Food Franchise Magazine Winter 2017 by MVHmedia

FOOD FRANCHIse C AN

QSR Franchise

Coffee Franchise

ITIOO D E R TE

PO RT UN

Pub Franchise

Restaurant Franchise

We speak to a selection of MangoBean franchisees about joining the business

WWIINN

Food-to-go Franchise

Be Inspired

HI S E

Fast Food Franchise

FOOD FRANCHIse V4 ISSUE 1 WINTER

ONE TO WATCH

We discover what makes Dum Dum Donutterie one of the hottest franchise opportunities on the market

FRANCHIsee Q&A

THe eFFeCTs OF BReXIT ON FRANCHIsING

Want to know more about the benefits of franchising? We held a question and answer session with the people in the know

With the nation preparing for Brexit we discuss the impact the decision to leave has had on Franchising in the UK

Print edition Â£3.99 WINTER EDITION

NEWS

FRANCHISE SHOW

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

Get the scoop on The Franchise Show 2017 with our show preview

Editor’s message

appy New Year from everyone at MVH Media!

Publishing Director

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

Production editor

Timeem Taleifeh timeem@mvhmedia.co.uk

Advertising sales

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

Features & News Assistant James White jamesw@mvhmedia.co.uk

Contributors Peter Watters James Daglish

Finance

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

We hope you have had an enjoyable break and have come back refreshed and ready for a successful 2017. There is plenty to get excited about in the world of franchising, especially in the food and drink sector. In this edition, we are showcasing the ever- popular Franchise show, where skilled professionals in various different fields will be exhibiting giving franchisees the opportunity to discover the best UK & International franchise brands. Inside you will find comments from such respected brands as Subway, Papa John’s, Riverford, and Mango Bean as they reveal their secrets to success and their plans for 2017. Elsewhere, we speak to the individuals who have taken the plunge and learn how they got into the franchising industry. As usual, Food Franchise magazine will include its One2Watch feature as we look at the exciting plans for Dum Dum donutterie, an artisan baked doughnut company with potential to grow significantly in the next few years. We are also excited to look at the important topic of Brexit and the effects it will have on franchising both short-term and long-term. The Market Watch feature gives you a round-up of how some of the biggest brands in the industry are performing on the stock market. Expert legal advice comes from the team at Goodman Derrick’s a leading commercial law firm about all your accountancy queries. Last but not least, we have all the latest industry news from home and abroad. Until next time,

The Food Franchise Team Publisher MVH Media Ltd.

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

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

Front cover image courtesy of Mango Bean Page 53

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Contents WINTER

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

34 Franchisee Q&A Want to know more about the benefits of franchising? We held a question and answer session with the people in the know

46 The Franchise Show

Get the scoop on The Franchise Show 2017 with our show preview.

52 Be inspired

We speak to several franchisees about the decision to join the ever expanding Franchise, Mangobean

58 The effects of Brexit on Franchising

With the nation preparing for Brexit we discuss the impact the decision to leave has had on Franchising in the UK

46 4

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30 52 WINTER 2017

68 one To Watch

We discover what makes Dum Dum Donutterie one of the hottest franchise opportunies on the market

71 international News We round up the latest developments from brands from around the world

76 Market Watch A summary of how the franchises in the food sector are performing on the Stock Exchange

80 Franchise Sales and resales

Jess Bains steers you through the sales and resales process

82 Legal

James Daglish discusses the lessons for the Food and Restaurant trade from the Fabric case

84 Accountancy

Peter Watters asks â&#x20AC;&#x2DC;is spreading your investments is the key to success?â&#x20AC;&#x2122; WINTER 2017

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News

round-up Taco Bell opens outlet in Colchester Mexican-inspired restaurant chain Taco Bell has opened in Colchester. The new location has opened in partnership with local franchisee Dart Taco. The two storey, 46 seat outlet, on Head Street, features an urban look with influences from Mexico and the brand’s California based headquarters. The centrepiece is an open kitchen, which showcases quality ingredients and lets consumers watch their food being made fresh to order. Bringing two worlds together, the restaurant features modern conveniences such as free Wi-Fi and charging points for customer’s phones, so they can connect and

recharge while they eat. Nick Dawson, General Manager Taco Bell Europe, said “This is the fourth Taco Bell restaurant that our franchisee Dart Taco has opened in the UK. We are proud to have such a great local partner who is driven to continue to bring Taco Bell to the people of Essex.” Andrew Molloy, of Dart Taco, said “Having opened the first Taco Bell in the UK, we have worked with Taco Bell for six years and have first-hand seen the passion and excitement from fans build year on year. We have had our eyes on Colchester for quite some time

now and it’s really exciting to be able to finally give the people what they have been asking for. “Along with being able to provide our signature Mexican-inspired eats to the locals, we have created an additional 40 jobs in the area. Being a part of the community is such an important thing for us and the Brand, so we look forward to showing Colchester what it means to Live Más.” Taco Bell Colchester is the second Taco Bell to open in 2016 and the fourth restaurant for the Essex region.

World’s leading Mediterranean pizza delivery company now searching for London sites Telepizza UK Ltd looking for new sites across London. Telepizza UK Ltd have been appointed as master franchisor for Telepizza S.A. (Spain) across a large swathe of Central, South and South East London. Stiles Harold Williams have been appointed to source suitable sites and are now concentrating on securing initial sites in the London Boroughs of Hammersmith,Fulham, Kensington and Chelsea, Kingston-UponThames and Wandsworth. Sites will also be considered in the London Boroughs of Camden, Westminster, Lambeth, Southwark, Merton, Sutton, Greenwich, Croydon and Bromley. The requirement is for sites suitable for either take away / delivery restaurants or dine in / take-away /delivery. Sites should be from 800 sq ft to 2,000 sq ft in busy, prominent locations. Naresh Malda, MD of Telepizza UK said:“Telepizza are the world’s leading Mediterranean pizza delivery company. I was looking to invest in the food sector and once I investigated this band and the quality of the product I knew it was perfect for UK expansion.” Nigel Evans Partner of retained agent

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Stiles Harold Williams commented: “It is very exciting to be seeking premises for a company new to the UK but which has a proven brand with more than 1,300 stores.

The concept and quality of the product will ensure the growth is rapid in this competitive sector.”

Domino’s keen to expand with another brand Domino’s Pizza says it has approval from the owner of the brand to explore opportunities with another fast food.

Domino’s Pizza is keen to branch out into another fast food, with the blessing of its US brand owner. Chief executive Don Meij said Domino’s in the US, which holds the pizza brand’s franchising rights, has given approval for the Australian-based company to own another US fast food brand, which it could then expand into other markets. “We are interested in a US business and we are looking in the long term for a second brand,” Mr Meij told AAP. “Domino’s in the US has acknowledged that we are a public company that

needs to grow and has given us full legal and written approval to look at other markets.” But he said speculation that the group was already negotiating with a Mexican fast food franchise in the US was not true. “That was made up. I’ve never spoken to a Mexican business,” Mr Meij said. “There has been a lot of speculation.” Domino’s is the largest pizza chain in Australia, and also has pizza operations in New Zealand, France, Belgium, the Netherlands, Japan and Germany.

easyCoffee open for business in Southend-on-Sea Coffee chain easyCoffee has opened its newest shop. easyCoffee, which is part of the easy family of brands, opened its latest store in Southend-on-Sea. With outlets already in Leicester Square and Covent Garden, this is the first opening outside of central London. easyCoffee has partnered with Lavazza to offer customers a £1 quality bean to cup coffee. The shop also offers a selection of hot and cold food items.

SOHO Coffee Co. shows off new look at the opening of store Artisan food and coffee chain SOHO Coffee Co. has revealed its new format at the opening of its latest store.

Located on Union Street, in Bath, the new store is offering customers the next wave of coffee development. At the heart of the menu is their signature Organic and Fairtrade coffee, roasted locally in the Forest of Dean. Customers are also able to enjoy guest single-estate coffees, along with an extended range of specialist drinks, including almond matcha latte, Vietnamese coffee and the Guillermo – an iced short black served with fresh lime. The store also features a new deli counter, offering a range of hot filled sourdoughs, tacos and salads, while early risers can enjoy gluten-free porridge with coconut milk or opt for the perennially popular bacon and egg sandwich on hand-cut bread. Penny Manuel, Managing Director of SOHO Coffee Co, said: “We are extremely excited to be opening a store in the centre of Bath. “This beautiful city is one that we have been looking to venture into for a long time. “We are continuing to develop our brand, and Bath is the first store that includes our new coffee menu, guest coffee station, and deli salad counter, which we can’t wait for our customers to experience”

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News

round-up 88 takeaways for every 100,000 people in England There are on average 88 fast food outlets per 100,000 people in England, new figures have revealed. The data, from Public Health England, found that the density of outlets in local authorities ranges from 24 to 199 per 100,000 population. The Obesity and the environment – Density of fast food map revealed that London’s West End had the greatest concentration of takeaways, with 198.9 per 100,000. According to the figures, the borough of Westminster had 464 fast food outlets. However, the area with the highest number of outlets was Birmingham, with 1058 (96.1 per 100,000). The area with the lowest number of takeaways per 100,000 was South Cambridge, with 24.1 and 37 in total. The map was published to help authorities

tackle obesity. Dr Alison Tedstone, chief nutritionist at Public Health England, said: “Having fish and chips or a chicken curry is part of Britain’s culture. “However, over a fifth of adults and children eat takeaway meals at home more than once a week which is contributing to the nation’s obesity epidemic. “Some councils are already trying to limit new takeaways, particularly around schools. PHE encourage other councils to follow in their footsteps as a healthy environment is a core part of tackling childhood obesity.” According to the report, most fast food outlets are independent companies, with only one or two outlets. Public Health England said that it is likely

the data does not show the complete picture for fast food outlets. Many of the outlets that could be considered ‘fast food’ are likely to be multifunctional; sit-down and eat in, takeaway and home delivery. As a result businesses may have been recorded under the category of restaurant or café which would mean they are not considered here despite selling similar types of food to those included in this analysis. Also, some outlets that sell baked goods, like pasties and sausage rolls, may be categorised as bakeries, a category not considered in this analysis; although some of the outlets included in this analysis do sell baked goods.

Samworth Brothers gobbles up West Cornwall Pasty Company West Cornwall Pasty Co operates across a wide range of travel and high street locations and has flagship trading partners West Cornwall Pasty Co operates across a wide range of travel and high street locations and has flagship trading partners. Food giant Samworth Brothers has bought West Cornwall Pasty Company in a multi-million pound deal. The acquisition includes West Cornwall Pasty Company’s 33 fully owned outlets in rail stations and high streets across the country, as well as 19 franchised shops in Moto motorway service stations. A spokesman for Samworth Brothers said the purchase would complement the food producer’s existing portfolio, which includes the pasty brand Ginsters, making the group one of the biggest pasty purveyors in the country. West Cornwall Pasty Company, which still makes all of its pasties in Cornwall also offers a wide range of products, such as chocolate brownies and millionaires shortbread.

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After changing the group’s strategy by opening outlets in sports stadiums, expanding its coffee range and refreshing the brand to lure in more customers they generated up to £12.5 million in sales last year. Alex Knight, chief executive at Samworth Brothers, said the deal was a good extension of the company’s hot food-to-go division, which it is looking to develop. “We see the hot food-to-go sector as one area of real opportunity,” he said. Peter Smedley, an analyst at Panmure Gordon, said the deal would further diversify Samworth’s operations. The company is already the largest savoury pastry producer in the UK and the addition of West Cornwall Pasty Company will add another string to its bow and open up a new distribution channel. “It’s far from being a transformational

deal for Samworth,” he said “But it is an interesting one because it will also take the company into owned-retail, as opposed to just supplying third party retailers and food service providers, because West Cornwall Pasty Company has its own retail sites.”

Contactless spending increases by 62% in restaurants New research by Barclaycard has announced the continual surge of contactless payments, with restaurant spending increasing by 62% and overall spending increasing by 166% in 2016.

A new bake&TAKE store has opened within the new Asda store at Lewisham ASDA Lewisham is the first to include a bake&TAKE, a self service Continental-style food and coffee bar.

As the UK Cards Association (UKCA) announces that the amount of contactless cards in the UK has topped 100 million, Barclaycard has released statistics to show that restaurants have seen a 62% increase in contactless payments. The research also shows that overall contactless spending in total has increased by 166% in 2016, demonstrating the rapid rise of touchand-go payments. Tami Hargreaves, Commercial Director of Digital Consumer Payments at Barclaycard, said: “Brits across the UK are increasingly catching on to the speed and ease of ‘touch and go’ payments,

meaning that for many, contactless is now the preferred way to pay. “As more retailers continue to accept touch-and-go as a way to pay we expect this upward trend to continue well into next year.” Half of all Brits now use touch-and-go payment method at least once a month and 21% of Brits are planning to increase that spending next year. This easy and quick style of payment goes hand-in-hand with the QSR and food-to-go industries, and with usage of contactless showing no signs of slowing down, it’s clear restaurants need to adapt to the technological demands.

ASDA Lewisham is the first to include a bake&TAKE, a self service Continental-style food and coffee bar. Asda has opened a brand new store in Lewisham. The £8.8m, 15,000 square foot store has created new jobs for local residents, in a mixture of full and part time roles across all of its departments. Following a £150,000 investment, a new bake&TAKE store has opened within the new Asda store at Lewisham, selling a wide range of high quality, freshly baked goods and products. Mohamed Hamad, owner manager of bake&TAKE in Lewisham, commented: “We’re delighted to have opened the first bake&TAKE within the Asda store in Lewisham and hope that the concept is well received by local shoppers who can enjoy our extensive range of fresh, tasty and inexpensive breakfast, lunch and on-the-go snacking options. “Our coffee is of an exceptionally high standard and we are renowned for our competitive prices on baguettes, breakfasts and hot food options. I’m looking forward to meeting our customers and Asda shoppers and becoming part of the local community in Lewisham”. The new store has easy access links and has 100 free customer car parking spaces. Asda Lewisham, will open from 6am-11pm Monday to Saturday and 11am-5pm on Sunday.

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News

round-up Wok&Go opens its 25th outlet Noodle bar chain Wok&Go has welcomed customers to its latest outlet in Canterbury. The store is the latest in a string of 2016 openings and has taken the number of sites to 25. Wok&Go franchisee Saif Qahar has opened the store in Saint George’s Street, creating 15 jobs. Saif comes from a military background, having previously worked as a translator in places such as Kuwait, Afghanistan and the United States. The Wok&Go franchise in Canterbury is his first business. Saif said: “I wanted to go down the franchise route as I’ve not run my own business before and I was attracted to Wok&Go because it’s a unique concept.

“By opening a Wok&Go franchise I’ve had the full backing and support from head office in every aspect of setting up the store. “Canterbury seemed like the perfect location because there’s nothing like Wok&Go in the city centre. Here, customers can get food which is freshly prepared with fresh ingredients. They can customise their orders to their tastes and it’s a lot healthier than many of the other options in town.” Saif’s plans for the store include converting upstairs to create additional seating for customers wanting to eat in, and has said that in future he would be keen to open more stores in Kent.

The SUBWAY® brand opens 750th non-traditional store with East of England Co-op The SUBWAY® brand is pleased to announce it has opened its 750th store in a non-traditional location in the UK and Ireland at an East of England Co-op store in Norwich. Non-traditional stores are located in offhigh street sites, such as petrol forecourts, convenience stores, hospitals, transport hubs, universities and colleges. The new SUBWAY® store, located on Earlham Green Lane in Norwich, has created 11 new jobs and will offer customers a wide range of Subs, flatbreads, salads and drinks. East of England Co-op now has ten SUBWAY® stores open in the region, creating more than 90 jobs for local residents, with further development planned for next year. As the world’s largest specialist sandwich provider, the SUBWAY® brand currently has over 2,300 stores in the UK and Ireland, 750 of which are now open in non-traditional locations. Bob and Liam Dalgarno, Regional Development Agents for the SUBWAY® brand in the region worked with the East of England Co-op on the opening of the milestone store. Liam commented: “We have been working closely with East of England Co-op over recent months. We are very excited to be opening another

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store in the partnership, particularly as it also marks the 750th non-traditional SUBWAY® store in the UK and Ireland.” Peter Dowding, Country Director, SUBWAY® UK and Ireland, added: “The opening of the 750th non-traditional store in the UK and Ireland is a fantastic achievement. It reflects the hard work of the SUBWAY® brand’s Development Agents and our strong corporate partnerships that we have forged with companies, such as East of England Co-op. Non-traditional development has been a great area of growth for the SUBWAY® brand over recent years, and we expect further growth into 2017 and beyond.” Brendan Smith, Head of Retail Operations for the East of England Coop, said: “We’re excited that our store at Earlham Green Lane marks a milestone for the SUBWAY® brand, and has enabled us to create more jobs for local people. Partnering with the SUBWAY® brand has enhanced our offering to customers, and we look forward to exploring further opportunities in the New Year.”

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News

round-up SOHO Coffee Co. opens the doors to new store. Artisan food and coffee chain SOHO Coffee Co. has opened its latest store in the heart of London, with another due to follow suit. The new outlet, situated on the Strand, is SOHO’s first in the capital. The chain’s second London site will open opposite St. Paul’s next week. The Strand outlet features a deli counter, offering hot filled sourdoughs and salads. Both stores aim to catch the early morning customer with a range of handcut hot breakfast sandwiches, along with porridges, granolas and made to order smoothies. At the core of their drinks menu is SOHO’s signature Organic and Fairtrade coffee, but customers will now also able to enjoy guest single-estate coffees, along with an extended range of specialist drinks. Penny Manuel, SOHO Coffee Co. Managing Director, said: “We have had our eyes on the London market for some time – it is a big step for a regionally-based operator to take and we wanted to ensure we chose the right locations. “We are very excited to be bringing SOHO ‘home’. Opening not one, but two stores in London is a huge achievement for

the whole SOHO team. We are committed to growing and improving our brand, and London provides us with a wonderful

testbed for all our ideas. We wish Pam and her team every success.”

Aramak agrees deal to drive Freshil’s UK and Ireland expansion Global food, facilities and property services provider Aramark has agreed a partnership with healthy restaurant chain Freshii to drive the company’s expansion in the UK and Ireland. The deal will see Aramark open opening a number of new Freshii outlets at locations including Arnott’s Department Store and Trinity College Dublin. These initial outlets will be followed by a further 10 Aramark-led locations, creating 100 full time and part time jobs. Freshii serves fresh food designed to energize people on the go. With a diverse and completely customizable menu of breakfast, soups, salads, wraps, bowls, burritos, frozen yogurt, juices and smoothies served in an eco-friendly environment, Freshii aims to cater to every taste and dietary preference. Aramark and Freshii carefully selected

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the Arnotts and Trinity College locations as the two prominent landmarks which will help build awareness of the brand. Dave O’Donoghue, Freshii Ireland Master Franchise Holder, said: “With a large footprint around the world, Aramark only places their trust in brands they believe in and have shared values with. We at Freshii are thrilled to be able to fulfill our mission of eliminating the excuse that people cannot eat healthy here by expanding quickly across the country with Aramark.” Frank Gleeson, Aramark’s MD for Northern Europe, said: “Aramark’s strength is in our commitment to serving

high quality, fresh food that is nutritious and healthy. We have been at the forefront of the healthy eating revolution in Ireland with our Right Track campaign in Ireland’s workplaces; our partnerships with Freshii and Grow Your Own and with our acquisition of Avoca. Freshii is a great addition to our offering and we plan to introduce the brand to our business across Ireland and the UK, as it fits the demand for healthy and fresh food that consumers want today.” The Aramark-led Freshii outlets at Trinity College and Arnotts will be Freshii’s fifth and sixth locations in Ireland.

