A look inside The Boiling Crab's first Australian restaurant in Melbourne. Photo / The Boiling Crab
New Zealand is top of the expansion wish list for international brands looking to enter new territories, a lawyer specialising in franchising says.
A string of international franchises ranging from fast food through to beauty treatments and medical services are preparing to launch into New Zealand over the next year or two.
Texas-founded seafood restaurant The Boiling Crab is one of a handful of United States-based and founded food franchises looking to enter the market.
The Boiling Crab, which originated in the small seaside town of Seadrift in the US, specialises in crab, shrimp and lobster meals. It is looking for a local franchisee to bring the brand to New Zealand who can commit to opening at least five restaurants within five years.
The business opened it first restaurant in 2004 and now has 24 locations throughout the United States, and three international restaurants located in Shanghai and two in Melbourne. The brand will soon begin expanding into New South Wales in Australia.
The Boiling Crab wants to partner and offer a 10-year license to the business, with the option to extend that for another 10 years, to a party with experience in the food industry, with franchising experience a bonus. The parent company would fly the local owner to the United States for six weeks of training.
The initial licence fee it is looking for US$50,000 per seafood restaurant. The lease and fitting out of stores would be a significant investment of between $3-5 million.
Stewart Germann, a franchising lawyer and managing director of franchising consultancy firm The Franchise Coach, said Kiwis who had been to America and Hawaii would be familiar with the seafood restaurant brand.
Germann, who is working with the brand and representing it locally, said The Boiling Crab would tweak its menu to suit the New Zealand market, like it had done in Australia.
"We're [New Zealand is] big eaters ... I think it will go really well here."
Germann said he had reached out to Restaurant Brands to see if the business was of interest.
According to the latest Franchising New Zealand survey, conducted by Massey University in conjunction with the Franchise Association of NZ last year, franchising in Aotearoa is a $58 billion industry. There are 590 business format franchisors in New Zealand and 70 per cent of those brands originated in New Zealand.
Beauty treatment franchise Phenix Salon Suites is another US-based business set to expand into New Zealand. The multi-disciplinary business that works to promote a number of beauty services under one roof, such as massages, nails, hair and make up, eyebrows and eyelash extensions, teeth whitening, piercing and tattoo services.
The goal with Phenix Salon Suites is to bring a number of services together in one place, and operate like a property management model, offering different rooms for hire for different operators and services.
Phenix Salon Suites has plans for a local master franchise to open 10 Salon Suites over the next three years. It will grant a multi-unit license for a minimum of 5 units to be opened over time at a cost of US$230,000 ($370,000). It is also open to granting a country master franchise that allows sub-franchising after 3 units are opened by the master at a country fee of US$250,000 ($400,000) for New Zealand.
Non-surgical medicine franchise QC Kinetix is also hoping to set up shop here. The US firm specialises in "regenerative medicine and offers solutions to health issues without the use of drugs or surgery", according to its prospectus.
Germann said he had already received a lot of interest in QC Kinetix as the medical and health services sector continued to expanded.
QC Kinetix was founded by a group of US-based doctors and today operates more than 100 locations internationally.
New Zealand was "franchising savvy" and an easy market to enter for overseas businesses, said Germann. He said the country did not have franchising-specific legislation, unlike Australia, the United States and most other countries, and was generally more affordable to enter compared to the likes of Australia, which made it an attractive destination for global expansion.
"There's a number of franchises looking at New Zealand at the moment and that is a very positive sign for the New Zealand economy," Germann told the Herald.
He said the consumer market was generally welcoming to new international brands, and he expected many more global brands to follow suit.
His pick is that more food brands would enter the market in coming years, along with more international fashion brands.
"In times of depression, it is food and clothing that people need. Some of the big name clothing brands will come in. We're all into fitness and leisure activities too, so I think that [area] could expand as well, and health services with hearing and eye sight."
Snap Fitness, another American import, entered the market about 10 years ago, and had proven hugely popular with locations up and down the country, Germann said.
Despite the Covid-19 pandemic temporarily bringing industries to a standstill with various lockdowns, international brands are continuing with their plans to open stores and restaurants within the market.
Luxury French retailer Van Cleef & Arpels recently opened in first New Zealand store on Auckland's Queen Street, joining a growing list of global luxury retailers operating stores this side of the Tasman, although most not franchise businesses. SC Luxury will soon open a store in Auckland.
Hollywood star Mark Wahlberg's burger chain Wahlburgers is set to open its first family burger bar in Auckland this year - in the former Euro restaurant site in downtown Auckland's Princes Wharf.
The actor, rapper and entrepreneur founded Wahlburgers in 2011 with his brothers, Donnie Wahlberg, who found fame as a member of 1980s boy band New Kids on the Block, and Paul, the chef behind Wahlburgers' menu.
At least four more New Zealand outlets are also planned, with Mustaca scouting Queenstown sites this weekend and Tauranga, Wellington and Christchurch the other likely locations. Up to 350 part and full-time jobs will be created, including around 75 in Auckland.
Australia-based hospitality group Seagrass Boutique Hospitality Group has signed an exclusive master franchise agreement with Five Guys to bring the brand to New Zealand and Australia.
The cult US burger chain known for its loaded fries, large burgers and thick shakes has more than 1500 stores operating worldwide and is set to open its first New Zealand store this year.
The business plans to open five to 10 restaurants in New Zealand, after opening 20 stores in Australia in Sydney, Melbourne, and Brisbane, starting in the middle of the year.
In an interview with the Herald last year, Seagrass Boutique Hospitality Group was obligated by the franchise agreement to open at least five stores in NZ.
However, he said he could see about 10 locations operating comfortably in the market.
It said it plans to open its first restaurant in Auckland but has not yet disclosed where.
The Government has committed funding to the sector in an effort to support future plans.