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 life

FOOD FRANCHISE with Papa John’s V3 ISSUE 4 AUTUMN

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 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 noodle bar Oriental 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. amount the sector is worth has risen by 6.8% hub on their own website. “This sponsorship is a great since 2015, driven by changing consumer The content of the app will expand and opportunity for us to showcase the lifestyles. grow as the live finals and voting kicks diversity of food choice that we offer The data revealed that the quick service off. Media spend will also be upweighted through our platform from our talented restaurant segment was worth an estimated at key junctures in the series. restaurant partners in every corner of the £5bn and had evolved in recent times, with Ben Carter, UK Marketing Director for UK.” premium burger chains expanding, and Just Eat, said: “Just Eat is delighted to be Just Eat has over 27,000 restaurant operators increasing their focus on health sponsoring The X Factor App. partners and for the live shows will be and nutrition. “The X Factor has become a Saturday working to supply them with branded X The research also revealed that the food- night icon in its own right and together Factor collateral. to-go specialist segment was worth around we are an essential part of Saturday The partnership was negotiated by £4.6bn and was growing in scale and impact, night. m/SIX, on behalf of Just Eat, and ITV with more outlets moving outside of London. “After a record first half of the year for Commercial, Syco Entertainment and According to the date, coffee specialists Just Eat in the UK, the second half of this FremantleMedia UK. were also continuing to expand, with this segment now estimated to be worth £2.7bn. The analysis also showed that many convenience, forecourt and other retailers Crolla’s Gelateria opens ice cream had introduced specialist food-to-go counters to tap into that sector of the parlour in Aberdeen market, which is now worth £2.5bn. Supermarkets and hypermarkets are also Italian dairy ice cream franchise Crolla’s Gelateria has opened its getting in on the act, with this sector of the latest shop. market estimated to be worth £1.2bn. Joanne Denney-Finch, IGD chief executive, said: “Food-to-go represents a The new outlet, which has opened in strong opportunity for suppliers, but it’s a Aberdeen, serves a variety of ice creams, as different market to grocery retail, requiring a well as hot and cold food and drinks. very distinct approach to succeed. Customers can choose from a huge “Suppliers looking to expand into this variety of flavours of ice cream, enjoyed area must first and foremost broaden their in either a traditional cone or an indulgent understanding of the different types of food- sundae. to-go shopper. Crolla’s Gelateria represents an award- “What drives them to purchase? What winning family company that has been excites them? How can you work with your producing traditional Italian ice-cream in food-to-go customers to keep shoppers Glasgow for over 120 years. coming back for more? Today, as well as having its own ice cream “Those suppliers who really develop their parlours, the firm also supplies ice cream knowledge of this unique market will be vans, cafes, wholesalers, restaurants and best placed to make the most of the growth hotels. opportunities available.”

AUTUMN 2016 FOOD FRANCHISE | 7 NEWS round-up

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

The guide has launched with a number of have provided tips on how to make money so decided to make it public. articles, including the advantages of using from an ice cream machine year-round. “We’ve worked with our suppliers and a combi oven, understanding single and The advice centre will be updated regularly other experts to create more content that three phase electrical supply, how renting with new articles, market trend analysis and we think could help people across the whole catering equipment affects your tax bill, equipment advice, and U-Select’s team hope catering world, and we’d love to hear what hints on buying the best food display for it will become the go-to place for catering else people want to know.” your business and advice on reading and professionals looking for guidance and ideas. PKL and U-Select Managing Director Lee understanding equipment warranties. U-Select Sales Manager Jon Steward said Vines said: “We have built our success on The aim is to give U-Select’s customers the new information hub had been inspired being experts in kitchen equipment with both advice and inspiration that will make a by customer questions and the company’s great customer service, so it seemed a real difference in their business day to day. desire to help as many businesses as natural step to create a place that explained U-Select has also sought out guest possible. some of our knowledge in a way that was articles from experts in other fields that He said: “We talk to business people each accessible and easy to understand. We love affect the catering industry, including credit and every day who are working very hard to the thought that anyone who is interested monitoring company Experian, who explain make their dreams a reality. can easily get access to this knowledge and how to achieve a better commercial credit “As part of our normal customer service we use it to benefit their businesses.” rating, PRS for Music, who clear up common provide this type of information on a variety To access the advice centre, visit http://u- misconceptions on venue music licences, and of subjects all the time and we realised it select.co.uk/u-select-blog/. ice cream machine maker Carpigiani, who would be really useful to lots of businesses,

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

The news came as the burger chain the week. celebrated the completion of the 500th “Together with our franchisees, our restaurant transformation. multi-million pound investment into the McDonald’s currently has a workforce of next chapter of the McDonald’s story 110,000, having added more than 15,000 continues, and we are celebrating the new employees during the past five years. completion of our 500th restaurant Paul Pomroy, Chief Executive Officer, transformation. We are on track to convert McDonald’s UK, said: “I am pleased to a further 250 stores by the end of this announce that McDonald’s UK is to create year. over 5,000 jobs by the end of 2017. These “Innovations like table service, where new jobs build on the 8,000 we announced customers place their order via our new in 2014, which have taken our workforce digital kiosks and have their food brought to over 110,000 ahead of schedule. to them, are proving incredibly popular and “As a major UK employer, we have in place in over 350 restaurants across the added more than 15,000 people to our UK. workforce during the last five years as a “This focus on continued investment and “These remain challenging economic result of our sustained business growth innovation has seen another strong quarter conditions but I’m pleased that, together and long-term investment in recruitment performance for the UK business. We have with our franchisees, we remain committed and training. Growth has been driven now delivered 41 consecutive quarters of to the UK, and our continued focus on by investment and innovation in the sales growth in the UK, by delivering what serving quality, affordable food and restaurant experience, new restaurants matters most to our customers - freshly giving our customers a great experience and extended opening hours - over half of prepared, great tasting food at affordable is enabling us to keep investing in our our stores are now open 24/7 throughout prices. business and creating jobs.”

8 | FOOD FRANCHISE AUTUMN 2016 Riverford still delivering on ethical values and ethos Riverford has come a long way from its humble beginnings, 29 years ago as a one-man band deliver- ing vegetables locally to a few friends in Devon.

As one of the UK’s pioneering vegbox delivery schemes, Riverford now packs and distributes over 47,000 boxes a week to homes around the UK via their network of franchisees. Riverford began in 1987 when founder Guy Watson left behind his management consultant career in London to return to his parents’ South Devon farm and started growing veg. Early days saw the produce grown and delivered using only three acres and a wheel barrow. Fired by a determination to find a better way of getting healthy, sustainable produce from grower to consumer, Guy launched the home delivery scheme. As the Riverford business expanded, so did the challenge of how to meet demand franchisees who are Riverford’s brand model by extending its current ranges, without compromising on their commitment ambassadors across the country; building developing new products and investing in IT to local growing and employment. relationships with, and delivering ethically solutions and marketing. The solution was to team up with a grown organic produce to, thousands of loyal With 29 years of experience, Riverford cooperative of small scale local farmers who customers each week. is a successful and independent business shared the same beliefs. There are now four Guy Watson explains, “Our idea is to retain model which has remained loyal to its ethical Riverford farms across the UK and one in the social, environmental and economic values and ethos of ‘good food, good farming France. advantages of small, local businesses, whilst and good business’. It’s an exciting time to In 1999 Riverford launched its franchise sharing the advantages that scale gives.” become a Riverford franchisee. network, which now has 60 thriving Riverford continues to develop its existing NEWS round-up

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

New research has shown main course chicken burgers remain the top three most salads have seen a surge in popularity - up 54 frequently listed menu items. per cent on last year and now rank at number Beef burgers have seen a 7% decrease in four in the top 20 most frequently listed menu appearances since last summer and main course dishes. hot dogs have now been knocked off the top The use of pulses and fruit has also seen 20 list in favour of burritos (up 56% since one of the largest year-on-year increases, summer 2014). Fish & chips have also shown and the term ‘superfood’ is being used 75% a slow decline in menu appearances over more often than it was this time last year. the past two years, with a drop of 26% since Vegetarian dishes are also increasing in 2014. popularity, now having twice the share than Many meat-based dishes now appearing in 2010, according to data from foodservice on menus are inspired by the long ‘n’ slow consultancy Horizons’ Menu Trends Report. cooking of the deep south such as pit wings The research also revealed that vegan (at ), slow-cooked beef dishes were becoming more popular, with brisket (Best Western) and TGI Friday’s pork 21% of the eating out brands surveyed now belly in a Jack Daniel’s glaze. offering a vegan option. Peter Backman, Horizons’ Managing Gluten-free terminology is also more Director, said: “The trend for healthy and common, having risen 89% over the past two lifestyle eating is becoming more popular years and wheat-free options are up 80% on and high street menus are now reflecting menus since last year. this. Operators now have to make a difficult data from 800 menus from 121 brands Despite the rise in the popularity of decision about what to keep on their menus.” including pubs, restaurants, quick service healthy options, beef burgers, and Horizons’ Menu Trends Report contains restaurants and hotels.

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

Just 16 per cent of those aged between drinks to tea. sales of ordinary tea bags are estimated to 25 and 34 drink five or more cups of Brits aged 25 to 34 are almost twice as have dropped by 14% between 2013 and standard black tea a day, a study by market likely to drink speciality teas in comparison 2015. intelligence agency Mintel has revealed. to Brits over the age of 55, with half (50%) Sales of green bags grew by 39%, This compares with one in three (35%) of of those aged 25 to 34 drinking speciality speciality bags by 8% and fruit and herbal people aged between 55 and 64. black tea, compared to 26% of consumers bags by 13%. Overall, tea sales in the UK Almost half (48%) of those aged over the age of 55. are estimated to drop by 5% in 2016 to between 25 and 34 say that too much Furthermore, 49% of Brits aged between reach £614m. standard black tea can stain your teeth, 25 to 34 drink green tea, compared to less Richard Caines, Senior Food and Drink while 23% of this age group say that the than one quarter (22%) of those aged over Analyst at Mintel, said: “UK retail value beverage has too much caffeine for them 55. sales of tea have been in decline in recent to drink it in the afternoon or evening and They’re also more partial to fruit tea, years, with growth in sales of green, fruit, one in five (21%) say black tea is not good with almost half (48%) of those aged herbal and speciality teas not enough to for hydration. between 25 to 34 drinking this variety, make up for a fall in sales of standard black Instead, it seems young Brits are keen compared to just 28% of those aged over tea, which dominates the market.” for more extravagant options as two in five 55. (32%) say they prefer more indulgent hot As a result, Mintel research reveals that

10 | FOOD FRANCHISE AUTUMN 2016 Papa John’s opens two new stores on the south coast Papa John’s has opened the doors of two new franchised stores on the south coast.

The chain is now serving from shops Mr Round added: “These two openings are run the outlet in Rochdale. in both Bournemouth and Southampton. just a small part of our UK expansion plans. Mr Kumar said: “I worked for KFC for more Anthony Round, Papa John’s Business Because we are focused on growth we have than ten years, then went on to set up several Development Manager, said: “Papa John’s is designed a special incentive scheme, to help of my own fried chicken shops. going coastal. We are super excited to open franchisees setting up new Papa John’s. “However, I became aware of Papa John’s yet another two stores. “We are ‘making waves’ in the industry by and thought it would be a great idea to “The popularity of Papa John’s ‘Better providing a contribution towards marketing, become part of such a popular brand through Ingredients, Better Pizza’ concept means we discounted royalty fees plus free equipment becoming a franchisee.” are growing rapidly and now have well over to help in the early stages of set up, right “I will be responsible for my own stores 300 outlets across the nation. when franchisees need it.” and yet have all the support and back-up of a “Bournemouth and Southampton, with As well as the Bournemouth and leading brand right behind me.” their population of residents, tourists and Southampton outlets, Papa John’s has also Speaking about the Rochdale outlet, students, are great locations for us. recently opened stores in Rochdale and Steve said: “With around 100,000 residents, “Sun, sea and pizza will be the catch of Blackpool. Rochdale is a great location. the day for visitors to Bournemouth and Former KFC manager, Vijay Kumar will “We are very much looking forward to Southampton’s Papa John’s and it is certain to deliver Papa John’s pizza to customers in and enticing local Rochdale residents to try our become the first port of call for hungry locals. around Blackpool, while Steve Mullarkey, will top quality Papa John’s pizza.

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

The machine was installed at Tesco, in High Wycombe, and puts Costa Express on track to achieve its target of over having 8,000 self-serve coffee bars in operation by 2020. Costa Express has grown at an average of 70 new machines every month since the £59.5million acquisition of Coffee Nation, in March 2011, and following extensive re- branding and technological developments. Costa Express serves barista-style coffee by combining fresh milk with Costa’s famous freshly ground Mocha Italia blend – the same blend enjoyed in stores. Murray McGowan, Costa Express Managing Director, said: ‘Costa Express has enjoyed tremendous growth from 877 machines in 2011, to 6,000 today. “We’ve always been confident that we can deliver an unbeatable coffee experience to on-the-go customers by using interactive technology, great and fresh milk. “This milestone only continues to demonstrate that there is clear appetite for our award-winning coffee brand. “We’ve also been able to export the intelligent concept to international markets and are encouraged by the results, signifying the appeal of the brand overseas and potential for further growth.”

AUTUMN 2016 FOOD FRANCHISE | 11 12 | FOOD FRANCHISE AUTUMN 2016 SUMMER 2016 FOOD FRANCHISE | 13 NEWS round-up

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

Three out of four people (72 per cent) consumers want more readily available also said they would like their fish and nutritional information and a wider chips to be cooked in a way that lowered selection of meal options. the saturated fat content, according to the As part of the Enjoy Fish & Chips study from Seafish and AHDB Potatoes. campaign, Seafish and AHDB Potatoes The study kicks off a new fish and chip have created a web hub and produced a industry campaign called Enjoy Fish and summary report to provide guidance and Chips, designed to help fish and chip tips on how shops can use the data to providers understand what their customers their advantage. want and giving industry access to the Tom Pickerell, Technical Director at latest nutritional analysis on takeaway fish Seafish, said: “Fish and chip outlets serve and chips. their communities with tasty, nutritious, The aim is to arm outlets with the tools convenient, good value for money food. they need to modernise their offering in However, it must evolve with changing line with the latest consumer preferences consumer preferences to remain relevant, on variety and nutrition, directly otherwise it is in danger of falling behind.” combating the declining sales the sector Rob Clayton, Sector Strategy Director at has witnessed since 2010. AHDB Potatoes, said: “This research is the The research also discovered a notable most comprehensive piece of insight into disparity in standard portion sizes served the fish and chip industry ever produced. across the industry by comparing the fish It is full of valuable information that can and chips offered at over 600 businesses help businesses make simple changes that Businesses can visit the Enjoy Fish & throughout the UK. will make a huge difference to their bottom Chips web hub to download the full report In addition to the insight into portion line.” and get more information on the research sizes, the findings reveal health conscious and how it can help them.

