Mad Butcher tests concept store in Mosgiel

The Mad Butcher chain has opened its first concept store in Mosgiel. Photo supplied.
The Mad Butcher chain has opened its first concept store in Mosgiel. Photo supplied.
The Mad Butcher chain has opened its first ''concept store'' in Mosgiel as it prepares to expand the idea to other parts of New Zealand.

Mad Butcher chief executive Michael Morton said in an interview the mini concept store presented a new growth opportunity for current franchisees.

In Dunedin, there was one Mad Butcher store but the company realised it was missing out on sales in Mosgiel because people liked to shop where they lived.

''It's a way of being able to capture that local market. It's early days but we are very happy with the first four days of trading.''

The concept was a low cost strategy and three or four other franchisees were keen to be involved in other parts of the country, he said. A couple of sites were being evaluated and it helped if the sites had previously hosted a butcher and still had things like the chillers.

''A lot of little butcher shops had closed down. We don't rush into these things but we have to have a few up and running for evaluation.''

Other areas being considered for the concept stores included Te Awamutu, Taradale, Havelock North and Palmerston North where, like Dunedin, there was already a larger store. The Mosgiel store offered all advertised Mad Butcher promotions.

The parent store handled the bulk of meat processing and storage of other products, allowing the mini store to operate as an outpost with a sole butcher on site, Mr Morton said.

Mad Butcher Dunedin and Mosgiel owner Tony Coulston said the new store offered ''economies of scale, with most of the processing done in the main store in Dunedin and there is always a butcher on site ready to cut anything for anyone''.

Customers could also order other products overnight.

The Mad Butcher is owned by Veritas Investments, an NZX listed company focused in the food and beverage sector.

The shell company was formed in December 2011 and made its first acquisition of the Mad Butcher franchisor business in May 2013, through a reverse acquisition.

A further investment was made in December 2013 for 50% of Kiwi Pacific Foods.

In September 2014, Veritas acquired the Nosh Food Market business and in November the same year, it entered into a conditional agreement to purchase The Better Bar Company business. Shares in Veritas last traded at 88c.

 

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