News

round-up Branded foodservice outlets taking big bites out of independent competitors UK diners are more likely to eat out at branded outlets rather than independent businesses, new research has revealed. Independent foodservice operators attracted 1.7 billion fewer visits in the year to September 2016 than in the same period to September 2008 as they struggle to be relevant on Britain’s high street. Figures released by global information company The NPD Group show that eight years ago, the market share for brands vs independents in visit terms was 43% vs 57%. As of the year to September 2016, this has nearly reversed with the brands vs independents share now at 56% vs 44%. That means branded businesses in the year ending Sept 2016 are enjoying 1.2bn extra visits in Britain’s £50bn foodservice industry than eight years before (5.03bn visits to the year ending September 2008; up by +25% to 6.28bn by the year ending September 2016). On the same basis, independents saw visits drop from 6.73bn in the year ending September 2008 to 5.02bn in the year ending Sept 2016 (down 1.7bn). The poor performance among independents is reflected in sales figures.

Since 2008, brands have boosted annual sales from around £20.9bn to well over £30bn today, while independents have seen sales dive from £30bn to £23.2bn. Brands enjoy strong pricing power, having achieved an increase of 16% in the average bill per person over the past eight years versus 4% for independents. Cyril Lavenant, NPD’s Director of Foodservice UK, said: “For the branded sector to have reversed its market share with independents over just eight years underlines how quickly Britain’s foodservice market is changing. “Independents are struggling to be relevant and appealing to consumers on the British high street. “Foodservice chains do a better job in this respect, especially with meal deals and promotions. Consumers are hungry for good value and they know where to go for it on the high street. Another factor is the ability of bigger brands to invest in their products and to expand into new locations.

“When the public choose where to eat out – whether it’s simple food-on-the-go, a sit-down snack or sandwich, or a more formal meal – people are clearly voting for brands.”

Little Dessert Shop enters franchise market A dessert enterprise is aiming to stir up the food franchising world. Founded in 2014, the Little Dessert Shop, which is based in the West Midlands, has now launched a franchise model. The business already has outlets in Wolverhampton, West Bromwich and Wednesfield, and has taken the decision to expand the business both within the UK and internationally. As well as restaurant and cafés in towns and cities, the Little Dessert Shop also offers an express store model, which is ideal for train stations, airports and other travel hubs. The independently-owned, family run business offers a range of desserts,

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including cakes, crepes, waffles, smoothies, ice creams and milkshakes, plus hot and cold beverages, with customers able to eat in or take away. Little Dessert Shop also has its own branded range of cookie dough products which are served in-store in a variety of flavours.

Desserts are becoming more and more popular throughout the UK and going out for dessert is becoming a popular pastime both during the day and into the evening. The UK baked goods sector is worth around £3.5 billion and continues to grow. In 2015 alone, 1.5 billion baked items were consumed across the nation.

Riverford ditches discounts for new customers Organic food box business Riverford has vowed never to offer discounts to new customers that it doesn’t offer to existing ones. Riverford’s new stance on offers provides reassurance to customers that a Riverford delivery means that the farmers, suppliers, staff and their franchisees are paid fairly, and that every customer is treated equally. The company says there will be there will be no introductory offers, no inflated prices, just the occasional thank you gift for customers who are in it for the long run. Founder Guy Watson said: “We have stopped offering discounts, stopped paying dubious companies to knock on doors, stopped using voucher sites and significantly cut back on leafleting and advertising. “Instead we are concentrating on growing good veg, looking after our existing customers, and have taken all sales back inhouse through our own staff who know our veg and share our values.” This way of doing business is virtually unheard of in the industry and aims to provide farmers and suppliers with income security and fair, stable payments. Guy added: “I am convinced that most people, most of the time are happy to pay a fair price; what it costs to make something in a competent and efficient manner with due

respect for people and the environment, plus a modest profit.” For almost 30 years, Riverford has grown, sourced and delivered organic veg, meat and more to homes across England and South Wales via their network of franchisees.

What the company doesn’t grow, it gets from small scale farmers and producers who Riverford works with over the long term. Fair prices are set in stone at the beginning along with the commitment to buy from them often over a year in advance.

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News

round-up

Newest Member of Papa John’s Family Set to Become Big Cheese in Cheshire Leading pizza franchise, Papa John’s, has announced its latest store opening in Ellesmere Port. New franchisee Dave Foster is set to become a ‘big cheese’ in Cheshire as he follows in the footsteps of his brother Sam, who runs the successful franchised Papa John’s outlet in Dundee. “Pizza is in our family,” explains Dave Foster. “My father worked as a franchisee for a rival firm for many years, while myself and my brother Sam also worked in the industry before cooking up plans to run our own franchised pizza stores. “I originally started out as a delivery driver for the same company as my Dad,” continues Dave. “I worked my way up to shift manager and then area manager. After 12 years it was time to stop making pizza and start making money! “I had seen how well my brother was doing with Papa John’s, how the company was expanding and that there was an incentive scheme to help new franchisees

starting out. Deals on equipment and reduced royalty fees took a healthy slice off the final investment needed to set up, giving me just the boost I needed. “Even with my background, training has been thorough,” confirms Dave. “I spent time at Papa John’s HQ in Milton Keynes and then worked in my brother’s store for three weeks too. I have been impressed how much attention is given to making the pizzas to create a superior product that tastes better than the competition. “In Ellesmere Port my wife Rachael, who was also a training manager for the pizza firm we used to work for, will now help me run the business. When it comes to recruiting and training staff, it will be great to be working with someone I trust and who is so experienced in this area. Our plan is to add

one or two more franchised stores next year as we believe Papa John’s has all the right ingredients for success.” Papa John’s is one of the largest pizza companies in the world and has opportunities for franchisees throughout the UK. Papa John’s which was recently named as UK National Pizza Delivery Chain for the sixth time, is currently running an incentive scheme to help franchisees in the early stages of growing their businesses which includes discounted royalty fees, contribution towards marketing spend plus free equipment for new stores. Help is provided with location selection and full turn-key opening of stores. As a franchise, the Company supplies all the assistance needed to get your successful Papa John’s up and running.

Boparan Restaurant Group appoints new CEO Boparan Restaurant Group (BRG) has appointed Tom Crowley as its new chief executive Tom Crowley has assumed the position of CEO of Boparan Restaurant Group (BRG). Taking up the role with immediate effect, Crowley will oversee the BRG’s portfolio of brands –Giraffe World Kitchen, Giraffe Stop, Ed’s Easy Diners, Burgers & Cocktails, Wondertree and also Harry Ramsden’s and FishWorks following Joe Teixeira’s decision to step down as CEO of Boparan Ventures (BVL) in order to explore new roles within the sector. Crowley notes; “We thank Joe for his support in developing Harry Ramsden’s and FishWorks and wish him the very best for the future. Moving forward, with seven quality brands operating in over 100 sites alongside a strong franchise business, we intend to quickly establish Boparan Restaurant Group as a major player in the hospitality market. Our objective is to further strengthen and grow the positions of all our brands

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nationally and internationally whilst at the same time creating a restaurant group with the capability of making future

acquisitions.” The Cinnamon Collection will continue to be managed separately by Vivek Singh.

business profile

PAPA JOHN’S 2017 INCENTIVE DEALS WILL HELP FRANCHISEES DELIVER THE DOUGH

Leading pizza franchise, Papa John’s, has announced its latest incentive package will help franchisees ‘deliver the dough’ in 2017. Special deals on marketing, equipment and discounted royalties are all on the table for qualifying franchisees setting up stores within the next year.

the necessary training. However, individuals do need to be motivated, enthusiastic, hardworking and want to be part of a growing team. Good interpersonal and people skills are essential, as franchisees deal with customers as well as lead a team on a daily basis.

“By offering a helping hand right at the outset, our aim is to provide franchisees with all the right ingredients to enable them to taste success quickly,” confirms Anthony Round, business development manager, Papa John’s. “Many of our franchisees start out with just one store and go on to open multiple Papa John’s. We now have almost 350 stores in the UK and we are still growing rapidly!

“In return, our dedicated team supports franchisees through the entire process of opening their franchised Papa John’s including help with location selection and full turnkey solution to opening the store,” explains Round. “Through our latest incentive deal, we are looking forward to working with more new franchisees all hungry to become part of our success story by opening-up more Papa John’s stores throughout the UK.”

“The benefits of our franchisee incentive deal for 2017 specifically include a 15 month royalty reduction programme, a free pizza oven (subject to terms and conditions) plus a marketing launch package provided by Papa John’s,” confirms Round. “This targeted support has been specifically designed to help franchisees in their first year of trading, in order to improve cash flow, reduce capital spending and drive sales from day one. “Our ‘Better Ingredients, Better Pizza’ concept continues to prove popular and we are actively recruiting new franchisees who are keen to bring our superior quality pizza to new areas of the UK,” continues Round. “Franchisees don’t need any direct experience of the industry as we provide all

Mohammed Tanveer (Tan), Papa John’s franchisee for Northants, comments: “Before joining Papa John’s as franchisees, myself and my wife and business partner did our homework! I had worked for a rival pizza firm for seven years in various roles and my wife gave up banking for Barclay’s to work part-time in another well-known pizza chain restaurant. However, we soon realised, the product quality at Papa John’s was a big differentiator in the market and a recipe for success, so we purchased our first store, also in Northants, in 2013. “We worked hard and focused on providing great customer service with a new team of staff and a superb product. After three years

due to the success of the first store, we were able to open our second Northampton Papa John’s,” continues Tan. “In addition, Papa John’s franchisee incentive scheme designed for start-ups has delivered just the right time! We anticipate the funding for the most expensive item – the pizza oven - plus reduced royalty payments, will really help us on our way to a successful launch! “Papa John’s recent TV advertising has also supported the brand’s UK growth and our pizza has never been more popular! We are looking forward to potentially adding further stores in the region in the future and providing more jobs for our local community too.” Anthony Round concludes: “We supply all the assistance needed to get your successful Papa John’s up and running while our marketing team works tirelessly to support our franchisees. Specialist promotions are regularly being developed, plus advertising campaigns and sponsorships. Combine popular pizza with excellent customer service, rapid delivery times, a strong brand, comprehensive staff training and some hard hitting marketing support, backed by national TV advertising and the franchise serves-up a fantastic offer for those looking for a quality investment opportunity.” For further information please visit: www.papajohns.co.uk/franchise call: 0844 567 0937 or e-mail: enquiries@papajohns.co.uk

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round-up New initiative transforms route to self-employment in franchising The route to self-employment as a franchisee has been made easier thanks to a new joint e-learning initiative between the British Franchise Association (bfa) and Lloyds Bank. The Prospect Franchisee Certificate (PFC) is the first course of its kind, created to deliver a comprehensive overview of what it takes to succeed in the UK’s £15bn franchise sector where individuals run their own business under an established brand. The modular, video-based course provides insights into everything from evaluating franchise opportunities to business management, financial understanding and legal considerations. It’s completely free and can be taken on any device, anywhere with an internet connection, either in a single day or in bitesized chunks. Each module includes an assessment which must be passed. Upon completion, those in possession of the PFC will have demonstrated to franchisors that they have the skills, knowledge and appreciation of the franchise model required to successfully own and operate a business. The bfa has partnered with Lloyds Banking Group, which is one of the major providers of banking services to the franchise community

helping customers grow and thrive as franchisees. Pip Wilkins, the bfa’s CEO, believes the course will transform the recruitment process for both parties in a franchise relationship.

She said: “Anyone who is considering starting a franchise should be taking this course as an integral part of their research. It costs nothing, is jargon-free and will help them stand out as business-aware and ready to hit the ground running in their new venture. “Every good franchisor is extremely selective about franchisee recruitment, with the most common reasons for turning down prospects cited as lack of capital, insufficient business acumen or poor meeting performance. The PFC will support people in these areas and many others. “It’s simply good business sense too – the more someone understands the sector, the better prepared they are for success as a franchisee.” Richard Holden, Head of Franchising at Lloyds Bank, said: “Everyone is looking for better-informed investors and the newly developed Prospect Franchisee Certificate program will help to deliver exactly that.”

Chopstix Group UK launches Flagship Restaurant, Oxford Street unveiling refreshed Brand Evolution Chopstix Group UK launches Flagship Restaurant. Chopstix Group UK, the accessible Oriental quick service brand, launches their 60th restaurant and flagship site on Oxford Street in London today. Alongside its opening, they are unveiling the new brand livery and interior scheme representing the brand’s evolution and rapid growth over the past six years. As a dynamic and celebrated London attraction with over 600,000 visitors a week, Oxford Street, offers exposure to Chopstix which increases brand awareness with local and international audiences. The site is strategically located near Tottenham Court Road Underground

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Station, which will service the Crossrail opening in 2018. The Oxford Street restaurant is the fifth location in London, bringing the total number of Chopstix Noodle Bars to 60 across the UK and the Republic of Ireland.

The Oxford Street Flagship launch and reveal of the new branding, marks a turning point for Chopstix which offers faster, fresher and healthier Oriental fusion cuisine at great value.

UK franchisees rewarded at SUBWAY® brand’s annual awards UK franchisees were among the winners at the SUBWAY® brand’s annual awards ceremony, held in Chicago. British development agents were also recognised for their outstanding service and commitment to the company’s growth and their presence in their regional territories. Franchisee Stephen Pasco and corporate partner Rontec Watford Ltd were among the winners of the Franchise of the Year award. Stephen owns and operates 15 individual SUBWAY® stores along with his wife, Sue Pasco and son Ryan Pasco, in Bristol, Gloucestershire, Somerset and Wiltshire. Stephen and Sue are also development agents, helping to drive growth by working with other franchises to find suitable locations and open new stores. Rontec Watford Ltd, a part of leading forecourt group Rontec, is one of the SUBWAY® brand’s corporate partners. With more than 200 sites across England and Wales, Rontec currently has 40 SUBWAY® stores at its forecourt locations across the UK. Development agents for the West Midlands, David Kelsey and Daljit Nahil were also named as winners of the Development Agent of the Year Award at the event. The accolade was in recognition of the duo’s hard work in helping to open 114

SUBWAY® outlets in the region. Franchisee duo Larry and Jane Curtis were also awarded Best Relocation of the Year for their SUBWAY® store at Birmingham University. Sasha Stokic, European Project Manager, said: “I have great pride that UK and Ireland franchisees and development agents are

among the winners of the SUBWAY® brand’s annual awards. Their hard work, dedication and inspiring attitude towards their customers and the brand has gained them this accolade. Their commitment to putting customers first has been a key element to building successful stores and should be considered.”

Costa launches ‘Never a Dull Cup’ pledge Coffee chain Costa has launched its new promise of ‘Never a Dull Cup’, reiterating its commitment to bring exciting coffee to every corner of Britain. The pledge will be promoted during Costa’s biggest ever advertising campaign, which premieres on Saturday, during the first X Factor live show. To mark the launch, Costa is turning the spotlight on its baristas, the heroes of the company and the people who make that promise a reality. In the showcase TV spot, 170 Costa baristas are the enthusiastic audience for actor Javone Prince’s attempts to launch Costa’s new mission (despite some fairly unorthodox methods). Throughout 2017, the campaign will look to extend into new product launches, digital innovation and further in-store investment – all aimed at making coffee interesting, exciting and accessible to all. Caroline Harris, Costa Coffee UK Marketing Director, said: “This is an exciting moment for Costa – the launch of our new promise, as well as the biggest campaign in the brand’s history, is just the

start of what we have planned. “I’m particularly delighted to see our baristas take centre stage in our new TV commercial, as they really are the heroes of our business. “In Costa’s 45-year history, our aim has always been to make better coffee available to more people and inspire them with the variety of coffee on offer.” Comedian and actor Javone Prince,

who features in the TV commercial, said: “It was inspiring to work with such an enthusiastic team; their passion for coffee is palpable. They take genuine pride in their work and I don’t blame them – there’s more to making a Flat White than meets the eye. I’m thrilled at how the advert has turned out – considering it stars real Costa baristas, their comedy timing was spot on!”

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round-up One Stop’s Christmas gift ranges drive sales for franchisees One Stop’s ‘Fill your boots for less’ Christmas campaign proving successful for franchisees. Following the success of last year, One Stop has refreshed and further extended their Christmas gifting range. A stronger pricing structure sees many of last year’s best-selling gift sets drop from £5 to £4, which are driving incremental purchases. The ‘fill your boots for less’ Christmas campaign has been designed to provide customers with a greater range of products to choose from at a better everyday low price. Exciting new products have been introduced such as Mcvitie’s Celebration Cracker Cake Bars, which are exclusive and kid’s favourites Finding Dory and the Secret Life of Pets. Health and beauty gift sets such as David Beckham, Lynx, Dove and Impulse have all been lowered to £4, offering incredible value to customers. Four new lines have been added to the extensive range of £5 beers, wines and spirts gifting, including Craft Ale, Kopparberg and Babycham sets. Pet gifting is also proving popular, new this year, it was introduced due to growth in the treats category.

One Stop is famous for their 3 for £5 confectionery deal, which is now complemented by Thornton’s and Ferrero Rocher display stands, along with oneweek only stunt deals, which sees 720g Family Circle biscuits halved in price to £2 and 100g Victoria biscuits drop to just £1. Confectionery tubs have increased in range and are a more competitive price. Many of the family tubs will be lowered to £4 for longer periods of time, to compete with the strongest offers in our marketplace. To highlight the variety available to customers and make it easier to shop, gifting has been split over several stands themed around ‘gift ideas’, ‘let’s stay in’ and ‘His or Hers’. John Miller, Head of Operations commented, “We have significantly enhanced our gifting offer this year to drive incremental sales for our franchisees. We’ve brought an incredible offer into convenience and all the above complements our market-leading 3 for £5 confectionary deal, that is driving huge

footfall and earning franchisees more than 16% margin on deal! Customers love our Christmas promotional activity along with the fun and engaging experience we help create in-store.”

Food industry urged to ‘stand up and be counted’ during Brexit negotiations Businesses operating in the food industry have been urged to ‘stand up and be counted’ during Britain’s Brexit negotiations. Peter Allan, president of the British Frozen Food Federation (BFFF), made the call in his speech at the association’s annual business luncheon. Mr Allan, who was speaking to over 1,000 business leaders at the event at London’s Hilton Park Lane, also reiterated the BFFF’s support for the leadership of the Food and Drink Federation (FDF) in facilitating the food industry’s response to government negotiations. Mr Allan, who is also director at Cargill Meats Europe, said: “It is impossible to predict what the eventual outcome of Brexit may be but the food industry as a whole must approach this with a clear, loud and collective voice.”

