Competitive Foods Australia

Competitive Foods Australia (CFA) is an Australian privately held food-service and restaurant-franchising company owned and operated by Jack Cowin. Its principal business is Hungry Jack's, the Australian master-franchise operation for Burger King Corporation. Through Hungry Jack's, CFA owns, operates, licenses, and oversees a large network of quick-service restaurants across Australia, with more than 400 Hungry Jack's locations identified in the available reference material. The company therefore functions not only as a restaurant operator but also as a national franchisor responsible for site development, franchise licensing, operational standards, and brand implementation. The Australian Burger King business adopted the Hungry Jack's name because the Burger King name was already registered in Australia by the operator of a small takeaway shop in Adelaide. When Burger King sought to enter the Australian market, it supplied its prospective franchisee with alternative names based on trademarks already associated with Burger King and its then-parent company, Pillsbury. Cowin selected Hungry Jack, a Pillsbury pancake-mix brand, and adapted it into the possessive form Hungry Jack's. The first Australian Burger King franchise opened in Perth in 1971 under the Hungry Jack's name. This created a distinctive arrangement in which an international burger chain operated under a different consumer-facing name in one national market. Hungry Jack's became CFA's central operating asset and the company's most visible brand. The master-franchise arrangement gives Hungry Jack's responsibility for licensing new operators, opening company-run restaurants, supervising franchise standards, and coordinating the Australian presence of the Burger King system. Although Burger King Corporation later attempted to establish its own Australian restaurants, a major contractual dispute ultimately reinforced Hungry Jack's position. In litigation arising from the franchise relationship, the Supreme Court of New South Wales found that Burger King had breached its agreement with Hungry Jack's and awarded damages. The dispute was followed by a restructuring of the Australian Burger King business: Burger King's remaining Australian operations were transferred through a New Zealand franchise group, and in 2003 an agreement made Hungry Jack's the exclusive Australian master franchisee for the system. Most remaining Burger King locations were subsequently rebranded as Hungry Jack's, although a small number of Burger King restaurants remained in New South Wales. CFA also previously operated KFC restaurants in Australia. In 2013, it sold all 44 of its KFC stores to Collins Foods for A$55.6 million, narrowing its restaurant portfolio and leaving Hungry Jack's as its dominant operating interest. A separate disagreement with KFC parent Yum! Brands emerged in 2007 over the proposed renewal of CFA's Western Australian KFC franchise agreement. The reported dispute concerned the value of properties associated with the stores and attracted political and media attention in Western Australia. CFA's present identity is consequently closely tied to Hungry Jack's rather than to a broad portfolio of consumer packaged-food brands. Its positioning is that of a large-scale restaurant franchisor and operator serving the Australian quick-service restaurant market, with capabilities spanning master-franchise management, restaurant development, franchising, brand standards, and food-service operations.

Competitive Foods Australia is an Australian food-service company whose principal business is the operation and franchising of Hungry Jack's restaurants. The company is owned and operated by Jack Cowin. Its commercial importance comes from its role as Burger King Corporation's Australian master franchisee rather than from the manufacture of packaged foods. Burger King's planned Australian expansion encountered a trademark obstacle: the Burger King name had already been registered in Australia by an Adelaide takeaway-shop operator. Burger King therefore required a different name for its Australian restaurants. Cowin selected Hungry Jack from a list of names connected with trademarks held by Burger King and its then-parent company, Pillsbury, and modified it to Hungry Jack's. The first Australian franchise opened in Perth in 1971. Hungry Jack's subsequently became the national vehicle through which Burger King's restaurant concept was developed in Australia. The business model combined company-operated restaurants with franchised and sub-licensed locations. Hungry Jack's was responsible for approving operators, developing new sites, maintaining brand standards, and administering the Australian franchise network. The company eventually became the dominant Burger King-related restaurant operator in the country, with more than 400 Hungry Jack's stores cited in the available reference material. The relationship with Burger King Corporation later deteriorated. After a 1991 renewal of the franchise agreement, Burger King alleged that Hungry Jack's had not opened restaurants at the rate required by the contract and sought to terminate the agreement. Burger King also began opening restaurants in Australia with Shell during the late 1990s and attempted to restrict Hungry Jack's expansion. In 2001, Cowin and CFA sued. The Supreme Court of New South Wales concluded that Burger King had breached the agreement and awarded Hungry Jack's A$46.9 million. The judgment characterized Burger King's conduct as an attempt to create a contractual default that would help it limit Hungry Jack's growth and pursue control of the Australian market. After the litigation, Burger King withdrew from direct Australian operations and sold its business and assets to Trans-Pacific Foods, a New Zealand franchise group. Trans-Pacific Foods administered the remaining Burger King restaurants until 2003, when Burger King Corporation and Hungry Jack's reached a new arrangement. Hungry Jack's became the exclusive master franchisee for both the Hungry Jack's and Burger King brands in Australia, received administrative and advertising support, and rebranded most of the remaining Burger King restaurants as Hungry Jack's. Burger King retained limited visibility in Australia, with only a small number of restaurants remaining in New South Wales according to the reference material. CFA also operated KFC restaurants for a period. In 2013, it sold all 44 KFC locations to Collins Foods for A$55.6 million. This transaction made the Hungry Jack's business even more central to CFA's identity. In 2007, before that sale, CFA had a separate dispute with Yum! Brands concerning renewal of its KFC franchise rights in Western Australia. Reports described disagreement over the value of properties associated with the restaurants, and the matter prompted public calls for inquiries by Western Australian and federal authorities. Today, the available material presents CFA as an active, privately controlled Australian restaurant franchisor and operator. Its principal capabilities are master-franchise administration, restaurant ownership, franchise licensing, site development, operational oversight, and marketing support for the Hungry Jack's network.