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

Work at the Millennium City Campus, in the centre of Wolverhampton, is currently underway and due to be completed by the autumn. The new Starbucks store will offer a mixture of bench seating, high stools and soft furnishings. Emma Furnival, Assistant Director for Hospitality and Accommodation Services at the University, said: “We’re really excited about opening the new Starbucks store. extending catering facilities providing attractive environment for everyone who “The investment at the City Centre more choice for students, staff and uses the campus.” Campus is focused on improving and visitors, as well as creating a more

14 | FOOD FRANCHISE AUTUMN 2016 Water softening warning for pubs and bars

Britons get a taste for European fare Half of Britons post Brexit blame drinks for British diners have been flocking to European restaurants following the vote to leave the EU, new data has revealed. oral health decline

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

According to market research provider Mintel, 24% also say foods such as potatoes, blueberries, cherries and sweets are affecting their teeth, with 35% of 16-24 year olds thinking the same. Other than from food and drink, Brits blame a number of other things for the decline of oral health, including ageing (46%), tobacco (23%), teeth grinding (21%) and poor Research by restaurant booking service European neighbours have to offer in terms dental hygiene (24%). Quandoo found there has been a 10 per of food. Jack Duckett, Senior Consumer cent week-on-week rise in demand for “Whether you voted to remain or leave, Lifestyles Analyst for Mintel, said: “Perhaps European cuisine since the referendum. it’s clear there is a desire, as Boris Johnson encouragingly, just a quarter of Brits attribute Comparing booking numbers the week says, to have our ‘EU cake and eat it too’.” a decline in the appearance of their teeth to before and after the referendum, Quandoo poor dental hygiene. found Spanish restaurants had enjoyed the Mr Simpkin added: “Only time will tell “However, the high proportion of biggest increase in booking numbers, with whether an exit from the EU will impact consumers that cite dietary factors as a 39% week-on-week rise, while German on the amazing diversity our nation’s food having a negative impact on their teeth is restaurants in the UK saw bookings go up scene has to offer, however, we can only a testament to ongoing diet issues in the by 18%. hope it continues to thrive! UK, particularly with regard to high sugar However, the growth in interest in “The great variety of restaurants we consumption. European food has come at the detriment currently enjoy, all add to the cultural “With young adults typically among the of cuisines from further afield. American richness and diversity on our local high biggest consumers of processed sugars, diners and international food venues both streets across the country. and are more likely to agree that poor had 16% less bookings the week after the “We’re incredibly proud to be working dental hygiene has negatively impacted the referendum. alongside some of the best restaurants appearance of their teeth, it follows that the Matt Simpkin, Vice President Western in the business and are delighted to see young are also more likely to indicate that Europe at Quandoo, said: “With Brexit such a colourful mix of restaurants join they experience oral hygiene concerns, such dominating the headlines, Brits appear to the Quandoo team from across the whole as staining, bad breath, cavities and tooth have been taking a closer look at what our country.” pain.”

AUTUMN 2016 FOOD FRANCHISE | 15 NEWS round-up

Costa celebrates Good Housekeeping Food Awards glory Coffee chain Costa is celebrating after being named the Favourite High Street Coffee Shop at the 2016 Good Housekeeping Food Awards. The Favourite High Street Coffee Shop category was introduced in 2015 and Costa has won the award two years in a row. The prestigious annual food awards are in their twelfth year, with the magazine’s readers voting in 24 different categories for the most popular food brands and products. Jason Cotta, Managing Director at Costa UK and Ireland, said: “We are delighted to have been named the Favourite High Street Coffee Shop for the second consecutive year and to have been awarded the title from thousands of Good Housekeeping readers and customers makes the win all that more special. “We would like to thank our fantastic team of baristas in showing outstanding pride, passion and personality in what they do to help earn us the title and we will continue to listen to customers, working hard to ensure that they will continue to choose Costa as their favourite coffee shop.”

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

The selection of alternative nutritious food options have been introduced in support of NHS plans to impose a 20 per cent ‘sugar tax’ in hospital cafes by 2020. These new options include four different salads, and a smoked salmon, hummus and olive wrap. As well as alternative food options, Muffin Break will also be changing its point-of-sale strategy by removing cookies and crisps from the till points and replacing them with bowls of fruit and a new porridge option. Lisa Brook, Muffin Break’s General Manager, said: “We have long been committed to expanding our product portfolio and providing our customers with high quality ingredients, which are made more healthy alternatives and the NHS options as impulse buys at the tills. by our in-store bakers every morning. move has strengthened our resolve. “Our changes are just the beginning “We pride ourselves on the food that “Our strategy in Lewisham and and we plan to roll-out further positive we serve and continue to improve our Whittington has been reviewed and we strategies in the near future. dining experience to respond to changing are already making positive changes to “All of our stores, including our hospital consumer needs.” encourage visitors to consider healthier stores, serve freshly baked goods using

16 | FOOD FRANCHISE AUTUMN 2016 AUTUMN 2016 FOOD FRANCHISE | 17 NEWS round-up

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

For the second year running, the awards will celebrate the diverse range of cuisines and the amazing contribution a nation of high street heroes make to our economy. Voting is now open for the British Takeaway Awards 2016, which are run in association with Just Eat, the world’s leading digital market place for food delivery. If you fancy winning the coveted title of Best Takeaway in Britain, as well as a £5,000 prize, then it’s time to make sure your customers put you forward. Members of the public have until midnight on October 6 to nominate their favourite local takeaways. And the backing of the public does matter. After the nomination process closes, a shortlist of ten takeaways in 13 different regions of Britain will be announced on October 10. The public will be then asked to vote for a favourite in their region, with voting starting at 9am, on October 10, and closing independent takeaway businesses. that takeaways play in the fabric of British at midnight, on November 24. Any votes cast In total, 14 awards will be presented. society and the contribution that the industry outside of these times will not be counted. Each of the 13 regional winners will receive makes to the UK economy. The five takeaways in each region that £1,000 and free sign up to Just Eat, or their “Across the length and breadth of the receive the most votes will then be placed in sign-up fee returned if they are already a nation are local heroes who are producing the final shortlist and invited to attend the partner. But one of the 13 will be extra lucky amazing food, delivering great customer star-studded awards ceremony. as they will win the coveted award for Best service and making amazing contributions to The British Takeaway Awards 2016 will British Takeaway in Britain and also receive a their local community - it’s only right that we take place on December 5 at The Savoy, in cheque for £5,000. recognise that hard work and dedication.” London, where the most celebrated names Graham Corfield, UK Managing Director To vote in the British Takeaway Awards, in British takeaway food will come together of Just Eat, said: “The British Takeaway visit www.thebtas.co.uk. to celebrate the success of Britain’s best Awards are about celebrating the huge role

Pokémon Go draws gamers to Costa stores Coffee chain Costa has seen footfall increase by 30 per cent across two of its stores after Pokémon were spotted there following the UK release of gaming app Pokémon GO.

Pokémon have been sighted in outlets Worcester on the train and noticed there at Costa said: “Our stores are proving to in St Martin’s Quarter and on The Cross, in was a Pokéstop at Costa. In the last hour be the perfect place for Pokémon across Worcester. I’ve caught about 50 Pokémon!” the country to hang out. With our free On the day Pokémon GO was launched Jordan also identified that the St Wifi and irresistible coffee, we’re looking in the UK the stores saw sales rise by 10%. Martin’s Worcester store is a PokéGym, a forward to seeing more Pokémon finders Pokémon GO player Jordan Scriven, location where Pokémon can be trained. and Pokémon characters come through our 21, from Dudley said: “I came down to Caroline Harris, UK Marketing Director doors over the summer.”

18 | FOOD FRANCHISE AUTUMN 2016 Food for thought for businesses on combi oven maintenance Businesses have been given food for thought on taking care of combi ovens after a study revealed a lack of knowledge regarding water treatment.

According to research by The Craft Guild of Chefs and BRITA Professional, over half of professional chefs (59%) admit that their knowledge of water treatment to be poor or average Almost three quarters of chefs surveyed (70%) said they were unaware that combi oven manufacturers won’t cover breakdowns caused by limescale. The study also found that over half of chefs surveyed (59%) aren’t aware that water filters need changing regularly. The survey of 164 professional chefs also found that almost two thirds (63%) of chefs don’t know that untreated water can cause a combi oven to breakdown, while nearly half (45%) of chefs didn’t think that water filtration needs to be part of their regular housekeeping programme Andrew Green, Director of Operations at the Craft Guild of Chefs, said: “The right water treatment is key to combi ovens functioning effectively, but these results have highlighted a serious knowledge gap. As a vital piece of equipment in professional Miles Dawson, sales director, BRITA what it is, what it does, and how it needs to kitchens, a breakdown mid-service would Professional, said: “These findings be looked after in order to keep equipment have a serious knock on effect, for both the demonstrate that there’s a job to be done running smoothly.” customer and the business’ bottom line.” to educate the industry on water filtration –

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

The company’s new offering is one third less fat than regular cheese and is available as a topping on all of Papa John’s pizza. It has been introduced following feedback from customers who wanted the choice between the chain’s regular offering and a lighter option. John Schnatter, Founder, CEO and President of Papa John’s, said: “As a pizza maker, my goal has always been to bring people together around quality pizza that everyone can enjoy. “We want to accommodate different preferences, so we added lower-fat cheese to give people more options, while still delivering the same better ingredients that make for better taste.” Gareth Davies, Regional Vice President “You won’t find any processed, low- customers can now enjoy high quality, for Western Europe and Papa John’s UK, calorie ingredients because our menu lower-fat cheese pizza, combined with said: “We’re always tinkering with new items are made from the same better other lighter options on Papa John’s menu, menu items and recipes, and this is a great ingredients our customers expect from us. such as the SNOG frozen yogurt, or the option for people who prefer pizza on the “This means new and existing new chargrilled Corn on the Cob.” lighter side. SUMMER 2016 FOOD FRANCHISE | 19 NEWS round-up Chopstix Noodle bar trials new brand Identity Oriental Chopstix Noodle Bar has launched its new look brand identity at the opening of its newest outlet.

The shop, at the Trinity Centre in the heart of Aberdeen, is the fifth in Scotland. The opening of the restaurant created ten new jobs and saw the introduction of Chopstix refreshed brand livery, which was created and developed in partnership with Mystery Design. The brand’s new look and feel will be assessed over the next few months in preparation for the launch of Chopstix Group’s flagship restaurant in Oxford Street, London, later this year, where a full unveiling of the new store concept will take place. Max Hilton Jenvey, Chief Operating Officer high footfall city centre, with longer opening Linda Stewart, General Manager of the of Chopstix Group UK said: “The Trinity hours, from 11am to 11pm. Trinity Centre said: “It is great to see another Centre is an ideal central location for our “We will provide our guests with faster, empty unit on Union Street filled with a great Chopstix Noodle Bar. fresher, healthier authentic Oriental fusion brand, I am sure that the Aberdeen public will “Our location on Union Street will allow cuisine in a cool, casual and relaxed family respond positively to the fabulous restaurant us to serve the Aberdeen community in a environment.” and takeaway offer.”

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

Papa John’s already has stores at the ice leisure brand’s complexes in Milton Keynes, Uttoxeter, Coventry, Basingstoke and now Peterborough. Andreas Petrakas, Brand Business Development Manager for Planet Ice said: “Planet Ice now serves one million customers a year across all our ice rinks in the UK and we have ambitious plans to grow, both in the UK and overseas. “We first introduced Papa John’s in 2015 and pizza has now been fully integrated into our proposition in five key venues, proving particularly popular! “Customers can buy tickets to skate and eat which is a great every day offering and also ‘goes down well’ for special pizza parties for birthdays or a family evening out watching one of our exciting Ice Hockey matches.” means we only use the best ingredients and top quality pizza to a wider audience and be Anthony Round, business development fresh dough for a better natural flavour. associated with such a well-respected leisure manager, Papa John’s said: “Papa John’s “We are delighted to be able to bring our brand: it’s a recipe for success.” concept of ‘Better Ingredients, Better Pizza’

20 | FOOD FRANCHISE AUTUMN 2016

NEWS round-up

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

Just Eat sold the businesses for €22.5 million (£19m), which is payable in cash. Eighty per cent was paid on completion and 20% will be paid six months after completion, subject to the satisfaction of certain obligations. David Buttress, CEO of Just Eat, said: “We have always been clear that the competitive dynamics of our industry demand clear market leadership to drive sustainable profitability. The disposal of our Benelux business, where we are number two, delivers on that strategy and comes at the right time for Just Eat. “We are the clear leader in our remaining 12 markets and it is appropriate that our time and resources are focused on building on the strong growth we are seeing across those businesses in future.” Jitse Groen, CEO and Founder of Takeaway.com, said: “We are pleased to acquire the Benelux businesses of Just Eat. “These activities are complementary to our operations and will further strengthen our leading positions in Continental Europe. This transaction is in line with Takeaway. com’s strategy to drive sustainable leadership positions in each of the 11 markets it operates in.”

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

The doughnut-croissant creation, named Zebra Cro due to its striped layers. the Luxury Zebra Cro, was developed with Dum Dum Donutterie Founder and takeaway platform Just Eat to celebrate creator of the Luxury Zebra Cro, Paul the inaugural Just Eat Food Fest, which Hurley said: “After months of testing was held in Shoreditch, London, over the flavour combinations with some of the summer. world’s rarest and specially sourced It contains Iranian saffron infused butter ingredients, I’ve created the most croissant dough, Cristal Rose Champagne luxurious Cro I’ve tasted.” Caviar, gold leaf decoration, French Dum Dum Donutterie has established delicacy Normandy butter, powdered itself as one of the most popular doughnut Nutella and the world’s most expensive brands in the country with the launch Amedei Porcelana Chocolate. of its latest craze, the Crone, a croissant The creation was named the Luxury doughnut cone filled with ice cream.

22 | FOOD FRANCHISE SUMMER 2016 Water softening warning for ® joins pubs and bars Instagram to help keep customers in Pubs and bars are being urged to urgently check the water softening in place for their glasswashers to avoid equipment the picture breakdowns.

Catering equipment distributor magnesium carbonates in the water U-Select has revealed a recent surge supply. in enquiries from pubs and bars left When water flows through catering without glass washing facilities after machines these particles are deposited Sandwich chain SUBWAY® is breakdowns caused by mineral build up and build up to form a hard layer which aiming to keep its UK and Ireland inside the machines. can block pipes and cause equipment U-Select Sales Manager Jon Steward malfunctions and failures. customers in the picture via its said: “This summer we have fielded a Jon said water softening problems are new Instagram account. lot of calls from bars and pubs urgently particularly dangerous for businesses requiring new glasswashers, in fact because they cause lots of damage very SUBWAY® hopes that joining the social more than ten per cent of our enquiries quickly. media platform will help it build on the success have been dishwasher related. He said: “When an item of kit the brand has had on Facebook, Twitter and “Most of these failures can be breaks down because of water YouTube. marked down to a lack of proper water softening problems, the results can The chain has a combined total of 484,000 softening. It’s one of the big issues be catastrophic. It can often need to fans and followers on social media. across the catering industry. be replaced. I’ve been amazed by how The Instagram account adds a new creative “Water filter manufacturers Brita quickly mineral deposits can build up channel, with food art posts, influencer claim 75 per cent of all catering and cause issues with equipment in the collaborations and sharable content planned. equipment breakdowns are due to areas with the hardest water.” The launch ties in with the expansion of the insufficient water softening. From our Jon urged pubs and bars to check brand’s premium range, which sees the addition perspective, the pub industry seems what water softening they had in of two twists on the popular Steak and Cheese to be having lots of breakdowns at the place or to check with distributors Sub. moment. It’s a real concern.” what water softening is best for their Sacha Clark, Marketing Director for The problems are caused by the equipment before purchasing. SUBWAY® UK and Ireland, said: “We’re minerals carried in hard water, which He said: “The great news is the extremely proud and excited to be launching on is formed when it passes through solutions are easy to install and Instagram as it’s a platform that is important to limestone and chalk. maintain, and many newer glass our audience. More than two thirds of England washers have inbuilt water softeners or “Our creative content will emulate the choice and half the UK as a whole are listed even clever ‘reverse osmosis’ systems and variety that the SUBWAY® brand stands for, as ‘hard water areas’, with more than which remove even more impurities starting of course with the tasty expansion of 200 parts per million of calcium or that traditional water softening.” our Big Steak Range.”

