Modest increase in fast food store openings, but closures persist

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Domino’s opened ten new stores in the past year.

Christel Yardley/Stuff

Domino’s opened ten new stores in the past year.

Pizza lovers rejoice – pizza joints had the biggest increase in stores over the past year, while Nando’s, Pita Pit and Tank faced the most closures.

Location intelligence platform, GapMaps, has released its New Zealand 2023 Fast Food & Quick Service Restaurant (QSR) network report, providing insights into the store openings and closures for 18 brands over the 12-month period ending May 31.

Scott Johnson, GapMaps senior analyst, said during this period there was a modest growth compared to the year prior, with a net increase of 19 new stores after accounting for the closure of 18 stores.

Among the brands tracked across the year, Domino’s had the highest net store growth with 10, followed by Pizza Hut (seven), Sal’s Pizza (six), BurgerFuel (five) and KFC (three).

READ MORE:
* Why are Pita Pit outlets closing?
* Restaurant Brands lifts NZ sales by $51m; Covid closures cost it $26m

STUFF

Meet New Zealand’s youngest Domino’s franchise owners.(First published October 2020)

Domino’s NZ general manager Daniel Hawkins said the growth in stores was accelerated by a number of things, including the introduction of new building and design contractors; a greater understanding of Earthquake Building Strength (NBS) laws; and the development of the Domino’s Manager to Franchisee program which saw six store managers grow into first-time franchisees.

The report reveals that the majority of net closures took place in the first nine months and were concentrated among three brands: Nando’s (nine), Pita Pit (four), and Tank Juice (five). Tank Juice was also the largest brand to experience a net reduction in store count.

At least two Christchurch Pita Pit outlets have closed, as well as a handful in Auckland, including one in the popular Sylvia Park mall complex, two in Wellington and another in Redwoods, Rotorua.

Pita Pit has struggled to keep all of its stores open.

CHRISTEL YARDLEY/Stuff

Pita Pit has struggled to keep all of its stores open.

Chief executive Duane Dalton told Stuff in February permanent closures were due to shops coming to the end of their leases, the need for earthquake strengthening and – as in Sylvia Park – the impact of Covid-19.

Among the brands featured in the report, Subway maintained its position as the largest brand with a total of 242 stores, followed by McDonald’s (169), Domino’s (150), Pizza Hut (115), and KFC (113).

Carl’s Jr (15), Nando’s (20), and Wendy’s (22) were the brands with the fewest number of stores.

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