Burger King deal fulfils dream

By IRENE CHAPPLE

Auckland entrepreneur Dennis Jones has captured control of Burger King New Zealand, cleaning out other shareholders in a deal understood to be worth up to $30 million.

Jones ousted two of his former business partners and 50 per cent shareholder Shell New Zealand in the whopper deal announced yesterday.

The buyout follows a similar rampage into the Australian Burger King operation, worth as least as much as the New Zealand deal.

Jones and business partner Mark Backhaus bought out New Zealander James Barger and Australian Graeme Plum - shareholders since 1994 - and now own 115 Australasian outlets of the world's second biggest burger chain.

Industry sources said the New Zealand deal for full control of the 60 restaurants, which hold up to 20 per cent market share and have annual sales of more than $90 million, would have been worth between $20 million and $30 million.

Jones swept through the Australian Burger King operation in April, buying 55 outlets from the United States-based Burger King Corporation, a unit of British food and drinks giant Diageo, and agreeing to service the remaining 23 franchises.

That deal was finalised only last week and the investors were in "the cauldron of a huge amount of decision-making right now," said Burger King's general manager marketing, Glenn Corbett.

The Australasian outlets will be operated under a new company, BK Australia, a subsidiary of Jones' present company TPF Restaurants. Burger King Corporation remains a minority shareholder, but Jones has control of the operation.

US-born Jones has lived in New Zealand for nine years. He has worked with Burger King since he joined 25 years ago as a 26-year-old assistant manager.

He visited New Zealand, "fell in love with it", and says his dream was to come here and run Burger King.

He said some of the investment cash had been borrowed but the rest had been saved over the years.

He planned rapid expansion of the brand and additions to the menu.

Shell has owned half of Burger King New Zealand since 1996, but its decision to sell was no surprise in the industry.

Shell's retail manager Bruce Emson said the burger business was no longer considered a core interest for Shell in New Zealand.

He said the investment had been successful for Shell and for Burger King.

Eleven joint Shell and Burger King operations will remain in place.