RBD - Restaurant Brands

[BRICKS]

Do not forget the pulling power of KFC as the reality of a slowing economy begins to kick in. As the opportunity cost of dining at the next tier restaurant/takeaway begins to weigh more heavily, KFC will loom large for many as a viable alternative.

The same goes for Pizza Hut, and lets not forget the rugby season has kicked into action. Last year there was a bit of a "turn-off" attitude from the rugby public because the top players were out of the game. This year a good number of the stars are already in the game, so expect the viewer numbers to climb again. And with it, the orders will come rolling in. Providing Pizza Hut can maintain their market share, then they should experience increased year on year sales without needing to significantly compromise margin.

Starbucks, I perceive coffee appreciation locally to be very much at a personal level. The places that make good coffee get to be known, for their coffee, their ambience, or both. This is why they get frequented by the locals. Of course, it is a bit more pot luck when you are "roaming". I like to explore New Zealand and speaking from personal experience, I can assure you that we have stopped for a cuppa at some terrible establishments whilst on our travels. I can also tell you that there is a primo barista operating out of Oamaru, although I have no idea what the name of the cafe is. For the roamer, Starbucks & the likes offer a safe bet. They have therefore established their place within the New Zealand coffee culture.

To my way of thinking the outlook for the group looks somewhat brighter than many of you have been suggesting.

GOOD ON you Witty about time we had a clear view of the way ahead and agree with your comments, RBD the bargain, as for Starbucks can see NO change on the way ahead in NZ as there is not the competition as in USA as stated before not much you can BUY in NZ on the NZX so just to say to every one just do your BEST..

[ratkin]

Which parts of Cornwall were you in Ratkin .... spend a bit of time over their with wife's rellies .... great place

Falmouth area where im from , parents still live their so go there often. my kiwi wife loves it, wants us to move to cornwall.

[ratkin]

GOOD ON you Witty about time we had a clear view of the way ahead and agree with your comments, RBD the bargain, as for Starbucks can see NO change on the way ahead in NZ as there is not the competition as in USA as stated before not much you can BUY in NZ on the NZX so just to say to every one just do your BEST..

So someone who has a positive view has a "clear outlook" while more realistic views are ignored or brushed aside.

Pizza hut is very shoddy and overpriced. Here in christchurch they ruined pizza hut by doing away with the sit down outlets (except northlands) and went takeaway.
Then they decided they would takeover the competition (eagle boys) . Guess what , as soon as they did that what happened? Hell pizza thats what , they all over town , have a more funky image , are cheaper and are the outfit more likely to be recieving a call during a rugby match.

As for KFC , you are underestimating the move towards healthy food and the impact of outlets like subway.
KfC very last century as my kids would say.

Starbucks , passing fad , many independent coffee shops now open doing a better job

[winner69]

Falmouth area where im from , parents still live their so go there often. my kiwi wife loves it, wants us to move to cornwall.

We make our HQ at a relatives place on the edge of the Percuil River .... last time we were over there we rowed across the river and talk a short walk through the fields to St Mawes and then got the ferry to Falmouth for the day ........ great part of the world isn't it

[Nitaa]

Milestone for minimum wage campaign
12:00PM Saturday March 29, 2008



Youth rates will soon be a thing of the past.
The minimum wage will rise to $12 an hour from Tuesday, but unions say they will continue to campaign to lift it to $15 an hour.

The Government announced the rise in December, saying it was meeting its obligation to New Zealand First and the Green Party under their post-election deal.

The change will affect about 140,000 workers and means the minimum 40-hour-week wage would be $480.

The Government has already raised the minimum wage once this term, to $11.25 an hour, which came in on April 1 last year.

Council of Trade Unions (CTU) secretary Carol Beaumont said campaigning to lift low wages was paying off.

"Unions campaigned for a $12 an hour minimum wage, and through agreements between Labour with both the Greens and New Zealand First, this has now fully delivered on it."

The abolition of youth rates will also come into effect on Tuesday, meaning 16- and 17-year-olds will see their minimum wage rise from $9 to $12 after 200 hours or three months, whichever is sooner.

Advertisement"National frequently talks about the wage gap with Australia but has so far failed to come up with any meaningful solutions," Ms Beaumont said.

"We know that they are on record wanting to cut workers' conditions, which will reduce wages, but they need to put their money where their mouth is and say how they will lift wages.

Ms Beaumont said the CTU argued for a three-pronged approach to address low pay, which comprised:

- lifting the minimum wage to $15 an hour;

- strengthening the rights for workers to be covered by industry wide employment agreements;

- and ongoing investment in skills, infrastructure and modernising work practices.

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RBD have 2 choices, take a hit on margins or push those cost on to the end user. With oil prices and wage increases, fast food oultlets will need to increase their costs by at least 10% over a 12 month period. If so then how will this affect demand?

[Grimy]

"With oil prices and wage increases, fast food oultlets will need to increase their costs by at least 10% over a 12 month period. If so then how will this affect demand?"

Probably not much, as all fast food outlets will be in the same boat - more or less.

[Nitaa]

"With oil prices and wage increases, fast food oultlets will need to increase their costs by at least 10% over a 12 month period. If so then how will this affect demand?"

Probably not much, as all fast food outlets will be in the same boat - more or less.

Then do you expect the fast food chains to absorb most of the costs?

[Dr_Who]

Fast food is a highly competitive with low margins. If RBD increase its price and the others dont follow, they will lose market share.

[Grimy]

Then do you expect the fast food chains to absorb most of the costs?

Whether they decide to pass on the costs, or absorb them, as long as they do much the same (and in the competitive industry they're in, they will know what each other are doing almost instantly), then there won't be any (or minimal) positional change between the competitors.
And general cost increases are also hitting other food providers, so I don't see that any particular chain/brand is going to be better or worse off in comparison with their competitors.

[Steve]

And general cost increases are also hitting other food providers, so I don't see that any particular chain/brand is going to be better or worse off in comparison with their competitors.

It comes down to negotiating power and who has the supply contract that comes up for renewal first.

Depending how often the supply contracts are renewed, one competitor may be re-priced next month, while another competitor may not be re-priced until next year.

It could make quite a difference in the short-term...