Restaurant Brands

Last updated

Restaurant Brands New Zealand Limited
Company type Public
NZX: RBD
Industry Restaurants
Founded1989
Headquarters
Auckland, New Zealand
Key people
Russel Creedy, CEO
Grant Ellis, CFO
Products KFC
Taco Bell
Pizza Hut
Carl's Jr
Total equity NZ$560 million (market capitalisation 18 July 2016) [1]
Number of employees
12,000
Website www.restaurantbrands.co.nz

Restaurant Brands New Zealand Limited, trading as Restaurant Brands, is a New Zealand fast food company. Restaurant Brands currently operates and owns the master franchising rights for the Carl's Jr., KFC, Pizza Hut, and Taco Bell brands in New Zealand. Restaurant Brands operates most of New Zealand's stores for the brands they own rights to and provides management and support services to New Zealand's independent franchisees of the remaining stores.

Contents

History

Restaurant Brands was formed to acquire shares in KFC and Pizza Hut from PepsiCo. It acquired KFC in 1989 and Pizza Hut in 1995. The company originally purchased 122 stores, 91 KFC stores, 46 Pizza Hut stores and 2 Joint KFC and Pizza Hut stores.

In 1997, it listed on the New Zealand Stock Exchange with an offer price of NZ$2.20.

In 2016, Restaurant Brands shares jumped 9.8 percent on the news that it had purchased New South Wales largest KFC franchiser, QSR Pty Ltd, for A$82.4 million in cash and scrip. As a result of this deal, QSR's vendor Copulos Group will gain a 4.9% shareholding in Restaurant Brands. [2]

In March 2017, Restaurant Brands purchased 100% of the shares in Pacific Island Restaurants Inc, the sole franchisee of Pizza Hut and Taco Bell in Hawaii, Guam and Saipan, for US$105 million. This consisted of 45 Pizza Hut stores and 37 Taco Bell stores. [3]

The Group came into a conditional agreement in December 2019 to acquire 70 stores in Southern California, USA, for $US73 million. The purchase consisted of 59 KFC stores and 11 combined KFC Taco Bell stores together with a head office facility. The purchase was conditional on Yum! approval and the assignment of property leases. After satisfying a number of conditions, including the approval from the franchisor, Yum! Restaurants International, the transaction for 69 stores was settled on 2 September 2020 in New Zealand (1 September in the USA). [4]

The company experienced a decline in profits during the 2021–2022 inflation surge, due to rising food costs. [5]

Brands

Current

KFC

KFC entered the New Zealand market in August 1971, with the opening of its first restaurant in Royal Oak, Auckland. By September 1973, KFC had opened nine restaurants - four in Auckland and one each in Hamilton, Rotorua, Wellington, Christchurch and Dunedin. [6]

Restaurant Brands acquired the brand in 1989 after being publicly floated by PepsiCo. KFC is Restaurant Brands largest revenue earner; in the 2017/18 financial year, KFC contributed $320 million of Restaurant Brand's $421 million sales income. [7]

Pizza Hut

Pizza Hut entered the New Zealand market in September 1974, with the opening of its first restaurant in New Lynn, Auckland. Businessman Garry Melville-Smith owned the franchise rights for Pizza Hut in New Zealand from 1974 to 1996. Under Melville-Smith's leadership, Pizza Hut dominated New Zealand's fast food market during the 1970s, 1980s and 1990s, capturing 75% of the market share at its peak. During that period, Pizza Hut operated as a dine-in family-oriented restaurant serving alcohol, pasta, salad bars and desserts. By 1990, there were 36 Pizza Hut stores in New Zealand. In 1996, Melville-Smith sold the New Zealand franchise back to PepsiCo, which subsequently rebranded as Restaurant Brands in 1997. [8]

After the acquisition, Restaurant Brands changed Pizza Hut from a dine-in business to a home delivery and takeaway operation commencing 1998. [9] [10] This was achieved by acquiring and rebranding the Eagle Boys chain in New Zealand. [9] [8] The first Eagle Boys store was converted to a Pizza Hut in June 2000 and the last store was converted just 13 weeks later. The majority are now home delivery and takeaway outlets. Pizza Hut commenced selling a number of its smaller regional stores to independent franchisees in 2011. [9]

In February 2016, the original New Lynn dine-in restaurant was demolished and replaced with a takeaway store. [10] In late September 2024, Pizza Hut celebrated the 50th anniversary of its establishment in New Zealand by holding pop-up lunch and dinner buffet and dessert events in Auckland. [11]

Carl's Jr.

