A look at The Boiling Crab’s first Australian restaurant in Melbourne. Photo / The Boiling Crab
New Zealand is high on the expansion wish list for international brands looking to break into new territories, says a franchising lawyer.
A series of international franchises ranging from fast food to beauty treatments
and medical services are preparing to launch in New Zealand over the next two years.
Texas-founded seafood restaurant The Boiling Crab is one of the few US-founded and based food franchises looking to enter the market.
The Boiling Crab, hailing from the small seaside town of Seadrift in the United States, specializes in crab, shrimp and lobster dishes. She is looking for a local franchisee to introduce the brand to New Zealand, who can commit to opening at least five restaurants within five years.
The company opened its first restaurant in 2004 and now has 24 locations across the United States, as well as three international restaurants located in Shanghai and two in Melbourne. The brand will soon begin to expand to New South Wales in Australia.
The Boiling Crab would like to partner and offer a 10 year license to the business, with the option to extend for an additional 10 years, to a party with experience in the food industry, with franchising experience in prime. The parent company would fly the local owner to the United States for six weeks of training.
Initial license fees are looking at US$50,000 per seafood restaurant. Leasing and fitting out the stores would be a significant investment of $3-5 million.
Stewart Germann, franchise attorney and managing director of franchise consulting firm The Franchise Coach, said Kiwis who had been to America and Hawaii would know the seafood restaurant brand.
Germann, who works with the brand and represents it locally, said The Boiling Crab would modify its menu to suit the New Zealand market, as it had in Australia.
“Were [New Zealand is] big eaters… I think it will be fine here.”
Germann said he contacted Restaurant Brands to see if the business was worthwhile.
According to the latest Franchising New Zealand survey, conducted by Massey University in conjunction with the Franchise Association of NZ last year, franchising in Aotearoa is a $58 billion industry. There are 590 business format franchisors in New Zealand and 70% of these brands are from New Zealand.
Beauty care franchise Phenix Salon Suites is another US-based company set to expand into New Zealand. The multidisciplinary company that works to promote a number of beauty services under one roof, such as massage, nail, hair and makeup, eyebrow and eyelash extensions, teeth whitening services, piercing and tattooing.
The goal of Phenix Salon Suites is to combine several services in one place, and to function as a model of property management, offering different rooms for rent for different operators and services.
Phenix Salon Suites has plans for a local master franchise to open 10 Salon Suites over the next three years. It will grant a multi-unit license for a minimum of 5 units to open over time at a cost of US$230,000 ($370,000). It is also open to being granted a Country Master Franchise which allows for sub-franchising after the Master has opened 3 units at a Country Fee of $250,000 ($400,000) for New Zealand .
The non-surgical medicine franchise QC Kinetix also hopes to set up shop here. The American firm specializes in “regenerative medicine and offers solutions to health problems without the use of drugs or surgery”, according to its prospectus.
Germann said he has already generated a lot of interest in QC Kinetix as the medical and healthcare services industry continues to grow.
QC Kinetix was founded by a group of US-based physicians and today operates more than 100 locations internationally.
New Zealand was “savant in franchising” and an easy market for foreign companies to enter, Germann said. He said the country had no specific franchise legislation, unlike Australia, the United States and most other countries, and was generally more affordable than Australia, which made it an attractive destination for global expansion.
“There are a number of franchises looking at New Zealand right now and that’s a very positive sign for the New Zealand economy,” Germann told the Herald.
He said the consumer market was generally welcoming to new international brands and he expected many other global brands to follow suit.
His choice is that more food brands would enter the market in the coming years, as well as more international fashion brands.
“In times of depression, it’s food and clothing that people need. Some of the big clothing brands will come up. We’re all into fitness and leisure too, so I think [area] could also develop, as well as health services for hearing and sight. »
Snap Fitness, another American import, entered the market about 10 years ago and has proven extremely popular across the country, Germann said.
Despite the Covid-19 pandemic which has temporarily crippled industries with various lockdowns, international brands are continuing their plans to open stores and restaurants in the market.
French luxury retailer Van Cleef & Arpels recently opened its first New Zealand store on Queen Street in Auckland, joining a growing list of global luxury retailers operating stores on this side of Tasmania, although most are not franchises. SC Luxury will soon open a boutique in Auckland.
Hollywood star Mark Wahlberg’s Wahlburgers burger chain is set to open its first family-run burger bar in Auckland this year – at the former site of the Euro restaurant in downtown Auckland at Princes Wharf.
The actor, rapper and entrepreneur founded Wahlburgers in 2011 with his brothers, Donnie Wahlberg, who rose to fame as a member of 1980s boy band New Kids on the Block, and Paul, the chef behind the menu from Wahlburgers.
At least four other New Zealand outlets are also planned, with Mustaca seeking the Queenstown venues this weekend and Tauranga, Wellington and Christchurch the other likely locations. Up to 350 part-time and full-time jobs will be created, including around 75 in Auckland.
Australian hotel group Seagrass Boutique Hospitality Group has signed an exclusive master franchise agreement with Five Guys to bring the brand to New Zealand and Australia.
The cult American burger chain known for its loaded fries, big burgers and thick shakes has more than 1,500 stores operating globally and is set to open its first New Zealand store this year.
The company plans to open five to 10 restaurants in New Zealand, after opening 20 stores in Australia in Sydney, Melbourne and Brisbane from mid-year.
In an interview with the Herald last year, Seagrass Boutique Hospitality Group was obligated by the franchise agreement to open at least five stores in New Zealand.
However, he said he could see around 10 locations comfortably operating in the market.
He said he plans to open his first restaurant in Auckland but has not yet revealed where.
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