- Burger Fuel stocks are on an upswing today
- The stock ended 3.2% up after rising 8.6% in early trade
- BFG has several plans for the future amid economic uncertainty
While FY22 remained challenging for the NZ-based burger chain, Burger Fuel Limited (NZX:BFG), the New Zealand business remained stable, the company's chairman’s announced in an address on 31 August. The Company stated that the New Zealand business remained strong and sustainable. CBD stores are picking up again as office workers and students return to work, as per the company.
The latest stores opened in Whangarei and Cambridge were both performing well. The success of these stores is prompting the group to look for other locations to open their stores, it added.
Winner Winner and Shakeout, the two major brands, faced several headwinds due to the COVID-19 pandemic, but the Group signalled that both these brands have a future in New Zealand and are developing significant resources in terms of cash and management for their growth in FY23 and beyond.
However, for FY22, these two brands represented 6.5% of the total sales of the group. In FY23, the group will continue to open new locations for each brand, and will do it in a very considered manner.
In FY22, the Company’s revenue remained stable at NZ$21 million. Its net profit after tax for the period was NZ$575,869, 19.2% down from previous year. The results are a reflection of the second year of COVID-19-related disruptions, including store closures during lockdowns. There were significant operating costs associated with setting up new stores and brands. Sales of BFG reported an increase of 6.2% in its three brands all across NZ. As on 31 March, there were 58 stores operating in New Zealand and 12 operating in the Middle East, with many reporting closures. Overall, the future of the Middle East business continues to be uncertain.
BFG Master Licence Holder in the Middle East ceased to operate the Burger Fuel brand in the United Arab Emirates. The operations there are likely to occur in a tentative way.
Despite all this change due to the pandemic, the Group will continue to deliver advantages for Burger Fuel and connect them to the customers.
The company is also focusing on product improvements and customer service workshops so that the customer experience can improve. Labour shortages and rising costs are being felt strongly in the hospitality sector, and the opening of international borders may not offer an immediate solution. The biggest challenge for the entire industry is to attract and retain a workforce, which is prepared to work consistently and towards management positions both in restaurants and at the headquarters, the company added.
BFG plans to focus on investing in a long-term recruitment plan with the intent of strengthening its position as an employer of choice. It will also work towards improving its position as an employer.
Becoming a more sustainable business will remain a key priority, the company added.