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The speech follows the launch of the BFFF’s survey into its members’ concerns over the implications of Brexit, the results of which called on the government to deliver on its food export strategy early in negotiations. Mr Allan added: “The BFFF offers the FDF its wholehearted support in creating a strong, powerful and dynamic argument as to why the food industry needs to be given the priority it richly deserves.” Mr Allan went on to state that the BFFF will continue to work with other associations to advise and inform members of the latest developments for the industry during the uncertainty that lies ahead for UK businesses.

Just Eat looks to the future with new food technology innovations Online food delivery platform Just Eat has unveiled a number of hi-tech innovations aimed at transforming how people discover, order and enjoy food. The new technologies were showcased during The Future Now – Redefining Food Discovery event, held in London. Just Eat’s product development team showed off a number of innovations aimed at helping to improve food experiences for both customers and restaurants in the decades to come. David Buttress, Chief Executive of Just Eat, said: “Technology is at the heart of everything we do at Just Eat. “We are always seeking ways to help our restaurant partners grow and ensure new and existing customers have a reliable, convenient and, increasingly, fun experience when they order from us.” Fernando Fanton, Chief Product and Technology Officer of Just Eat, added: “Working with leading partners, we are exploring the latest fields in technology to shape the future of how we interact with food. “By harnessing these advanced technologies, Just Eat is driving innovation in our sector and working towards our ambition to create the world’s greatest food community.” Working with leading technology

companies across social media, gaming, artificial intelligence (AI), Augmented Reality (AR), Virtual Reality (VR) and robotics, Just Eat has become seamlessly integrated into the technology that shapes our daily lives. The innovations on show included Virtual Reality, with Just Eat providing an industry first, by showing how it can harness VR to bring restaurant partners a unique understanding of their business, giving them a bird’s eye view of orders that can highlight patterns, hot spots and opportunities for growth. Another advancement showcased was the HoloLens, which enhances the physical environment through AR. Just Eat has used this technology to enable customers to see a restaurant menu as a buffet for them to pick and choose from. Just Eat also gave us a glimpse of a home of the future. As well as already being able to order food through Just Eat using the Amazon Echo, the company also revealed its app for Apple TV, which is due to be released in January. It also unveiled its new app for Xbox One, which launched last month. The Customer Care Chatbot was also on show. This new development uses the

Microsoft Bot Framework and sees AI integrated into the ordering experience to ensure customers receive the best, round the clock support and service. Also showcased was the Facebook Messenger Chatbot, which engages with customers to coach and inspire their food choices. In September Just Eat, with the help of Starship Technologies, also began testing self-driving delivery robots, which are designed to increase delivery capacity for restaurant partners.

Hungryhouse uncovers nation’s takeaway habits When it comes to eating takeaway, we Britons have some surprising habits. Research by online food ordering platform hungryhouse.co.uk found three in four people enjoy eating leftover takeaway for breakfast, while 84 per cent of people aren’t interested in sharing images of their food on social media and prefer to tuck straight in. However, it seems those under 24 believe image is more important that hunger and are more likely to share their food pictures online. The research was triggered by conversations between real people in the brand’s latest TV advert. Hungryhouse then held a month of debates on its social media channels and conducted research among their user base to find answer to some of the age old, and not so old, questions about takeaways. It was discovered that, despite the rise in over-styled gourmet burgers, a classic no frills burger is still Britain’s favourite. We also prefers to eat off a plate rather

than out of a takeaway carton. The research also found that the nation is split 50:50 when it comes to fruit on a pizza, shattering the common perception that British people don’t like pineapple

chunks on pizza. The age old debate of chopsticks versus fork was also finally answered, with forks coming out on top, beating the traditional culinary tools used in the cuisines origin. When it comes to gherkin, it seems not as many people sneakily throw theirs away, as the majority (76%) opt for the gherkin to remain firmly nestled between the bun and patty. Other surprising debate winners include classic ketchup over mayo, proper chippy chips over American fries and a helping of cheese in a burger over a plain hamburger. Alice Mrongovius, CEO at hungryhouse. co.uk, said: “Everyone loves a good takeaway but we all have our own way of enjoying it. “There are definitely surprises in the findings – some which go against our idea of how Britain likes to eat, but either way it’s great to see how passionate people get about takeaway.”

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round-up Wrap it up opens new Liverpool store Wrap it up expand further with all new Liverpool store with breakfast offerings They spent a lot of time considering their next store location. But, finally Wrap it Up! have decided to take base in Liverpool. They will be serving cups of coffee on North John Street along with ‘brekkie’ treats until 10:30am every day to celebrate

the new store opening. 10 classic wraps will also be making an appearance like their warm Roti and hot Mexican Club. Keep an eye out for when they drop their FREE WRAP DAY date so you can drop all your plans and be the first in line.

Really Awesome Coffee serves up a treat for Hemel Hempstead Mobile coffee franchise Really Awesome Coffee, is now serving customers in Hemel Hempstead thanks to new franchisee Ian Turp. Ian joined the franchise network after attending one of the company’s discovery days held at the Coventry headquarters. Since launching his business in Hemel Hempstead, he has received a warm welcome and glowing reviews from customers who he visits every day on his daily coffee round. Ian said: “I wanted to run my own business, but with the support of a successful business model and the expertise to help make it possible. “After doing my research, Really Awesome Coffee had all of the qualities I was looking for.” Prior to the launch, Ian when through the fast-track training and launch programme, aimed at ensuring franchisees are equipped to successfully run their businesses. Ian said: “The training covered everything required in terms of the practical and theoretical. The set up support and ongoing support ensured the business launch was successful. I felt at ease throughout the process.” He added: “My customers are fantastic. There is great mixture of personalities, interests and experiences within my customer base. They all like to share different things with me which always keeps the day interesting.” Ian is currently outperforming his initial set goals with his franchise and on track to smash his annual targets.

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McDonald’s to move its European HQ to the UK McDonald’s is to move its European headquarters to the UK.

Warrens Bakery to enter the franchise market Craft bakery and pastry maker Warrens Bakery has revealed plans to expand nationally through franchise, as well as laying down more of their own equity stores.

The change is part of the fast food chain’s plan to create a new integrated international holding company structure as part of its recent business reorganisation. It will result in the creation of a unified structure in the UK with responsibility for the majority of the royalties received from licensing the company’s global intellectual property rights outside the US. The new structure will support the company’s growth plans by streamlining decision-making, reducing expenses, increasing cash management flexibility and supporting its refranchising initiative. This change will result in the closure of the company’s operations in Geneva. The Company’s Switzerland office in Crissier will remain open. The company’s office in Luxembourg will retain responsibility for Luxembourg restaurants, but other functions will transfer to the new UK-based holding company. A McDonald’s spokesperson said: “We are aligning our corporate structure with the way we do business today, which is no longer in geographies, but in segments that group together countries with common market and growth characteristics. “This unified structure will be administratively simpler and will reduce

expenses and enhance flexibility. “We believe that this change to our corporate structure will better support the company’s continued growth plans, in particular our refranchising initiatives. “McDonald’s selected the UK for the location of its new international holding structure because of significant number of staff based in London working on our international business, language, and connections to other markets. “This change has a clear business rationale in matching our corporate structure to our new functional structure. “The profits of the new international holding company will be subject to UK corporation tax. “McDonald’s pays a significant amount of corporate taxes. For perspective, from 2011-2015, we paid more than $2.5 billion in corporate taxes in the EU, with an average tax rate approaching 27 per cent.” The new international holding company structure will be located in the UK and domiciled in the UK for tax purposes. It comprises a mix of UK companies incorporated in the UK and US companies which will continue to be incorporated in the US. Those US companies are also tax resident in the UK.

Cornwall’s oldest commercial bakery, established in 1860, will open their first franchise store in the Midlands, in early 2017. With more than 50 of their own stores across the West Country, Warrens Bakery is now aiming to roll out a substantial number of craft bakeries across the UK in the next three to five years with talks already under way with a number of investors to take the brand national. Their target is to roll out a substantial number of craft bakeries across the UK in the next three - five years and they are in dialogue with a number of ambitious, like-minded investors to take the brand national. Commenting on the launch of the franchise model, chairman of Warrens Bakery, Mark Sullivan said: “We have spent several years perfecting the model and this represents a transformational event for Warrens Bakery, as we move towards becoming the UK’s leading craft bakery.” “As one of the oldest craft bakers in the UK, we pride ourselves on our handcrafted affordable luxuries and are thrilled to take our award-winning products out nationally.” George Abuaita, who is working in partnership on the first franchise store said: “As a local businessman operating a number of Costa stores in the region, I see a gap in this area and throughout the UK for a premium bakery such as Warrens Bakery. “I’m positive the new bakery will fill this gap and we already have plans to expand Warrens Bakery across the West Midlands and lay down 20 stores in five years.” George added: “Not only will the new store be fantastic for customers, but also the local community, since we will generate significant employment opportunities.”

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round-up One Stop creates a buzz in Bridlington Convenience business One Stop has officially opened its doors in Bridlington. The Bee Lady of Hull, fundraiser Jean Bishop, was the guest of honour at the event. Jean, 93, who attends events dressed in her distinctive stripey outfit, helped to cut the ribbon along with Deputy Mayor Malcolm Milns. The grand opening featured magicians, balloon artists and face-painters, with Jean raising more than £200 for Age UK on the day. As the only Post Office on the north side of Bridlington, the 200sq ft store needed to expand to better serve the needs of the local

community. Business owner and experienced retailer Nathan Selvachadran identified the need for a larger store, and for one that could accommodate a strong convenience offer. He said: “We are thrilled with the transformation into a One Stop, the store has been completely refurbished to a high standard and customers can now fulfil their entire shopping mission, without having to go somewhere else. “We have been upgraded to a main post office, so we will be able to offer more for

people coming in, which is great because we are the only post office open on this side of Bridlington. “There’s quite an elderly population in the area, so for them we can be a bit of a lifeline. The site has increased a great deal and we are pleased we were able to take on six extra members of staff.” Now boasting nearly 1,600 sq ft of sales floor, customers have access to a fantastic range of fresh and chilled produce, an offlicence and a host of competitive lunchtime and evening meal deals.

Domino’s turns stores into galleries to launch Italiano range Pizza chain Domino’s turned stores across the country into Galleries to celebrate the launch of its new range of Italiano pizzas. China Jordan, a renaissance artist who specialises in ‘old master painting techniques’, took 16 weeks to recreate some of the world’s most famous works of art in celebration of the new range. Each painting was given an extra special slice of humour in true Domino’s style. The paintings feature the Mona Lisa eating a pizza, an extra tasty handover in The Creation of Adam, the cherubs pondering a slice in the Sistine Madonna, The Boy with a Basket of Fruit now holding a basket of fresh ingredients ready to ‘make his own’ pizza and The Birth of Venus depicting the goddess emerging from the sea with her favourite Pizza Legend. Renaissance-themed exhibitions have taken place in London, Birmingham and Glasgow. The Italiano range includes the Milano (prosciutto ham and ventricina salami), the Verona (fresh rocket, prosciutto ham and chicken breast strips) and the Roma (goats cheese, red onions, fresh rocket and roquito cherry peppers) all cooked on Domino’s signature handstretched dough. The pizzas are being rolled out across all of Domino’s 900 stores this year. China Jordan said: “Italy is known as the birthplace of both renaissance art

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and pizza so perhaps it’s only natural that the two would be fused together at some point. Reimagining and recreating the work of Michelangelo and Leonardo Da Vinci has naturally been challenging – and painting pizza into pictures is certainly a first for me – but I hope my paintings can raise a smile.” Domino’s spokesperson Louise Butler

said: “We’ve really enjoyed creating this latest addition to our menu and we think our customers are going to love the variety of new flavours on offer. “What better way to celebrate the arrival of these Masterpizzas than with the opening of our Pizz-art galleries to bring them to life with a slice of Domino’s cheeky humour.”

Esquires welcomes customers to 27th outlet Coffee chain Esquires Coffee has opened its 27th store. The new outlet has opened its doors on Guildford High Street. The store is the second site for Franchise Owner Chris Rance, who opened his first Esquires Coffee franchise in Buckingham, in August. Kerry Noble, Esquires Marketing Manager, said: “Guildford’s rich history and charm is a perfect setting for Esquires Coffee. “Esquires are looking to open up in unique and interesting locations where the local people can feel at home with a cup of premium, Fairtrade and organic coffee, without feeling like they are in a mainstream generic coffee chain.”

IGD forecasts food-to-go market to be worth £21.7bn by 2021 The food-to-go market will be worth around £21.7 billion by 2021, it has been predicted. Food and grocery research and training charity IGD say the sector, which is worth £16.1bn this year, will grow by up to 35 per cent. With food-to-go specialist growing their scale and impact across the UK, IGD predicts this segment will be worth up to £7.1bn in five years. The quick service restaurant sector is expected to be the second largest in 2021, worth £6bn, while the coffee segment is predicted to be worth £3.9bn. Food-to-go sales at convenience, forecourts and other retailers are predicted to be worth as much as £3.3bn in five years, while sales at supermarkets and hypermarkets are expected to be worth up to £1.4bn. Joanne Denney-Finch, IGD chief executive, said: “Over the next five years, we are forecasting growth of up to 35 per cent for the overall food-to-go market, providing there is a favourable economic backdrop. “Suppliers are seeking ways to expand, so the growth potential of this dynamic and rapidly shifting sector represents a really clear opportunity. “However, food-to-go is a different market to grocery retail and requires a distinct approach to succeed.” Looking at food-to-go and coffee specialists, Ms Denney-Finch said: “Changing shopper habits will contribute greatly towards the strong growth of these two segments. “We are seeing a rise in coffee culture and our research shows that almost half (48%) of drink on-the-go shoppers are purchasing

hot drinks. “Shoppers are also beginning to adopt food-to-go as a lifestyle choice which presents a clear opportunity for these operators, and coffee specialists are responding to this by focusing more on food and improved lunchtime options.” On the growth of QSRs, Ms DenneyFinch said: “Almost all shoppers (92%) say

speed of service is key to their food-to-go experience, which is partly why quick service restaurants are forecasted to be the secondbiggest segment in value by 2021. “A new, modern generation of burger bars and an increased focus on healthier options is really helping to drive this part of the market.”

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round-up CDG’s first UK franchise deal to see Belgo open in London hotel Restaurant operator the Casual Dining Group (CDG) has secured its first UK franchise deal. The agreement will see its Belgian eaterie Belgo become the main restaurant at the Crowne Plaza Hotel, on King’s Cross Road, in London. The restaurant is due open its doors at the beginning of December. The new agreement represents CDG’s fourth franchise, but its first in the UK. It follows the opening of a Café Rouge in Dubai last year; a Bella Italia restaurant in New Dehli, India, in March; and a further 18-site deal secured in the Kingdom of Saudi Arabia with the first site restaurant set to open in December of this year. The UK deal has been struck with Firoka Group, founded by former Oxford United FC chairman Firoz Kassam. His family’s Firoka Group is a long-term franchisee with InterContinental Hotels Group. Belgo will be the Crowne Plaza’s main food and drink offer at the 429-room hotel, which is being converted from a Holiday Inn. Mark Nelson, Managing Director of Concessions and International Franchising at CDG, said: “This is a very exciting development for CDG and Belgo; it’s both our first UK franchise and an initial step into the dynamic food and beverage hotel market. “Whilst we’ve opened franchised sites abroad, this is our first on home soil and demonstrates that we’re exploring different channels and models when it comes to new openings. “We’re delighted to be partnering with

experienced hotel franchise operators in Firoka Group, and looking forward to working closely with them to make it a success.” Firoka director Feroza Kassam said: “Belgo has become the go-to brand for great Belgian food and craft beer, and we’re very excited to be working with CDG to open its first

UK franchise, within our new Crowne Plaza Hotel in the heart of Kings Cross.” This is CDG’s seventh Belgo, and fifth in London. Firoka Group also owns leisure venues including Heythrop Park Hotel, in Oxfordshire; and Oxford’s Kassam Stadium Conference and Events Centre.

Fast food franchise specialist invests in Papa John’s Pizza franchise Papa John’s has announced fast food franchise CPL Food Group, which runs 32 Burger King restaurants, is to open four Papa John’s by the end of 2016. The stores will be managed by CPL Pizza Restaurants, owned and operated by Lamen Reddy and his business partner and investor Costa Peridakis. Mr Reddy said: “Papa John’s is a brand chain that works and it’s focused on growth. “We first looked at Papa John’s a few years ago and more recently met up with some franchisees who recommended the opportunity. The product is the best in the

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market, so we believe investing in Papa John’s stores will complement our overall business portfolio.” Mr Lamen added: “We took over Skegness recently and a new store opened in Accrington at the end of September. “In addition to further openings planned for this year, we will also add a further five new Papa John’s in 2017.”

McDonald’s Close To Selling 80% Of Chinese Stores Fast-food giant close to deal for Chinese and Hong Kong stores worth $2b McDonald’s is reportedly close to striking a $2b deal to sell 80% of the franchise’s stores in China and Hong Kong. The fast-food giant looks set to retain 20% of its stores and has therefore negotiated a lesser price tag from the original $3b suggested. A consortium made up of private equity firms Carlyle Group and CITIC Group have been identified as the buyers, according the Wall Street Journal. The firms would also be allowed to build a further 1,300 stores in China and Hong Kong.

2,400 outlets already exist in China and a further 250 new restaurants are expected to open within the next year, according the Irish Exclaimer. The Golden-Arches also look set to gain a further 5% to 7% of the franchise sales for the next 20 years. Bringing in one of China’s most influential and oldest financial service companies, CITIC Group, looks set to be a key move by McDonald’s as they seek to crack the difficult Chinese market.

Riverford welcomes its latest franchisees Organic food box business Riverford has welcomed its latest franchisees, who will be taking over deliveries in the Plymouth area. Scott Taylor and Marja Boyce have join Riverford’s network of veg box delivery teams after leaving their careers in the education sector. Scott was working as the director of studies at a language school and Marja as a university lecturer teaching business and finance. Having been Riverford customers for many years, they both share a passion for good food and healthy eating. Marja ran an organic box scheme in Sri Lanka so has some previous experience in the industry. This shared interest led them to consider taking on a Riverford franchise. Scott said: “Riverford is a household name. It has won numerous awards and is a leader in its field, yet it still holds that very important ‘family run business’ feel. “Marja and I couldn’t think of a more suitable business to run together – it matched our skill set and interests perfectly. “We are so excited to have joined the network and will be putting all of our energy into developing our business. We believe we are a great team and are looking forward to working together.” Nigel Loveridge, Riverford’s Franchise Services Manager, said, “We are very pleased that Scott and Marja have joined the team. “Together they have a lot of the qualities we look for in franchisees. “Throughout the recruitment process they were completely engaged and submerged themselves thoroughly, attending shows and events, spending time with our existing franchisees, on delivery rounds, in the office. “They even came to the farm and spent time with various staff members to ensure they fully understood our business, the

franchise model and to establish if Riverford was the right business for them. “They quickly showed they have the

drive, determination and ability to do well. I believe our customers will be in very good hands.”

