Food Franchise Magazine – Spring 2016
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FOOD FRANCHISE Fast food Franchise QSR Franchise Coffee franchise Food-to-go Franchise Pub Franchise Restaurant Franchise HISE NC A R F Be Inspired S WINTERSPRING EDITIONI E Wrapchic founder O I T P N P O RT U Mahesh Raikar tells us why he chose franchising FOOD FRANCHISE FOOD V3 ISSUE 2 SPRING UP & COMING ONE TO WATCH Food FRANCHISES Take a look at the brands with big plans We profile exciting noodle franchise Neds for the next twelve months Noodles who are quickly growing their franchise portfolio Print edition £3.99 NATWEST SURVEY FINANCE SPRING EDITION We go deep into the latest Experts from the KPMG BFA/NatWest survey to find small business team give us out more about the state of some advice about funding a the food franchise industry venture Editor’s message elcome back to Food Franchise magazine. It only seems like a Wfew weeks ago that the last issue came out, yet here we are again. For those of you who already know, and those that don’t this will be my last issue as the Editor of Food Franchise. It is with great sadness that I move on to pastures new and I’d like to take the time to reflect on my time here. The last 18 months have been a fantastic experience and as a team we have seen the publication grow from 36 pages to 96! We Editor have visited many tradeshows and partnered with some exciting companies. The magazine Scott Rumsey has seen a successful launch into retail and I’m sure that it will continue to do so under the [email protected] guidance of the new editor. Office: +44 (0) 333 003 0499 It has been a pleasure to work with the team here at MVH Media, the contributors, Commercial Manager franchisees and franchisors in this wonderful sector of the market and I will miss it very Lewis Wantling much. [email protected] Anyway, on to the issue in hand. Office: +44 (0) 333 003 0499 As well as all of the latest news and opinions from across the industry this issue will focus Advertising sales on some of the great opportunities that franchising and particularly food franchising has to offer. We look at the 25 most exciting franchise opportunities on the market and look Sandra Bouillet at their plans for expansion over the next year. [email protected] Office: +44 (0) 333 003 0499 Following on from the release of the BFA Franchise survey we look at the growth in the food and drink sector and put together a comprehensive review of the last two years. Finance Buoyed by the confidence surrounding the market many prospective franchisees are Laura Williams looking to get into the market and we show them the best way to choose a franchisor. [email protected] In our one to watch we profile Neds Noodles, and look at how they have gone from a Office: +44 (0) 333 003 0499 single outlet embarking on a full franchise model. Design At the back of the magazine you will find advice on all matters financial and legal as well Timeem Taleifeh as some expert insight from McPhersons in the accountancy column. As always we look at [email protected] how the businesses in our industry are performing on the stock market. Until next time, Publisher MVH Media Ltd. Unit 9 Wilkinson Court, Clywedog Road South, Wrexham Industrial Estate, Wrexham LL13 9AE The publishers do not accept GET IN TOUCH responsibility for advertisements appearing in this magazine. www.foodfranchisemagazine.co.uk Front cover The opinions expressed are not @franchise_food image courtesy necessarily those of the editor or the of Wrapchic publisher. /foodfranchisemagazine1 (Page 61 SPRING 2016 FOOD FRANCHISE | 3 ContentsSPRING 06 Industry News We round up all of the latest news from across the industry over the last 06 quarter 28 International News We round up the latest developments from brands that could head to the UK 32 Up & Coming Food Franchises Explore some of the best franchise opportunities on the market and see the brands with big plans for the next twelve months 48 How to choose the right food franchise Choosing the right food franchise is a big choice and we look at the questions that should shape you decision 58 Be Inspired 32 We speak to Mahesh Raikar and Craig Decent from Wrapchic about the concept is so popular 62 NatWest Survey We go deep into the latest BFA/ NatWest survey to find out more about the state of the food franchise industry 48 58 4 | FOOD FRANCHISE SPRING 2016 76 76 One to Watch We profile exciting noodle franchise Neds Noodles who are growing both their own portfolio and their franchise portfolio over the next few months 79 Finance Experts from the KPMG small business team give us some advice about funding a