AUTUMN 2016 FOOD FRANCHISE | 23 NEWS round-up

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

Food and drink dominated the top ten we have had a hard day at work or want a foodies, this top ten 10 list proves once and of items on the list, which was compiled by gossip with friends, tea provides the perfect for all that the way to our hearts really is Barclaycard following almost a quarter of a accompaniment.” through our stomachs. million votes in its interactive Great British Katherine Whitton, Chief Marketing “Barclaycard has been helping people Shopping Showdown. Officer for Barclaycard, said: “Shopping has buy and sell for the last 50 years and while Sunday roasts came second, followed by long been a favourite pastime of the British we’ve seen many trends come and go in this tea in third, fry-ups in fourth and scones in public so it was encouraging to see almost time, the Great British Shopping Showdown fifth. a quarter of a million people get behind results show that some British favourites are The rest of the top ten included this national digital debate. As a nation of firmly set to stay.” strawberries and cream, Victoria sponge, chip butties, crumpets and 99 ice creams. With more than 10,500 specialist fish and chip shops in the UK, the British public consumes 382 million portions of fish and chips each year, helping the annual spend reach £1.2 billion. Professor Isabelle Szmigin, consumer behaviour expert, from Birmingham Business School said: “What is so interesting about the top three items in the Great British Showdown is that they represent different and enduring aspects of British life. Fish and chips are Britain’s archetypal fast food that everyone can enjoy. The Sunday roast represents our social life when family and friends get together at the weekend. Finally, tea is our all-time comfort drink; whether

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

The opening of the store, at the Mall everyone and caters for a wide range of Blackburn, has seen the creation of 15 dietary needs, so everyone will be able to jobs. find something that makes their taste buds The outlet will serve up freshly baked tingle. goods and delicious hot and cold drinks “The team and I are confident that the in a rustic, yet modern-styled interior, quality of our food and drinks will entice with comfortable seating for around 70 customers to visit us again and again. We customers. look forward to welcoming everyone.” Muffin Break Blackburn franchisee, Muffin Break Blackburn serves the Nasriya Shaffi, said: “I’m delighted to be limited edition ‘Duffin’ creation, which is a bringing Muffin Break to Blackburn and hybrid of a muffin and a doughnut. to offer shoppers freshly baked goods, Shoppers can also treat themselves which are all handmade in-store daily, with to one of the recently launched ‘Muffin premium ingredients, by our fully-trained Shakes’ or a cup of Muffin Break’s bakers. exclusive blend of espresso, which is made “Muffin Break has something for from 100% Arabica beans.

24 | FOOD FRANCHISE AUTUMN 2016 and Starbucks on the menu at revamped Welcome Break services A revamped Burger King and new Starbucks café and drive-thru are among the outlets who have welcomed customers at the new Sarn Park motorway services.

The Welcome Break complex opened its drive-thru is also open 24 hours a day doors following a £6.5 million transformation Welcome Break Chief Executive Officer, project. Rod McKie, said: “The investment in Sarn The service station had been closed since Park highlights our commitment to the November 2015. region. It will be open 24 hours a day, 365 days a “We are confident that our customers will year. The transformation has also created 30 welcome the new-look services and that it new jobs. will be a great asset to the area. The services on the M4 (junction 36) also “Our General Manager Rob Thomas and feature a Deli-2-Go, which offers hot and his excellent team are committed to offering cold food and drinks 24 hours a day, seven customers the best experience possible days a week. The state-of-the art Starbucks when they visit Sarn Park.”

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

This does however include 11% being moment a staff member gives a dog a treat, noisy dogs but we also have some noisy only happy in cafes and not restaurants, he or she will immediately wash their hands. customers – that’s restaurants for you! But 8% believing only guide dogs should be “Dogs are kept on leads and there is a we do prefer both our human and canine permitted and 5% wanting a dog only area. strong sense of owner responsibility over customers to be well behaved!” The question was asked to The Restaurant their dog’s behaviour. Occasionally we have Club’s 11,000-member fine dining group, and through popular demand the club has now added a dog-friendly section to the website, advising diners where to eat alongside their canine friends. Louisa Walters, founder of The Restaurant Club, which supports local restaurateurs, said: “I love the fact that I can take my shih tzu into my local newsagent, post office, chemist and hairdresser, so it follows that I would want to take her with me into local restaurants too. “Every high street needs at least one dog- friendly eatery, however, there does need to be a dog-friendly code of conduct. “For instance, dogs should only be taken out to eat if they are well trained and don’t disturb other clientele – unless of course the next table is happy to engage with your pet!” Morfudd Richards, owner of Greenberry Café in Primrose Hill said: “I spend a lot of time in Europe and dogs in restaurants simply aren’t an issue. “I was brought up on a farm and animals were part of the family, we wouldn’t dream of leaving the dog at home or outside a restaurant when we went for a night out. “When I opened Greenberry three and a half years ago I wanted to create a relaxed all-day dining atmosphere for grown-ups, while also being family friendly… and the family also includes dogs. “Hygiene is incredibly important to us. The

AUTUMN 2016 FOOD FRANCHISE | 25 NEWS round-up Britons and Americans oceans apart when it comes to dining out When it comes to dining out Britons are more impatient than their US counterparts, new research has re- vealed.vealed.

Speed of service is the biggest frustration for 44 per cent of diners in the UK, with only 31% of US customers being bothered by this, according to the GO Technology report from Zonal Retail Data Systems and research and insight company CGA Peach. For Americans, the biggest frustration is the wrong order being taken, with 32% of diners complaining about this compared to 24% of the British diners questioned. Not being able to pay quickly enough was also a bugbear in the UK, with 145 of respondents citing this as their number one pet hate at restaurants, whereas in the US only 9% express this as a major issue. Zonal’s chief executive Stuart McLean said: operators is take-out. growing app, Deliveroo. “From our experience of the US hospitality The research revealed that in the US, 40% Around 5.6 million people are opting for market they are definitely behind the times of consumers order food to go at least once these third party delivery services. when it comes to adopting technology to a week, with 54% choosing to collect their Jamie Campbell, director of CGA Peach, support the customer journey. order from the restaurant. said: “High street restaurant brands have “In the UK technology is considered Only 29% opt to have their food delivered. recognised the potential of takeaway as part central to an operator’s infrastructure and In the UK there are signs that we are of their overall service offer and we will see this is supported in our research findings. adopting the take-out trend, but still fall this grow in the coming months and years “In the UK we experience fewer mistakes short of the US with only 14% of consumers as the market matures with more delivery when it comes to orders being taken, so having food delivered at least once a providers entering the market. it’s less of an issue. In the US, where there week (6.7 million or one in seven British “To support this, the demand for app is huge service culture, consumers are consumers). technology is also on the up with consumers less forgiving when it comes to receiving As the demand for take-out is on the up, feeling increasingly comfortable to book a incorrect orders.” so is the use of smartphone delivery apps table, order food and pay for it from their However, the biggest opportunity for food such as Just Eat, hungryhouse and the fastest personal devices.”

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

The company raised the funding from two November, Deliveroo has achieved over 400 Shu and Greg Orlowski. The company is existing and two new investors. per cent growth and reached profitability in a headquartered in London and operates in 84 The latest round of investment was led number of its established markets. cities across 12 countries. by private equity group Bridgepoint, and It has also launched in 29 new cities, Will Shu, CEO of Deliveroo, said: “After included US venture capital firm Capital added an additional 9,000 new restaurant seeing strong growth in the markets we General Catalyst and existing investors DST partners, and created opportunities for 6,500 launched in November, our new focus is to Global and Greenoaks. riders, all while continuing to improve its drive further innovation in food delivery. The new funds will be used to expand the already strong customer retention rates and “In particular, I’m excited about exploring service in both new and existing markets, as maintaining a 30 minute average delivery completely new ways to solve the hardest well as provide further investment in projects time. problems restaurants face when offering such as RooBox, a pioneering remote kitchen The company has also hit key milestones delivery. initiative. such as expanding its service to cover “RooBox is the first illustration of this RooBox gives restaurants access to breakfast, express lunch, alcohol and approach, and innovations like these are at delivery-only kitchens in key locations, corporate ordering, and striking deals with the heart of our mission.” accelerating geographic expansion. major partners such as PizzaExpress. Since the last round of investment in Deliveroo was founded in 2013 by Will

26 | FOOD FRANCHISE SUMMER 2016 BUSINESS PROFILE

200 DEGREES

200 Degrees Coff ee are going from strength to strength in the rapidly expanding UK coff ee market. Started as a small roasti ng business, they now own two shops in Notti ngham with the latest additi on being on Birmingham’s exclusive Colmore Row. MD’s Rob Darby and Tom Vincent started roasti ng coff ee primarily to serve in their own bars aft er they had grown frustrated with local suppliers. Seeking a holy grail of outstanding taste from small roasters but with consistency and customer service comparable to the major players, their fi rst roast was in 2012 and two years later this simple philosophy fl owed into their award winning and criti cally acclaimed shops.

Tom puts it as a relati vely straight-forward in hospitality for over 20 years and with model, “It really has been a case of doing the added experti se we’ve brought in we something we love to as high a standard can only get bett er, it’s as much about the as possible, we are independent specialist people as the beans and we’re very proud of roasters but we feel the new customers for retaining most of our team for a long ti me. coff ee shops want excellent coff ee served When it comes to working with suppliers in a comfortable environment and above all and franchisees we aim to treat them as we they want really good, friendly service”. would like to be treated. When you consider the company started because we were Their plans are to expand their operati on frustrated by poor service, terrible marketi ng with new shops in the pipeline for major and inconsistent standards, it would be citi es and a booming wholesale business really, really stupid to fall into the same serving ti ny cafes to Michelin starred traps”. 200 Degrees Coff ee are going from restaurants alike. End of the 2016 will also strength to strength in the rapidly expanding see a subscripti on service open up for UK UK coff ee market. Started as a small roasti ng customers to get coff ee delivered to their business, they now own two shops in door “through their door would be more Notti ngham with the latest additi on being accurate, we put the beans into a postal on Birmingham’s exclusive Colmore Row. pack” says Tom, “it will help make 200 MD’s Rob Darby and Tom Vincent started Degrees known throughout the country roasti ng coff ee primarily to serve in their which will be great for the shops”. own bars aft er they had grown frustrated with local suppliers. Seeking a holy grail 200 Degrees are new to franchising but of outstanding taste from small roasters For more informati on about are keen to get involved with people who but with consistency and customer service 200 Degrees, our Coff ee Shops and understand coff ee and need the help of an comparable to the major players, their fi rst the franchise opportunity established company to realise their dream roast was in 2012 and two years later this please contact us at of running a successful, high quality coff ee simple philosophy fl owed into their award [email protected] shop. Tom sums it up, “Rob and I have been winning and criti cally acclaimed shops.

AUTUMN 2016 FOOD FRANCHISE | 27 NEWS round-up

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

The company announced plans to make the switch in December last year. This change comes as part of the company’s ongoing efforts to address consumer preferences. Over the years, Papa John’s has been the first national pizza delivery chain to announce the removal of preservatives BHA and BHT, flavour enhancer MSG, cellulose and partially hydrogenated oils, artificial flavours and synthetic colours, and high fructose corn syrup across its entire food menu. As well as these, Papa John’s is committed to converting to cage-free eggs by the end of 2016. John Schnatter, Founder, Chairman and CEO, of Papa John’s, said: “When Papa John’s opened its doors in 1984, I had one goal in mind: Better Ingredients. Better Pizza. “Today, our clean label journey remains an essential part of that promise, and our commitment to our customers is as strong as ever. “The completion of the transition to raised-without-antibiotics chicken toppings Sean Muldoon, Papa John’s Chief spent on product development and testing to on our pizza and poppers is just one better Ingredient Officer, said: “We’ve taken a lot of bring our better grilled chicken pizza toppings ingredient moment, and we’re excited to steps to bring our customers transparency and poppers to consumers. show our customers what we have in store around our ingredients. “This is a proud day for Papa John’s.” for the future.” “Since December, hundreds of hours were

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

The store is the first Starbucks express said: “We’re excited to bring this unique store outlet in Europe, and features an open layout format to the UK, the first time for Starbucks which offers customers a walk-through outside of the U.S. and Canada. This follows experience allowing them to order, pay and the digital innovations we have rolled out to pick-up faster. improve convenience for customers.” The menu focuses on brewed coffee, “The new express format is the latest in espresso beverages and a selection of our evolving store portfolio, which aims popular food items including breakfast to meet the needs of our customers while sandwiches, which are displayed on digital keeping our baristas at the heart of the menu boards that rotate throughout the day. customer experience.” For customers who choose to order ahead, The London launch follows the successful mobile order and pay is also integrated. express format store openings in New York, Rhys ‎Iley, Vice President of Operations, Toronto and Chicago. Starbucks Europe, Middle East and Africa,

28 | FOOD FRANCHISE AUTUMN 2016 Just Eat to deliver takeaways with self-driving robots Customers of the online ordering platform Just Eat could be soon to find their food being delivered by self-driving robots.

Just Eat has partnered with Starship Technologies to trial the delivery robots on the streets of London. Starship Technologies was established in 2014 by the co-founders of Skype. The robots have been developed to deliver food, packages and goods within a short radius of their point of origin, the customer will then be sent a secure code to enter into the robot and access the meals. The robots will drive around autonomously whilst being monitored by human operators who can take over if needed. Since the end of last year the robots have driven close to 5,000 miles to meet over 400,000 people successfully without a single accident using cameras, sensors and other technology to navigate their way through the streets. Fernando Fanton, Chief Product and at the heart of a new way of delivering “With scalable innovation at the core of Technology Officer at Just Eat, said: “This food which is as exciting for us as it will their business, they are the perfect partner is another example of how we are pushing be for those who find a robot on their for us at Just Eat as we continuously look technology boundaries to provide our doorstep.” for sustainable ways to use technology customers and restaurant partners with David Buttress, CEO of Just Eat, said: to make our customers’ and restaurant more choice and flexibility. “As soon as we met the Starship team, partners’ lives easier. “We’ve always been committed to we found their passion for their product “We can’t wait to bring the delivery offering our customers new ways to order infectious. robots to local high streets very soon.” and pay for their food and now we’re right

Dum Dum Donutterie launches The Crone Doughnut brand Dum Dum Donutterie has introduced its latest creation, The Crone. The Crone, which has been created by Chef Paul Hurley, is an ice cream cone made with Dum Dum’s patented baked croissant doughnut dough and then filled with fruit, chocolate or ice cream. The Crone is available at the Dum Dum Donutterie, in Boxpark, Shoreditch. Since opening in 2013, Dum Dum Donutterie has been causing media frenzy, and now it is international, following the launch of the first of ten planned stores in Dubai earlier this year. Mr Hurley, who is also Dum Dum Donutterie CEO, said: “We owe a large part of the success of Dum Dums to Boxpark. “It was our first home and allowed us to develop our concept whilst getting exposure of the brand across London.”