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News

round-up Just Eat invest £3.5m in mobile app payment service Flypay Online takeaway ordering platform Just East has invested £3.5m in mobile app payments service Flypay. The investment follows the £7m of funding Flypay secured from Time Out, in July 2015 Just Eat also joins Flypay as the latest partner on its new Flyt platform. The investment and strategic partnership with Flypay will enable the company to accelerate its growth plans for the platform. Flyt was launched to help restaurant, pub and bar operators link up the dozens of different digital solutions they use across the customer journey to create more fluid experiences. Flyt is a technology platform, which will enable integration between numerous technology-based services, from bookings and loyalty, through to delivery and reviews. Just Eat and Flypay will collaborate to transform digital experiences for operators across the casual dining sector. The first collaboration will involve

integrating delivery into operator-owned apps, blended with other key services and technologies across the customer journey. The second phase will look at providing Just Eat’s vast customer base with access to inrestaurant experiences. The final innovation in the partnership will be focused on making it easier for operators to adopt and utilise delivery technology. David Buttress, CEO of Just Eat, said: “Investing in Flypay will enable us to continue to build a seamless experience for consumers who will be able to order, pay, receive customer care and book delivery through the same product. “The technology will help us to enhance our offer to casual dining restaurant chains, enabling them to fulfil delivery using Just Eat.” Tom Weaver, CEO of Flypay, said: “This investment, coupled with a strategic

partnership with Just Eat, will allow us to rapidly advance our solutions for both operators and suppliers around the world – changing the customer’s digital journey as we know it.”

Costa Express agrees new 5-year deal with Shell On-the-go coffee brand Costa Express has renewed its UK contract with Shell for a further five years. The new contract marks five years since the partnership began in 2011, shortly after Whitbread, which owns Costa, acquired Coffee Nation for £59.5m. Following a rebrand of the 900 Coffee Nation machines, Costa Express has grown at significant pace, installing on average over 70 coffee bars every month and now operates more than 6,000 machines globally. As one of the first partners following the acquisition, Shell has enabled the Costa Express to grow rapidly and reach forecourt locations across the UK. In the UK, Costa Express has 740 coffee bars in 536 of Shell’s 1,000 plus branded service stations, selling over 70 cups per day. Internationally, Costa Express and Shell operate in partnership across four markets: UK, Canada, Poland and Czech Republic, as well as operating a number of trials in other international markets Murray McGowan, Managing Director at Costa Express, said: “We’re delighted to be

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extending our partnership with Shell, which was one of Costa Express’ first partners. “The Costa Express brand perfectly complements the Shell forecourt model, supporting the brand in providing its customers with a high quality and consistent offering and the best coffee on the go. “We’re looking forward to growing our relationship with Shell, both in the UK and in our international markets over the coming years.” Mike Hominick, Shell UK Retail, Marketing Manager said: “Shell service stations in the UK serve five million customers a week and our renewed relationship with Costa Coffee means customers can enjoy a fantastic cup of coffee when they visit. “Coffee is now one of our most popular items. The relationship between Costa and Shell has already grown our sales to over 18 million cups a year and we are excited about our joint plans for further growth.”

SUBWAY® joins International Pole & Line Foundation Sandwich chain SUBWAY® has shown its commitment to sustainable tuna fishing practices by becoming a member of the International Pole & Line Foundation (IPNLF). The not-for-profit IPNLF is committed to developing and supporting responsible one-by-one tuna fisheries and supply chains. With the backing of its members, IPNLF aims to ensure the demand for one-by-one caught tuna can be met without compromising the sustainability of the fisheries, while at the same time providing much-needed support for fishing communities who are heavily reliant upon those stocks. Tuna is the only seafood sandwich that is featured on SUBWAY® restaurant menus worldwide – and the company only serves its customers skipjack tuna, sourced from fisheries with non-threatened stock levels. SUBWAY® becomes the 40th Member of IPNLF. The brand’s membership is a further step in the company’s on-going support

for improved social and environmental responsibility in its supply chains. In particular, SUBWAY® is concerned by the levels of by-catch (the catch of unintended and even endangered species) associated with purse seine nets and will continue to support efforts to reduce or eliminate it. The company also sources from and supports pole-and-line fisheries, and through its support of the Marine Stewardship Council (MSC), SUBWAY® intends to only source its tuna from MSC or equivalent certified fisheries in the longer term. It is currently working with the MSC, and others, to develop a commercially feasible transition plan to more sustainable tuna. Elizabeth Stewart, Director of Corporate Social Responsibility for SUBWAY®, said: “We are committed to reducing our

environmental footprint and creating a positive influence in the communities we work with. “Joining the International Pole & Line Foundation helps to contribute to this cause by supporting our customer promise to supply high-quality food that is also environmentally and socially responsibly sourced, in this case tuna – one the world’s favourite seafood products.” Martine Purves, Managing Director of IPNLF, said: “It is fantastic to have such a big player in the international market on board with our work. “We are a hub for sustainably-minded organisations like SUBWAY® who, through their commitment to responsible sourcing and best-practice in the supply chain, want to see one-by-one tuna fisheries play a growing role in their supply chain going forward.”

Just Eat and Starship Technologies deliver the world’s first takeaway by a robot Online food delivery platform Just Eat and Starship Technologies have made the world’s first online food delivery using a self-driving robot. The delivery was made in Greenwich, South East London, to a regular Just Eat customer called Simone, from local Turkish restaurant, Taksim Meze. Just Eat and Starship Technologies, who have designed and manufactured the sixwheel pavement droid, announced in July they were working together on the first of its kind pilot program. After five months of testing in the area, the first live delivery signals the next step in this pilot program which will see Just Eat customers receive automated robot deliveries in Greenwich. There are plans to expand the program across London in 2017. When the order was received by Taksim Meze, restaurant manager Ana Maria Stingaciu requested a robot make the delivery. A robot then travelled to the restaurant while the meal was being prepared. The meal was then secured in the robot’s cargo hold and Simone received a text message to let her know her order

was on route. Ten minutes later, Simone received a text message with a unique link to open the cargo hold of the robot waiting at her door. Simone said: “I couldn’t believe my eyes when I opened the door. It is really incredible to think that this kind of technology and service is now available.” Ana Maria said: “I am really proud Taksim Meze is the first restaurant to make a takeaway delivery using robot technology.” Graham Corfield, UK Managing Director at Just Eat, said: “We are delighted to add robot home delivery to the Just Eat service. We have been working closely with Starship Technologies for many

months to ensure we can seamlessly integrate this exciting technology with our restaurants partners, customers and online booking service.” Henry Harris-Burland, Marketing and Communications Manager at Starship Technologies, added: “Our pilot program with Just Eat has now entered a new phase of development. We’re happy the residents and businesses of Greenwich can start enjoying the benefits of robotic delivery.” While customers will not yet be able to elect for robot delivery, Greenwich residents who order a takeaway online through Just Eat will increasingly be serviced by the technology as the service continues to roll out.

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FOOD FRANCHISE

News

round-up Coffee chain Costa launches cup recycling scheme Coffee chain Costa is launching a nationwide recycling scheme across over 2,000 stores in order to recover and guarantee the recycling of its takeaway cups.

Competitor takeaway cups will also be accepted by Costa in order to increase the number of cups recycled across the country. Customers will be encouraged to leave or return their takeaway cups to a Costa store where they will be collected by Costa team members and stored back of house on a cup rack. Costa will then work with their waste partner, Veolia, to transport them to specialist waste processing plants which have the capability to recycle takeaway coffee cups. Following a successful trial in over 45 stores across London and Manchester, Costa is rolling out the recycling racks at the end of this month with a clear message of ‘we recycle any paper takeaway cup, no matter what brand’. Jason Cotta, Managing Director of Costa UK&I, said: “As the UK’s largest coffee shop brand, with stores up and down the country, we want to make it as easy as possible for the public to recycle their used coffee cups. “Our research in Manchester and London

FOOD FRANCHISE

shows around 40 cups per day are left in stores, which means we have the potential to recycle 30 million Costa cups a year. “What’s more, the fact that we will accept competitors’ cups means we could significantly increase that figure. This will not be a trial. This is going to be business as usual.” In addition to this Costa is funding research at Sheffield University into cup recyclability and currently donates 25p to litter charities every time a customer uses a reusable cup in a Costa store. Jason Cotta added: “We are committed to taking a lead and, like many others, we are working hard to find a cup that can be recycled anywhere. “While there is more work to do in partnership with the wider industry, we are excited to see the impact our new in-store recycling offer will have and hope it is embraced by everyone – by our customers and by those who buy their coffee elsewhere.”

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Esquires Coffee opens in Buckingham Coffee shop chain Esquires Coffee has opened its newest store in Buckingham. The outlet is the 25th opening for the franchised coffee chain, and is situated in a charming listed building on 30 West Street in the town centre. Franchise owner, Chris Rance is said to be, ‘ecstatic to be bringing this premium, organic and Fairtrade coffee brand to Buckingham.’ The store has created eleven new jobs in the area and aims to become the number one organic and Fairtrade coffee destination in Buckingham. Along with Esquires’ usual range of gourmet beverages, delicious cakes and fresh sandwiches the new store will be one of the first in the Esquires chain to feature their new ‘Equatorial Espresso’ a blend of 100% Fairtrade, organic and Arabica beans from Peru, Honduras, Indonesia and Ethiopia. Esquires are also set to open a minimum of five new locations by the end of 2016; including sites in Yate, Dartford, Guildford, Bradford and the brands first site in Newport, Wales.

ShakeTastic moves into new HQ Milkshake and smoothie chain ShakeTastic has opened a new store, head office and training academy in north London.

BURGER KING® launches new Cheddar Collection BURGER KING® has launched its new Cheddar Collection.

The business, which has a trio of British Smoothie Championship successes to its name, is now taking its ‘biggest step’ yet by opening the ShakeAcademy training centre and a head office above its new store on Barnet High Street. The company was set up by two former school friends Amir Darabi and Josh Kettle in 2009 and is growing rapidly. Josh said: “We already had eight stores in north London and opening here seemed a logical step as people know all about us. “We’ve been looking for a head office for some time now, but finding the right property proved to be tricky. “The Barnet store offers the perfect solution as we’ve fitted out a fully operational store and a training centre where our staff and franchisees can come

and learn everything about what makes ShakeTastic a success. “This is our biggest step since we started the business and we’re all really excited about the next stage of our growth, which will see more UK and international openings as well.” Amir said: “We see franchising as a big area of growth for us. We’ve come up with a winning formula and we want to share that with franchisees and the ShakeAcademy training centre helps us do that. “The ShakeAcademy shows we care about serving consistently delicious drinks and a remarkable customer experience. That’s why we’re investing in developing a super team and giving our franchisees every skill they need to become successful.”

For a limited time only, the three cheesy burgers will be available for diners to sink their teeth into. The tantalising new line-up features the Cheddar WHOPPER, a combination of a WHOPPER patty, a four cheese patty which includes cheddar, tomato and lettuce topped off with a dollop of cheddar cheese sauce and sandwiched between a tasty cheddarinfused bun. Also available is the lip-smacking Cheddar Tendercrisp. This features a succulent chicken breast, topped with a crunchy four cheese patty which includes cheddar, tomato, lettuce and mayo, with a layer of cheddar cheese sauce. The line-up is completed by the premium Smokey BBQ Angus. This burger sandwiches a thick Angus patty, heaps of bacon, American cheese, tomato and lettuce between a corn dusted bun. It also includes an added layer of tangy BBQ sauce. Also in the collection is the new Nacho Cheddar Bites. Gustavo Reichmann, General Manager for BURGER KING® UK, said: “BURGER KING® is firmly committed to delivering innovative, great-tasting food at affordable prices for all our customers “Guests have been asking us for a cheesebased menu, and with the new Cheddar Collection we hope to include burger combinations that suit all palates so we can continue to excite our guests.”

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The New Craftsmen: Generation Z opting for careers as baristas and foodie experts New research from Costa reveals that growing demand for topnotch food and drink is creating jobs for Generation Z

New research* from Costa Coffee, one of the nation’s favourite coffee shops, shows that almost half (42%) of Brits now identify as ‘foodies’, heralding a boom for the hospitality industry. Costa gives more than 110 young people every week their first step on the career ladder. The research reveals that around two thirds (63%) of Brits believe that people in the UK are more concerned with handcrafted food and drink than a decade ago. At the same time, the labour force is turning towards foodie jobs as over half (56%) of 16-24 year olds believe learning a food and drink based trade would boost their career opportunities, compared to only 37% of the over 55s. Brits are also twice as likely to believe hospitality offers good career progression, compared to a job in politics (34% vs 17%). As demand for high quality food increases, so does Brits’ appreciation of the skill that goes into crafting it. More than half (54%) believe it is difficult to make a great cup of coffee and many (52%) say they choose a particular coffee shop because of the skills of its baristas. The research reveals that 16 – 24 year olds are the choosiest coffee connoisseurs,

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with 60% claiming the baristas’ skill is key to deciding where they pick up their daily java. The research comes as Costa Coffee crowns its 2016 Barista of the Year – the coffee chain’s global competition to find the most skilled Costa barista. Costa currently employs over 7,000 16 – 24 year olds in the UK. Kate Seljeflot, Group HR Director at Costa Coffee, said: “It is clear that the hospitality industry is not only booming, but it’s got the attention of a nation of foodies. Brits are coffee lovers and Costa baristas are consistently working to deliver the best coffee experiences for customers. Costa baristas undergo world-class training and pour passion, pride and skill into every cup. We’re always on the look-out for enthusiastic people who are passionate about coffee, keen to learn a useful trade and enter a flourishing industry.” Costa’s Barista of the Year competition, which is now in its 11th year, takes place in London on 12 January 2017 and celebrates outstanding talent amongst baristas. Previous winners have gone on to pursue broad ambitions within the business, including 2012’s UK based winner, Victoria Stewart, who is now an Insights Executive.

Chilli Banana proving popular Chilli Banana brand going from strength to strength Twenty years ago, May Wakefield and her husband Steve were serving Thai dishes from an Alderley Edge pub, with the majority of their advertising budget going on an A-frame blackboard outside. Now, May’s recipes are older than two decades, having been collated from generations of family recipes. Each franchisee has recreated her finely tuned balance of tastes; Thai home cooking using the best of British meat, grades of chilli from a light tap to a full on kick to the mouth and the finest Thai herbs and spices, resulting in truly authentic Thai food. The proof is in the Pad King and now Chilli Banana has branches in Wilmslow, Bramhall, Macclesfield, Liverpool and Didsbury. The Didsbury branch opened in November on Lapwing Lane, transforming the former newsagents in the Victorian parade into a 70-cover restaurant. Didsbury’s Chilli Banana is a welcome addition to the family Thais. May has indeed managed to impart enough wisdom to create a solid, transferable brand. Not only can a number of chefs replicate her wonderful recipes, thanks to her monthly masterclasses and her recipe books, so can we.

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Top 50 FOOD FRANCHISEs

FRANCHISEE

Q&A

Starting out on your own can be a tough task. One of the safest, easiest and most rewarding routes into running your own business is through franchising. We speak to some of the men and women within the UK’s key food and drink franchises and find out how and why they got into the industry.

It’s no surprise that more and more people are taking the plunge and becoming franchisees. Indeed, food franchising can be very profitable due to the fact that it fulfils an essential need that we all have – the need to eat. With a whole host of different opportunities, there’s options to suit all potential franchisees’ budgets and differing lifestyles. We decided to speak to some of those who decided to take on the challenge of franchising to find out why they chose this route into business and what challenges that had to overcome along the way.

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Meet the Franchisees Liz Sowden - Riverford Following a career in sales and marketing for many well-known clothing and accessory brands, Liz decided to go into business for herself and chose to invest in a Riverford home delivery franchise in March 2015.

Marie Johnstone - With thanks Married mum-of-three Marie became a With Thanks sweet franchisee after spending many years working as a bookkeeper. She runs her franchise part-time.

Clif Roberson – Papa John’s Clif has been a Papa John’s franchisee since 2015. Along with his school friend and now business partner John O’Brien, Clif runs three Papa John’s outlets in Cwmbran, Merthyr Tydfil and Pontypridd.

Matt and Shelley Pugh – Roly’s Fudge Pantry

Rajveer Sandhar - SUBWAY®

With Matt working as a supermarket manager and Shelley employed part-time in a Roly’s Fudge Pantry, it seemed the next step was to set up their own shop. With both sharing a love of interaction with customers, the opportunity to run their own Roly’s Fudge Pantry was too good to miss and they decided to open up in Salcombe, Devon. The couple now run four Roly’s Fudge Pantry’s

At 21, Rajveer is one of the youngest SUBWAY® franchisees in the country. Rajveer left school at the age of 16 and launched himself into helping to manage one of his father’s two SUBWAY® stores located in Cannock and Stafford, before opening his first store, in Bromsgrove, in November 2015.

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FOOD FRANCHISE

Franchisee Q&A

What made you decide to open a franchise in the food and drink sector? Clif: “In 2015, my school friend and now business partner John O’Brien and I decided to start a joint enterprise and franchising seemed like the answer. “John was formerly a maths teacher and his son used to work for a rival pizza firm, plus he loves pizza, so a little homework led us to discover Papa John’s. “Previously, I worked in franchising for around ten years running sandwich bars and after a brief spell trying to go it alone, I knew franchising was a better way forward. So, we began by opening 36

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our Papa John’s stores in Cwmbran and Merthyr Tydfil and have recently opened in Pontypridd.” Liz: “It’s something I’ve always been interested in, both personally and professionally. My first job was marketing for Guinness, which I did for five years. “There is a great deal of focus nowadays on food and drink, both eating out and, increasingly, cooking and eating well at home. “People are becoming more educated about what good food means and it’s a necessity, so I strongly believe that the sector can only grow. To paraphrase the old BT ads with Maureen Lipman talking to her nephew (for those old enough

to remember!): ‘People will always need plates’.” Rajveer: “My father has been a SUBWAY® franchisee for over 10 years, providing me with the inspiration to follow in his footsteps. “I can’t remember a time when my dad wasn’t working hard and it just goes to show what passion and commitment can do. “Having been guided by him all my life and working for him since leaving school, he has really shown me the benefits of franchising and what can be achieved – his support has been invaluable.” Marie: “I feel it is a growing industry,

Franchisee Q&A

everybody will always need to eat, and it’s something computers can’t do for us.”

What did you do prior to becoming a franchisee? Matt and Shelley: “Matt was a supermarket manager and Shelley worked parttime in a Roly’s Fudge pantry.” Marie: “I was a bookkeeper.” Rajveer: “I left school at the age of 16 and launched into the challenge of helping to manage one of my father’s two SUBWAY® stores.”

