Restaurant chain Habitual Fix gets $6m to conquer America

  • News
  • May 20, 2015
  • Benjamin Mack
Restaurant chain Habitual Fix gets $6m to conquer America

It almost goes without saying that, even for the savviest company, overseas expansion is a tricky proposition. But opening thirty overseas locations in a very short time? Some would say it’s all but impossible, with or without large amounts of capital.

But that’s precisely what Mad Group, the folks behind Kiwi restaurant chains Habitual Fix and Mad Mex, plan to do.

The company hopes to open at least 30 Habitual Fix restaurants in the United States, beginning in Los Angeles with its first location set to open its doors in the first half of 2016.

“The market is very competitive but is dominated by junk food and huge corporations that act slowly,” says Mad Group chairman and group managing director James Tucker.

James Tucker

“US consumers are taking more notice of what they put in their bodies, and we want to be part of that shift towards ‘quality’ and ‘healthy’. By being a newcomer we think we can react quickly and also push the boundaries on new ideas.”

To help break into the ultra-competitive American market, the company has signed a 10-year Memorandum of Understanding (MoU) with an unnamed American partner. The deal is worth over $6 million in franchise royalties over the initial term. It can be renewed for another 10 years after the initial term expires at a franchise royalty rate of more than $1 million per year – making the deal potentially worth $16 million over 20 years.

“Signing this deal and opening in the United States will add to our credibility and, we believe, will assist in securing other international master franchise deals,” he says.

Tucker says he hopes there will be Habitual Fix locations in at least five different US states within five years. He adds that Mad Group has signed a MoU for Japan, and is also looking at possibly expanding to other countries. He also says Habitual Fix locations – which currently can only be found in the Auckland and Wellington areas – could soon be coming to the South Island.

Rapid growth is nothing new for Mad Group, which was founded in 2008. In 2014, the company placed eighth on the Deloitte Fast 50 list of New Zealand’s fastest growing companies, with growth of 723 per cent.

So could other Kiwi companies thinking of expanding abroad learn from Mad Group’s ambitious expansion plans? In borrowing from sportswear giant Nike, Tucker has simple advice.

“Just do it,” he says.

In pushing into the US, Tucker says changing trends in the land of Big Macs and super-sized sodas have helped create an opportunity.

“There is growing consumer awareness in the United States about what people are eating and the fast food giants are battling headwinds,” he says.

“Habitual Fix is well positioned to take advantage of this changing trend, and turn Americans into food junkies, not junk foodies.”

This article was originally published on Idealog.

This is a community discussion forum. Comment is free but please respect our rules:

  1. Don’t be abusive or use sweary type words
  2. Don’t break the law: libel, slander and defamatory comments are forbidden
  3. Don’t resort to name-calling, mean-spiritedness, or slagging off
  4. Don’t pretend to be someone else.

If we find you doing these things, your comments will be edited without recourse and you may be asked to go away and reconsider your actions.
We respect the right to free speech and anonymous comments. Don’t abuse the privilege.


Gem Retail Hotlist: Barkers innovates the in-store experience

  • Design
  • November 21, 2019
  • Catherine Murray
Gem Retail Hotlist: Barkers innovates the in-store experience

Barkers won the 'Hottest in-store experience' award at the 2019 Gem Retail Hotlist. We've investigated what made them stand out.

Read more

Gem Retail Hotlist: Nothing nutty about Pic's Peanut Butter World

  • Design
  • November 21, 2019
  • Sarah Dunn
Gem Retail Hotlist: Nothing nutty about Pic's Peanut Butter World

Pic's Peanut Butter World was the winner of the 'Hottest fit-out' award at the Gem Retail Hotlist this year. We found out more about its fabulous fit-out.

Read more

How do Kiwis do their Christmas shopping at Mighty Ape?

  • News
  • November 20, 2019
How do Kiwis do their Christmas shopping at Mighty Ape?