AUTUMN 2016 FOOD FRANCHISE | 29 NEWS round-up

Next Generation Harry Ramsden’s Esquires opens in Blackpool Tower Coffee opens in A new ‘next generation’ Harry Ramsden’s restaurant has opened Buckingham its doors at the Blackpool Tower. 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 ‘Harry Ramsden at the Tower’ features a “We believe Blackpool’s most iconic feature their new ‘Equatorial Espresso’ modern take on the seaside design, which landmark is the ideal location from which a blend of 100% Fairtrade, organic and has been specially created for Blackpool and to unveil the modern day face of Harry’s, Arabica beans from Peru, Honduras, its iconic landmark. as both brands combine the proudest of Indonesia and Ethiopia. A total of £2.1 million has been invested heritages wrapped up firmly in a family Esquires are also set to open a in the venture by the owners of Harry focus. minimum of five new locations by the end Ramsden’s, with Blackpool Council “Just as the Tower itself recently enjoyed of 2016; including sites in Yate, Dartford, contributing £0.4m towards building works. a major revamp, with this new opening we Guildford, Bradford and the brands first The opening of the new restaurant will unveil a totally new look which retains site in Newport, Wales. has seen the creation of 100 new jobs, in all the key elements which Harry himself addition to safeguarding 30 existing jobs in introduced, but better reflects the modern the town. day face of Harry Ramsden’s.” As well as a wide ranging menu of fresh, Councillor Mark Smith, Cabinet Member cooked to order rotisserie and grilled for Business and Economic Development, seafood and meat dishes, together with said: “The private investment being made Harry’s world famous fish and chips, the new in Blackpool’s most prominent public outlet will provide takeaway as well as sit in asset and the jobs it creates is yet another facilities for over 200 diners. demonstration of the steps the town has In addition to this, the new look outlet taken in creating a vibrant economy. This is includes Gin & Craft Beer bars and a a clear message to potential developers – standalone cocktail bar for adults as well as Blackpool is the town to invest in.” smoothie and juicing stations for all ages. Kate Shane, Head of the Merlin Blackpool Joe Teixeira, CEO of Harry Ramsden’s Cluster, added: “The new restaurant and said: “Harry’s is moving into the next phase eateries perfectly complement the Tower of its evolution, where we book-end our attractions, will enhance the customers classic and most loved favourite dishes experience significantly and of course, with a new range of innovative, tasty and completes the ground floor refurbishment of great value options served in modern day, this very special building. This development seaside surroundings, and we are thrilled represents yet another feature cementing to showcase this brand new face of Harry Blackpool as the UK’s number one family Ramsden’s in the north’s favourite town. destination. ”

30 | FOOD FRANCHISE AUTUMN 2016 BUSINESS PROFILE

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

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

For further information please visit: www.papajohns.co.uk/franchise call: 0844 567 0937 or e-mail: [email protected]

Leading pizza franchise, Papa John’s, combined with my experience of the fast Tempting incentive deals give franchisees has announced its newest franchisee, food industry plus the excellent training a helping hand at the outset to ensure Vijay Kumar has opened the provided at Papa John’s newly refurbished they will be quick to taste success. Papa Company’s latest store in Blackpool. headquarters, means I feel confident I have John’s is aiming to attract more enthusiastic Former KFC manager, Vijay, will now all the right ingredients to make my Papa and business minded franchisees and for deliver Papa John’s superior pizza John’s franchise a success!” the right people Papa John’s is offering to customers in and around the development incentives for opening new Lancashire seaside town. Anthony Round, business development stores that include free equipment as well as manager, Papa John’s confirms: “Papa John’s discounted royalty fees and a contribution “I worked for KFC for more than ten was founded in the USA in 1984 and there towards marketing spend. years, then went onto set up several of are well over than 320 stores across the my own fried chicken shops,” explains UK and over 4,900 stores in more than 40 Anthony Round continues: “To become Vijay. “However, I became aware of Papa international markets and territories. We a successful Papa John’s franchisee you John’s and thought it would be a great idea are currently recruiting for new franchisees need to be motivated, enthusiastic, hard- to become part of such a popular brand across the UK. working and want to be part of a growing through becoming a franchisee. I will be team. Exceptional interpersonal and people responsible for my own stores and yet have “We supply all the assistance needed to skills are essential, as you’ll be dealing with all the support and back-up of a leading get your successful Papa John’s up and customers as well as leading your team on brand right behind me. Papa John’s is running by providing all the necessary a daily basis. In addition to excellent written growing rapidly and this represents a great training, help with location selection and spoken communication skills, you’ll have chance to cash-in! and full turnkey solution to opening the to be an organiser with a can-do attitude and store,” continues Round. “Papa John’s also someone who gets things done. You’ll have “I have been able to take advantage of the has a dedicated marketing team which to be dedicated and passionate enough to current Papa John’s franchisee incentive works tirelessly to support its franchisees. adapt to a proven way of working, plus you’ll scheme designed to help with setting up,” Specialist promotions are regularly being need the ability to roll your sleeves up and continues Vijay. “This means some free developed, plus advertising campaigns and get stuck in, which means everything from equipment including the pizza oven plus help sponsorships. Combine popular pizza with making pizza through to managing staff.” with marketing and discounted fees. Any excellent customer service, rapid delivery new business enterprise needs all the help times, a strong brand, comprehensive staff Papa John’s is the only branded pizza chain it can get at the outset and so the incentive training and some hard hitting marketing to use only 100% fresh dough, giving a scheme is brilliant timing! support, backed by national TV advertising better natural flavour and our unique tomato and the franchise serves-up a fantastic offer sauce is made from the best Californian “I chose Blackpool as I know the area for those looking for a quality investment tomatoes, picked and packed from vine to well,” confirms Vijay. “My local knowledge opportunity.” can in just six hours.

AUTUMN 2016 FOOD FRANCHISE | 31 TOP 50 FOOD FRANCHISES

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

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

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

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

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

Looking down the top 50, you see the variety of world cuisines available to consumers, as well as the different levels that food franchises operate at.

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

50 Wrap It Up! – 17

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

AUTUMN 2016 FOOD FRANCHISE | 33 TOP 50 FOOD FRANCHISES

49 Jasper’s Catering Services – 19

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

45 Dallas Chicken & 47 Ribs – 20 Greene From small beginnings of just one outlet in Tooting, London, Dallas Chicken & Ribs has now grown to 20 units in the UK. Priding itself on being a pioneer of the Halal King – 21 fast food movement in the capital, the company has taken its menu of fried chicken and ribs around the company. As well as the 20 units Dallas Chicken & Ribs has open It may seem a little unfair to find in the UK, the business has decided to spread its wings and open units in Europe and Greene King as low as 45 in the Asia, where master franchises have been granted. Top 50 Food Franchises, as they currently operate the most units out of every business featured on the list. However, the team at Green King were more than helpful when saying that 21 of their units were El Mexicana – 20 47 run by franchisees. With a range of sites in towns, villages and city centre high streets across England, Wales With its goal of being the leading provider of ‘over the counter’ Mexican food in the and Scotland, the group offers top UK, El Mexicana is definitely heading in the right direction. Serving handheld favourites, quality, traditional food and drink including burritos, tacos, nachos and quesadillas, the food is right on trend. At 47 in which continues to prove popular with our top 50 with 20 UK units, it seems that the promise of good quality, good value, customers and franchisees alike. authentic, Mexican street food served quickly and consistently, is proving very popular. Due to this we should expect more El Mexicana franchised units appearing in towns and cities around the country in the not so distant future.

45 Chozen Noodle – 21

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

34 | FOOD FRANCHISE AUTUMN 2016 TOP 50 FOOD FRANCHISES

42 Wok&Go Chesters 42 – 22 – 22

Serving noodle boxes made to order, to eat in, take away Launched in 2004 to fill a gap in the market between well- or have delivered, Wok&Go has 22 units from Hull to known brands on the high street and the halal and diverse London. However, speaking to Food Franchise last month, markets, Chesters now has 22 units in operation across the Matteo Frigeri, the Director of Seeds Consulting, which country. Appealing to all age groups and backgrounds, the is heading Wok&Go’s franchise recruitment, said that the fried chicken shop, with its motto of ‘Great Tasting Chicken’, company has ‘a strong pipeline of sites to be opened in promises investors high returns and the potential for strong the next 12 months, from Manchester to Canterbury’. If future growth. With its popular menu of chicken, burgers this comes to fruition, Wok&Go could be much higher up and pizzas, expect to see even more Chesters outlets the list of Top 50 Food Franchises come this time next popping up in areas beyond the company’s stronghold in year. the north.

42 Oakhouse Foods From its head office in Wiltshire, Oakhouse foods operates one of the nation’s leading ready meal delivery services. Established over 20 years ago, the business has more than 300 recipes on the menu for its franchisees to take to market, including main meals, desserts and soups. With a network of branches across the country, the business helps thousands of older people to live independently at home through its food delivery service.

AUTUMN 2016 FOOD FRANCHISE | 35 TOP 50 FOOD FRANCHISES

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

40 Dunkin’ 39 Esquires Donuts – 24 Coffee – 25

Launched in Quincy, Massachusetts, in 1950, Dunkin’ Donuts is now making itself at home here in the UK with 24 units currently up and running. As well as offering franchise opportunities for those looking to open a store, Dunkin’ Donuts’ cabinets can also be found in supermarkets and retail spaces, where they are operated under licence. Very much a growing brand on this side of the Atlantic, it is highly likely that Dunkin’ Donuts will add to the number of UK units as it continues to grow globally.

38 Oggy Oggy Pasty Company - 28

With the grab and go sector going from strength to strength at present, it’s no surprise to see Oggy Oggy Pasty Company in the Food Franchise Top 50 with 28 outlets. Established in 1993, in Penzance, the business went on Opening its latest shop in Buckingham last month, Esquires Coffee to launch its franchising operation in 2003. now has 25 units open in the UK, with more on the horizon. Indeed, Serving traditional Cornish pasties and other there are five new openings planned for 2016, with sites due to bakery products, Oggy Oggy Pasty Company welcome customers in Yate, Dartford, Guildford, Bradford and the shops are now spread across the south west and brand’s first site in Newport, Wales. Founded in Canada in 1993, further afield. Offering a bakery and coffee shop Esquires now has a strong following in the UK, attracted by the franchise model, along with a van sales model 100% Fairtrade and organically-grown coffee, and the comfortable and retail concession opportunities, would-be surroundings in which customers can enjoy it. For anyone looking franchisees have plenty of options. for a franchise opportunity, Esquires provides bespoke solutions for every partner’s needs.

36 | FOOD FRANCHISE AUTUMN 2016 TOP 50 FOOD FRANCHISES

36 Auntie 36 Café Ritazza Anne’s - – 31 31

Despite the pretzel market in the UK not being anywhere Helping to revive tired travellers, Café Ritazza now operates near as big as the market in the US, Auntie Anne’s is 31 units at train stations and airports around the country. doing its best to change that. Founded in Pennsylvania, Serving coffee, tea and alcoholic drinks, alongside freshly in the US, in 1988, it wasn’t until 2003 that the company prepared food, it’s easy to see why a Café Ritazza franchise landed in Britain, opening the first store in Cheltenham. would be an attractive proposition. With a steady stream of Serving both sweet and savoury pretzels, Auntie Anne’s potential customers looking to grab a drink and a quick feed now has 31 sites in operation in the UK. And with on before or after their journey, it’s a business opportunity which trend flavours including spicy jalapeno, garlic, cheese and could be highly profitable. pepperoni, and salted caramel, you can see why pretzels are gaining in popularity in Britain.

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

AUTUMN 2016 FOOD FRANCHISE | 37 TOP 50 FOOD FRANCHISES 34 Creams – 34

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

32 Shakeaway – 40 32

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

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

30 Sam’s Peri Peri Chicken – 42

With the demand for spicy seasoned or marinated chicken continuing to grow, we were bound to have a few food franchises on our list that are making a name for themselves in this market. One of these is Sam’s Peri Peri Chicken, which sits in 30th spot with 42 units. Starting out in 1990, the franchise’s main presence is in London. Operating as both a restaurant and a takeaway, Sam’s prides itself on offering quality food and service, and this is reflected in its continued popularity among its customers.

38 | FOOD FRANCHISE AUTUMN 2016 TOP 50 FOOD FRANCHISES

30 Harry Ramsden’s – 42

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

28 Pepe’s Piri 28 With Piri – 50 Thanks – 50

Brands like Nando’s may have put spicy seasoning and A food franchise with a difference, With Thanks sells sauces on the map, but in terms of franchises, Pepe’s Piri Piri sweets and snacks directly through its franchise or in is leading the way. The home of fresh, flame-grilled chicken, partnership with brands and organisations. A subsidiary the company sits in 28th spot in our top 50, with 50 units of Barnack Confectionary Ltd, With Thanks has attracted open in the UK. Tempting customers with grilled chicken 50 franchisees since launching in 2012. Offering a available in five flavours – mango and lime, lemon and herb, range of investment levels, the business is an attractive mild, hot and extra hot – it’s easy to see why Pepe’s Piri Piri proposition for anyone looking for a flexible franchise is so popular. opportunity and due to this, we should probably expect to see With Thanks moving up the top 50 in the next few years.

AUTUMN 2016 FOOD FRANCHISE | 39 TOP 50 FOOD FRANCHISES

27 Giraffe 25 Muffin – 52 Break - 59

Despite its name, artisan bakery chain Muffin Break offers Currently sitting in 27th spot in the top 50, Giraffe could soon be more than just muffins and its continued growth has been adding to the 52 units it operates in the UK. Having recently been very much aided by its varied offering. With 59 sites in acquired from Tesco by Boparan Restaurant Holdings, there are operation and reports of sales growth following recent plans in the pipeline for more Giraffe restaurants, and the chain product launches, the business could very well find itself in could soon be moving up our list of franchises. Speaking after the top 20 in next year’s list. Speaking recently after the buying Giraffe, Ranjit Singh Boparan, CEO of Boparan Restaurant company introduced healthier food options at two of the its Holdings, said: “Giraffe represents an appealing proposition for hospital shops, Lisa Brook, Muffin Break’s General Manager, both customers and landlords. We believe the brand has significant said: “We pride ourselves on the food that we serve and potential for further growth.” continue to improve our dining experience to respond to changing consumer needs.”

26 Chopstix - 57

The demand for Asian food continues to grow in the UK, thanks largely to the popularity of street food. One business taking advantage of this is Chopstix, which now operates 57 units across the country. Having recently launched a new look brand identity at the opening of its latest unit in Aberdeen, the company has big plans for the future, with Chief Operating Officer, Max Hilton Jenvey recently stating in this magazine that Chopstix aims to have 300 sites by September 2018. Therefore, it looks like we could see the noodle bar chain much higher up the top 50 this time next year.

Soho Coffee - 61 23

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

40 | FOOD FRANCHISE AUTUMN 2016 TOP 50 FOOD FRANCHISES 24 Riverford – 60 As one of the UK’s pioneering vegbox delivery schemes, Riverford now packs and distributes over 47,000 boxes a week to homes around the UK via their network of 60 franchisees. With 29 years of experience, Riverford is a successful and independent business model which has remained loyal to its ethical values and ethos of ‘good food, good farming and good business’. The company continues to develop its existing model by extending its ranges, developing new products and investing in IT solutions and marketing. Founder Guy Watson explains, “Our idea is to retain the social, environmental and economic advantages of small, local businesses, while sharing the advantages that scale gives.”

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

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

AUTUMN 2016 FOOD FRANCHISE | 41 TOP 50 FOOD FRANCHISES

20 Wiltshire 16 Favorite Fried Farm Chicken - 88 foods - 78

Wiltshire Farm Foods has been cooking and delivering frozen ready meals since 1991. Offering more than 300 options, from traditional favourites to more contemporary dishes, the company’s service has seen a rise in popularity in recent years, as consumers look to make life a little easier by ordering quality meals straight to their door. Wiltshire Farm Foods’ network of 78 franchisees also offer a free delivery service to any address in mainland UK and cater for special dietary requirements and health needs.

Wimpy 17 - 80

Perhaps one of the most famous names in the UK when it comes to burgers, began life as a fast food section of a restaurant on Coventry Street, London, in 1954. Almost 60 years later, Wimpy is still an iconic British Proudly ‘giving the boys from over the pond a run for their money’ since brand and is continuing to satisfy hundreds of 1986, Favorite Fried Chicken is committed to bringing great taste, value and hungry customers across the United Kingdom. service to its customers. With 88 units in operation across the country, the Despite losing ground to some of the bigger chain’s popularity is testament to the growing demand for fried chicken. US chain, the company remains in the top As this shows no sign of slowing, don’t be surprised to see Favorite Fried 20 on our list, operating 80 units around the Chicken adding to the number of units it has open.much higher up the top country. 50 this time next year.

17 - 80

One of the fastest growing British franchises, Chicken Cottage opened the doors of its first restaurant in 1994. Now, in 2016, the business finds itself operating 80 units and 17th on our list. Offering fresh, convenient and affordable food, it is no wonder that Chicken Cottage is so popular with customers, while the solid and supported business venture on offer, means that running one of the company’s units is an attractive opportunity for potential franchisees.

