FOOD FRANCHISE Fast food Franchise QSR Franchise Coff ee franchise Food-to-go Franchise Pub Franchise Restaurant Franchise HISE NC A R F Be Inspired S AUTUMNWINTER EDITIONI E O I T Franchisee Steve Mullarkey P N P O RT U tells us why he’s enjoying a slice of franchising life FOOD FRANCHISE FOOD with Papa John’s V3 ISSUE 4 AUTUMN V3 ISSUE 4 FOCUS ON FRANCHISE TOP 50 FOOD FRANCHISES SECURITY What factors should be considered to Find out who’s leading the way when it comes to ensure you make the best possible start in UK food franchises franchising Print edition £3.99 LEGAL ACCOUNTANCY AUTUMN EDITION Katee Dias rounds up McPherson’s tell us about some of the recent the key drivers of SME developments in success employment law Editor’s message elcome to the autumn editi on of Food Franchise Magazine. WIt has been a fascinati ng few months, with plenty going on. Two interesti ng stories that have caught my eye in recent weeks both relate to the use of technology. First came the news that Just Eat was trialling self-driving robots to deliver food to customers. Editor Steven Jones The second story was on a similar subject, with Domino’s in New Zealand planning to [email protected] launch the world’s fi rst drone delivery service. Offi ce: +44 (0) 333 003 0499 Both stories highlight the growing use of technology in helping to drive effi ciency and Commercial Manager increasing the delivery reach of businesses operati ng in the foodservice industry. They also show how franchises are looking to high-tech soluti ons to stay ahead of the Lewis Wantling oppositi on. [email protected] Offi ce: +44 (0) 333 003 0499 Anyway, back to the issues at hand. Advertising Sales In this editi on our main feature sees us counti ng down the top 50 food franchises. Sandra Bouillet The list is a comprehensive look at the diversity and the size of the food franchising [email protected] market in the UK. All the fi gures have been provided by the franchisors or their Offi ce: +44 (0) 333 003 0499 representati ves and ranked on the number of units, or the number of franchisees, each business has in the UK. Design Timeem Taleifeh Included in the top 50 are pubs, noodle bars, milkshake bars, coff ee houses, sweet shops, meal delivery services and of course burger bars, pizzerias and chicken shops. [email protected] In our latest Be Inspired feature we speak to Papa John’s franchisee Steve Mullarkey, who Finance operates eight of the company’s outlets and is helping to grow the brand in the north Laura Williams west. fi [email protected] Offi ce: +44 (0) 333 003 0499 In this issue we will also fi nd out how you can set your business up for a secure and successful future as we turn the focus on franchise security. We fi nd out what legal pitf alls potenti al franchisees need to avoid and what your rights are when it comes to running a franchise. As usual, we have all the latest industry news from home and abroad, as well as legal and accountancy advice. We will also be taking a look at the fi nancial climate in Market Watch. Unti l next ti me, Steven Publisher MVH Media Ltd. Unit 9 Wilkinson Court, Clywedog Road South, Wrexham Industrial Estate, Wrexham LL13 9AE GET IN TOUCH The publishers do not accept www.foodfranchisemagazine.co.uk Front cover responsibility for adverti sements @franchise_food appearing in this magazine. image courtesy of Papa John’s The opinions expressed are not /foodfranchisemagazine1 Page 50 necessarily those of the editor or the publisher. AUTUMN 2016 FOOD FRANCHISE | 3 ContentsSUMMER 06 Industry News We round up all the latest news from across the industry over the last 06 quarter 32 Top 50 Food Franchises Find out which brands make our list of the UK’s top food franchises 50 Be Inspired We speak to franchisee Steve Mullarkey about what att racted him to join the Papa John’s family 54 Focus on Franchise Security 30 We fi nd out about all the factors you need to consider to ensure your franchise makes the best possible start 58 One To Watch Patrick Duff y tells us what makes Beatons Tearoom & Bookshop stand out from the competi ti on 56 50 4 | FOOD FRANCHISE AUTUMN 2016 62 62 Making Franchising Your Future 67 We look at the decisions you have to make before setti ng off on your franchising journey 67 Internati onal News We round up the latest developments from brands from around the world 74 Market Watch A summary of how the franchises in the food sector are preforming on the Stock Exchange 80 Legal Katee Dias rounds up some of the recent developments in employment law 82 Accountancy McPherson’s tell us about the key drivers of SME success 84 Franchise Sales and Resales 74 Jess Bains