Hannahs investors take on Starbucks
The new owners of Starbucks in New Zealand also recently took over Kiwi footwear company Hannahs.
Experienced directors John Elliott and Roger Harper are two of the three directors of Tahua Capital, the company specially set up to take Starbucks over from its current licence holder, Restaurant Brands.
They are also behind a company called Maestro Cafes. Tahua’s third director is Anthony Carter.
Restaurant Brands announced yesterday that it was selling its licence to Tahua after introducing the US coffee brand to New Zealand 20 years ago.
Restaurant Brands chief financial officer Grant Ellis said Starbucks produced only a small portion of its revenue, about 4 per cent, and the chain had shrunk over the years to 22 stores.
He said Starbucks had struggled in Australia and New Zealand compared with its strong position in the United States.
‘‘We think a lot of that is to do with the existing coffee culture in both countries,’’ he said.
‘‘We had nearly 50 stores in New Zealand at one stage and a number of them struggled to make money, so we closed them.
‘‘The current business is profitable; it’s got a targeted market, particularly with tourists. A lot of our stores are handy to tourist places and students.
‘‘But the coffee culture in New Zealand is very strong and there are some very good brands that we have been competing against.’’
Restaurant Brands’ licence to run the cafes expires in October. Tahua will pay up to $4.4 million for the fitout and stock, and will seek to take over the leases with hopes of expanding the chain.
Starbucks’ 300 or so staff will be offered jobs with the same terms and conditions.
Meanwhile, Ellis said Restaurant Brands would concentrate on its core food businesses at home and overseas. It runs KFC, Pizza Hutt and Carl’s Jnr in New Zealand, 80 Pizza Hutt and Taco Bell stores in Hawaii and Guam, and about 60 KFC stores in New South Wales, Australia.
There has been much rumour as to whether Restaurant Brands will introduce Taco Bell, a Mexican-style fast-food chain, to New Zealand and Ellis said there was every chance, although no definite plans.
‘‘It’s very much on our radar screen. We see Taco Bell as having considerable potential in New Zealand and Australia and obviously our business in Hawaii has been going pretty well. So watch this space.’’
The sale of Starbucks is expected to shave about $1.3m off Restaurant Brands’ net profit.