BurgerFuel
TypePublic
NZX: BFG
IndustryRestaurants
Founded1995 (1995) in Auckland, New Zealand
FounderChristopher Mason
HeadquartersPonsonby, New Zealand
Number of locations
72
Area served
New Zealand, Saudi Arabia, UAE
Key people
Chris Mason, Josef Roberts, Peter Brook, Alan Dunn, Mark Piet, Tyrone Foley
ProductsHamburgers, french fries, wraps, soft drinks, milkshakes, ice cream
Revenue$82,800,000
$18,700,000
ParentBurgerFuel Worldwide Ltd
Websitewww.burgerfuel.com

BurgerFuel is a New Zealand burger restaurant and franchise with 72 locations in three countries (plus 1 mobile location unit), including 60 locations in New Zealand.[1]

The menu of Burgerfuel consists of typical fast-food fare such as hamburgers, beef and chicken dishes, and fries, as well as vegetarian and vegan dishes. The meal's names usually have humorous titles, such as the Bastard, Bacon Backfire, and the Chook Royale.[2][3]

History

In 1995, the first BurgerFuel opened in Ponsonby,[4] Auckland by Chris Mason. In 2007, BurgerFuel Worldwide publicly floated on the NZX. The company directors were hoping to generate $15 million from the IPO; however, they ultimately raised slightly over a third of that.[5] By 2015, the company had over 70 stores.[4]

In January 2020, te reo Māori advocates were worried that BurgerFuel's newly-launched 'Hoki Dokey' fishburger could strengthen the incorrect pronunciation of the word hoki (correctly pronounced as HAW-key).[6]

Expansion

On 5 May 2008, BurgerFuel Worldwide announced it had agreed to its first master franchise agreement with Dubai-based Al Khayyat Investment Group Investments LLC. They set up, and operated stores in Dubai, UAE by the end of the year.[7] There are two BurgerFuel stores in Al-Khobar, and 3 branches in Riyadh, Saudi Arabia.[8]

BurgerFuel won the "Franchise Export" of the Year award at the Westpac New Zealand Franchise Awards 2012. The judges praised BurgerFuel for not just selling high quality, gourmet products, but also for developing the company into a specialist exporter which sources raw materials from New Zealand wherever possible.. [9]

On 14 Jan 2014, BurgerFuel Worldwide announced a $5.9m injection from new US investor - Milford, Connecticut-based Franchise Brands (backed by Subway founders Fred DeLuca and Peter Buck) to fund global expansion. The purchase was for 10% of the company with the option to raise this to 50% over 8 years. They planned to assist with BurgerFuel expansion particularly into the United States market. BurgerFuel Worldwide shares immediately leapt 80% as a result to an all-time high of $2.70 per share. They have since reached a high of $3.15 per share valuing the company at over $170m. Subsequently, it has risen to be worth over $200m placing it as the most valuable company on the NZAX market. [10]

On 4 November 2014, BurgerFuel Worldwide passed NZ$200m (US$156m) market capitalization on the New Zealand Exchange for the first time and closed at NZ$226m (US$176m) which is a new record for BurgerFuel Worldwide.

On 4 June 2015, BurgerFuel Worldwide announced a partnership with California-based franchisor OhCal Foods as part of its plan to break into the US market.[11] Following the death of Subway founder Fred DeLuca, BurgerFuel Worldwide decided to enter the US market alone.

On 29 May 2017, BurgerFuel opened their first United States restaurant in Indianapolis.[12]

In October 2020 the store in Indianapolis closed ending their expansion into the USA.[13][14]

It was announced in March 2022 that due to the Omicron variant of Covid-19 all UAE stores except one in Dubai would close.[15]

Locations

A BurgerFuel restaurant in Auckland

BurgerFuel is made in New Zealand. BurgerFuel operates in three countries:

It is also looking to expand into Qatar, Libya, Lebanon, and China[17] and include drive thrus.[18] Expansion began in the South Island of New Zealand with the opening of a franchise in Christchurch. With the investment by US based Franchise Brands they were looking to enter into the US market with plans to open up to 1000 restaurants there. On 20 October 2014, BurgerFuel announced that they would be adding 5 more Australian stores by 31 March 2015 in Sydney, Brisbane and Gold Coast. By the end of 2018 no stores remained open in Australia.

On 24 October 2014, BurgerFuel closed its Iraq operations due to the growing threat of ISIS.[19] It reopened a store in Baghdad in 2016, but closed the stores on 8 January 2020 after Iran attacked two airbases in the country.[20]

Burger Fuel Group owns Winner Winner and Shake Out, other restaurant chains in New Zealand.

Controversies

Napkins showing nude women

Burger chain Burger Fuel is being ordered by the Advertising Standards Authority (ASA) to remove napkin tins in its stores picturing partially clothed women and the slogan "death to bad burgers". The ASA received two complaints about the napkin tins, arguing they were offensive and degrading to women.

Burger Fuel argued that the drawings were not explicit, the style was artistic and the napkin holders did not constitute an advertisement.