steers you through the sales and resales process AUTUMN 2016 FOOD FRANCHISE | 5 NEWS round-up Chopstix opens Welcome Break noodle bar Oriental fast food restaurant Chopstix has opened a noodle bar at Welcome Break’s Birchanger Green service area on the M11. Chopstix Noodle Bar blends authentic prices, customers will be able to enjoy the Oriental-inspired fresh and nutritious theatre of the chefs preparing and cooking fast food with a casual, convenient dining the food in front of them.” experience at affordable prices. Chopstix Group Chief Operating Officer In addition, Chopstix’s chefs cook the food Max Hilton Jenvey said: “We are delighted to on site to ensure each dish is served as fresh welcome the Welcome Break Team into the as possible and deliver chef theatre. Chopstix family. Welcome Break Chief Executive Officer “Welcome Break and Chopstix Noodle Bar Rod McKie said: “We are proud to be share a passion for foodservice excellence partnering with Chopstix Group. and are dedicated to satisfying hungry “Its restaurants focus on serving fresh, customers on the move.” nutritious and healthy Oriental cuisine using Chopstix will be open from 10am to 10pm, the finest ingredients. seven days a week, 365 days a year. “As well as great food and affordable Runny eggs back on the menu for all Pregnant women, babies and older people have been told they can finally return to eating runny eggs - as long as they have the British Lion stamp on. The Food Standards Agency (FSA) and Food Standards Scotland say they will no longer advise against the consumption of raw or lightly cooked eggs by vulnerable groups. The new advice follows the publication of a detailed review by government food safety advisors, which concluded that the major reduction in risk from UK eggs in recent years meant the FSA should amend its long-standing advice for eggs produced under the British Lion scheme. A spokesman for the FSA said: “The reason for this is that in recent years the presence of salmonella in UK hen shell eggs has been reduced greatly, this is particularly the case for those eggs produced under the Lion coded quality assurance scheme, which comprises a suite salmonella and the safety record of efforts’ undertaken by the UK egg of additional control measures.’ British Lion eggs means that we have industry to reduce Salmonella Enteritidis The FSA had warned that vulnerable been confident for some time that even in laying flocks, which it says has made a groups should avoid raw or lightly vulnerable groups such as pregnant ‘remarkable impact’ in reducing the levels cooked eggs following the Edwina Currie women, babies and elderly people should of Salmonella Enteritidis infections in salmonella scare in 1998. be able to consume them when runny.” humans. Andrew Joret, Chairman of the British The new advice follows a year- It concluded that: “There has been a Egg Industry Council, which runs the long review by a specialist sub-group major reduction in the microbiological risk British Lion scheme, welcomed the of the Advisory Committee on the from Salmonella in UK hen shell eggs since change in advice. He said: “This is a great Microbiological Safety of Food (ACMSF) the 2001 ACMSF report. This is especially success story for British agriculture. The to assess improvements in UK egg safety. the case for those eggs produced under investment we have made in eliminating The report acknowledged the ‘significant the Lion Code quality assurance scheme.” 6 | FOOD FRANCHISE AUTUMN 2016 Just Eat proves it’s got the X Factor Food-to-go sector after agreeing sponsorship deal worth an estimated £16.1bn in UK Online food ordering platform Just Eat has taken over as the sponsor of The X Factor App 2016, allowing millions of viewers The food-to-go market in the UK is estimated to be worth Anyone using the app can access £16.1 billion, new research has exclusive content and Just Eat rewards, revealed. as well as order their favourite food while watching the show, which features Simon Cowell, Nicole Scherzinger, Sharon Osbourne and Louis Walsh as judges. In addition to having extensive branded presence on The X Factor App, which is available to download, the sponsorship deal includes second screen takeovers in the ‘fifth judge’ area, where viewers can play along with the show, watch exclusive contestant content and play bespoke games. Just Eat, which has over eight million customers, has developed a wide-ranging According to figures from food and grocery social strategy for branded posts and year promises to be one of the biggest in research and training charity IGD, the Tweets, and has also created a content our history.