Burgerfuel Expands Company-owned Store Division
BurgerFuel Worldwide has today announced plans to acquire and operate additional company-owned stores, and has made the first move by purchasing the successful Henderson restaurant from its current franchisee.
The plan has been implemented to both increase revenue and profits for BurgerFuel Worldwide, as well as provide more training facilities for their forthcoming global expansion.
The Henderson restaurant will join BurgerFuel Ponsonby, which has been owned and operated by the company since it was opened in 1995. BurgerFuel Worldwide says they will look at adding to the division in New Zealand over the next few years, and may eventually adopt the format in select overseas markets.
BurgerFuel CEO, Josef Roberts, comments, “We’ve put many years into developing an extremely successful business model which makes strong profits for our franchisees and we’re increasing the number of company-owned stores in order to meet some key objectives”.
Roberts states, “First and foremost, it will allow us to increase our revenue and profits - our criteria will be to ensure we achieve a minimum 20% ROI on all company-owned restaurants. Secondly, by owning more stores, we have the ability to train and export more of our operational teams to other countries as we seek rapid global expansion”.
He goes on to add, “As we grow globally, it’s all about protecting our brand and the quality of our operations. I believe the discipline of operating restaurants ourselves will help us continue to set and maintain high standards, driving in-store excellence for all of our restaurants around the world”.
Most publicly listed food companies have a store ownership proportion of at least 25%. Whilst BurgerFuel plans to remain predominately a franchise model, it believes ownership of select company-owned stores will be highly advantageous to the value of BurgerFuel Worldwide as a listed entity.
Roberts says that BurgerFuel Worldwide’s company-owned store division may also look to open new company-owned restaurants in key locations with high performance potential to further growth.
“We have strong cash reserves and no debt, as well as the management to facilitate key BurgerFuel restaurant purchases and to launch new sites. All our international license agreements going forward will allow for us to own and operate a percentage of restaurants within franchised territories. It’s a very strategic and important move for us that will develop over time and continue to enhance the value of the company”.
BurgerFuel Worldwide will take ownership of the Henderson restaurant on the 1st of October 2014. Franchisee Mike Jury has owned the thriving restaurant since it opened in 2004.
Jury comments, “BurgerFuel Henderson has proven to be an extremely satisfying, dynamic and profitable business venture. We’re taking a break to pursue other opportunities, however I’ve negotiated first rights on another territory in the North Island, so there’s a good chance we could be back in the future”.