How did you decide which franchise to choose? Liz: “The principles and values of the company I chose were very important to me. It also had to be a product I believed in and something I was personally interested in. “You can’t go into it half-heartedly; I would never have been able to give my all to a fast food burger bar, for example. “Good food and people are the two things in life that make me the happiest, and becoming a Riverford franchisee enabled me to bring the two together.” Clif: “Papa John’s is one of the largest pizza companies in the world and has opportunities for franchisees throughout the UK. “We felt the company’s focus on freshness and quality was compelling. Papa John’s concept of: ‘Better Ingredients, Better Pizza’, combined with excellent customer service and rapid delivery times has contributed to Papa John’s being named as the UK National Pizza Delivery Chain for the sixth time. We wanted a slice of that action.” Marie: “I went to a franchise seminar in Birmingham, walked around all the stands to see what was about and I was drawn to the charity sweet franchises. I spoke to a few and looked into them further and Barnacks came out top.” Rajveer: “My father has been a SUBWAY® franchisee for over 10 years, providing me with the inspiration to follow in his footsteps.” Matt and Shelley: “Shelley successfully applied for a part-time job at the local Roly’s fudge shop where she always shopped WINTER 2017

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Franchisee Q&A

whenever we went on a family holiday to Devon. “It was the most amazing feeling to make fudge from natural raw ingredients and then see the smiles and sales from very excited families on holiday. “There is nothing like seeing our customers’ reactions when they can smell the fudge cooking in our copper pans and then see it made right in front of them in the shop.”

How did you go about funding your franchise? 38

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Clif: “Through a mixture of private funds and a bank loan from HSBC’s franchising department. HSBC was really helpful. The staff know Papa John’s well and understand the business model. They have worked with many Papa John’s franchisees and so securing funds was a straight forward process.” Liz: “I had some funds to invest, but took out a loan for the bulk of it, for which my home has acted as security.” Marie: “Savings.” Matt and Shelley: “We were able to obtain a business loan which funded the opening of our first Roly’s Fudge shop. Just from

this initial investment we were able to open a further three shops due to the success of our first shop.”

What was your initial budget and were extra costs visible from the start? Marie: My initial budget was £5,000 and yes they were extra costs. “The way the franchise package was structured and the credit limit that was allowed meant I would be earning within a month.” Liz: “There was the initial investment price

Franchisee Q&A

for the franchise itself, plus extra costs such as the training fee, legal fees, bank set up fees etc. “I researched what would be required thoroughly and had to present a business plan to Riverford, so I didn’t get any nasty surprises. “Riverford were very transparent about the costs from their side.”

How much support did you receive from banks and other lenders? Liz: “I was able to secure a loan, but to be honest, sadly I didn’t feel very supported by the bank I chose. “The individual I liaised with there was very helpful, however, ‘the machine’ of the banking system was not. “Whilst I have set up a Limited Company, with a proven business model and history of sales and profit for the area, I had to personally underwrite the business loan twice over – once as a guarantor and once by the loan being secured by my home. “I also had to pay significant fees to do so. Banks are clearly there to make a profit. Supporting small businesses does not seem to be their priority, whatever their advertising may say.” Matt and Shelley: “There was a willingness to help support our venture into franchising from our current bank. They have been very supportive and we have a great relationship manager at the bank who always gives us the best advice when we need it.”

Was there a clear, coherent contract laid out? Liz: “Yes, Riverford supplied a copy of their Franchise Agreement to me for review, at an early stage of the exploratory process. I was comfortable with the spirit of the contract, I strongly felt I could trust Riverford to be fair.” Matt and Shalley: “Absolutely, the contract was clear and concise and the Franchise Director talked through anything we were unsure about.” Were all of the facts made clear to you and were you happy with what was expected from you as a franchisee? WINTER 2017

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Franchisee Q&A

Do you feel that the contracts you have in place are secure and that they protect you from any additional liabilities? Liz: ‘Yes, absolutely.”

How much do you have to pay into the marketing budget or is this included in your franchise fee? Liz: “Some central marketing is included in the ongoing management service fee that we pay of three per cent of turnover. I also invest in my own local marketing. I put together a five-year marketing plan as part of the exploratory process. I am fully aware of my expected marketing costs each year.”

How much internal marketing do you do in comparison to that which is provided by the franchisor? 40

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Matt and Shelley: “As a franchisee we can choose to advertise locally in newspapers or magazines.

Clif: “Yes absolutely. In fact, the staff go all out to offer support on every level required.

“The advertisements are always proof read and authorised by the Franchise Media and Marketing Manager.

“One specific area which has been important to us was Papa John’s incentive scheme designed to support franchisees in the early stages of growing their businesses, which includes discounted royalty fees, contribution towards marketing spend plus free equipment for new stores.

“We can also run our own individual shop’s social media on Twitter, Facebook and Instagram etc. There are guidelines, but generally an amazing close up picture and comments of our handmade fudge always produces a great response.” Liz: “The first six months of running my business were spent focussing on getting myself operationally up to speed, so I didn’t do too much of my own local marketing. “Now though, I spend my time attending various local events, such as food festivals and fêtes, to attract and engage with new customers.”

Do you feel that you have the support from those at the head of the brand?

“This helped get us off to a great start and open more stores.” Rajveer: “I’m very lucky to receive support from my dad whenever I need it. “He is very experienced in most matters and can answer most of my questions, but the support I also receive from the SUBWAY® brand itself is invaluable. “It’s very much a hands-on approach with constant support from my field consultant and Development Agent. Everyone wants to see you do well, which is very reassuring. “I already knew the SUBWAY® brand pretty well, however, the training I re-

Top 50 FOOD FRANCHISEs

“The support given is second to none! A quick email or phone call for advice always gets answered. You really do feel that you can discuss any ideas and get feedback from the Roly’s brand team.”

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FOOD FRANCHISE

Franchisee Q&A

ceived was so extensive and interesting, I couldn’t help but feel confident in my own abilities.” Liz: “Yes, very much so, starting with Guy Watson who owns Riverford and then throughout the entire organisation.” Marie: “Most definitely.” Matt and Shelley: “The support given is second to none! A quick email or phone call for advice always gets answered. You really do feel that you can discuss any ideas and get feedback from the Roly’s brand team.”

How much support were you given following the signing of the franchise lease? Rajveer: “It’s very much a hands-on approach with constant support from my field consultant and Development Agent; everyone wants to see you do well, which is very reassuring.” Liz: “I had a full week of training at Riv42

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erford’s head office farm in Devon, and comprehensive notes and guides to take away, plus my fellow franchisees have been very supportive. I also have continuous support and contact with my business development manager.” Matt and Shelley: “Full support was given in pretty much setting your first shop up. Fixtures and fitting were all provided and installed for you, to at least begin making fudge and trading the shop. Full fudge making training is given. It’s the finishing touches and how you amaze your customers with beautiful fudge that brings the customers in.” Marie: “I received 100% from the start.”

Do you have regular contact with head office? Liz: “Yes, but Riverford franchisees also have a level of independence that means we feel supported and not restricted.” Marie: “Yes. I have weekly contact with head office and can contact them when required.”

Mat and Shelley: “Yes, whenever we need advice. There are also structured communications too, such as a regular newsletter, an annual franchise meeting and emails sent out with any important news.

How much help did you receive in terms of recruitment? Liz: “There was an existing small team of drivers, who came on board initially. I’ve managed subsequent recruitment myself.” Does the model that you operate allow for you to offer competitive rates of pay? Liz: “Yes – it’s really important to Riverford that everyone is treated fairly, from staff through to the farmers, suppliers, and our customers.”

How much training did you have to give your staff prior to opening and were you fully briefed to do this?

Franchisee Q&A

Clif: “We attended Papa John’s head office for training and we are supported on an ongoing basis. “Our own store staff are trained by us and also through an online modular system designed by Papa John’s, which ensures they have all the necessary skills to serve up our great pizza every day! “There is inevitably a learning curve, but with all aspects of the role, including staff training, it becomes easier with experience and each store we open. “However, we were fully prepared and trained by Papa John’s and they are always at the end of the phone if we need help or advice.”

Do you have plans to open further sites? Rajveer: “At the moment, I am still focusing on the development of my first store, but I can’t wait to start planning my next steps. “To open a franchise, especially for the SUBWAY® brand, you need to have both your head and your heart in it 100%. “I’ve set myself the target of opening five SUBWAY® stores by the age of 30 – I know it will be a tough challenge, but I’m looking forward to getting there.” Clif: “So far, we have all been surprised and delighted by the popularity of our new stores, which have already doubled original forecasts, seeing strong repeat business. “We now run four Papa John’s and will open a further Welsh store before Christmas, with more planned for 2017.” Matt and Shelley: “In just over two years we have been able to open four of our own Roly’s Fudge Pantry’s. We would love to open a fifth, it’s all about finding the right location.”

Would you recommend franchising in the food and drink industry?

Marie: “Yes!”

Liz: “I’m involved in the organic sector, which has shown continuous growth year on year, so I feel my future in the food industry is safe and looking healthy (just like Riverford’s veg). Everyone is differWINTER 2017

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Top 50 FOOD FRANCHISEs

“To open a franchise, especially for the SUBWAY® brand, you need to have both your head and your heart in it 100%.

FOOD FRANCHISE

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Franchisee Q&A

ent though, so I can only say that I myself have no regrets at all.” Mat and Shelley: “The reason we have four shops is that we absolutely love making our fudge right from raw ingredients, and seeing the customers amazement watching us make it and tasting it.” Clif: “Franchising can offer the potential to be successful in a variety of industries. However, it is important that you do your research and due diligence. Speak to franchisees to see what the job really entails. From our point of view, Papa John’s offers a solid business model in a growing market and not all franchises can make that claim.” Rajveer: “Young people may think opening a franchise at their age is a risk, however, it’s a good risk. The support you receive from the SUBWAY® brand is amazing, you really get a step-by-step guide and if you really put your all into it, you can’t go wrong. “It’s been such an experience being able to test my strengths and weaknesses, while still having the space to make my own way. “It can be hard at times, but I’m very

proud of the fact that as a SUBWAY® franchisee, I can say I’m my own boss at the age of 21 and I can’t wait for my journey with the SUBWAY® brand to continue for many more years to come.”

the potential franchise as you are there to make money at the end of the day. Researching other franchisees will give you a fair indication of how successful your franchise is likely to be.”

In your opinion, what makes a successful franchisee?

Matt and Shelley: “It’s always hard work at the start and indeed ongoing. However, because it’s your own business and your own sales and profit, there is a huge sense of pride and achievement when you start to see the results from your efforts.

Clif: “Successful franchisees are dedicated, hard workers who have some funding to purchase a good franchised business. However, when it comes down to it, you can only be as good as the product you sell and that has to have demand in the market place. For us Papa John’s has the right product and its popularity continues to grow rapidly.”

What top tip would you give to somebody looking to operate a franchise? Marie: “Go in with your eyes wide open and ensure the franchisor is there to support you from the start.” Clif: “Make sure the sums add up. You need to look carefully into the finances of

“We absolutely have fun at work with our ‘Team fudge’ in every shop and this in turn creates a fun shopping environment for our customers. They love our fudge because we love making our fudge.” Liz: “Do lots of research, engage your brain fully, but also go with your heart to a degree. A passion for the brand or company you are considering is a must. Ensure you know fully what the model is and what is expected of you. Speak to other franchisees. I did, and found their insight invaluable.” Rajveer: “To open a franchise, especially for the SUBWAY® brand, you need to have both your head and your heart in it 100%.” WINTER 2017

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Can you afford to miss it? The Franchise Show â&#x20AC;&#x2122;17 will be the biggest & best yet!

CoffeeDelight

CoffeeDelight are offering fantastic franchise opportunities with our Fresh Coffees, Teas, Smoothies, Shakes, Hot Paniniâ&#x20AC;&#x2122;s, Toasties & Cakes Business

CoffeeDelight

The Franchise Show 2017 is shaping up to be our biggest and best yet; you’ll have over 180 different Franchise brands to choose from at the show, as well as over 60 seminars to take advantage of!

We Have A Number of Shopping Centres ready to Open Across the UK

At the Franchise Show this February you will find a wealth of Food related opportunities ranging from some of the most potentially lucrative and on-trend café franchises through to the well known fast food restaurants we all love.

CoffeeDelight are offering fantastic Franchise opportunities with our Fresh Coffees, Teas, Smoothies, Shakes, Hot Panini’s, Toasties & Cakes Business. We’ll get you up and running with minimal costs starting from £15,000.00 + vat meaning youcan start making a profit far quicker than you would do without the franchise structure. Our Franchise offers four options, one of our Unique Mobile Pods a Kiosk for Shopping Centres, a Fully Fitted Takeaway or a Restaurant Store, we can design to fit out any spacethat you may have in mind and supply all tried and tested equipment that you will need to get you up and running fast.

Our Community Plan It is our Plan and Commitment to Local Community Projects to donate 10% of our Net Profits to support good causes and by expanding our Franchise Network we can help projects across the UK. Our Range is freshly prepared to order daily including a wide variety of Coffees, Teas, Fruit Smoothies, Lush Milkshakes, along with Freshly Toasted Sandwiches, Breakfast Yogurts & Cakes. .

We only use Fresh Been Coffee Certified by the Rainforest Alliance. All of our Smoothies are Mede with Real Fruit & Juice with No added Sugar, Syrups or Ice. Our Milkshakes are made with Fat Free Yogurt or Real Ice Cream and are all Gluten Free. Our Toasties and Panini’s are made Fresh with the very best Ingredients.

Eco Credentials All of our packaging is Recyclable, Biodegradable & Compostable This is very important to us as so many make claims about Coffee Cups but we do use Compostable Coffee Cups. - Our PEP Smoothie Cups are Biodegradable. - Our Takeaway Trays Carrier Bags & Napkins are all Compostable. It is very difficult to break into the Coffee Franchise Business with a single unit offering but we think we can help you with our Franchise, please contact us on 0800 999 6003 or email seanread1@me.com 48

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Some facts & figures about Food Franchises The food and beverage industry is the UK’s largest manufacturing sector, responsible for 7% of GDP and achieving a massive turnover of £80 billion a year. The sector has also demonstrated to be robust in an unstable economic, maintaining solid growth and employment figures throughout. Research has shown that people in the UK are also eating out more – the growing appetite for diverse and convenient dining means consumers are forecasted to spend £54.7 billion by 2017, with a predicted growth in the restaurant industry of £10 billion by 2019. Brand and Location in food business are key to success – if you find a reputable brand and the right location, you have a significant chance of running a profitable business. There are clear reasons why Food is the largest sector in franchising– after all, it has a reputable record of success, providing franchisees with a large variety of opportunities to run businesses with a substantial amount of support. This sector can also offer the perfect platform for those looking for a scalable business, with successful franchisees often evolving from single-unit to multi-unit ownership. This choice is particularly relevant to the larger, more rapidly developing brands and can lead to a very rewarding future. The demand for Fast food will always be high, but a significant change in the industry is the growing trend for healthier food options by consumers. Not only are many of the fast food chains now providing healthier options, the industry is also further diversifying the array of businesses out there, with a number of smoothie, juice and salad bars, and natural and organic foods restaurants opening up all over the UK. Coffee and snacks are also a good move for investors, with their value growing rapidly and businesses getting more creative with their offerings. Coffee is still on the top of the list for most people when it comes to refreshments, and providing people with their daily shot can prove another very lucrative option for business owners.

What’s brewing? Coffee trends, an overview 2016 has been an exciting year for coffee lovers and brewers alike. Big brands continued to grow, while the independent coffee shop sector continued to prove its important commercial potential across the country. Last year has shown that British coffee drinkers are more and more prepared to pay over the odds for a first-class product, This can also be seen in the growing demand for organic food produce and locally-brewed craft beers. Today’s average coffee drinker is much more informed and selective about coffee than they were ten or even five years ago. But they are not just interested in the taste

NOW FRANCHISING Loaded Burgers was created in 2014 to satisfy our own desire for a really tasty burger and a cool dining experience. It worked for us and the hundreds of customers who quickly became regular diners. So, we launched our second restaurant in 2015. In our restaurants everything is prepared fresh. We the use the highest quality ingredients and we do not compromise on quality. From create your own to our signature burgers, our customers can find a burger that’s just right. We know how to make the best burgers. And we know what tastes good. It’s a recipe for success that we’re happy to share with our franchisees.

For more information visit www.loadedburgersfranchise.co.uk WINTER 2017

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THE LOADED BURGER EXPERIENCE

Loaded Burgers launched in 2014, when a family of brothers decided to create somewhere new that served brilliant burgers in a funky environment. Nothing similar was available locally and the burger-loving brothers were tired of the poorly put together, pre-processed fast food offerings they found on the high street. Loaded Burgers was their answer. A gourmet burger restaurant that really sizzles. And what a success it has been. The first restaurant opened in Ilford in 2014 and quickly became so popular a second site was opened in Stoke Newington just two years later.

The Difference Every burger is prepared on-site, using the freshest ingredients, every day. No sad little patties or rubbery cheese here. The competitively priced menu is jam-packed full of funky flavours and ‘build your own’ combos. Signature burgers all have a fresh twist on traditional favourites, including tasty toppings such as caramelised onions, mature cheddar and aioli. And, for the bad boy of burgers, customers can try and get their mouths round the Fully Loaded burger. It’s a beast! The food is the focus, but it’s all served in an uber- cool restaurant interior, making this a casual dining experience to rave about.

Why are we franchising? With a network of franchisees, we can spread the Loaded Burgers love to new locations across the UK. So, if you like the idea of running your own trendy restaurant, serving the kind of tasty food that gets people talking, then this could be just the opportunity for you. Whatever your background, you need to bring the energy and determination to drive a lively new business forward. But, our experienced team will then ensure you get all the training and support you need to run a smokin’ hot Loaded Burgers restaurant.

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and texture of the coffee they drink: they also care about the conditions in which it was produced, and the setting and ‘feel’ of the environment in which they enjoy their drink. Interestingly, critics believed the UK coffee market had already reached its peak in 1999, but since then the industry has only continued to grow. All of this indicates that 2017 is a great time to invest in a UK coffee franchise: British coffee drinkers are going out to buy coffee rather than staying in, they are starting to buy coffee at younger ages, and they are buying better quality, more expensive coffee while they do so. .

Master licenses A number of these international franchises are keen to meet investors who would consider purchasing a master license. The UK with its buoyant Food Sector, offers lucrative expansion options for any brand, so if you are keen to explore these master licenses in more detail, arrange your personal meeting with the brand of your choice at the Franchise show. Following the overwhelming success of last year’s London Franchise Show, the biggest and best Franchise Show in the

We at Datasym are POS and software solution experts with over 30 years’ experience within the Retail and Hospitality markets. We have a number of franchise clients for which we have been able to tailor our solutions to meet their needs with extremely successful results.

Our features include: •Full Stock Control - Time & Attendance - Cash Office •Report Scheduling & Distribution - Integrated Chip & Pin / Contactless - Web Dashboards •Loyalty & Promotion Functionality - Recipe Costings - Clear & Simple User Interface •Hosting - Data Bureau - KPI Reporting

UK will be back on the 17th and 18th of February 2017 at ExCeL, London. Attending the show is totally Free, all you need to do is register online at www.thefranchiseshow.co.uk and click on ‘tickets’.

Plus many more….

The Franchise Show has helped thousands of people over the last seven years, to make their move into business, offering access to the very latest information and opportunities within this fast-moving industry.

Please contact us for further information and to find out how we can help you improve your business. Contact Details: 0844 870 9206 sales@datasym.co.uk www.datasym.co.uk

And with more bookings day after day, by the 17th of February we expect to have over 180 exhibitors at the event! This is your opportunity to meet with the best proven franchises, who will be vying to meet you to discuss why you should invest in their Franchise! So join the thousands of entrepreneurs and business owners at the best International Franchise event in the UK. Just register your free ticket on the website www.thefranchiseshow.co.uk and click on ‘tickets’.