In 2011, Restaurant Brands acquired the New Zealand franchise for Carl's Jr. The brand commenced rolling out stores in late 2012 and now has nearly 20 stores in operation. [9]

Taco Bell

Fake Taco Bell billboard on Ponsonby Rd, Auckland, New Zealand in 2015 Tacobellnz.jpg
Fake Taco Bell billboard on Ponsonby Rd, Auckland, New Zealand in 2015

Rumours of Taco Bell being introduced to the New Zealand market by Restaurant Brands began to surface in 2011. [12] In 2013, Restaurant Brands hinted at the possibility of further expanding and introducing Taco Bell to New Zealand, saying it could be achieved within the next year or two. Speculations resurfaced in 2015 when a Taco Bell-branded sign appeared on a Ponsonby Road storefront, later revealed to be a hoax. [13] [14]

Speculation of Restaurant Brands acquiring the New Zealand Taco Bell rights has risen after the announcement in 2017 that the Auckland-based company had acquired a Hawaii-based fast food operator of the Taco Bell brand, among others, that operates in Hawaii, Guam, and Saipan. The company stated that the acquisition was not a prerequisite for acquiring the New Zealand rights, but rather a move that would give Restaurant Brands greater insight into the inner-workings of the brand. [15]

It was reported in April 2018 that Restaurant Brands had acquired the New Zealand franchise rights for Taco Bell. [16] Taco Bell opened its first New Zealand store, in New Lynn, Auckland on 12 November 2019, with a second store opening on Shortland Street in Auckland CBD on June 16 2020. [17]

Former

Starbucks

Restaurant Brands secured the New Zealand franchise for Starbucks Coffee in 1998, opening the first Starbucks store in Parnell, Auckland, reaching 26 stores nationwide. [9] In September 2018, Restaurant Brands announced that it would not be renewing its licensing agreements with Starbucks Coffee International, Inc. (SCI), and with the approval of SCI, sold all fixed assets and stock of its Starbucks stores to Tahua Capital Ltd for NZD$4.4m, with the completion of sale in October 2018. [18]

Expansion

Australia

In 2002 Restaurant Brands expanded its operations overseas with the acquisition of 52 Pizza Hut stores in Victoria Australia. The Victorian operation ultimately proved unsuccessful, with Restaurant Brands exiting the Australian market entirely by early 2008. [19]

Related Research Articles

<span class="mw-page-title-main">Pizza Hut</span> American multinational restaurant chain

Pizza Hut, LLC is an American multinational pizza restaurant chain and international franchise founded in 1958 in Wichita, Kansas by brothers Dan and Frank Carney. The chain, headquartered in Plano, Texas, operates 19,866 restaurants worldwide as of 2023.

<span class="mw-page-title-main">Taco Bell</span> American fast-food chain

Taco Bell Corp. is an American multinational chain of fast food restaurants founded in 1962 by Glen Bell (1923–2010) in Downey, California. Taco Bell is a subsidiary of Yum! Brands, Inc. The restaurants serve a variety of Mexican-inspired foods, including tacos, burritos, quesadillas, nachos, novelty, and specialty items, and a variety of "value menu" items. As of 2023, Taco Bell serves over two billion customers each year, at 8,212 restaurants, more than 94 percent of which are owned and operated by independent franchisees and licensees.

<span class="mw-page-title-main">Fast-food restaurant</span> Type of restaurant

A fast-food restaurant, also known as a quick-service restaurant (QSR) within the industry, is a specific type of restaurant that serves fast-food cuisine and has minimal table service. The food served in fast-food restaurants is typically part of a "meat-sweet diet", offered from a limited menu, cooked in bulk in advance and kept hot, finished and packaged to order, and usually available for take away, though seating may be provided. Fast-food restaurants are typically part of a restaurant chain or franchise operation that provides standardized ingredients and/or partially prepared foods and supplies to each restaurant through controlled supply channels. The term "fast food" was recognized in a dictionary by Merriam–Webster in 1951.

