as indispensable as food. “Finding a charger when your smartphone battery is low can be stressful - whether in the middle of a meeting or in the middle of a meal. “With the limited edition KFC Watt A Box, we wanted to offer a smarter and easy way for our consumers to recharge their smartphones at KFC, either in store or on the go, that would give them more of the moment to enjoy their meal and have one less thing to worry about.”

This growth will be driven through Wendy’s Brazil, a joint venture between affiliates of Infinity Services and Starboard, one of Wendy’s largest US franchisees, and a subsidiary of The Wendy’s Company. Two restaurants are due to be opened in São Paulo, in mid-July. Based in the city, Infinity Services has successfully brought several well-known restaurant brands to Brazil in recent years. Starboard, led by veteran Wendy’s franchisee Andrew Levy, Chief Executive Officer, and Marcos Silva, President, operates 182 Wendy’s restaurants in nine states. Marcel Gholmieh, Chief Executive Officer, Wendy’s Brazil and Infinity Services: “We choose São Paulo for the Wendy’s introduction because it is the main financial and gastronomic capital of the country. “Our initial objective is to create flagship restaurant locations, establish the Wendy’s brand and then, longer-term, start thinking about potential partnerships with local groups in other areas of Brazil.” Bob Wright, Executive Vice President, Chief Operations Officer and International, The Wendy’s Company, said: “We are pleased to partner with two highly capable operators who have a growth mindset, proven restaurant experience and a strong customer focuses. “We believe this joint collaboration will provide a springboard for growth. “Starboard has a deep knowledge of Wendy’s operations and what it takes to run a successful Wendy’s restaurant, while Infinity Services is immersed in the Brazilian market and culture. “Brazil is one of the key global markets where we see considerable potential, and where we are investing additional energy and resources as part of our ‘narrow and deep’ international strategy. “From the start, we want to ensure our restaurants in Brazil truly stand out in the minds of consumers in terms of food, service and atmosphere, and that we give them ‘a cut above’ experience they will be excited to tell others about.”

summer 2016

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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. One way to monitor the way that a 82

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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, closures or takeovers. It is on the stock

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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 – Marston’s PLC As always with the market watch section of the magazine, we look at one particular share in greater detail. In this issue we focus on Marston’s PLC.

weeks ending on April 2, the company declared an interim dividend of 2.6 pence per share, representing a 4.0% increase on 2015.

Marston’s is a leading pub operator and independent brewer. It has an estate of 1,600 pubs situated nationally, comprising of managed, franchised and leased pubs.

The company saw underlying revenue up 11.5 per cent to £428.7 million, reflecting like-for-like growth in the company’s pubs, the impact of new openings, growth in Marston’s beer brands and the acquisition of Thwaites’ beer business.

Marston’s share price stood at 148.30p. Over the past 52 weeks, the price had reached a high of 176.00p, also falling to a low of 139.30p. In its half-year statement, for the 26

Underlying profit before tax was up 11.8% to £33.1 million (£29.6m in 2015) reflecting the contribution from new pub-restaurants and benefits of the

Thwaites acquisitions. Following the results, Ralph Findlay, CEO of Marston’s said: “We are encouraged by our first half performance, and are on track to meet our expectations for the year. “In pubs, we have driven our growth by the organic development of pubrestaurants and franchise-style pubs and more recently through investment in lodges and premium bars, widening our appeal. “In brewing, we had an excellent first half year and achieved good growth through our industry-leading brands and services.”

summer 2016

FOOD FRANCHISE

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. KRISPY KREME (KKD)

DUNKIN DONUTS (DNKN)

Krispy Kreme have been the best performing stock in the food franchise world over the past three months. They started at $15.05 per share and climbed to $20.94 per share, a 39.14% rise.

After a strong performance earlier in the year, Dunkin Donuts saw its shares fall 6.62% over the past three months. Starting at $45.27, the finished at $42.32.

