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Westpac predicts NZ economy to pick up growth

The latest Quarterly Economic Overview from Westpac predicts more stability in the global economy and the NZ economy to exceed 3 percent GDP growth. Dominick Stephens, the Chief Economist of Westpac, writes, ‘The dramatic decline in interest rates over the past few months is going to be a game changer. Over the coming year we are expecting the global economy to stabilise and the New Zealand economy to pick up to above 3 percent GDP growth. ‘It is not all roses, however ... New Zealand businesses are struggling to pass on the cost increases that they are currently experiencing. Business confidence is low, and firms have become wary of investing or employing. This business malaise will be hard to shift, although it might ease a little over the year ahead. ‘No doubt some of this grumpiness relates to dissatisfaction with Government policies that have added to business costs, such as minimum wage increases, changes to employment law, and increased regulatory requirements. But an equally important aspect

Flying tonight! The BBC has recently highlighted a Bangkok restaurant with an unusual method of service delivery. Rather than carrying its speciality product to tables, the flaming chicken is fired from a catapult and caught on a spike attached to the helmet of a unicyclist. Customers are also encouraged to have a go (minus the unicycle).

is that firms are not confident about their ability to pass on cost increases. Technology changes and international competition have put more power in the hands of consumers, and moreover, demand isn’t expanding quickly enough for firms to be able to justify price increases.’ The cancellation of the proposed CGT ‘could go some way to alleviating the gloom among businesses in recent months, perhaps giving a boost to investment and hiring. It also significantly alters the outlook for the housing market. We now expect house price growth to re-accelerate to 7 percent next year. That in turn will help to underpin household spending growth over the next couple of years.’ This is worth noting because one of the factors reportedly affecting franchise growth in recent years has been the reduced equity that home owners (especially in Auckland) have been able to borrow against in order to fund new business ventures. House price growth should ease this and may bring new buyers into the market.

Don’t expect it to take off here – we shared the clip with former FANZ chairman Brad Jacobs, now one of the directors of rotisserie chicken chain Bird On A Wire, who wondered, ‘How does OSH handle flying flaming chickens?’

NZ’s Award Winning Franchise Law Team Khushbu Sundarji

Stewart Germann

Andrew Skinner


•Specialist franchise skills •Experienced business lawyers •NZ and international reputation

in brief • McDonald’s Corporation has announced its investment in New Zealand-based mobile engagement software company Plexure, which powers a version of the fast food chain’s global mobile app in 48 countries outside the US. It is the fast food giant’s first-ever investment in a mobile app vendor.

• The owner of one of New Zealand’s best-known retail franchises wants to ‘make the chain great again’. Mad Butcher has come under a lot of scrutiny following several closures, a court case and the sale of the franchisor company back into private ownership, but says it is now experiencing double-digit growth again.

• Australian fast-food chain Grill’d has taken meat off the menu for a day to draw attention to its plant-based alternative burgers. Founder Simon Crowe reckoned customers wouldn’t be able to tell the difference, and believes the business will make 50% of its menu plant-based by 2020.

• The Big Mac index is well-established as a way of comparing purchasing power between countries but now the company is becoming a diplomatic outpost, too. Under a new agreement in Austria, any US citizen in distress or whose passport has been lost or stolen can get assistance from their nearest branch of McDonald’s. – PUTTING PEOPLE IN BUSINESS

•A proven track record •Outstanding references

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Profile for Franchise New Zealand

Franchise New Zealand - Year 28 Issue 02 – Winter 2019  

Buying power – it’s one of the biggest benefits of joining a franchise. In our cover story this issue, we outline the many benefits that a f...

Franchise New Zealand - Year 28 Issue 02 – Winter 2019  

Buying power – it’s one of the biggest benefits of joining a franchise. In our cover story this issue, we outline the many benefits that a f...

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