<span class="mw-page-title-main">Yum! Brands</span> American multinational fast food corporation

Yum! Brands, Inc., formerly Tricon Global Restaurants, Inc., is an American multinational fast food corporation listed on the Fortune 1000. Yum! operates the brands KFC, Pizza Hut, Taco Bell, and Habit Burger & Grill, except in China, where the brands are operated by a separate company, Yum China. Yum! previously also owned Long John Silver's and A&W Restaurants. In 1997, PepsiCo divested of its restaurant assets, and these consolidated as Yum! Brands.

<span class="mw-page-title-main">Priszm</span> Defunct Canadian Business

Priszm LP was the largest operator of Canadian fast food restaurants. The Priszm Income Fund, an income trust, owned 60.2% of Priszm.

<span class="mw-page-title-main">Zantigo</span> American fast food restaurant chain

Zantigo is an American fast food restaurant chain serving Mexican food. It began operation in 1969 in Minneapolis, Minnesota as Zapata. With over 80 locations at its peak, Zantigo, alongside its sister/parent company Kentucky Fried Chicken, was sold to PepsiCo, with the former being merged into Taco Bell in 1986. Zantigo was re-established a decade later under new ownership in the Twin Cities market.

<span class="mw-page-title-main">BurgerFuel</span> New Zealand burger restaurant

BurgerFuel is a New Zealand burger restaurant and franchise with 72 locations in three countries, including 60 locations in New Zealand.

<span class="mw-page-title-main">Domino's Pizza Enterprises</span> Australian franchise of Dominos Pizza

Domino's Pizza Enterprises Ltd. (DPE) is the largest pizza chain in Australia in terms of network stores numbers and network sales, as well as the largest franchisee for the US Domino's brand in the world. DPE is the exclusive master franchise for the Domino's brand network in Australia, New Zealand, Belgium, France, The Netherlands, Japan, Germany, Luxembourg, Taiwan, Malaysia, Singapore, and Cambodia. Across these markets, DPE has over 2,800 stores. In May 2005 DPE became the first publicly listed pizza company in Australia.

<span class="mw-page-title-main">AmRest</span> European restaurant operator

AmRest Holdings SE is a European multinational casual dining, fast-food restaurant and coffee shop operator headquartered in the Spanish capital, Madrid . The company runs more than 2300 locations, mostly franchises of KFC, Pizza Hut and Starbucks, and also Burger King until 2022, but also operates its own brands of restaurants. Apart from Spain, AmRest operates in Bulgaria, China, Croatia, Czech Republic, France, Germany, Hungary, Poland, Romania, Russia, Serbia, Slovakia, Slovenia, and others.

<span class="mw-page-title-main">History of KFC</span>

KFC was founded by Colonel Harland Sanders, an entrepreneur who began selling fried chicken from his roadside restaurant in Corbin, Kentucky, during the Great Depression. Sanders identified the potential of restaurant franchising, and the first "Kentucky Fried Chicken" franchise opened in Salt Lake County, Utah, in 1952. KFC popularized chicken in the fast-food industry, diversifying the market by challenging the established dominance of the hamburger. Branding himself "Colonel Sanders", the founder became a prominent figure of American cultural history, and his image remains widely used in KFC advertising. The company's rapid expansion made it too large for Sanders to manage, so in 1964 he sold the company to a group of investors led by John Y. Brown Jr. and Jack C. Massey.

<span class="mw-page-title-main">Fast food in China</span> Overview of fast food in the Peoples Republic of China

Western-style fast food in mainland China is a fairly recent phenomenon, with Kentucky Fried Chicken (KFC) establishing its first Beijing restaurant in November 1987. This location was met with unprecedented success, and served as a model for many local Chinese restaurants that followed it.

<span class="mw-page-title-main">Habit Burger & Grill</span> American fast casual restaurant chain

Habit Burger & Grill is a California-based fast casual restaurant chain that specializes in chargrilled hamburgers. The company also sells other typical fast-casual fare. It was founded in 1969 at Santa Barbara, California, and its headquarters are in Irvine, California.

