Tahua Partners buy Burger King
AUCKLAND: Fastfood chain Burger King has been sold to investment company Tahua Partners, the owners of the Starbucks franchise in New Zealand.
Receivers of the parent companies of the local Burger King business, Brendon Gibson and Grant Graham, of Calibre Partners (formerly KordaMentha), have signed an agreement for the sale of the business.
Subject to meeting conditions, Antares Restaurant Group Limited will be bought by Tahua Partners for an undisclosed sum.
Receivers hope to have the deal settled next week and Tahua Partners will take over the business from November 1.
The existing Antares management team will continue to run operations.
Burger King was placed into receivership in April, following mandatory store closures under lockdown due to Covid19, which had hit the business hard.
Even before the pandemic, Burger King had lost the support of its parent company Blackstone, which had decided not to put any additional equity into the business.
At the time of receivership, the chain had 83 stores and employed more than 2600 staff.
It has since closed five stores, and now operates 78 restaurants and employs 1800 staff throughout the country, according to a statement from receivers.
‘‘This is an excellent outcome for the business, staff, landlords, suppliers and loyal Burger King guests and we would like to take the opportunity to thank all of those stakeholders for their support through what has been an unsettling last six months,’’ Mr Gibson said.
‘‘Securing a goingconcern sale in the current environment is testament to the drive and commitment of Antares’ management team and all its employees,’’ he said.
Burger King is the thirdlargest quickservice restaurant chain in New Zealand.
In 2018, Tahua Capital bought the assets for the NZ Starbucks business from Restaurant Brands for $4.4 million, after a period of declining sales and unprofitable sales.
Tahua executive director, John Elliott, said the company planned to invest in the Burger King New Zealand platform and its people.
‘‘Our local industry experience means we are uniquely positioned to help the business achieve its full potential in the New Zealand market, and to ensure it’s a highperforming hospitality business delivering for its guests,’’ Mr Elliott said.
Burger King and Antares chief executive Michelle Alexander said the takeover was ‘‘fantastic news’’ and she was looking forward to working with a new owner who ‘‘understands the business and industry and who is committed to investing in the longterm future of the Burger King brand’’ in New Zealand.
‘‘This announcement is great news after an unsettling period. The Antares management team is excited for the longterm prospects of the Burger King brand in New Zealand under Tahua’s ownership as we continue to provide the best outcomes for the business, our loyal employees and supply partners, and our valued guests.’’
In April, in a letter to staff, Ms Alexander said Burger King’s inability to earn through lockdowns created significant financial challenges.
‘‘As you know we have applied and received the government wage subsidy, and this is assisting to pay all staff during the lockdown. However, with no sales since lockdown commenced, the company does not currently have the cash flow to fund trade creditors and rent payments,’’ she said at the time.
Since acquiring the Starbucks business, Tahua has opened three new stores and undertaken a major refurbishment programme which will get all outlets refurbished by 2023. — The New Zealand Herald