Trouble for Burger King / Hell Pizza?
Quote:
Originally Posted by
BRICKS
STILL up and making Money..
Anyone see the NBR article on 19th December? The parent franchise company of Burger King and Hell Pizza in NZ, TPF Restaurants, is looking to sell both assets.
Burger King has "long been losing money as it struggles to find a market niche between the low end and gourmet food chains."
I must admit I never knew that. Always thought BK was profitable in N.Z.
Meanwhile TPF has been in trouble with the Hell Pizza master franchise creators for cheapening the brand.
"Earlier this year the company sent a memo entitled 'Improving Gross Profit Through Pizza Topping Standardisation'. to stores, telling franchisees to reduce toppings by 10-255 to boost margins , at the same time as it announced a price rise."
"The order to cut toppings was cancelled after complaints from Hell Systems, the company started by Hell founders Callum Davies, Warren Powell and Stu McMullin who sold the master licence to TPF for about $15m in 2006."
The article goes on to say that the licence was sold on the proviso that certain quality standards were maintained and that TPFs memo advice threatened to tarnish the brand image as Hell Pizza looked to international expansion.
Meanwhile the price of RBD shares has jumped significantly in the last few weeks on no news. Perhaps the private equity companies who have been running the ruler over their competitors now realise how undervalued RBD is? I am picking an RBD share price of 80c by the end of this summer.
SNOOPY
discl: hold RBD