42 | FOOD FRANCHISE AUTUMN 2016 TOP 50 FOOD FRANCHISES

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

AUTUMN 2016 FOOD FRANCHISE | 43 TOP 50 FOOD FRANCHISES

13 Dixy 15 Pizza GoGo Chicken - 130 - 105

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

12 Baskin’ Robbins - 151

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

14 Upper Crust – 109

The world’s largest chain of ice cream speciality stores, Baskin’ Launched in 1986, with the first shop opening in Robbins prides itself on making people smile ‘inside and out’. Part of Waterloo Station, Upper Crust now has 109 units the Dunkin’ Brands Group along with sister brand Dunkin’ Donuts, operating in transport hubs around the country. the company is making a huge impact on the UK food franchise Serving freshly baked baguettes with a range of market. With its mission to make every store a tasty, fun place for fillings, along with hot and cold drinks, the outlets its customers, Baskin’ Robbins now has 151 shops in the UK of all are ideally situated in high footfall locations. With different sizes. The demand for its sweet treats continues to grow this in mind, it’s easy to see why becoming an Upper and this popularity has led to smaller concessions and units popping Crust franchisee would be a very attractive and up in cinemas across the country. profitable proposition.

44 | FOOD FRANCHISE AUTUMN 2016 TOP 50 FOOD FRANCHISES

11 Papa John’s – 340

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

10 9 Coffee Delivery – Republic 419 – 507

Pizza Hut Delivery is the franchised part of the Pizza Hut business and has proved highly successful With a total of 507 units in the UK, has made since its inception in 1988, with 419 delivery huge gains in the coffee shop market since the opening of the units now operating in the UK. Pizza is one of the first store in 1995. Operating in high footfall areas and serving most competitive markets in the UK, with three a wide range of hot beverages, refreshing iced drinks and fresh internationally renowned brands operating in the food, the chain is continuing to draw the crowds. Concession top 15 places on the list. Looking ahead, it will be bars can be found in various colleges, universities, hospitals interesting to see how the number of units stack up and cinemas, while self-service units add revenue and increase next year and whether any of the three has managed brand awareness in a variety of business organisations and to close the gap on the competition. food service establishments.

AUTUMN 2016 FOOD FRANCHISE | 45 TOP 50 FOOD FRANCHISES

8 Bargain McDonald’s Booze - 4 - 1,250 720 Slightly different to other food franchises in the top 50, Bargain Booze operates as an alcohol retailer. Despite Bargain Booze stores being predominantly based in the north west, the company trades across the country and is continuing to expand across the UK, with 720 units now open. The growth in the popularity of off licences began during the recession, when many consumers decided to cut down on their alcohol intake. However, it was the pubs that were hit and not stores like Bargain Booze, which has since gone from strength to strength.

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

7 KFC - 850

One of the most well-known names in our list of Top One of the most recognisable brands in the world, McDonald’s 50 Food Franchises, Kentucky Fried Chicken (KFC) has been franchising in the UK for more than 30 years. Serving 3.7 is as popular as ever, with 850 units in operation in million customers a day, the burger giant has recently celebrated the UK. With its buckets of fried chicken, along with 40 consecutive quarters of sales growth. And despite finding itself chicken burgers and meal deals, the Colonel’s secret fourth on the top 50, with 1,250 units in the UK, the company is not recipe seems to have a big pull on consumers and resting on its laurels, with Gareth Pearson, Head of Franchising and KFC has amassed a cult following who regard it as the Field Services for McDonald’s UK, recently stating: “Our vision is to world’s premier fried chicken shop. And after more continue being at the forefront of franchising and provide franchisees than 75 years of success and innovation, KFC shows with the experience and tools to run a successful business.” no sign of losing this appeal. TOP 50 FOOD FRANCHISES

Marston’s – 5 3 1,500

Domino’s Marston’s has been running pubs and brewing beer in one form or another for more than 180 years. However, it may be a surprise to many to see the company featuring so highly on the top 50. But despite many viewing managed – 899 and leasehold pubs to be independent businesses, in truth they are franchises, with those running the pubs paying rent and rates to operate under Marston’s umbrella. The company still owns many of the properties, but the size of the Having earned a loyal fan base here in business puts them in third place on the list with 1,500 units in the UK. the UK since arriving in 1985, Domino’s now sits in fifth spot in the top 50, with 899 sites in operation. Despite being the top pizza delivery franchise in our list, Domino’s is continuing to grow its presence, with the aim of being ‘the number one pizza company in the world and in every neighbourhood’. Leading the way when it comes to technology, Domino’s has worked hard to develop their online platform, as well as their mobile app, and are extremely proactive when it comes to social media marketing and advertising.

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

AUTUMN 2016 FOOD FRANCHISE | 47 TOP 50 FOOD FRANCHISES

SUBWAY® – 2,300 1

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

48 | FOOD FRANCHISE SUMMER 2016 TOP 50 FOOD FRANCHISES

1 SUBWAY® – 2,300 26 Chopstix - 57 2 Costa – 2,000 27 Giraffe – 52 3 Marston’s – 1,500 28 Pepe’s Piri Piri – 50 4 McDonald’s - 1,250 28 With Thanks – 50 5 Domino’s – 899 30 Harry Ramsden’s – 42 6 Starbucks – 882 30 Sam’s Peri Peri Chicken – 42 7 KFC – 850 32 Shakeaway – 40 8 Bargain Booze - 720 32 Tops Pizza – 40 9 Coffee Republic – 507 34 Creams – 34 10 Pizza Hut Delivery – 419 35 Roly’s Fudge – 32 11 Papa John’s – 340 36 Café Ritazza – 31 12 Baskin’ Robbins - 151 36 Auntie Anne’s – 31 13 Dixy Chicken - 130 38 Oggy Oggy Pasty Company - 28 14 Upper Crust – 109 39 Esquires Coffee – 25 15 Pizza GoGo - 105 40 Dunkin’ Donuts – 24 16 Favorite Fried Chicken - 88 40 Oast House Farm Snacks - 24 17 Cafe2U – 80 42 Oakhouse Foods – 22 17 Chicken Cottage - 80 42 Chesters – 22 17 Wimpy - 80 42 Wok&Go – 22 20 Wiltshire Farm foods - 78 45 Chozen Noodle – 21 21 Mr Simms - 77 45 Greene King – 21 22 Millie’s Cookie - 69 47 El Mexicana – 20 23 Soho Coffee - 61 47 Dallas Chicken & Ribs – 20 24 Riverford – 60 49 Jasper’s Catering Services – 19 25 Muffin Break - 59 50 Wrap It Up! – 17

AUTUMN 2016 FOOD FRANCHISE | 49 Be Inspired PAPA JOHN’S

50 | FOOD FRANCHISE AUTUMN 2016 BE INSPIRED

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

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

Papa John’s is one of the largest pizza companies in the world and has opportunities for franchisees throughout the UK.

The company was founded in the US in 1984 and there are now more than 4,800 stores in more than 400 international markets and territories.

Joining the brand’s franchise family is a very attractive proposition, with the com- pany running an incentive scheme to help franchisees in the early stages of growing their businesses. This includes discounted royalty fees, contribution towards market- ing spend, plus free equipment for new stores

Typically a Papa John’s franchise costs between £177,000 and £225,000 (excluding VAT and freehold), of which £70,000 should be in liquid funds.

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

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

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

One franchisee who has benefitted from the incentives offered by Papa John’s and has proved that he is prepared to put the effort into the business, is Steve Mullarkey. Now Steve is helping the brand to grow in the UK, especially in the north west.

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

AUTUMN 2016 FOOD FRANCHISE | 51 BE INSPIRED

hospitality brand Whitbread, has always WHAT MADE PAPA JOHN’S “Currently, our beef brisket pizza is had an interest in the food sector. STAND OUT FOR YOU? proving particularly popular.” However, just one Papa John’s wasn’t How long did the process take from “My research showed that Papa John’s enough for him. At present he operates making a franchise enquiry to opening was very simply better than the competi- eight Papa John’s outlets, with the your first store and how did you find the tion. possibility of more on the horizon. process? “From signing to opening took three “The product’s freshness, quality and With Steve’s fantastic enthusiasm for months. However, this can be a variable value for money is a recipe for success. the brand in mind, we decided to find process because speed of opening new Combine that with great service, and out what inspired him to become a Papa stores can be dependent on planning customers just keep coming back for John’s franchisee, as well as his plans for permission decisions. more.” the future. “In all, my Papa John’s journey so far has WHAT MADE YOU CHOOSE WHAT MAKES PIZZA SO been hard work but really enjoyable too. POPULAR? I have nothing but positives to describe THE FRANCHISING MODEL the company and its support network OVER RUNNING AN INDE- “Pizza is great value for all the family, plus developed for franchisees. PENDENT BUSINESS? pizza is fun and great for sharing. Lunch or dinner, you can eat it at any time. “From the training to the product quality, “Papa John’s is an exciting company that Papa John’s has all the right ingredients to is committed to growth and its concept of “Fresh ingredients means Papa John’s continue to expand here in the UK and I ‘Better Ingredients, Better Pizza’ certainly pizza tastes better and customers appreci- am looking forward to being a big part of continues to deliver! ate the home-cooked taste.” that growth.”

“My goal is to open a total of 20 stores WHAT ARE THE CURRENT WHAT MADE YOU DECIDE over the next few years. It would be TO OPEN MORE PAPA tough to realise these ambitions without TRENDS IN THE PIZZA the support of an established and hugely MARKET? JOHN’S OUTLETS? popular company right behind me.”

52 | FOOD FRANCHISE AUTUMN 2016 BE INSPIRED

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

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

WHAT PLANS OR COMMIT- MENTS DO YOU HAVE TO OPEN MORE SITES IN THE FUTURE?

“You never know what the future holds, but at the moment I aim to open a further two more Papa John’s this year and take this up to a total of 20 over the next few years, all of which will be situated in the north west.”

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

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

HOW WOULD YOU DE- SCRIBE THE MARKET AT THE MOMENT IN TERMS OF DEMAND, NUMBER OF STORES, COMPETITION AND GROWTH?

“From my point of view the market is on fire! Papa John’s recent TV advertising has certainly helped boost brand awareness and I am seeing strong demand for our top quality pizza day-in and day-out. I have also experienced great year-on-year sales growth across my established stores.”

WOULD YOU RECOMMEND FRANCHISING TO OTHERS?

“Papa John’s has been a particularly positive experience as an introduction to franchising, so yes, I would absolutely recommend franchising to others.

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

AUTUMN 2016 FOOD FRANCHISE | 53 FOCUS ON FRANCHISE SECURITY Starting out in the world of franchising can be very daunting with many challenges to overcome. We fi nd out how you can steer clear of any early problems and set your business up for a secure and successful future.

54 | FOOD FRANCHISE AUTUMN 2016 FRANCHISE SECURITY

Becoming a franchisee can be full of risks. ment commitments including the lease, the key intellectual property rights, in There are many pitfalls that can hinder fit-out, engagement of staff and the particular the trademarks, which the your progress and in some cases, end your purchase of initial stock and equipment. franchisee will be obliged to use through- dreams of running your own business. The investment levels will further increase out the term of the relationship. The for those franchisees looking to become franchisor’s brand is often a critical factor In this feature we find out about all the multi-unit operators. to the success (and value) of a franchise. factors that should be considered to en- In the context of a food and beverage sure a franchisee’s business has the best It is therefore important that potential business the trade mark and branding possible start and is protected against any franchisees are fully aware and advised of elements will impact upon menus, staff foreseeable problems. their legal and commercial exposure. uniform, trade dress and more impor- tantly, the advertising and marketing to be With the help of Nicola Broadhurst, who There are a number of inherent risks undertaken by the franchisee. Franchisees heads up the franchise and retail practice in franchising and from the potential - particularly of international concepts - at Stevens & Bolton LLP, and Graeme franchisee’s perspective, can be broadly should therefore ensure that the fran- Payne, a partner in law firm Bird & Bird’s broken down as follows: chisor has invested properly in its brand. commercial group, we find out what every Otherwise the franchisee is exposed to would-be franchisee needs to know be- Personal liability – Franchise agreements potential third party claims. fore setting off on their business journey. will potentially require both personal operational and financial commitments NATURE OF RIGHTS They advise on what legal pitfalls poten- from key individuals in the franchisee’s tial franchisees need to avoid and what business – which could include personal Franchisees will need to ensure that if your rights are when it comes to running guarantees if the franchisee company fails they are being granted the right to oper- a franchise. to comply with its payment obligations. ate an outlet from a particular location, that other franchisees of the franchisor They will also provide some simple tips Financial exposure – In addition to the will not be setting up in close competi- on future-proofing your new business opening fees and on-going royalty fees, tion or that the franchisor itself will not to ensure that your investment is safe- a number of seemingly benign provi- be setting up a corporate premises within guarded and your franchise has the best sions in the franchise agreement can the immediate vicinity. Franchisees will possible platform to launch it on its way expose the franchisee to significant therefore need to check that if they have to success. capital investment requirements. For been promised exclusivity in a certain area example, the ability for the franchisor to that the franchise agreement expressly Graeme Payne is a partner in Bird & Bird’s oblige the franchisee to update or refresh provides for this. global retail and consumer group, which the branding and/or to comply with the supports and advises start-ups, entrepre- franchisor’s refurbishment recycles can neurs, SMEs and blue chip multinational have significant financial ramifications as SOURCING OF EQUIPMENT luxury, retail and food and beverage well as consequences for the franchisee’s AND INGREDIENTS businesses across the full spectrum of relationship with the landlord. legal and commercial issues. With offices A key area for food and beverage busi- throughout Europe, the Middle East, the Loss of business / loss of capital invest- nesses will be the sourcing of equipment, Far East and Australia, Bird & Bird’s team ment –A franchisor’s standard franchise menu items and core ingredients. The are ideally placed to advise growing food documentation will often provide for a franchisee will need to ensure that the and beverage businesses on international number of grounds and scenarios where a franchise agreement adequately deals expansion, brand protection, reputation franchisee can have its business terminat- with the responsibility for sourcing such management, HR, technology includ- ed. In multi-unit relationships there is the items and the potential financial implica- ing mobile payments, e-commerce, food potential for a franchisee to lose its right tions for the franchisee. A well drafted regulation, labelling, advertising and to operate the franchise from all of its franchise agreement should also provide marketing, commercial property and outlets even when the breach alleged by the franchisee with the opportunity to corporate issues. the franchisor has taken place in relation source from alternative suppliers (to those to one unit only. nominated by the franchisor) in the event Investing in a food and beverage franchise that the franchisee can source either is a significant decision. Unfortunately Potential franchisees should therefore superior quality products or similar quality many potential franchisees fail to take engage specialist franchise solicitors to re- products at a better price. proper independent legal and specialist view the franchise agreement with these franchise advice. This has a number of three key areas sitting as the background potential consequences including, not to any comments/areas of pushback. COMMERCIAL PROPERTY only a failure on the franchisee’s behalf Discussed below are just some of the key One of the most significant investments to understand their legal and commercial provisions of the franchise agreement for franchisees in the food and beverage rights and obligations from the outset of that franchisees need to be aware of and sector will be the lease of the commer- the relationship, but can also mean that which should be discussed with their cial property. The franchisee will need to the potential franchisee misses the oppor- specialist franchise advisors. ensure that the franchise agreement and tunity to negotiate certain legal and com- the lease fit together in terms of term mercial amendments to the franchisor’s INTELLECTUAL PROPERTY and renewal, permitted use, and avoids standard documentation. potentially conflicting obligations to the Food and beverage franchises often Potential franchisees should ensure that landlord and the franchisor in terms of require significant upfront capital invest- the franchisor has adequately protected

