TGI Fridays among fast food franchises with NZ plans

More fast food franchises are heading to New Zealand, with one popular American giant and another favourite among a handful of new venues set to launch in Australasia within the next two years.

Food icon TGI Fridays, which has more than 800 restaurant locations worldwide, has its sights set on venues in Auckland and Wellington and plans to open up to six restaurants across the country.

Auckland-based The Franchising Coach has signed a franchising licence agreement with global franchise marketing and advisory firm World Franchise Associates to find a master franchisor to establish the BBQ ribs and steak house in New Zealand.

As part of the agreement, The Franchising Coach will also grant the licence to bring sandwich chain Earl of Sandwich to New Zealand shores alongside seven other food and dining concepts including Teriyaki Madness and Norwegian electronic gaming hospitality venue Oche, specialising in virtual darts.

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Dallas-based TGI Fridays, often referred to as Fridays, has a turnover of over US$2 billion (NZ$3.48b) in the US alone and has operations in 55 countries. The brand was founded in 1965 and has a noticeable strong presence in airport terminals throughout America.

The family-style casual restaurant is endorsed by American actor Jamie Foxx. It once operated a single store in Christchurch but closed in about 2014.

Stewart Germann, founder of The Franchising Coach which has been tasked with bringing a number of international hospitality brands to New Zealand including the incoming The Boiling Crab, said the deal with World Franchise Associates would bring significant opportunity and investment to the tune of $5b to New Zealand.

TGI Fridays and Earl of Sandwich are yet to been established in Australia. Their launch in New Zealand will mark the first debuts in this part of the world and is expected to create at least 400 jobs.

“Fridays is an icon in the US with how they promote the menu, and they cater for families and children,” Germann said.

He said the brand was “a good fit” for New Zealand because it specialised in meat and BBQ food, and was confident he would find a master franchisor before Christmas.

The group expects the franchisor to commit to opening at least two restaurants, with approximately $2m initial investment needed for the master licence fee, training and to purchase equipment and fit out the first restaurant.

“Auckland could take two or three, you could have one in Wellington and Christchurch, and potentially one in Queenstown,” said Germann, of potential restaurant locations.

“International people coming to New Zealand for conventions will expect to see icon brands that are well-known worldwide here. That’s where TGIFs can fill a gap.”

Germann said there would be no more than six TGI Fridays to open locally as the brand would need to achieve critical mass to be successful in this country.

Despite the large number of food franchises and restaurants already established in New Zealand, or committed to setting up shop here, Germann said he did not believe that the market was crowded.

“There has been a lot of contraction in hospitality because of Covid, and I think a new brand in 2023 is just what the country needs. This is an iconic brand.”

Earl of Sandwich was founded in 2004 and has more than 48 stores spread across the US, Canada, the Philippines, South Korea and France. The brand opened its first international store 11 years ago and is expected to open its first New Zealand at the end of 2023.

TGI Fridays is expected to launch in New Zealand in 2024.

New Zealand’s franchising industry is growing and estimated to be worth almost $60b annually, according to Franchise New Zealand. It is expected to grow by a further 5% to represent about 15% of gross domestic product by 2025.

Franchise businesses currently contribute 12% to GDP, with the industry made up of 32,500.

Who else is on the menu?

Hollywood star Mark Wahlberg is bringing the burger chain he owns with his brother to Auckland.

Wahlburgers is expected to open in the next couple of months ahead of Christmas, in the former Euro restaurant site in downtown Auckland’s Princes Wharf. The venue can hold up to 240 diners.

Four other Wahlburgers family burger bars are expected to open in New Zealand, with executives from Wahlburgers scouting locations earlier in the year.

In Tauranga, the chain will open a location in Bayfair Shopping Centre, with other locations planned for Wellington, Christchurch and Queenstown.

New Zealand is also top of the wish list for US burger chain Five Guys, renowned for its made-to-order burgers, loaded fries and thick milk shakes.

Seagrass Boutique Hospitality, the group behind restaurants The Meat & Wine Co, Ribs & Burgers and Italian Street Kitchen, among others, has confirmed the chain would be coming New Zealand and Australia.

Seagrass had said it plans to open at least five Five Guys restaurants in New Zealand throughout the major cities, with its first expected to open next year. However, due to the Covid-19 pandemic it had run into a number of delays and can now no longer say when its planned first Auckland location will open.

Five Guys has more than 1500 outlets worldwide and has tested local demand for its chain with a handful of pop-up stores across New Zealand and Australia in recent years.

Louisiana-style seafood restaurant The Boiling Crab is on its way to New Zealand, with the master franchise agreement for the country soon to be signed.

The seafood chain has 23 locations, with so far just two located outside America, in Melbourne and Shanghai.

The Boiling Crab recently opened its first Australian restaurant in Melbourne and expects to open its first New Zealand location in Auckland next year.