venture 82 82 Legal Solicitor Rebecca Stojack guides us through understanding a franchise contract 86 Accountancy The team at McPhersons look over the Budget and tell us what it means for small businesses and investors 90 Market Watch A summary of how the franchises in the food sector are performing on the 86 Stock Exchange SPRING 2016 FOOD FRANCHISE | 5 NEWS round-up McDonald’s to roll out table service after successful trial Burger giant announces shake up to take on rivals. The fast food chain will roll out table service at 400 revamped restaurants before the end of 2016 after a successful trial last year. The brand will also double the number of locations selling a new range of premium burgers, called the signature collection. The initiatives are designed to modernise McDonald’s restaurants and attract more families. The company has faced much scrutiny over the last few months and is facing growing competition from gourmet burger brands such as Five Guys and Shake Shack. Those at the head of the business are also wary of Mexican chains such as Chipotle and long-standing rivals Burger King and KFC. Speaking about the developments, Paul to listen to the 3.7 million people who visit is transforming the way we serve customers, Pomroy, chief executive of McDonald’s UK, is us every day and respond with even more and has been a key growth driver. thought to be pleased with the performance reasons for them to come to our restaurants. “To date, over 300 restaurants have been of its restaurants in Britain, saying: “Together “In 2016 we will continue to focus on refurbished and we expect a further 350 to with our franchisees we have delivered providing great value and variety, as well as be completed and reopened for customers another strong year of growth, fuelled by a invest in our restaurants, our people and our by the end of the year – an average of one relentless focus on our customers’ evolving menu, to ensure customers enjoy a great every day.” expectations and tastes. experience every time they visit us. McDonald’s first opened in the UK in 1974 “Investing in our customer experience is “We opened 26 new restaurants last year and now has more than 1,250 restaurants. paramount. It’s important that we continue and the rollout of our reimaging programme Coffee Republic opens 28th UK franchise Coffee franchise open site in Manchester, and plans to expand further abroad Coffee Republic one of the fastest growing franchi9sees in the food and drink sector has opened its 28th franchise site – in Cross Street, Manchester. The site is in addition to four company- owned bars, including Bluewater Shopping Centre, and is in line with the company’s planned 20 openings in the UK this year during Coffee Republic’s biggest period of growth since new owners took over in 2009. Coffee Republic has also continued its international growth by opening two sites in Bahrain to add to its 20 bars outside the UK. In January, Coffee Republic opened the first of ten cafes to be launched this year in Co-operative stores as part of a franchise deal between the two companies. 6 | FOOD FRANCHISE SPRING 2016 Subway celebrates its 5,000th store Food-to-go work- in Europe ers to receive pay Milestone store opens in Livingston boost Motorway service operator Welcome break has announced that it will pay the National Living Wage to all of its employees across the UK from 1st April 2016. The National Living Wage will be the minimum starting rate for all of the company’s 5,000 employees across its 27 sites, irrespective of age. Presently, 42% of its workforce (2,095 employees) is aged under 25. The operator, founded in 1959, attracts 85 million motorway customers annually, with chains including Subway, Starbucks, Tossed, Burger King and Harry Ramsden’s. Discussing the pay reforms, Rod McKie, CEO of Welcome Break, said: “We are dedicated to offering dependable jobs to the very best people available, and pride Subway is pleased to announce that of staff. ourselves on ensuring Welcome Break is a it has recently reached the milestone All Subway stores are owned by local great place to work. of 5,000 stores open and operating in businesspeople who operate their shops “If you want to attract the best people Europe, with the opening of a brand new on a franchise basis. The franchisee of you need to reward them accordingly, and store in a shopping centre in Livingston, the new Livingston store is Haj Atwal. as such we’ve made the decision to give Scotland. A seasoned franchisee, the new store all of our employees, regardless of age, the The milestone opening highlights the marks Haj’s 16th with the brand, and National Living Wage.