AUTUMN 2016 FOOD FRANCHISE | 55 FRANCHISE SECURITY

refurbishment cycles. The franchisee and advertising and marketing related must take appropriate legal and commer- will also need to consider whether the contributions. It is advisable that the fran- cial advice on the implications of the fran- franchisor wishes to have a step-in right chisee also reviews the franchise agree- chise agreement and consider negotiating vis a vis the property and the potential ment in conjunction with its accountant amendments to unduly onerous legal and consequences for the franchisee (and its and factors in both the express fees and commercial provisions. right to use the premises) in the event costs detailed in the franchise agreement that the franchise is terminated. together with other potential capital in- Nicola Broadhurst heads up the fran- vestments, for example, refurbishment of chise and retail practice at Stevens & TERMINATION GROUNDS the premises, into its business plan. Bolton, regularly advising franchisors and franchisees with a particular emphasis on international expansion. Having served From the outset the franchisee, working BUSINESS SALE on the British Franchise Association’s in tandem with its legal advisors, will need legal committee, she currently serves to ensure that the termination grounds The final key area that a franchisee should on its Quality Standards Committee and are clear and reasonable. A well drafted pay particular attention to, is the right for regularly reviews prospective members’ franchise agreement should clearly define both the franchisor and the franchisee to franchise agreements for accreditation those breaches which lead to instant sell their respective businesses. purposes. She recently represented the termination and those breaches where European Franchise Federation at the there is an opportunity for the franchisee Most franchise agreements will provide a European Parliament and is a member of to remedy. As mentioned above, where right for the franchisor to sell the fran- the American Bar Association Franchise the franchisee has invested in commer- chisor’s business without consulting with Forum and International Distribution and cial property – particularly so in the case the franchisee and this can have serious Franchising committee. She is consist- of multi-unit operators – the franchisee implications in the event that the new ently ranked as a leading franchise lawyer will need to ensure that it is capable of owners no longer wish to continue with and in Band 1 UK by Chambers UK legal using the property beyond the term of the franchising or wish to introduce signifi- directory and as a notable franchise franchise arrangements. The franchisee cant changes which would require further practitioner by The Legal 500. She is also will therefore need to check carefully any capital investment by the franchisee. ranked internationally as a leading fran- post termination or post expiry restrictive chise lawyer in Who’s Who Legal and as covenants that may prevent the fran- It is also important that the agreement a leading transactional trade mark lawyer chisee from using the premises as a food provides a right for the franchisee to sell in World Trade Mark Review. outlet following the termination or expiry its business and that the terms of such of the franchise agreement. sale are not unduly onerous upon the Before you sign on the dotted line it is franchisee, for example, an obligation to essential to carry out some due diligence pay a high percentage of the sale price to FINANCIAL OBLIGATIONS into the franchise business to help avoid the franchisor. nasty surprises later. The franchisee will need to ensure that the financial provisions of the franchise SPECIALIST ADVICE It is important to try to establish at the agreement reflect the commercial propo- outset whether the franchisor is com- sition discussed with the franchisor. Fran- In summary, franchise agreements are mitted to the long term success of its chisees will need to carefully review any typically heavily weighted in the fran- franchisees, how it deals with challeng- exclusivity fees, store opening fees, train- chisor’s favour, and therefore, franchisees ing market forces, how it intends to stay ing fees, support fees, on-going royalties who are investing in a franchise business ahead of the competition and how much

56 | FOOD FRANCHISE AUTUMN 2016 FRANCHISE SECURITY

profit it makes from its franchisees and at ensure quality control, there are checks current standards and paying a fee (this what expense. and balances on the franchisor’s powers, should not be too high however). which should be included. A franchise prospectus is a recruitment Death and incapacity – The agreement tool so be wary of any that over sell or The agreement is also a good indicator of should provide a time period following guarantee a return, such claims need the franchisor’s commitment to franchis- the franchisee’s death or permanent inca- investigation. ing. A well drafted agreement shows a pacity within which the business can be level of investment by the franchisor. sold or a beneficiary nominated to takeo- A franchisee is not a consumer and does ver (subject to the franchisor’s approval). not have the same level of protection The franchisor’s corporate structure A franchisee should consider whether to under law as consumers when making a should also be investigated to establish nominate a beneficiary under its will to purchase. It is a case of ‘buyer beware’ al- who owns the trade mark and know-how take over in these circumstances. though there are legal remedies to protect and if not the franchisor, whether these a franchisee against misrepresentations have been correctly licensed to the fran- Improvements – Typically a franchisee but these can be costly and difficult to chisor entity. will be prevented from introducing an prove. The following are key provisions to look improvement into the business until it out for in a franchise agreement: has been approved by the franchisor who The franchisor should confirm how many is then entitled to roll it out across the franchise agreements have terminated Term – Is the term of the agreement long network without paying for this. over the last three years and the reasons enough to recover the initial investment for this. and make a profit? Termination – Most franchise agreements Grant of rights - Does the franchisee have do not permit the franchisee to terminate A high churn rate should provoke closer exclusive rights to trade from an allocated (although there is a right at law to do so investigation and a breakdown of the area without fear of encroachment by the if the franchisor is in fundamental breach) initial franchise fee should be requested. franchisor? What rights are reserved to and such rights of termination are one the franchisor? sided in favour of the franchisor. The list A franchisor should make its money from of events which would justify termination its ongoing management fee not from Support obligations – Both initial and need to be reviewed to ensure they are selling franchises. Be wary of sharp mar- continuing support should be provided by not unreasonable. keting tactics to induce a quick signing. the Franchisor and clearly detailed. Check if there is any charge for the support and Buy back on termination – The franchisor How a franchisor handles queries raised whether this reflects everything promised usually has the right to take over the busi- during the recruitment phase is a good in- by the franchisor. ness on termination and often the price dicator of the future working relationship. paid is extremely small with nothing given Training – Is there initial and ongoing for goodwill. This can of course lead to The franchisor should provide its mar- training provided by the Franchisor. The potential inequity and abuse by a fran- keting plan and latest set of accounts. cost of initial training is usually included in chisor so worth trying to negotiate at the An experienced accountant should be the initial franchise fee and ideally there is outset if possible. instructed to review and advise on the no charge for ongoing training. financial projections provided by the fran- Non-compete – Nearly all agreements chisor (which should be based on trading Manual – Is this provided by the fran- prevent a franchisee from operating a history not assumptions) as well as the chisor? A franchise agreement usually competing business during the term of solvency of the franchisor itself. relies heavily on the operations manual the agreement and for a period of time Speak to as many of the existing fran- to supplement the agreement and it has following termination. The post termi- chisees as possible, to see what problems contractual force. While the franchisor is nation restrictions need to be carefully have arisen and how these have been usually free to amend the manual during reviewed to ensure that they are reason- resolved. The franchisor should provide a the term of the agreement the agreement able and justified. They should not extend full list of its franchisees, not just a cherry should confirm that the agreement pre- beyond the franchised territory nor picked few. vails if there is a conflict with the manual. exceed 12 months from termination.

THE FRANCHISE Right to sell – The franchisee should be Instructing an experienced franchise so- able to sell the business usually subject licitor to review the franchise agreement CONTRACT AND LEGAL to the franchisor’s consent and approval should form part of any due diligence REVIEW of the purchaser and there may be fees process, regardless of whether the agree- to pay to the franchisor. These need to ment is stated as non-negotiable or if There is no franchise specific law in the be checked to ensure that they are not the franchisor is a member of the British UK and this means that the franchise unfair. The franchisor may also have a Franchise Association (BFA). The BFA has agreement is critical as it contains the right of first refusal but this should be at a list of approved affiliated solicitors who respective rights and obligations of both the fee offered by the purchaser. should be able to advise on how standard parties. the agreement is, whether it conforms Right to renew – Usually the franchisee to the BFA’s code of ethics and whether Although most franchise agreements are has a right to renew subject to certain there are any glaring omissions or unusual one sided in favour of the franchisor in conditions such as not being in breach, provisions that may require investigation. order to protect the trade secrets and serving notice to renew within time peri- ods, revamping the business to the then

AUTUMN 2016 FOOD FRANCHISE | 57 o ONE TO WATCH

58 | FOOD FRANCHISE AUTUMN 2016 ONE TO WATCH

Beatons is built on the passion and enthusiasm that comes with owning your own business

A small and friendly tearoom, Beatons Beatons’ Managing Director Patrick Duffy course), with everything from ‘health giv- has since spread its wings and now has to find out more about the franchise. ing’ green teas, through fruit and herb and outlets open in Blandford, Chester and tea tisanes, and old favourites like Assam, Crowthorne. WHAT IS THE ETHOS OF Darjeeling and Earl Grey. From its very first days in Tisbury, it was BEATONS? “All Beatons’ teas are served loose leaf, clear that Beatons’ blend of loose leaf with service tailored around making the teas, books, homemade cakes and food, “Every aspect of Beatons is built around whole experience memorable. set in the elegant surroundings of a full ta- giving the customer our own take on ble service tearoom, with its own take on ‘Gracious Hospitality’, from the elegant “Coupled with home-baked cakes, food elegance, sparkle and attentiveness, was and contemporary surroundings to our and lunch options, and of course our destined to grow well beyond the borders bespoke bone china and the full table ser- curated selection of books to browse and of its ‘birthplace’. vice so often missing in today’s high street buy, Beatons is truly becoming a destina- coffee and barista outlets. tion of choice for our customers.” Whether you are looking to relax with “In doing this we have created ‘clear blue a cup of tea, browse the range of books WHAT MADE YOU DECIDE on offer, or meet with friends to enjoy a water’ between Beatons and other hospi- traditional afternoon tea, Beatons is the tality and coffee brands. TO START FRANCHISING? perfect spot. “Importantly, Beatons is about tea and the With this in mind, we decided to speak to ever-increasing attention it gets (though “Beatons is built on the passion and we do have a great range of coffee too of enthusiasm that comes with owning your

AUTUMN 2016 FOOD FRANCHISE | 59 ONE TO WATCH

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

WHAT MAKES BEATONS STAND OUT FROM THE COM- PETITION?

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

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

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

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

WHAT ARE THE CURRENT FLAVOUR TRENDS IN THE TEA ROOM MARKET?

“Beatons carries over 25 different loose leaf teas across the whole range of black; oolong; green; red and fruit/herbal, offer- ing a very real alternative to coffee and very much an expanding market. Augment- ing this with homemade cakes, made to Beatons’ own recipes, combines this with the current enthusiasm for home baking. The ‘icing’ on top is the resurgence of the independent bookshop, giving our custom- ers access to a curated selection of books.

“An allied trend the tearooms are excep-

60 | FOOD FRANCHISE AUTUMN 2016 ONE TO WATCH

As we grow and build on our established presence and system, we will do so with the passion andenthusiasm of our franchisees

tionally well placed for is the ‘afternoon form the core of our contemporary and WHAT DOES THE FUTURE tea’ market. This is fast becoming the ’go stylish tearooms.” to’ format for daytime celebrations with HOLD FOR BEATONS? family and friends and exemplified in the HOW HAVE CUSTOMERS “As we grow and build on our established offerings of major hotel groups, offering presence and system, we will do so homemade cakes, sandwiches, scones, RESPONDED TO BEATONS with the passion and enthusiasm of our jam and cream, and of course a selection BRAND? franchisees. Our mission to deliver great from our range of loose leaf teas.” service in the true spirit of the quintes- “The distinct offering Beatons makes is sentially English tearoom tradition will,

noted over and over again by customers WHAT WAS THE THINKING we anticipate, establish us as a recognised seeking something different, and with it

brand and standard throughout the UK BEHIND THE DESIGN OF the chance to slow down and experience and in future internationally.” YOUR OUTLET? some ‘offline’ time with friends, or just o soaking up the atmosphere while relaxing “With the inspiration of one of the with a rejuvenating tea. Every aspect of country’s pre-eminent designers and the styling contributes to the repeated photographers comes an entire palette of plaudits we receive for creating some- designs, colours and of course renowned where very special for our customers.” photographic images. It’s these which

AUTUMN 2016 FOOD FRANCHISE | 61 AVOIDING FRANCHISE RISK BUYING A FRANCHISE

Making Franchising your future

Steven Jones

62 | FOOD FRANCHISE AUTUMN 2016 MAKING FRANCHISING YOUR FUTURE

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

The food franchise sector is in rude health However, before you set off on your jour- You must also take into consideration at present, with a long line of businesses ney into franchising, there are a few big your finances, as well as your family situ- looking to recruit people to turn into decisions that you must make and hurdles ation and whether you can commit the franchisees. that you must overcome. amount of time that is required to get your business up and running and make it Without question, franchising is one of ABOUT YOU a success. the safest, easiest, and rewarding routes into running your own business. The first thing that you must think about Working in food franchising you will need when choosing a food franchise, is you as to be confident dealing with members of Food franchising in particular can also be a candidate. Do you have what it takes to the public. Therefore, if this is not some- highly profitable, due to the fact that it become a franchisee? thing you would be comfortable with, fulfils an essential need that we all have – then it might be wise to think again. the need to eat. You must consider the skills that you have, what you are good at doing, as well You must also ensure that you have a Add to this the fact that there are op- as what you would like to do in terms of passion for the brand that you choose to portunities to suit people from all walks of running a business in the food franchise be part of and the products you will be life, regardless of budget and lifestyle, and sector. selling, as well as the energy and drive to becoming a franchisee is a very attractive run your own business. proposition.

AUTUMN 2016 FOOD FRANCHISE | 63 MAKING FRANCHISING YOUR FUTURE

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

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

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

Two other factors that you should think about when it comes to evaluating your position as a potential franchisee are:

Multiple sights – Many franchisors will offer you a geographical area for your business, but you must be cautious as this may come with a caveat that you have to commit to opening a certain number of branches in a certain time period.

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

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

CHOOSING A FOOD FRANCHISE

Deciding on a food franchise can be a dif- ficult job for any potential investor. There are hundreds of food franchise opportuni- ties available in the UK and the options are limitless.

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

64 | FOOD FRANCHISE AUTUMN 2016 MAKING FRANCHISING YOUR FUTURE

Many potential franchisees will be drawn to established names, with big brand presence. However, if you’re not looking to join a big, established brand, but want to compete, then it pays to do your own brand compari- son.