Be Inspired

mangobean

BE INSPIRED

Coffee chain Mangobean may be the new kid on the block, but it is certainly growing fast. With 16 shops having opened in the past 18 months, Mangobean is aiming to shake up the UK’s coffee and café industry and become the fourth biggest coffee shop franchise in the UK. Shane Saunders, Managing Director of Mangobean, said: “We’re aiming to have a little fun. “So many coffee shops spend their time telling customers how good their coffee is. Well it should be! We concentrate on making sure our shops are fun places to be.” 54

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So who are the team behind the brand and the franchisees opening stores up and down the country? We decided to find out.

THE FRANCHISEES Lyaqat Ali was looking for a new venture when he decided to stop running the Whitley Road Sub-Post Office, in Reading, in 2015, after being sub-postmaster for 18 years. Speaking to his customers he realised there was a need for a coffee shop in the area. So he began working with his business partner, Chef Mohammed Anwar, to create something special.

“We have a lot of takeaways, but nowhere to sit and chat,” he said. “We found this new franchise Mangobean and we thought they had reasonable charges and a bold brand, so we went with them. I’ve been complimented on the fact that the store and its branding looks very upmarket.” Just ten minutes’ drive from Mr Ali’s premises, Sumit Batra opened a store on Reading’s busy Broad Street in September 2016. “I’ve run franchise stores for KFC, Subway, McDonald’s and Pizza Hut,” he said. “I wanted to have my own business and I’ve always loved coffee. “Mangobean is a new, funky brand which

BE INSPIRED

is fulfilling a big need for something new within the market.”

and potential than coffee. We want to be a part of it.”

In Darlington Zak Ahmed, his brother Shuhel and their brother-in-law Abubokkar Siddique have set up their first Mangobean in the new Feethams Leisure Scheme. The store opened on August 26, and has been doing a roaring trade since.

WHY A FRANCHISE?

The trio have a long history together, owning and running Indian restaurants and takeaways. They’ve now taken the jump to run their own coffee shops. Zak said: “There’s no reason for us to leave a successful business in takeaways unless it was to do something bigger. “There’s no market with greater growth

Mr Ali chose the franchise model because he was new to the sector. He said: “My background is more financial so I’ve never served coffee or anything like that.” “With a franchise you have support and good guidance.” For Sumit, his experience with franchises made the choice to go with Mangobean a simple one.

He said: “With a franchise you get a list of recommended suppliers, branding and a plan of what to do in different circumstances. “In a crowded market people need to recognise your brand. As Mangobean grows we are only going to become more visible and recognisable.” For Zak and his brothers it was a simple choice to go with a franchise. He said: “A franchise is an opportunity to grow your business quickly because of the brand awareness. “We are very ambitious and want to open lots of stores - Mangobean gives us that WINTER 2017

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chance. It’s new, it’s expanding fast and it is very affordable.”

HOW DID YOU FINANCE THE PROJECT? Mr Ali said: “We financed the project ourselves. When we came to get equipment, Mangobean suggested U-Select. We chose Try It Buy It. We rent for a year and then can buy or continue renting at the end. It meant we didn’t have to tie up any capital. It works well for us.” Sumit said: “I’ve used Satellite Finance to support the build and the equipment. “It’s been straightforward to deal with them after we were introduced by Mangobean. I’m using U-Select for the equipment and they have done a good job - it is great equipment and it is all working well for me.” It was a different story for Zak and his brothers. He said: “We were lucky to have the assets available to finance the first shop ourselves. “We can build the business with less pressure and also learn what we can expect in revenue without worrying. We went with U-Select’s Try It Buy It for our equipment. The equipment has a full warranty so if it breaks down it is repaired, if it can’t be repaired it’s replaced - you can’t go wrong with that. After a year we can buy or continue renting. Every way it works.”

WHAT’S NEXT IN THE COFFEE MARKET? Zak said: “People expect more from their coffee shops now - and we see lots of people asking for juices or smoothies.” Sumit added: “The market is becoming more about choice and I think Mangobean have an edge because they have introduced the Ceroffee coffee roasters. Our customers love to try different blends.”

SO WHAT’S NEXT FOR THESE INTREPID STORE OWNERS? Sumit said: “I want to buy some PKL Food Cubes - which are sturdy modular buildings - and have them at train stations and in malls. “Because the set up costs of these are lower than a new shop we can finance 56

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BE INSPIRED

further expansion from their revenue.” Zak and his brothers are so positive about Mangobean they have become Development Agents for the North East, and aim to help 50 more shops open over the next ten years. Zak said: “By becoming Development Agents we aim to give the same service to new franchisees that we received from Mangobean. “We’ll help you find a site, arrange for its fitting out and even help with training. We aim to open a number of shops ourselves, which means we will be able to give realworld advice to every new store owner.”

FRANCHISOR Shane’s ambition is to challenge the ‘Big three’ in the UK - Costa, Starbucks and Cafe Nero - by bringing a fresh, fun brand to market and by making Mangobean ‘the most affordable franchise in the UK’.

His vision is built on lessons learnt during a decade of selling coffee equipment and coffee beans to the cafe trade. He said: “We are going to be the most affordable coffee franchise in the UK. “Most franchises are focussed on big franchise fees and big royalty fees. We’re different. “I’m a great believer in the fact that we are all in it together. I say the franchise should make its money WITH the franchisees not ON them. We’ve opened 16 stores in less than two years, which is a phenomenal growth rate for such a small brand.” Franchisees can buy into the brand with £30,000 equity and a total investment of £150,000 - £170,000 for a store that can expect to make 15-20% net profit per week, said Shane. He added: “We have trade experts, financial experts and property consultants who

all work with the franchisee to make each step easy and straightforward. “We offer a turnkey service because we want to make sure our franchisees build from a strong base. We all benefit from successful Mangobean stores.”

WHAT IS DIFFERENT ABOUT MANGOBEAN? Shane said: “We ban all traffic wardens from our stores. We have ‘bribery’ cards rather than loyalty cards. We decorate our stores with bright colours and fun slogans and we roast our own coffee on site. “We are unpretentious. We created ‘coffee cocktails’ to make it easier for people to try something new without feeling intimidated by arrogant baristas - we are all about having a fun experience in our stores whilst drinking fantastic coffee.” “We are the new kids on the block, but we have big plans to build something large and lasting.” WINTER 2017

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MAKING FRANCHIsING YoUr FUTUre

THE EFFECTS OF BREXIT ON FRANCHISING

ON THURSDAY, JUNE 23, LAST YEAR BRITAIN WENT TO THE POLLS TO VOTE ON WHETHER TO LEAVE THE EUROPEAN UNION. THE REST IS NOW HISTORY AND THE NATION IS NOW PREPARING FOR BREXIT. HOWEVER, QUESTIONS REMAIN OVER THE IMPACT OF THIS DECISION.

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BREXIT THE EFFECTS

The dust may have settled, but uncertainty still remains following the Brexit vote. And like all other industries and sectors, franchising is no different, with many challenges ahead, as franchisees and franchisors alike try to navigate the way through the changing environment of the business world. However, here at Food Franchise, we have enlisted the help of some of the leading experts on franchising to ease some of the fears surrounding Brexit and offer some guidance on some of the problems that may lie ahead. Solicitor Gurmeet S Jakhu is a partner at Knights Professional Services and specialises in franchising. The UK has no franchise specific laws and there are no franchise registration or disclosure rules, as there are in some EU countries. English law, as it relates to franchising, is largely based on the common law and has developed without a great deal of involvement of the EU and is therefore less likely to be affected by Brexit.

The government recently announced that Article 50 of the Treaty of the European Union will be triggered early next year and the â&#x20AC;&#x2DC;terms of divorceâ&#x20AC;&#x2122;, will have to be negotiated with the remaining 27 members, within two years, unless extended. On the whole it will be business as usual, but there are some issues to be aware of.

Customer Confidence Franchising in the UK remains very popular. Whilst there is healthy growth in the B2B sector, B2C systems still account for the majority of franchisors, hence a major factor on how Brexit may impact franchising in the UK will be the effect it has on consumer confidence. Recent figures from the Office for National Statistics have indicated that retail sales are booming, with retail sales increasing by 7.4% in October 2016, compared with October 2015, the largest increase since April 2001. Whilst this may be down to colder temperatures in October and supermarket trade being boosted by Halloween, the figures show that consumers are still prepared to spend despite the political and economic uncertainty. Addition-

ally, the Bank of England has confirmed its willingness to stimulate the economy by lowering interest rates even further and quantitative easing. Brexit - Implications for UK franchising This will largely depend on the nature of the UKâ&#x20AC;&#x2122;s future trading relationship with the EU. It is yet to be seen which route is chosen, but the following are likely to be most impacted: Staff - The ability (or lack of it) to restrict EU workers played a pivotal role in the referendum. If the UK was to close its borders to EU workers, then it is likely that the EU will also take steps which impact upon the ability of UK workers to work freely in the EU. Therefore, franchisors should consider their employment strategies. In addition, large swathes of UK employment, food hygiene, health and safety legislation, is based on EU directives or regulations. It is not clear as to how much will be repealed which will result in uncertainty for business. Intellectual Property Portfolio - This is likely to be affected most. At the moWINTER 2017

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ment, all member states benefit from a range of EU-wide intellectual property regimes. Trade Marks and trade secrets are particularly relevant in franchising. It is possible to obtain protection for a trade mark and design under one EU trade mark, known as the EUTM. In future, it is likely that UK trade marks will have to be maintained separately from the EUTM, which will require a franchisor to register in both the UK and EU to ensure that its TM is protected, at additional costs and management time. Confidential information and know-how is vital in franchising. The European Trade Secrets Directive, is designed to protect confidential information. This directive was welcomed by franchisors, because it can be problematic to protect confidential information. It seems unlikely that the directive will be implemented by the UK and as such franchisors will have to ensure that their agreements contain adequate protection. Data Protection - EU regulations, currently in the pipeline, will impact upon any UK business which processes or monitors EU citizens’ personal data (in connection with the offer of goods, services etc). One such regulation will increase the current maximum fine from £500,000 to a Euros 20M, or 4% of worldwide turnover. Businesses should carry out audits of the personal data held, review policies and ensure that staff are adequately trained. In other cases, data protection laws which closely resemble those currently in place, will be necessary in the UK to avoid barriers to trade. 60

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Competition Law and On Line Sales Most of UK competition law as it relates to franchise agreements is based on EU competition rules. The block exemption, together with EU-based case law, is of great importance. It provides franchisors with flexibility, including allowing franchisors to set maximum prices and providing exemptions from prohibitions imposed on other businesses trading in Europe. EU competition rules also prohibit restrictions on online sales. Whilst franchisors may have more scope to protect the domestic market from competition by their own franchisees, they may lose some of the flexibility generated from EU rules and case law. Franchisors will have to evaluate the impact of the changes brought about by Brexit once the detail has been clarified. Disputes - Most domestic franchise agreements will contain clauses providing for English courts to have jurisdiction and for English law to apply. Brexit will not affect this, however, it may, depending on the facts, give rise to grounds for termination of contract, based on force majeure or material change, particularly where the territorial scope extends to the EU. It is also expected that the UK will adopt legislation that upholds the Brussels Regulations – the EU’s legislation on jurisdiction and reciprocal enforcement of judgments. In addition franchisors who have commercial contracts with entities within the EU should consider auditing/reviewing such contracts and their supply chains to ensure that they are aware of the likely implications and to allow them an oppor-

tunity to build in sufficient safe guards. The European Parliament recently published a study on the regulatory framework and challenges for franchising in the EU. Following its subsequent workshop, attended by representatives from the EC, it concluded that it is necessary to introduce franchise focused legislation to enable franchising to achieve its full potential in the EU. If this does happen, which is not guaranteed given the lukewarm reception from the representatives, it remains to be seen if it is adopted by the UK given Brexit. There will be a great deal of uncertainty until a new system is put in place. The status of EU-based legislation and treaties will have to be considered, which is going to time. Challenges are likely to arise along the way, whether from the courts or parliament and recently there has been talk of transitional period/arrangements. Franchisors should use this time to assess and put in place an action plan to address the likely impact of Brexit on its operations. Graeme Payne is a partner in law firm Bird & Bird’s global retail and consumer group, which supports and advises start-ups, entrepreneurs, SMEs and blue chip multinational luxury, retail and food and beverage businesses across the full spectrum of legal and commercial issues. As most people are aware, on 23 June 2016 the UK voted 51.9% to 48.1% in favour of leaving the EU.

BREXIT THe eFFeCTS

The surprise outcome of the referendum ran against general expectation and, by and large, the general desire of business. It is noteworthy that British franchisors did not â&#x20AC;&#x201C; either collectively or individually - participate in the referendum debate. Some wonder if the franchise community should have been more engaged in the debate, as they will now have to live and do business in what could well be a very different economic environment. This article outlines some elements of the potential legal and commercial impact of the United Kingdomâ&#x20AC;&#x2122;s exit from the European Union (or Brexit as it has been dubbed) for food and beverage franchisors with franchisees in the UK and the rest of the EU.

What happens to EU law now? There will be no immediate change to English or Scottish law as a result of the referendum decision and so food and beverage franchisors should not be panicked into taking steps to change their franchise or other agreements at present. However, it is worthwhile understanding some of the technical issues in play and their potential impact on food and beverage franchisors with franchisees in the UK and the rest of the EU. Broadly speaking, EU legislation is either directly applicable in the UK (e.g. regulations) or only once transposed into domestic legislation (directives). Upon a Brexit, directly applicable EU law, including treaty provisions and regulations, will cease to have legal force in the UK, unless Parliament passes equivalent domestic legislation. Directives that have been transposed into UK primary legislation will continue to operate, but the UK statute will no longer be required to comply with the directive from which it derives: UK Parliament will be free to amend the legislation as it sees fit. Directives are likely to continue to be relevant to the interpretation of UK statutes that derive from them where there are ambiguities. The Court of Justice of the European Union (CJEU) case law is likely to continue to be persuasive in UK courts after a Brexit, particularly with respect to UK law derived from or harmonised with EU law. This influence will diminish over time as UK law diverges. Some UK statutes contain a requirement to interpret the legislation consistently with CJEU rulings: this requirement will continue to be effective after a Brexit unless and until the UK statute is WINTER 2017

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amended.

Franchise Regulation Although there is franchise specific regulation in France, Spain, Italy, Sweden, Belgium, Romania and two of the three Baltic states, there is no EU wide franchise specific regulation in the EU. As such Brexit will have no impact in this regard. However, if the European Parliament’s current review of the regulation of franchising were to lead to an EUwide franchise regulation, the UK would probably not be obliged to adopt such a regulation.

Trade Mark Law The most significant effects of a Brexit on 62

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food and beverage franchisors will be in terms of their brand protection strategy for the UK and Europe. This issue does require some urgent consideration by food and beverage franchisors as soon as possible. It is likely that EU trade marks (EUTMs) (formerly referred to as Community Trade Marks or CTMs), will no longer have effect in the UK and there will be questions about what will happen to the ‘UK portion’ of such rights obtained before Brexit. If existing rights automatically reduce in geographical scope to exclude the UK their value will diminish, which will have a commercial impact on the rights holder. This is something that food and beverage franchisors with EUTMs need to keep an eye on as it may at some point mean that they have to re-apply for some of their

trade marks in the UK. There is also the issue that for those food and beverage franchisors who have EUTM registrations but only use their marks in the UK, once the UK no longer forms part of the EU these EUTM registrations could be vulnerable to attack for non-use. International food and beverage franchisors in this situation would have to consider expanding their use in the EU to defend their EUTM registrations and/ or consider filing independent national UK applications, which would survive any possible future demise of their EUTM based on non-use.

Employment and immigration law

BREXIT THE EFFECTS

A number of areas of UK employment law, such as the National Minimum Wage and the law relating to unfair dismissal, are outside the scope of EU law and likely to be unaffected even when the UK ceases to be part of the EU. Other areas — including unlawful discrimination, certain family-friendly rights, working time, collective redundancy consultation and business transfers — have been influenced by the EU, often having a basis in European Directives or case law. However, in many instances the UK provides protection in excess of the EU minimum requirement and changes are unlikely. EU employment laws that are considered to impose the greatest burden on businesses — such as agency worker rights, collective consultation and working time rights — are the most likely to be subject to change, but many other EU employment laws (including those covering discrimination) have become entrenched in the UK’s legal and ideological framework, and drastic changes to these seem much less likely. The position on immigration is less clear. Changes to immigration laws in relation to EU citizens currently living and working in the UK could have a substantial impact on franchisees’ employees particularly in the food and beverage and hospitality industries. Labour shortages, a loss of talent and mobility restrictions are all ways in which businesses could be affected depending on how the government elects to regulate or remove EU nationals’ right to live and work in the UK. International food and beverage franchisors with a presence in the UK should audit their workforce in terms of immigration status, considering applications that could be made now (e.g. for permanent residency), and importantly communicate with concerned employees. In the longer term, if and when the government proposes those laws that are to be amended or repealed, employers should also review employment contracts (with a view to addressing any unenforceability risks that might arise), policies, procedures and benefit schemes, and check any European works council arrangements. Competition law This area of law is extremely relevant to franchising in the EU and the UK. UK antitrust law is already well developed and is based on the EU model. EU competition rules will continue to apply post-Brexit to agreements or the conduct of UK businesses that have an effect within the WINTER 2017

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EU and parallel EU and UK enforcement action will become possible. However, the commission will have reduced powers, e.g. no power to carry out on-site investigations (dawn raids) in the UK nor to ask the competition and markets authority to investigate on its behalf. Importantly for franchising, new block exemption measures (including the block exemption that covers franchising) at UK level will be needed, as the UK Competition Act currently relies on the EU block exemption regulations (which will no longer apply following a Brexit). It may mean that the UK adopts a more US ‘Chicago school’ ‘rule of reason’ style of approach to restrictions on issues such as exclusivity and price maintenance. This would allow franchisors far greater flexibility in their franchise agreements. Magdalena Konig is an associate at Shoosmiths a national UK law firm famous for client service. 64

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2016 was a year of change. The ripples of these changes will continue for years to come, as the UK navigates its way through the process of triggering Article 50 and its exit of the EU. There are a number of key considerations franchisors and franchisees need to assess over this period. That’s not to say that businesses should make rash or knee jerk decisions, because the real impact of the Brexit vote is yet to be seen. As such, from a legal perspective, there is not likely to be upheaval for a few years yet, but this article considers the material issues initiated by Brexit, as we see them today, which could impact a franchise business.

Day to day – currency and supply chain To date, Brexit has already had a notice-

able impact on costs, in particular, food costs given that ingredients are often bought in from Europe and the value of the pound has plummeted. As such, franchise businesses continue to see their cost base increase. In the short term, franchise businesses therefore need to assess if they can pass these costs on and/or whether this will filter through to the end customer. Temporary relief and longer term commercial arrangements should then be reflected. For example, can price adjustment mechanisms be triggered; can any of these arrangement be terminated/ renegotiated? For the medium term, flexibility through this period of uncertainty could be valuable, especially as it remains unclear what trade barriers or importing/exporting duties could be applied in the future. Financial planning is imperative to provide for

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agility to adapt to any relevant changes which may impact franchise businesses. Transparency of such planning is key, for example, when engaging with prospective franchisees, franchise businesses need to keep in mind the need to avoid misrepresentation. This is even more important, given the Brexit vote, as the impact on franchise funding opportunities is unclear. Although we note that as the time of writing this, franchise lenders such as HSBC, Lloyds, RBS and NatWest have asserted that Brexit will not impact adversely on their lending decision making.

