Peter David Austin, chairman, Country Chicken – an
Australian quick service restaurant that claimed to be an international
brand – induced several businessmen from India to invest in the chain as
franchisees, and duped them. One of his victims was S Suresh,
proprietor, Thiruvikram Enterprises, Coimbatore, Tamil Nadu, who
incurred a loss of Rs 1.25 crore. He registered a case of cheating
against Austin.
In a series of exchanges via e-mail with FnB News, Suresh – who incurred a loss of Rs 1.25 crore – shared the Australian’s modus operandi. “Investors, including me, were induced to invest in the chain as franchisees. Austin produced a set of fabricated credentials and certificates, and would then use their money and resources to launch the brand and then disown them,” he said, adding that the Australian stated that the brand operates 420 outlets, but that was intended to mislead the franchisees.
“They actually made the dough and fried the chicken in a car shed, and supplied consumables that were too salty and unfit for consumption at unrealistic prices. In fact, the prices are inflated by 230 per cent. Obsolete fryers assembled in a garage were sold as branded ones for several lakh rupees,” Suresh added. His allegations were corroborated by Alena Kouzmenkov, the Queensland, Australia-based managing director of Slavlen Pty Ltd (which conducted trade as Country Chicken Russia).
She added, “I have been working in the top management of Country Franchising for the last three years, and am aware that a number of things were going on there as per Austin’s instructions. In fact, several ex-Country Chicken franchisees have filed cases against him in Australia and New Zealand. We also made a number of statements to the Australian consumer authorities and the Australian Franchise Association, and are waiting for him to be banned from undertaking any commercial activity here.”
Background
Suresh said, “Two years ago, I was looking for a business opportunity, and chanced upon a website that invited investors to become franchisees for Country Chicken in their respective cities. Lured by the returns it promised, I approached them. I was then directed to Star Quick Service Restaurants (SQSR), the company’s resident franchisee for the state of Tamil Nadu. It was located in Chennai and operated by Rama Krishna, who claimed to be a non-resident Indian based in New Zealand,” he added..
“During the meeting, I was presented with colourful brochures, credentials and testimonials for Country Chicken. Austin, the chairman of the company, called from Australia and assured me that as the brand’s first franchisee in India, my company would enjoy the status of the most-favoured firm. I was impressed and entered an agreement with SQSR – as directed by Austin – by paying a franchisee fee of Rs 8.50 lakh for a number of years,” he stated.
“In fact, I even obtained a licence to operate fine-dining restaurant named Country Chicken within a radius of 5km of the city limits. Upon inking the agreement, we set up a restaurant that was on par with the international standards, as directed by the parent company headquartered on Australia’s Gold Coast and SQSR. All aspects from the roof to the floor, the equipment and the interiors, were set up in a rented premises shortlisted by the consultants engaged by Country Chicken,” Suresh added.
“We spent about Rs 80 lakh to set up this outlet,” he said, adding that Rama Krishna and Craig James Baker, Country Chicken’s spokesman from Australia, conducted a press meet in Coimbatore early last year. At the event, it was announced that Country Chicken would be launched in India. As the brand’s franchisee for the southern city, Thiruvikram Enterprises bore the expenses, and an agency named View Points, based in Mumbai, conducted the event.
Shortly after it was launched, things started going downhill for Suresh. Distressed due to the cancellation of the agreement, he said, “When the outlet was ready to be thrown open to the public, the Australian firm terminated the services of SQSR. This was at the end of the first quarter of 2012. I was also instructed not to have anything to do with the Chennai-based company, to whom I had paid the franchisee fee.”
“The parent company sent the draft termination order, instructing that it be issued immediately, and assured me that I could continue running my business. However, I was instructed to be in direct touch with the 'parent company's headquarters', based in Australia,. Austin arrived in Coimbatore and inaugurated Country Chicken’s first outlet last summer, in the presence of the media and a number of eminent people,” Suresh added.
Over-priced consumables
Meanwhile, a Chennai-based glass vendor, Maria Marketing Corporation, sent a consignment of goods, whose invoice value was over Rs 32 lakh. It contained consumables imported from Australia, and was received by Baker, who was stationed in Coimbatore for almost three weeks last summer. Suresh said, “Based on Austin’s instructions, we paid a sum of Rs 10 lakh as an advance to Maria Marketing Corporation.”