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

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

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

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

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

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

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

FINANCE

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

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

AUTUMN 2016 FOOD FRANCHISE | 65 MAKING FRANCHISING YOUR FUTURE

Make your budget based on the amount considered all the options, made sure you Having help available is also invaluable in you have and the amount you can raise. have the required finances in place and making sure that you are taking the right Following this it is advised that you invest satisfy all the recruitment criteria, then steps and don’t miss out any vital informa- up to 80 per cent, meaning that you have you can look to set off on your journey tion. 20% for any hidden costs that may be into franchising. incurred. This is particularly useful when it comes However, the world of franchising can be to reviewing your franchise agreement or It is important that you remember to con- very daunting and you may need to seek any other contracts. sider working capital requirements. During some assistance when things don’t always the initial stages you may not be turning go to plan. Such assistance is vital as it’s your money a profit, so you may have to dip into the and career on the line and making a mis- aforementioned 20% contingency funds HELP IS AT HAND take can be costly. to make further investments. There are a host of professional advisors During the whole process it’s important From the very start of the process you accredited by various governing bodies that you get a full picture of what is ahead need to assess and understand what you and these specialists in the franchising of you and what you are agreeing to by can afford to invest and how much you sector are a must for anyone who is think- becoming a franchisee. are prepared to borrow is vital. ing about setting up or buying a franchise. If you have any doubts at all, you have not When considering the financials of a fran- Make sure you have a team of consult- done enough research and you will need chise option you have to investigate the ants, accountants, solicitors and banks to rethink your decision to invest in food predicted returns that a franchise will gen- who specialise in franchising available to franchising. erate. You must ensure that any figures you. are based on verified, historical trading If you are organised, well informed and figures of outlets that are in operation Having good advice available when you have the right advisors on your side, you and make sure the business that you hope need it should help to ease any worries will be able to move forward secure in the to invest in will be able to support your that you may have and ensure that the knowledge that you have a bright future lifestyle if the figures are accurate. investment process goes smoothly. ahead of you in food franchising. Once you have done your research,

66 | FOOD FRANCHISE AUTUMN 2016 LEGAL

International NEWS International NEWS Domino’s planning drone delivery service in New Zealand Domino’s Pizza in New Zealand has joined forces with drone delivery specialist, Flirtey to launch the first commercial drone delivery

The two companies recently exhibited the first stage of their partnership with a demonstration of pizza delivery by drone in Auckland, New Zealand. The successful demonstration conducted under Civil Aviation Authority Rules marks a final step in Flirtey’s approval process, following which the partnership will aim to trial a store-to-door drone delivery service from a selected Domino’s New Zealand store with flights to customer homes later this year. New Zealand was selected as the launch market as its current regulations allow for businesses to embrace unmanned aircraft opportunities, which enable the gradual testing of new and innovative technologies. Don Meij, Domino’s Group CEO and Managing Director, said: “With the increased number of deliveries we make each year, we were faced with the challenge of ensuring our delivery times continue to decrease and that we strive to offer our customers new to determine where drones are implemented the first commercial drone delivery service and progressive ways of ordering from us. further. in the world is a landmark achievement “The use of drones as a delivery method is The trial flights are set to commence later for Flirtey and Domino’s, heralding a new designed to work alongside Domino’s current this year. frontier of on-demand delivery for customers delivery fleet and will be fully integrated into Domino’s will offer Drone Delivery Specials across New Zealand and around the globe. online ordering and GPS systems.” at the launch of the trial, with the plans to “We are getting closer to the time where The reach that a drone offers is far extend the dimensions, weight and distance you can push a button on your smartphone greater than other current options which are of the deliveries throughout the trial based and have Domino’s delivered by drone to restricted by traffic, roads and sheer distance. on results and customer feedback. your home.” Domino’s will look to the results of the trial Flirtey CEO Matt Sweeny said, “Launching

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

Peter Bensen spoke of his pride in know McDonald’s will be.” the work he’s done during his time at Steve Easterbrook, McDonald’s McDonald’s after standing down from the President and CEO, said: “Throughout his role. career with McDonald’s, Pete has been a He said: “After two decades with strategic partner, a tireless advocate and McDonald’s, few things mean more to me an influential contributor to our brand’s than this brand, but one of those things is success. family. I’m proud of the work we’ve done “We thank him for his steadfast here at McDonald’s and, in particular, over leadership and his valuable expertise. We the past 20 months. know Pete has looked forward to spending “I look forward to seeing the system go more time with his family, and we wish even further and becoming the modern them all the best.” and progressive burger company we all

68 | FOOD FRANCHISE AUTUMN 2016 Papa John’s announces expansion Domino’s plans in Mexico India launches

Papa John’s International has announced plans to expand in BurgerPizza Mexico with the signing of a restaurant development deal Pizza giant Domino’s has unveiled with Orquest Food. its latest creation to tempt diners The agreement will see the opening of brand as it is the site of Papa John’s first in India. 60 restaurants over the next eight years. international location. Orquest Foods is owned by the Tim O’Hern, Senior Vice President The BurgerPizza is mozzarella cheese, tomato Clariond Lozano family, which has roots and Chief Development Officer of sauce, herbs and vegetables inside two oven-fried in Mexico that date back to 1936 and Papa John’s, said: “We are honoured buns, with the tagline ‘Looks like a burger, tastes has been in the food business for the that Orquest Foods has chosen to invest like a burger’. past ten years. in the Papa John’s brand. The Clariond The new product aims to help Domino’s grow Santiago Clariond Lozano, Chairman Lozano family has a long history of its share of the chained Indian foodservice of the Board and Executive Officer success and an excellent operational industry. of Orquest Foods, said: “We are very team of executive leadership. Dev Amritesh, President and Chief Business excited about joining the Papa John’s “We look forward to working together Officer of Domino’s Pizza India, said: “Unlike other family and expanding the ‘Better as they build upon the 26 stores that burgers, the BurgerPizza is comfort food, full of Ingredients, Better Pizza’ brand promise have been acquired in Mexico City and pizza goodness and has been specifically designed throughout Mexico. develop our brand throughout many for the Indian palette.” “We respect and admire Papa John’s states in Mexico.” S, Murugan Narayanswamy, Senior Vice commitment to quality and look forward Papa John’s International has more President Marketing of Domino’s Pizza India, said: to expanding the brand in Mexico.” than 1,500 international restaurants, The BurgerPizza is different from conventional In addition to the 60 stores including over 350 restaurants in burgers in many ways. throughout Mexico, Orquest 16 Latin American countries and “Instead of using fried ingredients, the Foods recently purchased 26 Papa John’s is looking for potential franchisees BurgerPizza has oven-baked ingredients. It restaurants in the Mexico City area. in Brazil, Honduras, Uruguay and is made with generous fillings of herbs and Mexico City holds a special place for the Bahamas. vegetables, tomato sauce, mozzarella cheese and the ‘Better Ingredients, Better Pizza’ soft buns, all oven-baked together to perfection.” The BurgerPizza is available in two vegetarian and two non-vegetarian variants. Private equity group buys majority stake in Wetzel’s Pretzels

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

The sale to CenterOak Partners, which said: “From rolling the first Wetzel’s has significant consumer brand, business Pretzel in our kitchens more than 23 service and industrial sector holdings, years ago, our vision of serving fresh, brings to a close Levine Leichtman delicious pretzels in a fun atmosphere Capital Partners’ investment into the has remained the same. brand, which took place in 2007. “We’re thrilled to have found Levine Leichtman Capital Partners a business partner in CenterOak secured seven times its original Partners that believes in that vision, investment on the deal. and understands our top priority is the Wetzel’s Pretzels CEO, Bill Phelps, profitability of our franchise partners.” will remain in his current role, with co- Wetzel’s Pretzel’s currently operates founder Rick Wetzel retaining a seat on more than 300 company-owned and the company’s board of directors. franchise locations in 28 states and six Mr Phelps, who is also a co-founder, countries.

AUTUMN 2016 FOOD FRANCHISE | 69 International NEWS

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

Dublin-based Press Up Entertainment Group (PUE), appointed Great Annual Savings Group (GAS) to conduct a review of its running costs. Following the review, the two companies have struck a deal which will see the leisure operator make savings of more than £83,000 across the two year contract. Bradley Groves, chairman and chief executive of GAS, said: “We’re thrilled to be working with one of Ireland’s most distinguished leisure and hospitality operators. “During a review of their business, we discovered that some contracts had elapsed and, as a result, many sites were paying above-market, out-of-contract rates. “We’ve now been able to address this and we’re currently undertaking an audit of individual sites to see where we can make further savings.” Alexandra Handzlewicz, group cost controller at PUE, said: “We were looking to save money on our running costs but didn’t want the hassle of renegotiating contracts with all of our individual suppliers. “The appointment of GAS has taken that job out of our hands and the company’s experience in dealing with these issues will enable us to make significant cost savings as we look to grow the business.”

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

The landmark opening took place in Auburn, Washington, outside of Seattle, in the US. Patrick Doyle, Domino President and CEO, said: “The tremendous store growth worldwide is a testament to the continued success of our 55-year-old brand. “Domino’s has opened 3,000 stores across the globe over the past four years, making the story of store growth one of the many phenomenal elements of the brand’s strength.” global retail sales of over $9.9 billion in franchise owners who accounted for over Domino’s operates in more than 80 2015. 97 per cent of Domino’s stores as of the international markets. The company had Its system is comprised of independent second quarter of 2016.

70 | FOOD FRANCHISE AUTUMN 2016 to launch in Great Starbucks bows to Britain public demand and

Canadian coffee shop chain Tim Hortons is to launch in the makes almond milk UK. available in stores

Almond milk has been made available in Starbucks stores across the US following customer requests for the product. Coffee drinkers will be will be able to order the non-dairy alternative, in addition to soy milk and coconut milk. The product was initially made available in the Pacific Northwest, Northern California, New York, Northeast and Mid-Atlantic regions. A nationwide roll-out was due to be completed by the end of September. It will be available for use in hot or iced drinks and Frappucino® blended beverages. Yoke Wong, Manager of Starbucks Beverage Research and Development team, said: “We created our own almond milk recipe to complement our hot, iced and Frappucino® blended beverages. “It was designed so that when steamed, it creates a rich foam for hot beverages and is delicious and creamy when served in cold beverages.” Starbuck first introduced its first non-dairy milk alternative in 2004 with the launch of soy milk, followed by coconut milk in 2015.

Restaurant Brands International, our signature products to Great Britain which owns the company, made and helping our partners build brand the announcement following the awareness and open restaurants to establishment of a master franchise joint welcome new guests.” venture with a British investor. Gurprit Dhaliwal, CEO of the joint The joint venture company will be the venture company, said: “We are thrilled master franchisee of the Tim Hortons to introduce the iconic Tim Horton brand brand in England, Scotland and Wales. and Canada’s favourite coffee to Great Daniel Schwartz, CEO of Restaurant Britain. Brands International, said: “This deal is “Our guests in England, Scotland and part of our growth plan to take the iconic Wales are sure to be delighted with our Tim Hortons brand around the world. focus on delivering great products and “Great Britain is an attractive QSR an exceptional guest experience.” market with a strong and growing coffee Last month, Restaurant Brands culture, so it is a natural fit for the International announced a master brand.” franchise joint venture agreement to Elías Díaz Sesé, President of Tim develop the Tim Hortons brand in Hortons, said: “This is an incredibly the Philippines. The brand also has proud moment for the Tim Hortons restaurants across Canada, the US and brand as we enter this dynamic market. the Middle East. “We look forward to bringing some of

AUTUMN 2016 FOOD FRANCHISE | 71 International NEWS Krispy Crème reveals new autumn additions Krispy Kreme Doughnuts has unveiled some new additions to its autumn menu.Takeaway.com.

The Pumpkin Spice Cake Doughnut, Salted Caramel Latte Doughnut and Pumpkin Spice Latte are now available at shops in the US and Canada. Jackie Woodward, Chief Marketing Officer at Krispy Kreme Doughnuts, said: “Each year we always look forward to the classic flavours of fall. “Our fans crave these seasonally inspired treats, and the pairing of a Pumpkin Spice Latte and one of our doughnuts makes for the perfect comfort food as the weather starts to cool down.” Krispy Kreme’s pumpkin flavoured products have been appearing seasonally in shops for more than a decade and are frequently noted by our guests as one of the best ways to get a pumpkin fix throughout the season.

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

The Wendy’s Company has made a goals that are brought to life through our commitment to reduce energy consumption culture and our business practices of how we in US company-owned restaurants by 20 per plan, design, engineer, construct and operate cent per transaction by 2025. our restaurants.” Wendy’s is also the first restaurant Wendco Group, the company to include franchisees in the Better first Wendy’s franchisee to join Buildings Challenge, a program that aims the Better Buildings Challenge, to make commercial, public, industrial and operates 43 Wendy’s restaurants residential buildings 20 per cent more energy in Alabama and Florida and employs more efficient over the next decade. than 1,200 people. This means saving hundreds of billions of It has pursued aggressive strategies for dollars on energy bills, reducing greenhouse lowering energy use across their building gas emissions and creating thousands of jobs. portfolio, including ongoing equipment To date, six franchisees have joined and maintenance, strategic energy upgrades and more than 570 company and franchisee high efficiency equipment installation. operated restaurants are participating in this Maria T. Vargas, Better Buildings Challenge program. director, US Department of Energy, said: “The Abigail Pringle, Chief Development leadership demonstrated by Wendy’s and its Officer for The Wendy’s Company, said: franchisee is tremendous. “We’re proud to be among the first “Not only is The Wendy’s restaurant companies to join the Better Company focused on bettering its own Buildings Challenge. We see environmental corporate-level energy efficiency, it is doing stewardship in restaurant development as so in a way that can reach thousands more a big responsibility, and it connects to our restaurants. This approach with Wendco values. Group is exemplary of a commitment to “We believe stewardship is a journey, a continuous improvement, a dedication to long-term commitment. It’s not something greater savings, and proof that partnerships we are simply ‘checking off the list’, rather extend energy savings.” we’re driving purposeful change with bold

72 | FOOD FRANCHISE AUTUMN 2016 Just Eat agrees the sale of Dutch Wimpy owner and Belgium businesses buys Gourmet Online takeaway ordering site Just Eat has agreed the sale of its Dutch and Belgium businesses to Takeaway.com. Burger Kitchen for £120m Famous Brands, the owner of Wimpy, has bought premium burger chain (GBK).

The South African-based business acquired the entire share capital of GBK for £120 million. Launched in 2001 in Battersea, South London, GBK now comprises 75 company-owned restaurants across the UK. Kevin Hedderwick, Famous Brands’ Group Strategic Advisor responsible for M&A activity said: “In terms of scale and scope, this is the biggest deal the Group has ever concluded, and one which will transform the future of the business. It will be as much of a game-changer for the Group as our acquisition of Wimpy SA was in 2003. “Quite simply, GBK is a best in class business and brand, with growing consumer equity, supported by a phenomenal leadership team.” GBK’s team will continue to manage the business, with no changes to personnel planned, and the intention is for the transition in ownership to be effected seamlessly, with no disruption to operations. Alasdair Murdoch, CEO of Gourmet Burger Kitchen, says “We’re delighted to move onto the next phase of growth with Famous Brands. Since we started dealing directly with the team, there has been real chemistry and a sense of shared understanding and vision. “GBK has grown rapidly, and has had continuous like-for-like sales growth, but at its heart GBK is much more than that. It’s based on fantastic restaurant teams and critically, a continuous journey towards excellence in our food. We like to call it real burger obsession! “Our aims remain the same: To continue opening 10-15 restaurants a year in the UK, Just Eat sold the businesses for €22.5 appropriate that our time and resources continually elevate our food, and look at other million (£19m), which is payable in cash. are focused on building on the strong growth opportunities. Eighty per cent was paid on growth we are seeing across those “We feel honoured to be the next chapter of completion and 20% will be paid six businesses in future.” the Famous Brands’ story and we are delighted to months after completion, subject to the Jitse Groen, CEO and Founder of be part of the team.” satisfaction of certain obligations. Takeaway.com, said: “We are pleased to David Buttress, CEO of Just Eat, said: acquire the Benelux businesses of Just “We have always been clear that the Eat. competitive dynamics of our industry “These activities are complementary demand clear market leadership to drive to our operations and will further sustainable profitability. The disposal strengthen our leading positions in of our Benelux business, where we are Continental Europe. This transaction is number two, delivers on that strategy in line with Takeaway.com’s strategy to and comes at the right time for Just Eat. drive sustainable leadership positions in “We are the clear leader in our each of the 11 markets it operates in.” remaining 12 markets and it is

AUTUMN 2016 FOOD FRANCHISE | 73 MARKET WATCH

MARKET WATCH Investing in a business within the franchise sector can be daunting. With that in mind we continue our Market Watch feature and bring you all of the latest news in terms of the global financial markets, and how the food franchises that are listed are performing.

When it comes to food franchises, each One way to monitor the way that a closures or takeovers. It is on the stock franchisee has a responsibility not only franchise is performing is to look at the market that we can gauge the success of for their part of the business, but they stock market. This gives the investor a business and see how aggressive they have an unwritten duty to the other an insight into the inner workings of a are being in terms of growth. franchisees too. company. It can highlight any changes to the board and any investments by The share price of a business can act as If one part of the franchising mechanism directors. a guide as to their position in a certain goes wrong then it can have detrimental market and as well as highlighting the effects on the rest of the group or The businesses also have a public duty to aforementioned growth. It can also show brand. announce any deals that will affect banking predictions and offer a foresight the share price such as expansion, for the future.