Enforcing your franchise agreement - dispute resolution and territory Franchise businesses should consider if Brexit may trigger termination of its franchise agreement for example, by virtue of material adverse change or force majeure. As such, in due course, franchisors should audit their contracts to fully assess the impact of Brexit on its portfolio, if any. Depending on the drafting of the relevant franchise agreement, it may grant rights throughout the EU. When the UK leaves the EU, it could have the (probably unintended) effect of removing the UK from the scope of the agreement. Not only this, franchise businesses operating in more than one jurisdiction should be mindful of the future landscape for cross-border enforcement of judgments in the EU and UK. As legislation governing this area originates from the EU, the UK will need to re-consider the options available to it for example, entering into bilateral/multilateral agreements with other countries. Protection of your franchise model â&#x20AC;&#x201C; intellectual property rights and trade secrets Brand and know how are important to franchise businesses, however the effect of Brexit for brand owners is unknown at this time and it is unclear whether or not current rights will exist post-Brexit. There is uncertainty for businesses who own EU trade marks (EUTMs) (formerly known as Community trade marks), which may no longer be applicable in the EU or to UK-based owners following Brexit. Businesses that are considering new WINTER 2017

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trade mark applications should consider whether filing for a EUTM is really necessary, or whether a UK registration is actually sufficient.

they provide sufficient protection for their model.

The EU’s recent implementation of a new trade secrets Directive may cause concern for franchisors, however the impact of Brexit on trade secrets is likely to be minimal as the UK’s current standards are largely the same as the EU’s.

The UK franchise system currently follows the European Franchise Federation and its code of ethics, but is based on a system of self-regulation, which is unlikely to be affected by Brexit. Although there is no body of UK “franchise law” there are a number of laws which have their origin in European legislation, which currently UK franchise businesses take advantage of. For example, EU competition law, which the UK will need to revisit to determine exclusivity and price maintenance issues. This could be a positive change for international franchising in the UK.

Operations manuals/handbooks, logos, unregistered trademarks, databases and software constitute valuable rights of any franchisor. The protection of such material, via copyright and cross-border intellectual property protection against infringers, is largely aligned across the EU, but the influence of Brexit on such rights and/or protection is uncertain. Despite the uncertainty, franchisors can be proactive by carrying out health checks of their IP portfolios to ensure that they are in a strong position should changes be made. Franchisors should also ensure their NDA/confidentiality agreements and provisions are reviewed such that 66

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Compliance with regulation

Given the timeframes and trepidation culture surrounding data protection and security, we highlight that Brexit is unlikely to impact the implementation of the highly publicised General Data Protection Regulation (“GDPR”). This is important as the number of B2C franchise businesses operating in the UK, which amass custom-

er data, is ever increasing. In any event, UK entities dealing with EU citizens’ data will need to comply and commentators suggest the UK is likely to adopt a similar framework. As such, best practice is to continue to gear up for compliance.

People - employees and immigration Franchisors in the drink, food and/or hospitality industries (amongst others) are likely to be substantially impacted by changes in immigration laws caused by Brexit. However, at the moment the Brexit vote’s impact on immigration is unclear. For example, mobility restrictions, labor shortages and/or loss of talent are possible. In addition, the employment laws most likely to change are those relating to agency workers, collective consultation and working time rights. Fortunately, franchisors have 2 years to consider their employment strategy, but in the short term there are a number of ar-

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eas of employment law which are outside of the scope of European control which are likely to remain unchanged. For example, food franchises will recently have been subject to the changes in minimum wage regulation, but this is not European driven.

So, what nowâ&#x20AC;Ś. The recent approach to EU law has been that of harmonization but a Brexit vote potentially leads the UK in the opposite direction and therefore, towards uncertainty. In addition, given that franchising growth in the UK over the last 10 years has, notably, been in B2C systems the impact to consumer confidence will play a pivotal role on the impact of Brexit on the UK franchising industry. The good news is that during the 2007/2008 financial downturn franchising resisted the negative economic trends and continued to develop, whilst the GDP and employment fell. Regardless of this, franchise businesses should be considering the points above and how these challenges impact on their goals of continued and sustainable growth. Laura Strong at Menzies a leading chartered UK accountancy firm, offering corporate tax, business planning and VAT services.

How do you prepare your business for the UKâ&#x20AC;&#x2122;s exit from the EU? Although the impact is still uncertain at this stage, preparing the ground for

change is good business practice, and it is certainly advisable to undertake a structured review of your existing circumstances in order to assess risks and opportunities inherent in the business. Through this process of evaluating your existing structures and operations, you will be better positioned to assess and monitor the potential impact of Brexit and ultimately be able to take action when the time is right. To help you get started, Menzies have identified some of the key questions businesses need to address prior to Brexit

Importance of Trade Trading relationships are important for all businesses but the nature of the UKâ&#x20AC;&#x2122;s future trading relationship with the EU will be crucial for businesses that supply goods or services. Companies operating within the UK should be wary of increased costs and administration.

Employment The free movement of workers is one of the founding principles of the E.U and abolishes any discrimination based on nationality between workers from member states.

Finance As with all changes, it can be expected that there will be some winners and losers post Brexit. For some there may be cash flow impacts. Therefore it is important

to review your existing business plan in regards to Brexit.

Operational At the heart of all businesses are the relationships with customers and suppliers. Although there is still much uncertainty over the impact of Brexit, it is important to take time to assess the economic viability of these commercial relationships as it is the life blood for the business. Conclusion The impact of Brexit on food and beverage franchisors is currently uncertain. The one thing that food and beverage franchisors should do, sooner rather than later, is consider how they adapt their trade mark protection strategy in the UK and EU to take account of impending changes resulting from Brexit. It seems that this concern is appreciated by many food and beverage franchisors, as Bird & Bird is already dealing with a flood of such queries and are helping the franchisors concerned to adapt their brand protection strategies to these future changes. Other than that, food and beverage franchisors must keep a watching brief as various areas of law develop in response to the political changes that look likely to take place over the next two years or so. As stated above, one of the most important areas for the food and beverage sector will be the agreement that the UK reaches with the EU around immigration and the free movement, or otherwise, of the labour force. WINTER 2017

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ONE TO WATCH Dum Dum Donutterie has been causing a frenzy among doughnut lovers since launching in 2013. The independent company creates, natural artisan doughnuts that are baked fresh every day, with all outlets staying open every day until all the doughnuts have sold out. The entire team of Dum Dum Donuttiers are pastry chefs or apprentices who have a real passion for good honest food. It is exactly this concept which has proved 68

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such a hit with the British public. Now with outlets in Boxpark Shoreditch and Croydon, a store in Brighton and two outlets in Dubai, with eight more to follow across the United Arab Republic, the future looks very bright for this growing franchise. Artisan doughnut chef Paul Hurley is the Founder of Dum Dum Doughnuts and since 1997 he had the vision to create ‘The Best Doughnut in the World’. Although a grand statement, Paul, or ‘The Doughnut Guy’ as he has become known,

believed this had to be at the heart of the brand. We spoke to Paul to find out more about Dum Dum Donutterie.

What is the ethos of Dum Dum Donutterie? “Our ethos is to create a modern retail doughnut environment. The offer is honest with fresh products each day handmade with all natural ingredients and available until we sell-out. Combining

artisan French patisserie with gourmet US doughnuts is how we created the ide of ‘Donutterie’.”

What made you decide to start franchising? “After realizing that we had created something unique it was then a question of how we share it with the World. Finding franchise partners with the same passion and enthusiasm as ourselves is the best way to grow successfully together. “We have also received many enquiries each week from the UK and worldwide, franchising when done correctly is a great model.”

What makes Dum Dums stand out from the competition? “Dum Dum Doughnuts are the world’s first artisan baked doughnut/croissant doughnut brand. Made with only natural ingredients and yet uncompromising on irresistible deliciousness, Dum Dum offer beautifully baked (not fried) and handmade doughnuts to a growing legion of our loyal of fans across the UK.”

What makes Dum Dums such a great franchise opportunity? “Setting up and running a Dum Dum Donutterie is relatively straight forward. The doughnuts are supplied from our Patisserie fresh each day, which means that the cost and operational difficulties of a kitchen at each store is unnecessary. We find that this allows our stores to concentrate on service and the experience of each Dum Dum customer. “Also, as part of the franchise package we offer full training, barrister training, property search facility, in house commercial property expert service, project management facilities and can help with financing.”

What are the current flavour trends in the Doughnut market? “Customers are demanding better quality artisan products across the whole of F&B. Unique and extravagant products in the dessert industry like our Crone (an ice cream doughnut cone), our zebra croissant doughnut and the new Dum Dum Dubai filled with Karak Chai Tea are good examples of recent food trends.”

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After realizing that we had created something unique it was then a question of how we share it with the World

What was the thinking behind the design of your outlet? “Our stores take inspiration from modern French patisseries. We use three simple colours, pink, black and white that give a candy store feel and make the beautiful doughnuts the true star of the store.”

How have customers responded to the Dum Dums brand? “A large percentage of our customers here and in Dubai are repeat customers. Brand loyalty is very high.”

What does the future hold for Dum Dum Donutterie? “We are opening at least 10 stores in UAE in the next few years with two already open. We then plan to grow across the GCC. Global expansion to the major cities are being planned now but our home is the UK and we plan to grow with selected franchise partners to make our products more easily available.”

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MARKET WATCH LEGAL

International

NEWS

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International

News

Dunkin’ Donuts opens 12,000th outlet worldwide Doughnut chain Dunkin’ Donuts has opened its 12,000th outlet worldwide.

The milestone location was opened in Los Angeles, California. Nick Travis, Chairman and Chief Executive Officer of Dunkin’ Brands, said: “We now have 12,000 Dunkin’ Donuts restaurants around the world with tremendous opportunities for continued growth both domestically and internationally. “We and our franchisees are proud of the fact that Dunkin’ Donuts has become part of the daily ritual of millions

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of people who depend on us for great coffee and other beverages, baked goods and sandwiches. “Looking ahead, we plan to keep growing and innovating, bringing customers the Dunkin’ Donuts products they love, as well as new offerings like our Cold Brew coffee and new Dunkin’ Mobile App, which allows members of our DD Perks Rewards Programme to place their order in advance with On-theGo ordering.”

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McDonald’s agrees China franchise sale McDonald’s has agreed to sell 80% of its business in China and Hong Kong, as part of plans to franchise more of its restaurants worldwide.

China’s state-owned investment group Citic, and US private equity firm Carlyle Group, will take control of the operations in a deal valued at $2.1bn (£1.7bn). McDonald’s owns and operates about 65% of its 2,000 China outlets. This deal comes quickly after the sale of its franchise rights for its restaurants in Singapore and Malaysia to Saudi Arabia’s Lionhorn Pte Ltd. McDonald’s is trying to streamline its global operations, and by changing its ownership structure to revolve more around franchises is a major part of that revamp. This transaction marks another milestone in the Company’s ongoing efforts to identify strategic partners who share their values and vision to accelerate growth and scale across diverse markets. In March last year, the firm said it was seeking partners to help it add more than 1,500 restaurants in China, Hong Kong and Korea over the next five years. Under the agreement signed Monday, the US fast food giant will keep a 20% stake in its China business. Citic will hold a 52% share in the partnership while Caryle takes 28% of the new business. Competitor Yum Brands, the owner of KFC and Pizza Hut, is also restructuring its China business. Both McDonald’s and Yum Brands have been facing increasing competition from cheaper local rivals, particularly in China, where they are trying to recover from food safety scares.

KFC opens new store in Split, Croatia

Starbucks ends ‘Evenings’ program in US Starbucks will no longer offer alcohol at over 400 of its branches nationwide after it announced that it is ending its ‘evenings’ program. Starbucks will no longer offer alcohol at over 400 of its branches nationwide after it announced that it is ending its ‘evenings’ program. The coffee chain says the ‘Starbucks Evenings’ program in 439 companyowned stores in the US will end on the 10th January. The Evenings menu was a program which offered tapas-style small plate options like bacon-wrapped dates, chicken sausage and mushroom flatbread, and truffle mac and cheese, as well as a variety of beer and wine options. Starbucks in 2014 said it planned to expand alcohol to ‘thousands’ of stores. However, Starbucks announced that instead it will integrate alcohol offerings into its higher-end Roastery retail format, alongside the company’s most expensive coffees. The Roasteries format intends to be large showplaces where Starbucks hopes to offer its most expensive coffees where

Kentucky Fried Chicken (KFC), the world’s second-largest restaurant chain, is to open its first outlet in Split on Croatia’s Dalmatian coast.

the customers are encouraged to engage more with the baristas and roasters to understand more about the art of coffee, offering a much more immersive experience. The company’s next Roastery is scheduled to be opened in New York City next year. By the end of 2019, Starbucks hopes to have opened its doors to at least 20 Roastery locations. Starbucks is also planning to open over 1,000 Reserve stores.

After opening six restaurants in several locations including shopping centres in Zagreb, KFC is already preparing for its next step on Croatia’s market by opening its doors in the centre of Dalmatia – in the city of Split. KFC, with almost 20,000 locations globally in 123 countries, is only second behind McDonald’s in sales

Crepeaffaire to launch in Saudi Arabia Crepe franchise Crepeaffaire has agreed a deal to open 50 units in Saudi Arabia. The business has signed an area franchise agreement with Food & Entertainment Co, a subsidiary of Riyadhbased retail and leisure conglomerate Fawaz Alhokair Group, which will see the outlets open over the next eight years. The deal comes as Crepeaffaire is consolidating its presence in the GCC, opening an additional three sites in Kuwait in 2017 following its successful introduction there in late 2015. Sultan Alhokair, Group Vice President of Food & Entertainment Co, Fawaz Alhokair, said: “We are excited about taking Crepeaffaire to the Kingdom. The Brand’s sweet and savoury offer is highly relevant and versatile, representing a delicious and wholesome meal and snack option for all day parts. Its launch in Saudi Arabia is compatible with our aim to partner with category gold-standard concepts.” Daniel Spinath, Founder and CEO of Crepeaffaire, said: “We are very pleased to be partnering with The Fawaz Alhokair Group. Its wide reach, top class malls and proven history of developing retail and F&B brands in the region provide the perfect opportunity for the Crepeaffaire

brand to flourish.” Karim Hajjali, Chief Business Development Officer, and his team, will lead the introduction and expansion of

Crepeaffaire into Saudi Arabia, under the leadership of Kamal Abusara, CEO Food & Entertainment Co.

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International

News

Chipotle appoints Jim Slater as managing director in Europe Mexican grill chain Chipotle has announced the appointment of Jim Slater as the company’s managing director in Europe. Based in the UK, Mr Slater has made a career of building successful European brands, including Costa Coffee, Bombay Sapphire Gin, and Sunderland Association Football Club. As managing director at Chipotle, Slater will oversee the strategy, development and growth of Chipotle’s European business. Steve Ells, Chipotle founder, chairman, and co-CEO, said: “Jim not only believes in our commitment to change the way people think about and eat fast food, but he also celebrates our vision of building teams of top performers empowered to achieve high standards. “We have great confidence in his abilities and expertise, and believe his leadership will help us enhance and grow our business in Europe.” Slater most recently served as the managing director of Costa Coffee in the U.K. and Ireland, overseeing 2,200 stores and more than a billion dollars in sales. At Costa, he was instrumental in the efforts that resulted in Costa becoming bigger in the U.K. than Starbucks, Nero, Pret a Manger and Eat combined. He and his team won Marketing Society’s ‘Brand of the Year’ award in 2011, and became The Times’ ‘Brand of the Decade’ in 2014.

Slater laid a classic blue-chip career foundation with Mars, Kraft and Diageo before joining the football team he supported since childhood, Sunderland AFC, as commercial and marketing director in 1998. Mr Slater said: “Chipotle’s commitment to better food from ingredients raised and grown with respect for animals, farmers

and the environment is consistent with how many Europeans eat and the brand is one that really resonates with customers here. “Looking at the success of Chipotle in the US, I know the company has tremendous opportunity in Europe and I look forward to continuing to develop the Chipotle brand in these markets.”

Where next for SFC? After another great year signing up multi-site franchisees for another eight countries. There is a list of target destinations that are prime franchise opportunities for investors and SFC. This isn’t just a wish list, more a defined list where Southern Fried Chicken will fit into in a territory with slight changes to cater for local culture. Places that Southern Fried can likely make its mark with limited saturation of other global brands. So apart from simply saying “the rest of the World” as a stock answer, the actual answer is a little more detailed, but with reason and a bit of thought and analysis. With success in Malta, Tenerife, Crete and Cyprus over the last two decades, there are definitely opportunities in other islands in the Mediterranean.

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The reality is that most holiday destinations can do very well with a low cost restaurant set up that has the usual high level of training and support, just a bit more condensed during the summer months. FFS Brands are actively seeking applicants from all over the Mediterranean and with the Euro stronger than the UK pound the set up cost is lower than ever. The second area of real targeted interest is the Caribbean, with the usual high quality restaurant opening in the region, especially Martinique which is exciting for the brand. Africa remains the key focus after a dramatic year and with five new Master Developers joining recently.

North Africa remains available but there are four specific countries targeted currently, Angola, Ghana, Mali and Namibia. All with huge potential for the brand.

McDonald’s sells Singapore, Malaysian franchise to Saudi group McDonald’s Corp has sold the franchise rights for its restaurants in Singapore and Malaysia to Saudi Arabia’s Lionhorn Pte Ltd

Taco Bell announces plans for additional 45 restaurants across Spain by 2020 Taco Bell continues to accelerate its international growth by expanding further into the Spanish market.

McDonald’s Corporation today announced Lionhorn Pte. Ltd. as the Developmental Licensee (DL) for its Malaysia and Singapore markets. Lionhorn is led by Sheik Fahd and Abdulrahman Alireza, who bring 20 years of experience as the DL for the nearly 100 McDonald’s restaurants in the Western and Southern regions of Saudi Arabia. “This transaction marks another milestone in our Company’s ongoing efforts to identify strategic partners who share our values and vision to accelerate our growth and scale across diverse markets, drive innovation and place us closer to our customers and the communities we serve,” said McDonald’s President and Chief Executive Officer Steve Easterbrook. The new DL assumed ownership of the McDonald’s business in Malaysia and Singapore on December 1, 2016, which includes a total of 390 restaurants, more than 80% of which were Companyowned. The DL partner will provide the capital necessary to support and grow the business and will pay an initial franchise fee and an ongoing royalty to McDonald’s.

