RBD - Restaurant Brands

[lanenz]

I have never been a big fan of RBD. Clearly there are a lot of worse performers in the past. But they are going to be facing some real increases in their expenses. commercial property is becoming a lot more expensive, raw materials must have gone up and soon the minimum wage increase will kick in (im not sure if its this year or next) and that will have a hige impact on operational costs. I dont see any growth unless they diversify and more likely sales will remain static (except in south auckland).

[winner69]

quote:Originally posted by Snoopy
[br
RBD gives me impression of being a juggler with three balls that nevertheless can only keep two balls in the air at one time and keeps dropping the third.

Snoopy ... so you would worried that a recent NBR article quoted Vicki as really keen on introducing another concept ... plenty of money to develop/support another one she said

At least she said Taco's are not a goer in NZ .... but mentioned something in the fish line .... oh well with a name like Salmon probably has some deep seated yearning to own a chaon of fish and chip shops

Same issue had the story that Hell was on the market ....

[winner69]

... so the price of pizzas coffees and chicken and chips to go up .... quite a bit as well I hope

http://www.nzherald.co.nz/section/st...ectID=10374386

[warthog]

quote:Originally posted by Snoopy

Personally I think RBD should flick off Starbucks to the American parent (Starbucks Australia is IIRC fully American parent owned) and concentrate their efforts on KFC and PH.

The warthog says that - over time - even kiwis will realise that KFC and PH is rubbish food and slowly migrate to healthier (but still tasty) fast food. More interesting pizza, etc.

Starbucks is under attack from anybody who has a decent coffee grinder and a bit of an atmosphere.

RBD will bump along and ultimately might end up with the junk dealers.

[lanenz]

Good victory for the hard working staff of RBD. Albeit with a very small minority.

compared to many other countries around the world the labour laws arent too bad in NZ. In other countries where there is strong capitalism or communism you tend to see a big percentage in poverty. NZ is overall still lucky in this way.

What does this mean for RBD. Maybe increases around the 15 - 20% in their overall prices. If people stop buying the greasy food because of price then they have put themselve in a corner. You only had to see what happened to Georgey Pie.Generally their prices are very competitive so i see no reason why thet shouldnt up the ante. Long term view is that they still need to change their strategy especially in providing for the health conscience people. Im sure the likes of Nick Willis doesnt eat KFC because of the price.

[Gryffyn]

mmmmm Georgie Pie

[Snoopy]

quote:Originally posted by winner69


Snoopy ... so you would worried that a recent NBR article quoted Vicki as really keen on introducing another concept ... plenty of money to develop/support another one she said

Yes. I'm none too keen on spreading management resources even thinner. Or alternatively adding yet another branch of highly paid restaurant development managers to be supported buy those 'declining KFC restaurants' (that nevertheless remain the profitable heart of RBD) while yet another new restaurant concept is brought up to speed (very slowly and with plenty of wobbles. However, in fairness to the article, I think it said any such development would be two years away. Perhaps PH Victoria will be sorted out by then?

quote:
At least she said Taco's are not a goer in NZ .... but mentioned something in the fish line .... oh well with a name like Salmon probably has some deep seated yearning to own a chain of fish and chip shops

As Bongo said, Long John Silver's is the YUM fish and chip shop brand that RBD have access too. LJS doesn't have a big international presence though - only 34 stores in the entire world outside of the USA (vs 1200 inside). My fear for bringing LJS here is that it would have to be better than the incumbant competition. NZ is a land of close coastlines, fresh fish, and generally good fish and chip shops that offer good value. Is there a profitable niche for Long John Silver's in New Zealand?

quote:
Same issue had the story that Hell was on the market ....

Yes saw that too. Did I see that the founder thought that the Hell Pizza Chain would be a good buy for Dominos who are still 'struggling for presence in NZ'? I can only see it as good news for Pizza Hut if 'Hell' ever got consumed by the Dominos brand.

SNOOPY

[patsy]

quote:Originally posted by Snoopy


As Bongo said, Long John Silver's is the YUM fish and chip shop brand that RBD have access too. LJS doesn't have a big international presence though - only 34 stores in the entire world outside of the USA (vs 1200 inside). My fear for bringing LJS here is that it would have to be better than the incumbant competition. NZ is a land of close coastlines, fresh fish, and generally good fish and chip shops that offer good value. Is there a profitable niche for Long John Silver's in New Zealand?

Is Yum!'s LJS the same LJS that you can find in some malls in Auckland? If so, and if RBD maintains similar menu, practices and price range to those of such LJS, then I would struggle to see how it would fit with RBD's current positioning strategy.

LJS is possibly on the "healthier" side of the junk food spectrum, e.g., fish is really fresh, is cooked to order, prices are higher, cooking oil is claimed to be canola. Those, if retained, would mean a departure from the RBD's fast food product culture - bringing in a business unit that has a clash of business practices and positioning strategy is a sure strategy for disaster. However, this could be easily avoided by using the brand name but changing the product quality but, still, diversification of suppliers, etc. would grow exponentially the business relationships and complexity of RBD's operation.

Trying to expand product range in the expectation that a wider customer base can be captured is a sure recipe for disaster, and one of the worse strategic mistakes a company can make. To do so in the expectation that a firm may leverage off support/overhead resources by finding economies of scale shows shortsighteness rather than solid strategic thinking.

[duncan macgregor]

quote:Originally posted by lanenz

I have never been a big fan of RBD. Clearly there are a lot of worse performers in the past. But they are going to be facing some real increases in their expenses. commercial property is becoming a lot more expensive, raw materials must have gone up and soon the minimum wage increase will kick in (im not sure if its this year or next) and that will have a hige impact on operational costs. I dont see any growth unless they diversify and more likely sales will remain static (except in south auckland).

I remember the time that this dog sold its kennel to expand in Australia. I told SNOOPY at the time what a great mistake that was. I wonder SNOOPY now that we are further down the track with hindesight what your views on that are now. macdunk

[foodee]

Patsy - good post.
Fish - NZ is basically a harvestor of sea fish (therefore 'rationed'), there is some attempt at production (kingfish) up North - a 'high value' product. Salmon (no punt) is in the doldrums (you wouldn't think so looking at the prices!) because of the dollar. Thus if RBD is to go down this tract secured supply is a big factor.
Chicken - produced product and supply not a problem - unless 'birdflu' gets here! Incidently(whilst travelling) tried some hot spicy chicken-much better than original.
Have always wondered why venison is not consumed more-the industry is at rock bottom.