NZR Fast Food in New Zealand
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-fast food sector we're all LOVIN' IT! I'm lovin' it, you're lovin' it, we're all lovin' it. We're lovin' it more than ever with New Zealanders spending 16 per cent more in 2003 on fast food than they did in 2002. OPPOSlliE: Blue Island Seafoods, Moera, Lower Hutt, has a deep fry preparation area that shines - as do the staff manning the well-known fast food outlet. RIGHT Although not big on advertising, Nando's is recognised for it's tongue-in-cheek topical billboards. ut most retailers agree that, shrinking market.. expanding the February-quarter sales 1.8 per cent PIZZA BUSINESS unlike the food they sell, choice makes us a better choice." up on the corresponding period last Restaurant Brands Piua Hut remains business is not slick and easy. The February launch of the year. But lackluster performance the dominant force in the pizza It's a rapidly changing Saladsplus menu was in direct again at KFC culminated in full-year market, says Salmon. The 91 outlets, B sales at the cooked chicken chain of which achieved sales of $81.3 million market in which the dining outdollar response to consumer demand and is being stretched across an ever- the World Health Organisation's calls $171.1 million, down 2.3 per cent on during 2003 - up 7.4% on the growing smorgasbord of fast food for healthier food. Underpinned by the previous year. previous year - remain perfectly choices. 18 months of consumer research, the Big changes are needed to turn pitched for family business. Over the Although fish and chips and the SaladsPlus inclusion on McDonald's the tables, says ceo Vicki Salmon, but last year resources have been poured burger brigade reign supreme, permanent menu re£lects New Restaurant Brands is back on track. into the delivery part of the business. demand for healthier fare and the rise Zealanders' evolving fast food tastes, At KFC a major in-store operation It's all about making pizza more of smaller players with attitude, brand says Jeov and promotion 'refocus' is bringing convenient for the customer and a and food to match are ma@ for "When we trialed salads a decade the customers back. "Our stores are centralised ordering call centre has tough times at the traditional big ago, they flopped. Customers now cleaner and our product quality helped streamline delivery. chain, fast food counter. find healthier options more appealing scores have increased dramaticallyn The arrival last year of mid- and are more accepting of Improved customer service has market Domino's pizza undoubtedly BIG MAC sophisticated food." also brought to an end the long 'reignited' New Zealanders taste for McDonald's has experienced Further customer calls for queues of tetchy customers at peak pizza, says Salmon. "I'd have to say it challenging times in what's been a sophistication have resulted in a $27 times. We weren't focused on has galvanised competition and hasn't "static pien market, says Liarn Jeoq million bricks-and-mortar update serving the customer. We now have been all bad, but it's driven down director of corporate relations. Like over the past two-and-a-half years. more staff in the right areas at the price." The international chain's July McDonald's worldwide, growing sales More McCafes have been added to right times." 2003 arrival in Wellington has been in New Zealand has cenued on menu restaurants to create a total fady Although KFC has introduced hall-marked by mid-market pizza evolution and restaurant revamps. dining experience. healthier eating options - such as the price wars. McDonald's critics say the ever- crispy chicken salad and the chicken But Domino's New Zealand expanding menu is nothing but a TOUGH TRADING sub - Salmon doesn't regard salad corporate operations manager, Peter desperate 'reinvention' move and that Tough trading times and the and sprouts as the way to grow KFC Jones' is quick to point out that they the Golden Arches should stick to the increasing complexities of labour sales. "People generally don't go to didn't start the price wan. "F'izza Hut knitting and do the business of relations made for an especially tomd fast food for salad - they go for a and F'izza Haven dropped their prices burgers better. ~ear-endat Restaurant Brands which treat - but for those who do, it gives before we came. In essence, they No way, says Jeory. operates KFC, Pizza Hut and them choice and balance." fired the first shot." In the United States, McDonald's Starbucks. resurgence over the past year, Combined Restaurant Brands following the parent company's first- sales for the three months to 1 ever posted loss in January 2003, was December on a same-store basis wem largely on the back of menu almost two per cent down. nual expenditure per capita on fast food USS131 evolution and restaurant Sales at KFC, which accounts for New Zealand market closch to saturation development. 60 per cent of Restaurant BBrands And it's customer demand that's turnover, languished by almost seven driving the menu expansion. per cent to $37.6 million. lf you don't offer choice, and Restaurant Brands started the market for change, you're selling to a year on a positive note with NEW ZEALAND retail APRIL 2~4B TOP LEFE ShTping centre food courts cater to a big variety of takeaway food businesses. The average food court has a big-name chain operator anchoring the court and provides y opportunity for owner-operator businesses to trade within a mall. TOP RIGHE We're lovin' all the nutritional information that's available with McDonald's heplthrer food menu these days. Sports star Sarah Ulmer fronts the McDonald's 'salads plus'campaign. BELOW LEFE Dinner to go - a selection of ready- to-eat full meals all priced at $9.50 from the new McDonald's menu. BELOW RIGHE 0800 83 83 83 says it all - Pizza Hutt's jingle, catchy and remembered. And Domino's is unlikely to keel TOO MUCH OF A GOOD Ministry of Health and supporting acting director Dr Douglas Lush. over from prolonged pizza price cuts. THING NGOs, he says it will be a population- But despite government-led "Our organisation is h& turnover, High-level talkfests on obesity and wide approach that will support the healthy living legislation and low margins. Our equipment and set how to rid the nation of slothful Ministrys Healthy EatingHealthy initiatives, we still like nothing better up is designed to cope." It is not habits have been popular in recent Action strategy than ripping into a grease-sodden Domino's intention to steal anyones times. The finger is often pointed at Government legislation with paper parcel of fish and chips. market share. fast food retailers and advt&ers but possible ramifications for fast food "New Zealanders buy pizza on neither is the 'root cause' says the retailers is the new Public Health Act WHAT'S TOPS? average once every sixty days, Association New Zealand Adverung's which will replace the existing Health Last year AC NieIsen Media research compared with the average Australian (ANZA) Jeremy Irwin. Act later this year. A November ZOO2 revealed that, over a month, almost who buys one every 20 days. The Irwin along with most others discussion paper sought feedback on 60 per cent of the population had New Zealand market for pizza is agrees that our expanding waistlines whether the new Act should include eaten fish and chips - with the next nowhere near penetrated and our aim are a combination of over- provisions amed at reducing death popular fast food choice McDonalds is to grow the market", consumption, lack of exercise and from hon-cornmunicable diseases (35 per cent) and KFC (30 per cent). Domino's pwthhas been steady lack of dietary education. ANZA, such as diabetes, and cardiovascular However, the research also with 12 Wehgton outlets opening along with major players in the food heart diseases, some of which are showed that market share has slipped within seven months. Wellington, industry and media, is working linked to obesity and poor nutrition. for retailers serving up the traditional rather than Auckland, was the obvious alongside the Ministry of Health on The idea of a fat tax was fast foods -possibly due to gradual launching pad, because it offers greater development of a broad-brush, edu- suggested in some of the 600 uptake of the healthy foodhealthy scope for the building of the brand. adverdsing 'initiative'. Although tight- submissions received but was not one living message. We can deliver to 95 per cent of lipped on what the initiative will of the proposals sent on to the Many attribute Subway's surge in Wellington howseholds." involve pending further talks with the Minister, says Miof Health popularity is largely on the back of c=='fast food sector Hell, a steadily-expanding gourmet pizza chain, is makin its mark with attitude, quality product and award-winning ordering technology. Over the last year, 12 outlets have opened and another seven will be up and running by Ma Stu McMullin (32), co-owner of the present 16-outlet franchise, attributes the meteoric rise of Hell to the building of a brand with attitude. A 1968 'promotional' hearse, advertising on Auckland's George FM, Hell- sponsored midget racing cars and a recently-launched internet pizza car racing game, collectively create a brand that's "a little bit alternative". Although targeting the younger set, Hell's attracting a broad range of customers through their slightly off-beat and alternative advertising and promo approach.