PAPA JOHN’S (PZZA)

STARBUCKS (SBUX)

Papa John’s was another strong performer over the past three months. They began at $54.38 rising to $66.69, an impressive 22.64 increase.

Starbucks shares slipped by 7.26% over the last three months. Starting at $58.96, they fell to $54.68 at the end of the watch period.

YUM! BRANDS (YUM)

WENDY’S (WEN)

Yum! again saw its stock continue to rise over the past three months. Starting at $79.80, it finished at $82.15, an increase of 2.94%.

After a dip over the previous three months, Wendy’s again saw its shares fall over this watch period. Starting at $10.61, the price fell by 8.95% to $9.66.

MCDONALD’S (MCD)

MARSTON’S (MARS)

After seeing the share price rise previously. The company experienced a 3.03 drop over the past three months from a starting point of $123.17 to $119.44.

As you will have seen from our shares in focus section, Marson’s shares stood at 148.30p at the end of our watch period. This was a fall of 1.72% from the starting point of 150.90p. Despite this, the

FOOD FRANCHISE

SUMMER 2016

decline has slowed since we last looked at the shares in the spring, when the shares had fallen by 8%.

SONIC (SONC) After rallying slightly to $32.62 after we last looked at the shares, Sonic’s price fell again by 15.51%. This meant the price at the end of the watch period stood at $27.56.

CHIPOTLE (CMG) Chipotle’s shares dropped by 15.69% over the past three months. Starting our watch period at $475.31, the shares fell by $74.58, to $400.73.

DOMINO’S (DOM) After reporting on Domino’s share price rise in our previous issue, we have again witnessed an increase over our latest three-month watch period. The shares rose from 1021p to 1042p, an increase of 2.06%.

Krispy Kreme (KKD) +39.14%

Starbucks (SBUX) -7.26%

Papa John’s (PZZA) +22.64% Sonic (SON) Yum! Brands (YUM)

-15.51%

+2.94% Chipotle (CMG) Domino’s (DOM)

-15.69%

+2.06%

Correct at time of writing.

diary dates

Dates for your diary Find out what events are taking place in the world of franchising over the next few months

Speciality & Fine Food Fair Olympia London September 4-6 2016

Lunch! The Business Design Centre

The Speciality & Fine Food Fair has been the premier event in the industry for 16 years and is where top retail, foodservice & wholesale buyers source new fine food & drink products from the best suppliers in Britain and around the World. It is an experience for all the senses, giving you the chance to see, taste, smell, touch and hear the delights of the fine food industry.

Lunch! attracts over 6,000 trade buyers looking to source new, innovative products, keep up with the very latest industry developments and network with industry colleagues.

September 21-22 2016

It is the essential trade show for anyone wishing to do business with food-to-go chains, coffee shops, cafes, supermarkets, sandwich shops, contract caterers, delis, airlines and travel catering, attractions,

Takeaway Innovation Expo 2016 Excel London

Takeaway Innovation Expo is designed to give you all the tools you need to grow and to develop your takeaway, whether that is franchising your restaurant, adding an automated online ordering system or rebranding yourself to move to the top of the food chain.

September 27-28 2016

There’s also no better way to do business face-to-face with buyers from independent retailers, food halls, delis, restaurants, hotels, coffee shops, cafes and farm shops.

The event is an interactive exhibition and conference designed specifically to help takeaway owners run their

wholesalers, distributors and thousands of quality independents.

businesses better, meet other like-minded professionals to share ideas, and develop professional knowledge. Bringing together, networking, workshops and insightful seminars, the event offers a unique opportunity for restaurateurs and takeaway owners to obtain the latest tools, techniques, and advice within an everchanging industry.

IN THE NEXT ISSUE Top 50 Food Franchises

We take a look at the top 50 food franchises operating in the UK ranked out of the number of stores they currently have open.

Franchise Security

Becoming a franchisee can be full of risks. We look at 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.

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SUMMER 2016

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SUMMER 2016