Hope it's not the 1st of many! Now they done the exercise there must be a hit list - improve quickly or out
How much to set one of these up?
Was this one of many they purchased from Fosgren?
Printable View
I predict Avondale will be next. At first the customer service and attitude of the staff was fantastic and the chips were piping hot every time and the burgers great but their consistent inability over the last 18 months or so to serve hot fresh chips has annoyed me to the point I am extremely reluctant to go back. When I do there's hardly anyone there so the message has clearly got out that staff are simply not interested in decent service standards. Unless management learn that people don't want soft lukewarm fries and don't want to see heaps of others people's used wrappers on tables that aren't cleaned promptly the chain will struggle. I prefer Wendy's for their more reasonable prices, fresh good quality burgers, better attitude by service staff, cleaner tables, hotter fries e,t,c,
Don't start me about the grease and general unhealthiness of eating KFC.
I am guessing the answer to your last question is 'yes'. That's because IME, Restaurant Brands tend to operate their unprofitable stores until the lease is up, then close them. The leases would not have expired yet on any RBD company built store.
To set up a new build store from scratch I am sure costs over one million. But Carl's Junior as a chain is not profitable, once all those head office costs are apportioned. So closing down the loss making arms will be good for the RBD bottom line. The market likes the closure anyway. RBD up 6c in a weak market as I write this. Perhaps only selling the store to Veritas as a good franchise turnaround story would have brought a more favourable reaction?
SNOOPY
Looking back Otahuhu was a new store which RBD developed. Opened in late 2013 being RBD Q3. (Some substantial closure costs then?)
Since the initial razzamataz for the last year or so Carl's Jnr stores have averaged $36,000 per week (plus or minus a few hundred). Maybe some growing while others decline.
How sustainable are 7 day a week stores doing ~$1.8m pa?
Could be becoming a bit if a problem for RBD?
Snoopy - Carls barely breakeven at Concept EBITDA level and then there's over $3.0m annual depreciation and other HQ costs.
Concept assets $26m last accounts (book value) so your $1m per store setup might be a bit light.
I'm getting worried ...but small fry in big picture anyway
The CJ on Church corner, Christchurch is on another level of grossness..will run it lease out also me thinks.
At this rate RBD share price will be 6 bucks soon
Hell's bells or whatever
Never seems to go under a long term trend line
Well a few months later and yes risks abound with this.
Running to their shareholders for urgent new capital last year and then blaming an unexpected Christmas/New Yeat holiday for being late on the deal.
Best Wishes & Happy CNY
Paper Tiger
The 'dreaded Pizza Weevil', I am sure refers to RBD's ill fated foray into Victoria, taking over a state franchise that had gone bust. Millions further lost, this time for RBD shareholders, and the relics sold off to private operators was the result. A little bit different this time though. The American Pacific Pizza operations are doing OK, and the successful managment team in those territories remains in place. Plus unlike Victoria, the Pacific is not overrum with expat Italians who make darn fine Pizza which puts anything the Americans do to shame.
I don't particularly like this 'fast track to new capital' system that is now legal in New Zealand that RBD used to raise the cash to buy into the 'American Pacific'. There was something reassuring to me about a period of old school rights trading and discussion in the market. However, although the rights could not be traded, at least they were issued on a pro-rata basis (unlike for example Heartland Bank). That meant that shareholders who did not act still got some benefit.
Being significantly overweight in RBD myself before the capital raising, I took the opportunity to become 'worringly overweight' by taking up all my rights. This has paid off big time for me as the share price regains levels way above the discounted rights price level at which I bought in!
There are certainly causes for concern goiung forwards, with the much vaunted roll out of Carl's Junior in NZ seemingly not going to plan. And I wouldn't necessarily advise buying in at these lofty ( ~$5.60) share price levels. But while the KFC profit generating engine in New Zealand continues to fire, I am happy to hold.
SNOOPY