“But I was dismayed when the consignment was opened, because I found over-priced ingredients like seasoning, batter mix and salt. My bankers rejected the invoices, stating that these were imaginary prices, and unviable for commercial operation. The cost of a uniform shirt was Rs 6,500, and that of a hat was Rs 4,800. The salt that would be sprinkled on French fries was priced at Rs 1,000 per kg, while the cost of the paper that would be used to wrap a burger was worth Rs 23,” he added.
“But the highlight was that an outdated assembled fryer, which should have been less than Rs 20,000, was priced at Rs 4.25 lakh,” Suresh informed, adding that Austin justified the exorbitant prices by stating that there were import duties and handling charges involved, and termed the salty taste of the seasonings and the batter mix a unique Australian taste. It was at this point that Suresh sensed that the viability of the store would be at stake, which would spell trouble for me.
“It was then that I decided to withhold payments. After a series of prolonged deliberation, Austin assured me that the stock would be transferred to Mumbai. Of this, about 50 per cent was transferred to an undisclosed destination. A month after we set up shop, they did away with the restaurant’s manager and staff,” he said. By then, Baker, who was managing the eatery at that point, also vanished, and Suresh was left to fend for himself.
“We had invested over Rs 80 lakh to set up the store, purchase all the equipment sourced by them. They launched the brand at our expense, and collected Rs 18.50 lakh for supplying rubbish in the name of consumables,” Suresh informed. He added that he was going through a great deal of agony due to the developments, and was startled when Kouzmenkov revealed that Country Chicken was a dubious entity, and that Austin – who projected himself as an icon – was actually a fraudster.
Current status
Suresh, who was conned into believing that Country Chicken had a world-class plant which complied with the Hazard Analysis and Critical Control Points (HACCP) certification and that its products adhered to Halal norms, was satisfied that it was prima facie a case of cheating. He directed the Crime Branch to investigate and lodged a first information report (FIR). Six entities and individuals named in the FIR.
These were Country Chicken, Australia; Austin, its chairman; Baker, the brand’s general manager; Jolly Banerjee of Maria Marketing Corporation, the Chennai-based master franchisee for the four South Indian states; Ravindran, manager, Country Chicken India, and Rama Krishna. Suresh stated that Banerjee owned Country Chicken’s flagship store, but three months after setting up shop, it downed its shutters for reasons best known to the company.
He said, “In the process, he lost a lot of money as well, because of the police case and the fact that he was subsequently nabbed and grilled by the Crime Branch officers in Coimbatore.” Banerjee was issued summons to report to the Coimbatore police with all the relevant documents and statements of accounts, as was Ravindran. The sleuths have also been trying to nab the Australian duo. It has been learnt that Austin has been trying to sell the All India franchise to a Mumbai-based entrepreneur.
In a series of exchanges via e-mail with FnB News, Suresh – who incurred a loss of Rs 1.25 crore – shared the Australian’s modus operandi. “Investors, including me, were induced to invest in the chain as franchisees. Austin produced a set of fabricated credentials and certificates, and would then use their money and resources to launch the brand and then disown them,” he said, adding that the Australian stated that the brand operates 420 outlets, but that was intended to mislead the franchisees.
“They actually made the dough and fried the chicken in a car shed, and supplied consumables that were too salty and unfit for consumption at unrealistic prices. In fact, the prices are inflated by 230 per cent. Obsolete fryers assembled in a garage were sold as branded ones for several lakh rupees,” Suresh added. His allegations were corroborated by Alena Kouzmenkov, the Queensland, Australia-based managing director of Slavlen Pty Ltd (which conducted trade as Country Chicken Russia).
She added, “I have been working in the top management of Country Franchising for the last three years, and am aware that a number of things were going on there as per Austin’s instructions. In fact, several ex-Country Chicken franchisees have filed cases against him in Australia and New Zealand. We also made a number of statements to the Australian consumer authorities and the Australian Franchise Association, and are waiting for him to be banned from undertaking any commercial activity here.”
Background
Suresh said, “Two years ago, I was looking for a business opportunity, and chanced upon a website that invited investors to become franchisees for Country Chicken in their respective cities. Lured by the returns it promised, I approached them. I was then directed to Star Quick Service Restaurants (SQSR), the company’s resident franchisee for the state of Tamil Nadu. It was located in Chennai and operated by Rama Krishna, who claimed to be a non-resident Indian based in New Zealand,” he added..
