Fuel Disclosure

Ben Kepes has an interesting blog that I have just added to my list of recommendations on the right (He replaces Malcolm Gladwell whose blogging hasn't been regular). Ben is passionate about supporting New Zealand business. He wrote an entry about the float of Burger Fuel on which I left the following comment:


Disclosure: I haven’t had a look at Burger Fuel’s financial info (never got that far). Could be interesting/instructive.

I will venture some thoughts that are entirely speculative:

a) The pitch was wrong. Though the brand may be constructed to be ‘hip’ the bottom line is what investors want to know about. It is easy to get swept away with enthusiasm for your own brand story. After all you created it.

Burger Fuel are an OK product. I am not sure that it is outstanding. I took my son for a burger in their Parnell. 15 he may be but he can chow down on chili like a full on resident of the Baja peninsular. The BF menu promised it was a ‘Ring Burner’. I tried some. My tolerance is lower. It was as mild as a peanut butter and jelly. My own burger was promised to be a blue cheese wonder. But it had as much kick as a block of Pam’s mild value pack. The product isn’t exciting. It under delivers and relies too heavily on cute copy.

The proof of the burger is in the eating. Victor Kiam famously said “I liked it so much…I bought the company”. I am not certain that BF has enough raving fans for the brand to be a phenomenon. I rather like Burger Wisconsin - the food is very good and the hype is considerably more palatable.

b) Spending cash on television advertising to punt the float on the lines of - ‘would you like shares with that?’ hardly promises prudent management of my investment.

Children don’t buy shares.

I don’t know what other, more discreet, communications the company distributed but I’m thinking they have taken mistook the tastes of the market.

I think they are a cute business but I’d be more inclined to invest in something a little more distinctive.

To succeed beyond a successful distribution/franchise strategy I think Burger Fuel will need a magic spell to be anything other than a penny dreadful.

I’ve been wrong before (of course…but I did correctly call the sale of 42 Below).

Comments

  1. Ben Kepes10:49 pm

    Thanks for the link David - much appreciated!

    ReplyDelete
  2. But hybrid technology paves the way for plug-in hybrid technology which paves the way for all-electric vehicles.increase miles per gallon, fuel saver, increase gas

    mileageStill, hybrids run on gasoline, increase miles per gallon, fuel saver, increase gas mileage which is not an alternative to gasoline no matter

    ReplyDelete

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