“We are pleased to welcome Sheik Fahd as the Developmental Licensee for our business in Malaysia and Singapore,” said Simone Hoyle, Head of McDonald’s Asia Foundational Markets. “ ‘‘Sheik Fahd and Abdulrahman Alireza’s experience in running great restaurants will create brand excitement for our customers and new opportunities for our people as these markets continue to grow and develop.” Leading the day-to-day management of the Malaysia and Singapore markets, respectively, will be local operating partners Azmir Jaafar and Kenneth Chan, both of whom previously held senior leadership positions at McDonald’s and together possess over 40 years of experience. This announcement follows a rigorous evaluation and selection process over the past year. As part of its turnaround plan announced in May of 2015, McDonald’s committed to re franchising 4,000 restaurants by the end of 2018 with the long-term goal of becoming 95 percent franchised. With this transaction, McDonald’s has now re franchised approximately 1,300 restaurants.

Taco Bell – the world’s largest Mexican-inspired restaurant chain – announced that the brand, in collaboration with its franchisee, Casual Brands Group of Madrid, will begin building an additional 45 restaurants across Spain and add more than 900 jobs to the local economy. By 2020, Spain will be home to more than 70 Taco Bell Restaurants and will be the largest market in Europe. Casual Brands Group has been integral in building an avid fan base of Taco Lovers across the country. Starting with their first restaurant in Madrid, they have now expanded to Barcelona, Valencia, Zaragoza, and most recently Seville. In 2015 alone, Taco Bell and Casual Brands Group added 10 new locations, and there will be 31 Taco Bells across the country by the end of 2016. Taco Bell will continue with its transparent, open kitchen design that allows diners to see their meals being made fresh to order, as well as comfortable lounge seating and free Wi-Fi. In addition to being the first Taco Bell market in the world to serve beer, Spain has pioneered tapasstyle happy hour promotions that showcase our ability to leverage local insights to create unique market specials. There are currently more than 330 Taco Bell restaurants (including military bases) across 26 markets outside of the United States, with the goal of expanding the brand’s international presence to 1,000 restaurants by 2022. Domestically, Taco Bell is the nation’s leading Mexican-style quick service restaurant chain. The Company and its franchisees operate more than 7,000 restaurants, generating more than $9B in sales. By 2022, the brand plans to become a $15B company in global system sales with 9,000 restaurants globally.

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MARKeT wATCH As we enter 2017, we are gingerly heading towards a lift in the economic climate with early signs of increased lending amongst the sMe sector, so general business confidence is on the up. Such indicators are prompting many people to re-evaluate their circumstances and, particularly, their careers and lifestyle and causing them to explore the franchising sector. This can be a very exciting time to take your first steps into franchising. 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. Added to the initial fact-finding enthusiasm and research into a new industry, making the decision to become a franchisee, is only just the beginning

of the journey – with the UK franchise market consisting of well over 900 franchise brands. The route to choosing a franchise appropriate to your individual circumstances can be surrounded by problems. One way to monitor the way that a franchise is performing is to look at the stock market, this gives the investor an insight into the inner workings of a company. It can highlight any changes to the board and any investments by directors. As part of the stock market it is the businesses public duty to announce any

deals that will affect the share price such as mergers, closures or takeovers. It is on the stock market that we can gauge a better understanding of the success of a business and see how aggressive they are being in terms of growth. The price of a company’s shares is often used as an indication of the overall strength and health of a company. In general, if a company’s share price has continued to climb over time, the company and its management are considered to be doing a good job. It can also show banking predictions and offer a foresight for the future.

sHARe IN FOCUs Papa Johns (PZZA) As always with the market watch section of the magazine, we always look at one particular share in detail, in this issue we focus on Papa John’s

This predicted rise in value comes at the back end of a successful 2016, with the CEO of Papa John’s John Schnatter commenting:

Papa John’s Pizza is an American restaurant company. It runs the third largest take-out and pizza delivery restaurant chain in the world, with headquarters in Jeffersontown, Kentucky.

‘The continued enhancements to our digital platforms, expansion of our international footprint, and the introduction of our new pan pizza, all contribute to another outstanding year for Papa John’s.”

It has over 4,700 establishments around the world, including around 3,500 in the U.S. and over 1,200 spread amongst 37 other countries and territories.

Revenues were $1.27 billion for the nine months ended September 25, 2016, indicating a 4.4% increase from revenues of $1.22 billion for the same period in 2015.

Out of the range of franchises we watch on the stock market, Papa John’s has performed the best over the last 12months and with some minor fluctuations it looks as though they will continue a steady rise over the next year or so. 76

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Growth & Technology Papa John’s continued growth is a testament to the power of free enterprise. Papa John’s is flourishing in international markets.

During 2016 they predicted net unit growth of approximately 180 to 210 units, with approximately 75% of openings in international franchised markets. International franchised unit expansion includes an emphasis on existing markets in Latin and South America, the United Kingdom, Europe and the Middle East. Technology has also been key to Papa John’s success with the increase in online ordering throughout 2016 they have implemented digital ordering platforms allowing more customers to order online. Their mobile ordering iPhone® and Android® applications support payment options such as Google Wallet® and PayShare, a first-of-its-kind digital solution in the pizza industry that lets customers immediately split their pizza bill.

HOT OR

Not

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

As you will see from the share in the focus section of the Market Watch, Papa John’s has performed reasonably well over the last 3 months with a steady increase in share price value. By investing in international market places and keeping ahead when it comes to technology the world’s third largest pizza chain have cemented themselves at the top for franchise opportunities and worthy investments. For the avid Market Watch readers amongst you who read the last issue you will notice that the share price has risen from $74.56 to $86.27 resulting in a very positive 15.7% increase.

YUM! BRANDS (YUM)

Yum! Brands, the business behind Taco Bell, KFC and Pizza Hut Delivery franchises find themselves lower on this scale than in previous issues. However there has been an increase in the last 3month period in October they were trading at a share price of $59.80 but it has risen to £64.88 in January 2017 this positive increase could be due to their recent unit expansion into Asia and specifically China.

MCDONALD’S (MCD)

A usual consistent performer in the stock market, the fast food giants share prices

have fluctuated a lot over the last 3 month period with prices reaching a low for the whole year of $110.3 in October, since then the price has risen to a much more stable $120.40, it seems when looking at the whole financial year for McDonalds it has been one with many ups and downs, yet the brand is still going from strength to strength.

DUNKIN DONUTS (DNKN)

Dunkin Brands have gone through a positive steady period over the last few months and have ultimately ended up by around 20.8% up on the last issues figures (autumn 2016) of $43.04 to $52.03. This is encouraging to see for the investors as the last issue suggested there were areas for concern. The positive increase could be a direct result of the increase in unit expansion across the UK.

STARBUCKS (SBUX)

The American coffee company and coffeehouse chain has seen its share price steadily rise and fall towards the end of 2016 in October share prices were down at $51.25 then rose to just under $60.00 then finished in 2017 at around $58.13 an increase of 13.2%.

MARSTON’S (MARS)

The UK pub giant has seen a slow decline in share price over the last 3 month period with the share price dropping from the last issues figures of 147.50p to 136.10p in January 2017 resulting in a 7.7% decrease in price, this could still be due to long-term effects of Brexit.

CHIPOTLE (CMG)

Chipotle is one of the fastest growing and well known QSR brands at the moment and as such there are plenty of people looking to invest. With that said, they have a reason to, as the price has risen exponentially from the 52 week low of $352.96 in October to $417.49 at this date an 18.3% price increase. This shows how the demand for this up and coming QSR brand is getting bigger and bigger with huge signs of potential, reeling investors in and pricing many people out.

DOMINO’S (DOM)

The UK Pizza giant has seen an increase in share price since the last issue at 359.09p to 378.10p a 5.3% increase over the 3month period. This small increase could be the subject of the increased popularity of pizza during the festive period. WINTER 2017

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DUNKIN’ DONUTs (DNKN)

PAPA JOHN’s (PZZA)

+20.8%

+15.7%

CHIPOTLe (CMG)

sTARBUCKs (sBUX)

+18.3%

+13.2%

MCDONALDs (MCD)

YUM! BRANDs (YUM)

+8.75%

+8.14%

DOMINO’s (DOM)

MARsTONs (MARs)

+5.3%

-7.7%

Correct at time of writing. 78

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FRANCHISE SERVICES 79

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Professional franchise sales and resales service for food franchisors and franchisees An innovative consultancy service has been launched to help steer food franchisors, franchisees and investors smoothly through the franchise sales and resales process. Franchise Sales and Resales manages the process from concept through to a successful completion, with a proactive methodology aimed at realising maximum sale value. The company is headed by Jess Bains MICBA, who previously led the franchise sales and resales division at FDS

(Franchise Development Services), with the service provided based on more than 15 years of experience of the franchise and business sectors, combined with valuable advice and guidance. We work closely with franchisor and franchisee, ensuring there is no conﬂict of interest, only an enhanced service essential in the sales and resales process in concluding a positive outcome. We will tailor a programme that is in line with your objectives utilising a portfolio of publications, websites and skills to target pre qualified candidates to promote your franchise for sale.

Specialising in the sale of: • Franchises sales, • Franchise resales, • Multi-unit franchises, • Master franchises, • Entire franchise business, • Franchise acquisition and business sales. The service provided by Franchise Sales and Resales is further enhanced with support from legal advisers, banks, and financial specialists from within the franchise industry.

For more information, call 01462 685633, email info@franchisesalesandresales.com, or visit http://www.franchisesalesandresales.com. 80

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FRANCHIsE re-SALeS

FRANCHISE SALES A Franchise business is a proven business format, which can be replicated by investors also known as franchisees. The Franchisor will grant the franchisee the use of the business name, logo, the right to market and distribute the franchisor’s products or services, in a given location or territory for a fixed period of time (usually five years, although this may vary from sector to sector), the full details of the franchise offering will be in the franchise agreement. Please note that it is essential that when reviewing the franchise agreement, the agreement is reviewed by a franchise solicitor. In most instances the franchise agreement can be renewed for a further term. Certain franchise brands will allow the franchisee to become a multi-unit owner or an area developer depending on the sector of business and availability.

FRANCHISE BUSINESS IS A PROVEN BUSINESS FORMAT To invest in a franchise, the franchisee must first pay an initial fee for the privileges to use the business, training, and the equipment required by that particular franchise model. Once the business starts trading, the franchisee will usually pay the franchisor an ongoing royalty fee, either on a weekly, monthly or quarterly basis. This payment is usually calculated as a percentage of the franchise businesses gross turn over. After the contract has been signed, the franchisee will open a replica of the franchise business, under the guidance of the franchisor. The franchisee will not have as much inﬂuence over the business as he or she would have over their own business, however, investing in a franchise business will require you to follow the proven business format.

FRANCHISE RESALES Franchise Resales will offer many advantages over an established business

for sale, purchasing an established franchise resale will offer instant cash ﬂow from day one, as opposed to a new business venture which in some instances can take anything from 12 to 18 months before returning a profit. With an established franchise resale, the business will have an existing customer base of clients using its service and products. A new franchisee can profit from the brand identification that a franchise resale specifies. A new business can take many years to establish a brand in a competitive area. There are no guarantees that the consumers will identify with the brand as a product leader. A franchise resale can also provide owners with instantaneous brand recognition.

customers identify with and remember the brand. Belonging to a franchise reduces marketing costs, which are shared equally with other franchisees in the network. The risk element of acquiring an established franchise resale is a lot less than acquiring a business for sale, for all of the above reasons. So why is the existing franchisee selling? There are no precise reasons although the following are commonplace: •The franchisee has had many profitable years •The franchisee may not be able to fully commit to the business •The franchisee has become bored and is looking for a fresh challenge •The franchisee may wish to relocate

It can be exceptionally expensive for an independent business proprietor to advertise their business, whereas a franchise resale has the advantage of already having an existing marketing campaign in place. The franchisor will have agreed a marketing campaign to ensure

The value of the resale will vary on many factors, and different methods can be used to value the franchise resale. The most common method is a multiple of the profit; the multiple used can be anything from 2 to 8 times profit.

For more information, call 01462 685633, email info@franchisesalesandresales.com, or visit http://www.franchisesalesandresales.com. WINTER 2017

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Lessons for the Food and Restaurant Trade from the Fabric Case The high profile closure of Fabric, and recent resolution to enable it to re-open, may seem a far cry from the average retail food oﬀering. Much of it was! However, there are some important points to take on board, which are applicable more widely. First of all, know your permitted hours and conditions. All those at management level should have a good grasp of these. One of the biggest own goals we see is when managers and key staff don’t even realise they’ve breached a condition, and are routinely doing so. Do include an outline of regulatory obligations in staff training. This we 82

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would say is particularly important when it comes to making sure staff are aware of the key conditions on any premises licence. Ideally also keep a record of the fact that you undertook that training, which should be repeated at appropriate intervals. Be aware that what feels like minor breaches will look very different, should you find yourself under the enforcement microscope. And what other operators do is not going to get you out of jail. Keep written records of incidents and

visits. Incidents should in any case be logged. But more broadly memories distort and fade; written records are an important way to mitigate that. If serious issues do arise, remember that the authorities may well take a tough line in their formal responses and go for what might seem like heavy penalties. That is not a criticism of them or their approach. They are themselves under intense pressures and certain circumstances mean that they may feel they have no choice, even if they don’t realistically

expect to achieve the threatened result. Aiming high can also be a useful compliance tool. If you do end up on the radar of enforcement, the rule of thumb is engage with the enforcement oﬃcers and authorities. And try to encourage dialogue. The protagonists (collectively) in the Fabric case could have saved a considerable amount of time cost and

stress if they had taken that approach earlier. ‘Principled’ positions may sometimes feel like the correct approach, but it is frequently hard not to be left with a sense that the end result could have been achieved with a lot less pain. So, there are some lessons from the Fabric case to commend to all operators, not just big nightclubs, and indeed the authorities.

James Daglish is a partner in GoodmanDerrick’s specialist Hospitality and Leisure team providing real estate and licensing advice to his clients inthe sector who include restaurants, nightclubs, bars and pubs, andretailers. James has worked in the sector for over ten years,he takes a commercial approach to his work with Chambers & Partners Legal Guide noting that he “addresses the problems you’re considering and gives an objective view,” and that he is“diligent, intelligent and ategically superb”. James Daglish, Partner Goodman Derrick LLP

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Accountancy

Is spreading your investment the road to success? The problem with investing a lump sum amount in one go, is the timing of the stock market. If it is high then it will be a while before those investments increase further. Making smaller regular payments by dripfeeding money into your investments on a monthly basis can be a much better and highly effective strategy. Here we highlight some of the main benefits of investing smaller amounts on a regular basis.

Getting ‘pound cost averaging’ right Investors are not happy when they experience falls in their values. However, short-term falls in share prices can actually provide opportunity and prove advantageous over the long-term for regular savers. By investing smaller amounts every month, investors average out the buy price of investments and benefit from a phenomenon known as ‘pound cost averaging’. This means your investment buys more units or shares 84

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fewer shares and actually have been worse off than if you’d invested a lump sum at that time. It is fair to say, investing is as much about timing as picking the right stock.

when the price goes down, as per the table below and allows you to benefit from bigger returns if and when the share price recovers.

Month 1 2 3

Amount Investment £100 £100 £100

Share Price £5.00 £4.00 £2.50

Based on the table above, the average price purchased over the 3 months is £3.53 per share which is £300 investment divided by 85 shares. However, if you had invested the full £300 lump sum in one go during the first month, you would only have received 60 shares, which is £300 investment divided by £5.00. Of course had the market risen each month, your monthly investment would have bought

Number of Shares 20 25 40

Benefits of regular savings Some people believe that you need lots of money to start investing. In fact, dripfeeding money into investments over a longer period of time can build a very substantial sum. If you invested £250 per month for ten years, you would have a total of over £37,500 (based on a medium

growth rate and a 1% charge).

Aﬀordability - you can start investing from as little as £25 per month and it often costs no more in dealing charges No fear - Instinctively you will watch

the shares as the move up and down and probably want to buy quickly and more when shares are rising and less when they are falling. With smaller investing the money can be automatically taken from your bank account via direct debit and invested every month, regardless of price and movement, which removes the fear factor.

Flexibility - you can alter your investment choices and the amount you invest from month to month. You can even suspend payments for a period if you wish.

of the investor. Please contact us for further information or if you are in any doubt as to the suitability of an investment.

The sooner you start the more you will have invested on share platforms, you can choose to invest monthly into a wide selection of investments including, FTSE shares and eligible investment trusts. It’s easy to get started and you can set up a direct debit with some companies from just £25 per month and drip-feed money into your investments. You can also set up a regular savings instruction into Stocks & Shares ISAs, Fund & Share Accounts, SIPPs, Pensions or a Junior Stocks & Shares ISAs with many companies.

This guide and article are not advice. If you are unsure of that suitability of an investment for your circumstances please seek advice. Once held in a pension money is not usually accessible until age 55, which is rising to 58 in 2028.

The value of your investment and the income from it can go down as well as up and you may not get back the original amount invested. Past performance is not a reliable indicator for future results. Levels, bases and reliefs from taxation are subject to change and their value depends on the individual circumstances

Need more help? This feature aims to give some informal hints and tips. Our tax department and McPhersons Financial Solutions are offering businesses free advice so get in touch now to arrange your meeting. Simply email Peter Watters - Director at McPhersons Chartered Accountants p.watters@mcphersons.co.uk

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DIARY DATeS

DATES FOR YOUR DIARY Find out what events are taking place in the world of franchising over the next few months

The British & international Franchise exhibition Olympia, London 20th-21th January

Discover how to run your own business with the support of an established brand at London’s largest franchise exhibition. Join the thousands of visitors who are considering the challenge of becoming a franchisee through one of the UK’s most successful business models. With hundreds on offer, there is something to suit all tastes and budgets. There are

Great Hospitality Show is a celebration of everything new in British hospitality. It’s the only show focusing on the business of hospitality and promises to be the UK’s largest exhibition for foodservice and hospitality in 2017. Great Hospitality Show NEC Birmingham 23rd-25th January

The Franchise Show exCeL, London 17th-18th February

As well as providing the ultimate platform for networking and forging new relationships, Great Hospitality Show is a must for anyone looking for the latest,

Attracting thousands of entrepreneurs and business owners, The Franchise Show is the largest franchise exhibition in the UK. With more than 150 franchise brands, 80 free seminars and workshops, it is the perfect place to learn more about franchising.

all types of business sectors to consider, including food and drink. Franchising experts will be on hand to give free advice at more than 70 seminars. Visitors will also be able to get one-toone guidance from solicitors, banks, careers advisors and the British Franchise Association.

cutting edge products across food and drink, catering equipment, technology, interiors and table tops. The event will feature the broadest range of future trends, fresh talent and new ideas to help the industry push the boundaries in quality and innovation.

franchises, as well as get advice on franchising their businesses, or information on becoming a franchisee. There will also be experts on hand to discuss funding any franchise plans.

Visitors will be able to learn more about a whole host of UK and International

IN THE NEXT IssUe Up & Coming Food Franchises

There is an ever-growing number of brands joining the world of food franchising. We showcase the 25 that are expecting big growth in 2017. We also catch up with some of the brands on last year’s list and find out how they have fared over the past 12 months.

How to choose the right Food Franchise

Entering the world of franchising can be daunting for even the most hardened investor. We speak to some of the experts in the industry to find out how you can go about choosing the right franchise for you.

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