New Zealanders' continuing passion for fine foods and the success of franchising in this country is behind the sale of six Nosh Food Market stores.
Two of Nosh's eight stores are already franchised - in Auckland's Mairangi Bay and Mt Maunganui - and the other six (Glenn Innes, Pakuranga, Ponsonby, Green Lane and Mt Eden and Matakana) are being put on the market to replicate their success.
Tim Cook, chairman of the Veritas group which owns Nosh, says the Mairangi Bay and Mt Maunganui stores are out-performing the company-owned stores, one of the reasons for transitioning the chain to a franchised model.
"It's typical of franchises," he says. "You have a highly dedicated and motivated owner-operator watching every cost and making sure sales happen; they do better than managed stores. Franchising has proved itself here, especially if you have the right products and the right locations."
If the move to franchised stores goes well, Cook says the company will consider opening more franchised stores in new locations.
There is certainly an attentive market. Fuelled by popular TV cooking shows like MasterChef and My Kitchen Rules, New Zealanders are spending more on groceries than ever - about $20 billion a year, a 10 per cent increase, year-on-year, in the three months to the end of June, according to Statistics New Zealand.
That is a rise well above inflation and the country's population increase. The high-quality end of the market is an obvious stimulant, forcing some supermarkets to compete with premium food retailers like Nosh.
Foodies are likely to spend up to twice as much in total on food as regular shoppers - and are prepared to pay a premium for taste and quality. Within that overall context, value for money is still a factor as is local New Zealand produce and ethical considerations such as health and wellness, fair trade, organic or free range products.
"Another thing driving the market is immigration," says Cook. "There is a huge following of cooking shows and the wave of immigrants are also bringing new cultures, new foods and new ways of doing things - and people are keen to experiment."
Franchisees see those kinds of trends and patterns, he says, as they are intrinsically linked to their community and alive to their business opportunities: "Franchisees drive the business forward; they have their own opinions and ideas.
That is why Kiwis have taken so well to the "phenomenon of franchising" which, in the case of Nosh, has also brought the buying power associated with a band of individuals grouping together.
"Nosh is a great brand, a simple brand, it's New Zealand-owned and operated and very well recognised in the area of the market we cater to," says Cook.
Food giving customers pleasure and satisfaction is the goal; Nosh has an exclusive distribution arrangement with leading UK grocer Waitrose and a wide range of international food products including lines from chefs such as Heston Blumenthal and Delia Smith.
The move to fine foods began in the UK in the 1990s with Tesco's 'Finest' range, followed quickly by Waitrose and other chains lifting their emphasis on quality and taste and bespoke products.
That specialist knowledge is part of what Cook says the company is looking for in its new franchisees: "They will have to fit our brand and values and have sufficient capital to fund and run the business. They must have a passion for food and retail experience."
Franchisees can expect head office to take care of all supply arrangements (including pricing, trading terms, logistics and promotions); branded and private label products to boost customer loyalty; marketing and advertising; assistance with some store refurbishments and development; point of sale and back-office systems and operational support, including input into business plans; ongoing business support and systems; product sales benchmarking information; training support and operating manuals.