New Zealand e-tailer Mighty Ape surveyed 2,962 Kiwi shoppers post-Christmas last year. Among its findings are that Black Friday is officially bigger than Boxing Day among its audience, with almost four times as many products were sold on Black Friday compared to Boxing Day 2018. Cyber Monday, the online-only sale that falls on the Monday following Black Friday, has also proven to be popular with Kiwis. It now also outsells Boxing Day at Mighty Ape.​ ​It's presented further findings in a clever infographic.

Read more

Social scoreboard

Zavy and The Register have worked together to create a scoreboard that compares how the top 25 traditional media advertising spenders in New Zealand have performed on social media over the past 30 days, updated in real time.

Concept to closet
Business coverage of New Zealand Fashion Week.
Regional rollercoaster
What does retail look like in 2019 for ...
Town centres
A positive retail environment over the past 12 ...
Amazon Arrival
Keeping up with all things Amazon as it ...
The Retail Yearbook 2017
As we battle our way through the busiest ...
The future is bright
We spoke with four retailers in their twenties ...
Hospitality enhancing retail
Some think food and integrated hospitality offerings will ...
Spotlight on signage
At first glance, the humble in-store sign might ...
Red Awards 2016
The Red Awards for retail interior design celebrate ...
Auckland Unitary Plan
Auckland is changing. The Unitary Plan will decide ...
How to open a store
Sarah Dunn considers what it would take to ...
All things to all people
Kiwi retailers share their omnichannel strategies.
Rising stars
Retail's top young achievers.
Delivering on your promises
The sale isn't over until your item is ...
Retail in heartland New Zealand
Retailers keep the regions pumping, but how strong ...
Women in retail help one another. We spoke ...
The changing face of retail
Shifting demographics are creating big changes in New ...
The retail yearbook
With the help of experts in the retail ...
Retail rogues
We put the spotlight on staff training. Jai ...
Here come the giants
Topshop has arrived in Auckland’s CBD, David Jones ...
From retail to e-tail
Ecommerce has become part of the way mainstream ...
Loyalty in the digital age
How are retailers maintaining loyalty? Sarah Dunn, Elly ...
Window shopping: A spotlight on social media
Sarah Dunn and Elly Strang look at how ...
The Innovators | In partnership with Spark Business
Technology is rapidly changing the retail industry as ...

Introducing New World's 2019 Christmas ad

  • News
  • November 19, 2019
  • StopPress Team
Introducing New World's 2019 Christmas ad

New World and Colenso BBDO have unveiled this year’s Christmas ad, showing the generous Kiwi tradition of inviting every available Tom, Dick and Harry to Christmas lunch, resulting in many mouths to feed.

Read more

Raglan Coconut Yoghurt's Latesha Randall reports back from the US on what's hip and happening

  • News
  • November 19, 2019
  • Latesha Randall
Raglan Coconut Yoghurt's Latesha Randall reports back from the US on what's hip and happening

Latesha Randall is ​the co-founder of Raglan Coconut Yoghurt, a delicious dairy-free yoghurt born out of a beautiful town two hours south of Auckland. She previously documented the adventures of her company when it was a start-up in a column in Idealog – you can read it here. Recently, Randall traveled to the 2019 Natural Products Expo in Baltimore, USA and observed the food trends that were happening abroad. New Zealand foodies, take note: here, she reports back on what she thinks will be big contenders in the future food space.

Read more

Outdoor goods retailers Cactus Outdoor and Kathmandu collaborate

  • News
  • November 19, 2019
  • The Register team
Outdoor goods retailers Cactus Outdoor and Kathmandu collaborate

Two prominent Kiwi outdoor goods retailers, Kathmandu and Cactus Outdoor, have collaborated to produce a line of certified ‘Buy NZ Made’ products which will be launched in Kathmandu stores around New Zealand on Buy NZ Made Day this week.

Read more
Next page
Results for
About us.

The Register provides essential industry news and intelligence, updated daily. And the digital newsletter delivers the latest news to your inbox twice a week — for free!

©2009–2015 Tangible Media. All rights reserved.
Use of this site constitutes acceptance of our Privacy policy.

The Register

Content marketing/advertising? Email or call 022 639 3004

View Media Kit