Carl’s Jr has a few teething issues
RESTAURANT BRANDS says its fledgling Carl’s Jr hamburger chain will become a ‘‘cashflow powerhouse’’ once supply chain problems have been ironed out.
Speaking at the listed cafe and fast-food company’s annual meeting in Auckland, chairman Ted van Arkel said most shareholders would be satisfied with their return over the past year.
‘‘Restaurant Brands is a business going from strength to strength,’’ Arkel said. ‘‘We have the core competencies, the financial muscle and scale to capitalise on any opportunities that do arise.’’
In May,
Restaurant
Brands, which also operates the Starbucks, KFC and Pizza Hut chains in New Zealand, reported that its total sales had increased by 5.9 per cent to $77.7 million during the first quarter of its 2015 financial year.
All four brands were recording sales growth, but chief executive Russel Creedy conceded the rollout of Carl’s Jr restaurants had been problematic. There had been ‘‘delays in getting local suppliers up to speed’’ with the stringent quality-control standards that were imposed by the United States-based franchisor.
‘‘Carl’s Jr is probably not where we would like it to be at the moment,’’ he said.
Creedy said quality assurance staff from the US had been work- ing with local the problem.
‘‘We’re probably only about halfway through this process but, give us about 12 months, and we’ll see some encouraging numbers.’’
Restaurant Brands was planning to build four or five Carl Jr restaurants a year until the chain reached 50 to 60 outlets across the country.
Responding to one shareholder who questioned why Restaurant Brands was not operating any of its franchise brands in central Auckland, Creedy replied that the company had struggled to find suitable sites.
‘‘Auckland city central has been a pain in the backside as far as we are concerned,’’ he said.
suppliers
to
solve ‘‘We have been desperately trying to find locations but it just hasn’t worked for us.’’
Restaurant Brands was also still absent from central Christchurch, after the earthquakes.
The company had lost four stores in Christchurch – three Starbucks cafes and a KFC outlet.
Creedy said four potential sites had been viewed in the last couple of months, of which two sites would probably be suitable.
Restaurant Brands was also ‘‘in a dialogue’’ with the US-based franchisor of Taco Bell to bring the chain to New Zealand, but no decision had been made.
Restaurant Brand shares opened yesterday at $3.34, up 21 per cent on their price a year ago.