4 Food & Beverage Franchises you can establish for under $250,000 - Iridium Partners
4 Food & Beverage Franchises you can establish for under $250,000
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Sunday, 13 February 2022

4 Food & Beverage Franchises you can establish for under $250,000

As store designs become more elaborate, build costs increase, coupled with ever growing compliance and planning costs, it is no surprise that many of the food and beverage franchise brands in New Zealand have entry costs of $450,000 upwards as a norm.

There are however viable options for far less, and here are four that you can establish yourself in for under $250,000 including franchise and training fees.

1. LJ’s Fish and Chips

Kiwis love their fish and chips! As New Zealand’s largest and most established national brand, LJ’s fish and chips have a proven formula and a load of experience at running a successful franchise system. They also have all the recipes and products that customers want.

LJ’s have refined not only their menu over the years but their store design and deliver. 

LJ’s offer two formats, a food court kiosk or a stand-alone store.  Combined with LJ’s in house design team and the ability to remodel or convert an existing food and beverage outlet, ingoing costs for a new franchisee can be as low as $150,000.

2. Jesters Pies

Jesters is one of the simplest franchise models to operate – the products are easy to make and sell, wastage is low and trading hours are generally very reasonable. Through their experience, Jesters also deliver a store design and build that is relatively simple and efficient, resulting in store builds costing just over the $200,000.

Jesters also offers the ability to generate sales outside the physical constraints of the store.  All new stores also come equipped with a pie van. Vans operate on fixed routes during the week delivering hot pies to business customers, and on the weekends they are perfect to cater to events and parties.

3. Streetwise Coffee

Streetwise Coffee operates designer built, takeaway coffee outlets across New Zealand.  Specialising in street/highway coffee for people on the go, selling on average 1.5 million coffees a year.

Operation from fixed locations, ensuring regular business but, because the carts are relocatable, franchisees are less exposed to the whims of landlords and traffic flows.

Streetwise Coffee has proved hugely attractive as a business proposition, with 15 franchisees operating 23 locations around the country. At around $155,000+gst, the carefully-designed carts offer a lower-investment entry point into the café business.

This philosophy works well as it helps maintain profitability and, unlike mobile vans, means no additional overheads such as fuel, rego or WOF.

4. Lord of the Fries

The Lord of 100% plant based fast food. Pretty sure this would not have been on too many lists 10 years ago, but plant-based food is now the fastest growing food trend in the world.  Heralding this category in New Zealand is Lord of the Fries.  Bruce and Baksho Craig fell in love with the brand and bought the master franchise rights from the Australian creators five years ago. 

Since then they have established 4 company outlets and rigorously refined systems and provided proof of concept in the New Zealand market.

With the first franchised outlet in Christchurch opening late 2021 to lines down the road, franchises are now available nationally. 

With three distinct formats, a container, a kiosk and a full-format restaurant with the option of being licensed, franchisees can swing over open sign or lift the container door for well under $200,000 including franchise and training fees.

What about the returns?

Don’t be fooled and fall into the trap thinking low-ish entry costs limit the revenue or earnings capacity of these brands.  In fact each of these brands have outlets which deliver and have the capacity and market appeal to drive revenue equal to some of the other concepts out there that are double the entry cost. 

And of course, in turn they can produce incredible return on investment ratios.

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Nathan Bonney
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