Also they take have a staff member wandering the queue who will take your order and give you a pick up time. Then Mrs. better half can take you shopping till pick-up time. Not the cheapest way.
Printable View
Apparently Chris Mason who owns the store still owed BFG in September for the final instalment of the purchase price for acquiring the store which was due March 2020. Chris was the founder of Burger Fuel and I think still owns over 10% of BFG stock - if it isn't open by now then you have to wonder if BFG will ever see their debt repaid or whether it will ever open its doors again.
Update - The Indianapolis Store is closed permanently.
BFG has bought back shares off a related company of Chris Mason for no cash consideration to settle the outstanding and overdue debt and cancelled the US master franchise. The deal was done at 39c per share.
Annual result: https://www.nzx.com/announcements/373147
$0.7m net profit.
Reiterates policy of no use of 3rd party delivery networks. I really don’t understand the reasoning here and would like them to show the figures. The stores are losing a huge amount of business by not enabling this, it really doesn’t make any logical sense to not do it.
Edit to add: I absolutely LOVE the Winner Winner chicken - so amazingly good.
Got this response from investor relations regarding the issue of not using delivery services:Regarding delivery, BurgerFuel has chosen not to Regarding delivery, BurgerFuel has chosen not to partner with delivery aggregator companies for a number of reasons. One is due to the extremely high commission fee they charge. Our priority is protecting our franchisee's profit margins.
Another is that BurgerFuel's instore environment differentiates us from competitors and we believe our food is best enjoyed in store, hot off the grill. With delivery companies, the product can arrive sub-standard with regards to product presentation and freshness (i.e luke warm) and the onus is still on the restaurant from the customers perspective, as opposed to the delivery platform. Delivery drivers can create traffic and congestion in store that can impact on our speed of service and general atmosphere. There are other cons, such as a loss of communication to our end customer also.
We have just released a new burger box, which means our burgers now travel exceptionally well, remain hot and look great if you cannot get stuck into one straight away - however, I cannot confirm if launching our own delivery service is in our future. What I can tell you, is that it would be a more likely scenario than partnering with a delivery platform like Uber Eats! :)
Delete see below
BFG surely has to be one of the most disappointing listings on the NZX.
They clearly do not care about shareholders. They virtually never give updates on their business or strategy, and have never attempted, or even considered paying a dividend.
They failed to grow overseas, and frankly now appear to have given up. How many times have they talked about growing, or becoming more profitable? They haven't done either in years.
It amazes me how the leading premium burger joint in New Zealand, with 87 stores, has never made a profit over $1.5m. Costing around $25 to get a burger, drink and fries you would think they will be pulling in decent margins.
Its all summed up in this Mcdonalds movie scene https://www.youtube.com/watch?v=uxCL2RqCuiY
It might as well say " Burgerfuel if you're not making money hand over fist somethings wrong" I certainly believe something is wrong and a page from Mcdonalds would help a lot. A franchise as successful as Burgerfuel doesn't own any real estate for a standalone store surprises me to the worlds end, what are these guys doing. At this rate they might as well get me to run their business.
They only own a few of those 87 stores, the rest are franchised for which they receive 4% of sales if I recall correctly. They have pivoted somewhat from attempting to expand burgerfuel internationally, to instead expanding into multiple brands in the local market with their new offerings “Winner Winner” (chicken restaurants) and the fast service “Shake Out” burger stores.
I actually really like the winner winner product.
But yes can’t disagree with the fact it must have been a very disappointing investment for long term shareholders. However it’s so dirt cheap now one would think there is a potential for a large rebound if there is even just small growth in business.
there are far cheaper (under-valued) shares out there with less chance of going belly up I reckon :rolleyes: