The expansion plans of a new entrant to the New Zealand food service industry will be accelerated by two years, following an opening weekend that was 50 percent above forecast.
South Korean fried chicken chain NeNe Chicken has over 1,100 stores worldwide, including the USA, United Arab Emirates, Australia, Canada, Japan, Singapore, Hong Kong, Taiwan, Thailand and Malaysia.
Over 600 customers went through New Zealand’s first store, which opened in Auckland’s CBD.
New Zealand food producers are also set to benefit from the arrival of the new chain, which sold almost a tonne of chicken within its first three days of operation - a 50 percent increase over the projection.
The company had planned to open 18 stores throughout New Zealand by 2028, however, a surge in interest from potential franchisees has meant the nationwide roll-out will be brought forward two years to 2026.
The investment in the brand footprint throughout New Zealand will be in excess of $15 million, with 275 workers employed and an annual revenue of $75 million.
In addition, a surge in interest from entrepreneurs looking to purchase up to 20 franchises is expected to see the chain open in five more centres than expected during this time frame and expand revenue projections by an additional 10 percent.
The first store in Auckland’s Lorne Street will be followed up with locations in Newmarket and Sylvia Park.
Marcus Teh, general manager for NeNe Chicken, said the company met its revenue target for the week within the first three days of opening.
“In addition to those wanting to purchase franchises, the outlet was popular with retail customers with an average transaction value at $40 - which was surprisingly high,” said Teh.
The response was overwhelming, according to Teh, who said that trading was cut short by an hour on the first two nights due to running out of chicken, potatoes and even flour.
Teh said he was thrilled with the early success of the brand in New Zealand, which is already thriving in Australia.
ST Group holds the exclusive franchise and license rights to NeNe Chicken along with three other internationally popular food and beverage brands, PappaRich, Gong cha and Ippudo in New Zealand.