74 | FOOD FRANCHISE AUTUMN 2016 MARKET WATCH

Share in focus – , Inc

As always with the market watch The company also saw restaurant sales “Our most recent marketing efforts, led section of the magazine, we look at one fall 23.6% compared to the same period by our Chiptopia frequency program, are particular share in detail. In this issue we last year. off to a nice start in the third quarter, as focus on Chipotle Mexican Grill, Inc. customers are embracing the program Net income for the second quarter of and nearly 30% of all transactions are Chipotle opened its first store in 1993. 2016 was $25.6 million, or $0.87 per engaged in Chiptopia. Now, more than 20 years on, the diluted share, compared to net income company operates more than 2,124 of $140.2 million, or $4.45 per diluted “Our entire company is focused on units, competing in the ‘fast-casual’ share, in the second quarter of 2015. restoring customer trust and re- dining sector. establishing customer frequency, and During the three months to June rewarding our most loyal customers for Chipotle’s share price stood at $431.99. 30, 2016, Chipotle opened 58 new visiting more often through Chiptopia is Over the past 52 weeks, the price has restaurants. one way to do just that. reached a high of $757.00, also falling to a low of $384.77. Responding to the results, Steve “While it has only been a few weeks Ells, founder, chairman and Co- since Chiptopia launched, we are pleased Announcing its second quarter results, CEO of Chipotle, said: “We returned to see that July sales comp trends have ending June 30, 2016, the company to profitability, and saw a modest already improved by 200 to 300 basis revealed that revenue had fallen 16.6 per improvement in comp sales trends in the points, and transaction comp trends have cent to $998.4m compared to the three second quarter. improved by an even greater amount.” months to June 30, 2015.

AUTUMN 2016 FOOD FRANCHISE | 75 MARKET WATCH HOT OR Not

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

PAPA JOHN’S (PZZA) fall during our previous watch period, 130.00p following the Brexit vote in After reporting a strong performance Dunkin’ Donuts’ shares rose 6.64% the UK. It has since rallied and stood at in the last edition of Food Franchise, over the past three months. Starting at 147.50p. Papa John’s saw its share price rise again $45.38, they finished at $48.35. during the past three months. Standing SONIC (SONC) at $65.30 at the beginning of our watch STARBUCKS (SBUX) Continuing the trend from the last time period, the shares rose to $74.56, an Like the previous watch period, coffee we took a look at Sonic’s stock, the share increase of 14.18 per cent. shop chain Starbucks again saw its shares price fell by 12.85% during the latest slip slightly. Starting at $55.58, they fell watch period. Staring at $29.64, the YUM! BRANDS (YUM) to $54.88 during the past three months, shares stood at $25.83 at the end of the Yum! Brands, the business behind a 1.24% drop. three-month period. , KFC and Pizza Hut Delivery franchises, saw another rise in its stock WENDY’S (WEN) CHIPOTLE (CMG) during our watch period. Starting at After reporting on dips in the share As you would have seen from our shares $83.73, it finished at $87.81, an increase price in the previous two editions of in focus section, Chipotle’s shares stood of 4.91% Food Franchise, Wendy’s has again seen at $431.99 at the end of our watch another slight drop. Beginning the watch period. This was a rise of 3.90% from the MCDONALD’S (MCD) period at $10.31, the price fell by 0.29% starting point or $415.79. McDonald’s again experienced a drop to $10.28. in its share price during the past three months. The company saw a 6.31% drop, MARSTON’S (MARS) DOMINO’S (DOM) falling from a starting point of $122.79 The subject of the shares in focus section After seeing Domino’s share price rise to $115.01. of the last Food Franchise Magazine, over the previous two watch periods, Marston’s had seen a drop in its share the last three months has seen a quite price during the previous watch period. dramatic fall post Brexit vote. Starting DUNKIN DONUTS (DNKN) Beginning the latest period at 147.00p, at 1,064.00p, Domino’s shares have After experiencing a fall in its share price Marston’s share price fell to a low of dropped to 359.09p, a 66.25% fall.

76 | FOOD FRANCHISE AUTUMN 2016 PAPA JOHN’S MARSTONS (PZZA) (MARS) +14.18% +0.34%

DUNKIN’ DONUTS WENDY’S (DNKN) (WEN) -6.64% +0.29%

STARBUCKS MCDONALDS (SBUX) (MCD) -1.24% +6.31%

YUM! SONIC BRANDS (SON) (YUM) -12.85% +4.91%

CHIPOTLE DOMINO’S (CMG) (DOM) +3.90% -66.25%

Correct at ti me of writi ng. 1 YEAR SUBSCRIPTION ONLY £29.99

Single copies available nationwide at WHSmith & all good independent retail stockists

Receive printed issues of Food Franchise Magazine (Quarterly) The UK’s only magazine decidated to food and drink franchise opportunities

CALL US ON 0333 003 0499

Subscribe online at Subscribe online at www.foodfranchisemagazine.co.uk www.quickbitemagazine.co.uk Follow us @franchise_food Follow us @quickbitemag

78 | FOOD FRANCHISE AUTUMN 2016 FRANCHISE SERVICES

AUTUMN 2016 FOOD FRANCHISE | 79 RECENT AND UPCOMING DEVELOPMENTS IN EMPLOYMENT LAW The summer may now have gone but it was an active period for employment law news. Below we look back at some of the happenings to ensure you remain aware of developments that could impact on your business going forward.

The summer may now have gone but it an employee or a worker”. Currently, an employer is able to make an was an active period for employment law Such a provision is unlikely to work ex-gratia payment of up to £30,000 on news. Below we look back at some of the in practice and will potentially upset termination of an employee’s employment happenings to ensure you remain aware employment relations so think twice without deductions for tax or national of developments that could impact on before trying to place similar restrictions insurance. your business going forward. on your workforce. After that, income tax applies but not NI EMPLOYMENT STATUS LIVING WAGE contributions.

It was reported in July 2016 that the Debate has raged as to whether the It was announced in August 2016 that food delivery fi rm, Deliveroo, had added introduction of the living wage back in these rules will be revised with eff ect from restrictions in the contracts with their April 2016 (namely a minimum rate of April 2018 so both tax and employer’s NI “self-employed” drivers in an attempt to £7.20 per hour for those aged 25 or over) will become payable. avoid them arguing that they are either has meant that employers have reduced “employees” or “workers”. the number of staff they engage or the This will make things more expensive for level of benefi ts off ered to employees. employers. This is because employees and workers have far more employment rights However, a survey in July 2016 by GENDER PAY GAP compared to self-employed individuals, Resolution Foundation has suggested that REPORTING such as the right to be paid at least the the additional pay is either being passed national minimum wage. on to customers in the form of increased New legislation on gender pay reporting The restriction read “You further warrant prices or the employer is simply making was brought into force in August 2016, that neither you nor anyone acting on less profi t themselves. although the fi nal parts of the new your behalf will present any claim in the legislation are not expected until October. employment tribunal or any civil court in TERMINATION PAYMENTS which it is contended that you are either It is understood that employers with

80 | FOOD FRANCHISE AUTUMN 2016 250 or more employees will become brought by disgruntled employees. and unfair dismissal are perhaps unlikely compelled to analyse gender pay gap to be amended. No one knows what the data (being the diff erence in levels of pay BREXIT future may hold but employers will want between men and women at the same to keep an eye on developments in this employer) and publish their results. No new round up would be complete area. without a mention about Brexit. It is expected that the fi rst analysis will be We all await details on when and how required as at 30 April 2017 and the fi rst Britain will exit Europe but certainly some report will need to be published a year changes to employment law are likely in later. the long term.

However, savvy employers will want There has already been some speculation to consider their analysis early and about changes being made to the rules on take steps to ensure any pay gaps are working time, the transfer of businesses equalised or can be explained, before (often known as TUPE transfers) and the they have to expose the data and run the rights of agency workers. risk of potential equal pay claims being However, laws relating to discrimination

Katee is a senior solicitor in Goodman Derrick’s employment team advising on all aspects of contentious and non-contentious employment law, from recruitment to the end of employment relationship. She has acted for clients in the hospitality and leisure sector for many years. Katee has been recognised as an “Associate to Watch” by Chambers & Partners Guide to the Legal Profession and as a “Super Lawyer” by The Telegraph. Goodman Derrick is a leading commercial law fi rm in the City of London.

Katee Dias , Senior Solicitor, Goodman Derrick LLP 020 7404 0606 - [email protected]

AUTUMN 2016 FOOD FRANCHISE | 81 Accountancy

Study Reveals UK SME Success A new report published by insurance and pension provider Standard Life has revealed the key drivers of success for UK SMEs over the next five years. Having polled both SME leaders and employees, the report highlights the fundamental trends of collaboration, empowerment and adaptability as central to growth.

SME leaders said the number one priority Meanwhile, 60 per cent of employees The report stated that business leaders is to empower the workforce, by building felt ‘adaptability’ is the most important believed that the most productive an environment that encourages creativity attribute for professional success. workforce can be achieved by offering and innovation. employees flexible working conditions Stephen Ingledew, Standard Life (41 per cent) and by investing in future Employees agreed, stating that the most Managing Director of Marketing, potential (40 per cent), with training/ desirable quality in a business leader said: “SMEs are an important part of upskilling the number one focus in the is the ability to empower and trust their our client base, and we wanted to take next half a decade. colleagues. a closer look at the behaviours these business leaders and their employees Indeed, at McPhersons, our staff values The report also found that the traditional adopt to achieve success and fuel our flexible working conditions. In fact, five year business planning cycle is largely entrepreneurship. some cite this as the main reason they a thing of the past, with 82 per cent of came to us. The work life balance is a key SME leaders altering their strategy at least “Our research shows that UK SMEs are factor to consider and at McPhersons, once a year and almost three fifths doing strongly committed to building working staff are able to plan their working day so at least every six months. environments that encourage and nurture around childcare, dog-walking, socialising flexibility and innovation.” and other interests.

82 | FOOD FRANCHISE AUTUMN 2016 With employees at every level of employees, with 56 per cent expecting important measure of success, and qualifi cation and some with us for over 40 promotion to CEO to become far that they carefully consider how their years, we understand that development more challenging over the next fi ve years. decisions impact their broader industry, and support with study and qualifi cation their people and their communities.” are vital as well as necessary for staff Stephen Ingledew added: “SMEs are retention. generally very outward-looking and focused on retaining strong core values The majority (69 per cent) of leaders also which help them attract and retain the believe the role of CEO/MD will become best talent. more diverse and accessible to their workforce in the future, it is a position “The research indicates that they regard that is still seen as out of reach by many positive contributions to society as an

Need more help?

This feature aims to give some informal hints and tips. Our tax department and McPhersons Financial Solutions are off ering businesses free advice so get in touch now to arrange your meeting.

Simply email Peter Watters - Director at McPhersons Chartered Accountants [email protected]

83 | FOOD FRANCHISE AUTUMN 2016 FRANCHISE OPPORTUNITIES

Professional franchise sales and resales service for food franchisors and franchisees

An innovative consultancy service (Franchise Development Services), with the Specialising in the sale of: has been launched to help steer food service provided based on more than 15 • Franchises sales, franchisors, franchisees and investors years of experience of the franchise and business sectors, combined with valuable • Franchise resales, smoothly through the franchise sales advice and guidance. • Multi-unit franchises, and resales process. • Master franchises, We work closely with franchisor and • Entire franchise business, Franchise Sales and Resales manages franchisee, ensuring there is no confl ict • Franchise acquisition and business sales. of interest, only an enhanced service the process from concept through to a The service provided by Franchise Sales successful completion, with a proactive essential in the sales and resales process in concluding a positive outcome. We and Resales is further enhanced with methodology aimed at realising maximum support from legal advisers, banks, sale value. will tailor a programme that is in line with your objectives utilising a portfolio of and fi nancial specialists from within the The company is headed by Jess Bains publications, websites and skills to target franchise industry. MICBA, who previously led the franchise pre qualifi ed candidates to promote your sales and resales division at FDS franchise for sale.

For more information, call 01462 685633, email [email protected], or visit http://www.franchisesalesandresales.com.

84 | FOOD FRANCHISE AUTUMN 2016 FRANCHISE RE-SALES

FRANCHISE SALES Subway Food Franchise 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 fi xed period of time (usually fi ve years, although this may vary from sector to sector), the full details of the franchise off ering 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.

for sale, purchasing an established customers identify with and remember the FRANCHISE BUSINESS franchise resale will off er instant cash brand. Belonging to a franchise reduces IS A PROVEN BUSINESS fl ow from day one, as opposed to a marketing costs, which are shared equally FORMAT new business venture which in some with other franchisees in the network. instances can take anything from 12 to 18 To invest in a franchise, the franchisee The risk element of acquiring an months before returning a profi t. With an must fi rst pay an initial fee for the privileges established franchise resale is a lot less established franchise resale, the business to use the business, training, and the than acquiring a business for sale, for will have an existing customer base of equipment required by that particular all of the above reasons. So why is the clients using its service and products. franchise model. Once the business starts existing franchisee selling? There are no trading, the franchisee will usually pay the precise reasons although the following are franchisor an ongoing royalty fee, either A new franchisee can profi t from the commonplace: on a weekly, monthly or quarterly basis. brand identifi cation that a franchise resale This payment is usually calculated as a specifi es. A new business can take many •The franchisee has had many profi table percentage of the franchise businesses years to establish a brand in a competitive years gross turn over. After the contract has area. There are no guarantees that the •The franchisee may not be able to fully been signed, the franchisee will open a consumers will identify with the brand as a commit to the business replica of the franchise business, under the product leader. A franchise resale can also guidance of the franchisor. The franchisee provide owners with instantaneous brand •The franchisee has become bored and will not have as much infl uence over the recognition. is looking for a fresh challenge business as he or she would have over •The franchisee may wish to relocate their own business, however, investing in a It can be exceptionally expensive for The value of the resale will vary on many franchise business will require you to follow an independent business proprietor factors, and diff erent methods can be used the proven business format. to advertise their business, whereas a to value the franchise resale. The most franchise resale has the advantage of common method is a multiple of the profi t; FRANCHISE RESALES already having an existing marketing the multiple used can be anything from 2 Franchise Resales will off er many campaign in place. The franchisor will have to 8 times profi t. advantages over an established business agreed a marketing campaign to ensure

For more information, call 01462 685633, email [email protected], or visit http://www.franchisesalesandresales.com.

85 | FOOD FRANCHISE AUTUMN 2016 DIARY DATES

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

Returning for its second year, Restaurant along with a whole host of seminars, and Takeaway Business Live is packed workshops and live demonstrati ons. with a range of live features designed to inspire and assist both new and existi ng You will also get the chance to network businesses. with peers, as well as fi nd more customers to enable you to maximise your profi ts. Restaurant and Takeaway You will be able to learn about the latest Business Live food preparati on techniques and discover SECC Glasgow fresh cuisine from around the globe. November 10-11 2016 The event features more than 50 exhibitors,

Café Biz Expo is aimed at the fast teas and syrups, right through to machines, expanding coff ee sector in the Midlands equipment and water fi ltrati on systems. and the north of England and will provide one valuable intensive day for product Café Biz Expo sourcing. Old Traff ord Football The show welcomes trade customers from Stadium, Manchester fast-food outlets, faciliti es managers, café September 21-22 2016 owners and operators through to pubs, hotels and restaurants, and visitors can fi nd the best of everything from coff ees,

The inaugural Food and Drink Research and development, Innovati on, NPD, quality, Innovati on & NPD Summit is a conference health and nutriti on, ingredients, as well and exhibiti on focused on researching, as leading suppliers of technologies and Food and Drink Research developing and launching new products and services. brands in the food and beverage industry. and Innovation & NPD Summit The event will bring together more than National Motorcycle 500 senior executi ves and management Museum from the leading food and beverage manufactures, retailers and foodservice November, 30,- 2016 companies responsible for research and

IN THE NEXT ISSUE

Franchisee Q&A Making the decision to become a franchisee can be a diffi cult one. We speak to some of the individuals who have taken the plunge and learn about how and why they got into the industry. Ten things to consider when buying a low investment franchise We take a look at some of the most important things you must consider before investi ng in a franchise.

86 | FOOD FRANCHISE AUTUMN 2016 87 | FOOD FRANCHISE AUTUMN 2016 88 | FOOD FRANCHISE AUTUMN 2016