• 2013

  KFC portfolio divested

  [1]Competitive Foods Australiaen.wikipedia.org

  CFA sold its 44 KFC restaurants to Collins Foods for a reported A$55.6 million.

• 2003

  Hungry Jack's assumes exclusive Australian master-franchise role

  [1]Competitive Foods Australiaen.wikipedia.org

  An agreement returned control of the Australian Burger King franchise system to Hungry Jack's and led to the rebranding of most remaining Burger King locations.

• 2001

  Hungry Jack's wins franchise litigation

  [1]Competitive Foods Australiaen.wikipedia.org

  The Supreme Court of New South Wales found Burger King Corporation in breach of its agreement with Hungry Jack's and awarded A$46.9 million in damages.

• 1997

  Burger King begins opening Australian restaurants

  [1]Competitive Foods Australiaen.wikipedia.org

  Burger King Corporation, working with Shell's Australian division, began opening restaurants in Australia while its relationship with Hungry Jack's deteriorated.

• 1991

  Franchise agreement renewed

  [1]Competitive Foods Australiaen.wikipedia.org

  Hungry Jack's renewed its franchise agreement with Burger King Corporation, including conditions concerning restaurant expansion and third-party franchise licensing.

• 1971

  First Australian Hungry Jack's franchise opens

  [1]Competitive Foods Australiaen.wikipedia.org

  The first Australian Burger King franchise opened in Perth under the Hungry Jack's name because the Burger King trademark was unavailable in Australia.

Large-scale Australian quick-service restaurant franchisor and operator, centered on the Hungry Jack's master franchise.

• Quick-service restaurant chain and master franchise · 1971

  Hungry Jack's

  Hungry Jack's is CFA's principal restaurant business and the Australian master-franchise identity associated with Burger King Corporation. The network sells burgers, fries, beverages, breakfast items, and other quick-service meals through company-operated, franchised, and sub-licensed restaurants. CFA oversees operator licensing, restaurant development, brand standards, and network administration across Australia. The brand name was created for Australia because the Burger King trademark was unavailable there.

• Quick-service restaurant operations

  KFC restaurants

  CFA previously owned and operated KFC restaurants in Australia. The available reference identifies 44 CFA-owned KFC stores, all of which were sold to Collins Foods in 2013. KFC is therefore a former CFA operating line rather than a current flagship offering identified in the supplied material.

• 2007

  Yum! Brands and CFA franchise-renewal dispute

  CFA and Yum! Brands disagreed over renewal of the Western Australian KFC franchise agreement. Reports cited a dispute over the valuation of properties connected with the restaurants. The issue received local media attention and prompted calls for inquiries by state and federal governments.

  Source

• 2001

  Burger King Corporation v Hungry Jack's

  Burger King Corporation attempted to terminate its Australian franchise relationship by alleging that Hungry Jack's had failed to meet expansion requirements. The Supreme Court of New South Wales found that Burger King had breached the agreement and awarded Hungry Jack's A$46.9 million. The judgment stated that Burger King's conduct was directed toward engineering a default and limiting Hungry Jack's ability to compete in the Australian market.

  Source

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• 2013

  Sell the CFA KFC portfolioM&A

  Background

  CFA operated KFC restaurants alongside its Hungry Jack's business before divesting that restaurant portfolio.

  Action taken

  CFA sold all 44 of its KFC stores to Collins Foods.

  Aftermath

  The sale reduced CFA's brand portfolio and concentrated the company's operating identity on Hungry Jack's.

  Transaction value. A$55.6 million (2013)

  Source

• 2003

  Consolidate Burger King rights under Hungry Jack'sStrategy

  Background

  Burger King's direct Australian expansion followed a breakdown in its relationship with Hungry Jack's and unsuccessful litigation over the franchise agreement.

  Action taken

  Hungry Jack's became the exclusive Australian master franchisee for the Burger King system, while most remaining Burger King restaurants were rebranded as Hungry Jack's.

  Aftermath

  The arrangement restored Hungry Jack's as the principal Burger King-related restaurant operator in Australia and left only a small number of Burger King locations in New South Wales.

  Source

• 2013

  Competitive Foods Australia sells its KFC stores to Collins Foods[1]Competitive Foods Australiaen.wikipedia.org

  M&A

  CFA sold all 44 of its KFC restaurants to Collins Foods in a transaction reported at A$55.6 million, reducing CFA's portfolio of restaurant brands.

• 2003

  Hungry Jack's becomes the exclusive Australian master franchisee for Burger King[1]Competitive Foods Australiaen.wikipedia.org

  M&A

  Following Burger King's unsuccessful litigation and the transfer of its Australian operations, an agreement placed Hungry Jack's in control of the Australian Burger King franchise system and led to the rebranding of most remaining Burger King locations.

1. 1Competitive Foods Australiaen.wikipedia.org