James Bodenstedt is the former President and CEO of MUY! Brands, an operator of franchised restaurants, including Wendy's and the Yum! Brands of Taco Bell, KFC, Pizza Hut, and others. He and his wife were major donors to President Donald Trump's 2020 election campaign, donating more than $1 million. MUY! Brands and its subsidiaries were among the first companies to receive coronavirus relief aid by the Trump administration.

<span class="mw-page-title-main">Operations of KFC by country</span>

KFC is a subsidiary of Yum! Brands, one of the largest restaurant companies in the world. KFC had sales of $23 billion in 2013. KFC is incorporated under Delaware General Corporation Law, and has its headquarters at 1441 Gardiner Lane, Louisville, Kentucky, in a three-story colonial style building known colloquially as the "White House" due to its resemblance to the US president's home. The headquarters contain executive offices and the company's research and development facilities.

The hospitality industry in New Zealand is a major industry operating around the country. It is one of the largest employment sectors in the country, contributing about 1.7% of GDP, equivalent to NZ$5 billion annually.

<span class="mw-page-title-main">Brian Niccol</span> American businessperson

Brian R. Niccol is an American businessman and the chairman and chief executive officer of Starbucks, a role which he started on September 9, 2024, replacing Laxman Narasimhan. He previously was chairman and CEO of Chipotle until August 31, 2024.

References

  1. ↑ "Restaurant Brands NZ Limited Ordinary Shares (RBD)". NZX . Retrieved 18 July 2016.
  2. ↑ "Restaurant Brands shares jump to record on Australian foray". NZ Herald. 4 March 2016.
  3. ↑ "Restaurant Brands is to acquire Hawaiian Taco Bell and Pizza Hut franchisee". Restaurant Brands. 25 October 2016.
  4. ↑ "What's new on the menu?". Interim Report. 30 June 2020. Retrieved 2 June 2021.
  5. ↑ Morrison, Tina (28 July 2022). "Fast-food companies squeezed by rising inflation". Stuff. Retrieved 25 August 2022.
  6. ↑ "Kentucky-fried this month". The Press . 3 September 1973. p. 12.
  7. ↑ "Restaurant Brands NZ Limited - 2018 Full Year Results Presentation" . Retrieved 11 December 2018.
  8. 1 2 Waters, Laura (4 March 2016). "The evolution of New Zealand's pizza industry". Stuff . Archived from the original on 23 August 2024. Retrieved 12 January 2025.
  9. 1 2 3 4 5 "About Us". Restaurant Brands. Archived from the original on 2 December 2024. Retrieved 12 January 2025.
  10. 1 2 Rees-Own, Rose (15 February 2016). "Last red-roofed restaurant to close as Pizza Hut moves to takeaways". Stuff . Archived from the original on 29 August 2022. Retrieved 12 January 2025.
  11. ↑ "Pizza Hut to bring back all-you-can-eat buffet for 50th bday". 1News . 16 September 2024. Archived from the original on 25 September 2024. Retrieved 28 October 2024.
  12. ↑ "Taco Bell would have 'legs' in NZ, Restaurant Brands says". National Business Review. 23 June 2011.
  13. ↑ Meadows, Richard (12 March 2015). "Rumours of NZ Taco Bell fed by billboard". businessday. stuff.co.nz.
  14. ↑ Ryan, Holly (1 May 2024). "Heat out of Taco Bell rumours". NZ Herald. Retrieved 1 May 2024.
  15. ↑ Harris, Catherine (3 March 2017). "Restaurant Brands still mum on Taco Bell in NZ". Stuff News. Retrieved 18 April 2018.
  16. ↑ Winter, Chloe (18 April 2018). "Fast food operator Restaurant Brands to open Taco Bell in NZ in 'not too distant future'". Stuff News. Retrieved 18 April 2018.
  17. ↑ "Taco Bell's second New Zealand outlet will open in Auckland's CBD". Stuff. 9 June 2020. Retrieved 8 January 2021.
  18. ↑ "Restaurant Brands completes the Sale of Starbucks Coffee - NZX, New Zealand's Exchange". www.nzx.com. Retrieved 8 January 2021.
  19. ↑ "Pizza Hut depresses Restaurant Brands result". NZ Herald. Retrieved 25 August 2022.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.