However most of the Complaints Board said the advertisement was offensive; the caricature of the two women was sexually explicit, showing them wearing only fishnet stockings in sexually suggestive poses, which were likely to cause offence to women, and people in general. The company apologised to those who had been offended.[21]

Burgerfuel 'bastard' billboard

Burgerfuel has been hit by a complaint to the Advertising Standards Authority (ASA) over the placement of a billboard featuring the word "bastard" near a St Mark's Church School, which is attended by 2 to 13-year-old students.

The billboard in question was for the BurgerFuel Bastard burger and showed a photo of the food item with the word "bastard" and the phrase "a punch in the face with a fistful of flavour".

The ASA noted that the ad had been "inappropriately located" close to the primary school, by the time the matter was considered the ad had already been removed because the advertising campaign had come to an end.

BurgerFuel said it has no plans to use the artwork again and that it was part of the company's marketing plan for the coming year.[22]

BurgerFuel "Player of the Day" award

A "Player of the Day" award that came with a free BurgerFuel meal has been found in breach of New Zealand's advertising code for children, because it targeted kids and encouraged them to eat an "occasional" food.

The sports award was designed to be folded into a trophy and included a cartoon of a person with a burger for a head. It entitled the bearer to a free kids' meal at Burger Fuel, and included a large logo for the burger company and the location of the nearest outlet.

A group called Healthy Auckland Together - whose 26 members include the Ministry of Health, Auckland Council, and the Heart, Stroke and Diabetes foundations - complained the award breached multiple advertising standards, promoted an unhealthy lifestyle and was socially irresponsible.[23]

See also

References

  1. ↑ "Former burger flipper's now the boss". Stuff. 14 December 2017. Retrieved 26 December 2017.
  2. ↑ "BurgerFuel brings New Zealand's original gourmet burger to Broad Ripple neighborhood". CBS 4 - WTTV. 27 September 2017. Retrieved 26 December 2017.
  3. ↑ Gladstone, Nigel (29 September 2014). "Burgers fuel worldwide expansion". Daily Telegraph. Retrieved 27 December 2017.
  4. 1 2 McCarthy, Phil (27 July 2015). "Burger Fuel heading to "Inverchargrill"".
  5. ↑ "Stock takes: BurgerFuel — net gain, market loss". NZ Herald. 7 December 2007. Retrieved 11 March 2011.
  6. ↑ Michael Daly (17 January 2020). "The problem with BurgerFuel's new 'Hoki Dokey' burger". Stuff. Retrieved 21 January 2020.
  7. ↑ "BurgerFuel lands in Dubai". Stuff.co.nz. Archived from the original on 6 May 2008. Retrieved 11 March 2011.
  8. ↑ "BurgerFuel Saudi Now Open!". Sa.burgerfuel.com. Retrieved 11 March 2011.
  9. ↑ "BurgerFuel has won the "Franchise Export" of the Year award at the Westpac New Zealand Franchise Awards 2012". www.burgerfuel.com. Archived from the original on 8 February 2013. Retrieved 21 November 2012.
  10. ↑ "BurgerFuel gets $5.9 mln injection from new US investor to fund global expansion". www.finance.yahoo.com. Archived from the original on 16 January 2014. Retrieved 14 January 2014.
  11. ↑ "BurgerFuel shares soar 21pc on US deal". www.nzherald.co.nz. Retrieved 5 June 2015.
  12. ↑ "Milktooth chef Brooks planning second local restaurant near downtown". June 2017.
  13. ↑ "BurgerFuel quits USA - Franchise New Zealand News". franchise.co.nz. Retrieved 3 November 2022.
  14. ↑ Foxcroft, Debrin (23 October 2020). "BurgerFuel founder loses fight to establish burger chain in the United States". Stuff. Retrieved 3 November 2022.
  15. ↑ Taunton, Esther (25 March 2022). "Burger Fuel temporarily shuts some NZ stores, announces closure of UAE outlets as Omicron bites". Stuff. Retrieved 3 November 2022.
  16. ↑ "BurgerFuel Store Locations - Find A BurgerFuel Near You". BurgerFuel. Retrieved 14 November 2022.
  17. ↑ "Kiwi burgers fuel Middle East". newzealandherald.co.nz. 5 May 2012. Retrieved 5 May 2012.
  18. ↑ BurgerFuel goes drive-through, The New Zealand Herald
  19. ↑ "ISIS forces Kiwi BurgerFuel firm to shut up shop in Iraq". Television New Zealand. 24 October 2014. Retrieved 1 November 2014.
  20. ↑ "Burger Fuel pulls out of Iraq as tensions rise in the region". Stuff.co.nz. 8 January 2020. Retrieved 8 January 2020.
  21. ↑ "Burger Fuel to pull napkin tins showing nude women following complaints". NZ Herald. 28 July 2017. Retrieved 5 June 2023.
  22. ↑ "Burgerfuel 'bastard' billboard hit with ASA complaint". NZ Herald. 16 September 2018. Retrieved 5 June 2023.
  23. ↑ "BurgerFuel Player of the Day award breached advertising rule, ASA says". NZ Herald. 20 December 2021. Retrieved 5 June 2023.
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