“During the meeting, I was presented with colourful brochures, credentials and testimonials for Country Chicken. Austin, the chairman of the company, called from Australia and assured me that as the brand’s first franchisee in India, my company would enjoy the status of the most-favoured firm. I was impressed and entered an agreement with SQSR – as directed by Austin – by paying a franchisee fee of Rs 8.50 lakh for a number of years,” he stated.
“In fact, I even obtained a licence to operate fine-dining restaurant named Country Chicken within a radius of 5km of the city limits. Upon inking the agreement, we set up a restaurant that was on par with the international standards, as directed by the parent company headquartered on Australia’s Gold Coast and SQSR. All aspects from the roof to the floor, the equipment and the interiors, were set up in a rented premises shortlisted by the consultants engaged by Country Chicken,” Suresh added.
“We spent about Rs 80 lakh to set up this outlet,” he said, adding that Rama Krishna and Craig James Baker, Country Chicken’s spokesman from Australia, conducted a press meet in Coimbatore early last year. At the event, it was announced that Country Chicken would be launched in India. As the brand’s franchisee for the southern city, Thiruvikram Enterprises bore the expenses, and an agency named View Points, based in Mumbai, conducted the event.
Shortly after it was launched, things started going downhill for Suresh. Distressed due to the cancellation of the agreement, he said, “When the outlet was ready to be thrown open to the public, the Australian firm terminated the services of SQSR. This was at the end of the first quarter of 2012. I was also instructed not to have anything to do with the Chennai-based company, to whom I had paid the franchisee fee.”
“The parent company sent the draft termination order, instructing that it be issued immediately, and assured me that I could continue running my business. However, I was instructed to be in direct touch with the 'parent company's headquarters', based in Australia,. Austin arrived in Coimbatore and inaugurated Country Chicken’s first outlet last summer, in the presence of the media and a number of eminent people,” Suresh added.
Over-priced consumables
Meanwhile, a Chennai-based glass vendor, Maria Marketing Corporation, sent a consignment of goods, whose invoice value was over Rs 32 lakh. It contained consumables imported from Australia, and was received by Baker, who was stationed in Coimbatore for almost three weeks last summer. Suresh said, “Based on Austin’s instructions, we paid a sum of Rs 10 lakh as an advance to Maria Marketing Corporation.”
“But I was dismayed when the consignment was opened, because I found over-priced ingredients like seasoning, batter mix and salt. My bankers rejected the invoices, stating that these were imaginary prices, and unviable for commercial operation. The cost of a uniform shirt was Rs 6,500, and that of a hat was Rs 4,800. The salt that would be sprinkled on French fries was priced at Rs 1,000 per kg, while the cost of the paper that would be used to wrap a burger was worth Rs 23,” he added.
“But the highlight was that an outdated assembled fryer, which should have been less than Rs 20,000, was priced at Rs 4.25 lakh,” Suresh informed, adding that Austin justified the exorbitant prices by stating that there were import duties and handling charges involved, and termed the salty taste of the seasonings and the batter mix a unique Australian taste. It was at this point that Suresh sensed that the viability of the store would be at stake, which would spell trouble for me.
“It was then that I decided to withhold payments. After a series of prolonged deliberation, Austin assured me that the stock would be transferred to Mumbai. Of this, about 50 per cent was transferred to an undisclosed destination. A month after we set up shop, they did away with the restaurant’s manager and staff,” he said. By then, Baker, who was managing the eatery at that point, also vanished, and Suresh was left to fend for himself.
“We had invested over Rs 80 lakh to set up the store, purchase all the equipment sourced by them. They launched the brand at our expense, and collected Rs 18.50 lakh for supplying rubbish in the name of consumables,” Suresh informed. He added that he was going through a great deal of agony due to the developments, and was startled when Kouzmenkov revealed that Country Chicken was a dubious entity, and that Austin – who projected himself as an icon – was actually a fraudster.
Current status
Suresh, who was conned into believing that Country Chicken had a world-class plant which complied with the Hazard Analysis and Critical Control Points (HACCP) certification and that its products adhered to Halal norms, was satisfied that it was prima facie a case of cheating. He directed the Crime Branch to investigate and lodged a first information report (FIR). Six entities and individuals named in the FIR.
These were Country Chicken, Australia; Austin, its chairman; Baker, the brand’s general manager; Jolly Banerjee of Maria Marketing Corporation, the Chennai-based master franchisee for the four South Indian states; Ravindran, manager, Country Chicken India, and Rama Krishna. Suresh stated that Banerjee owned Country Chicken’s flagship store, but three months after setting up shop, it downed its shutters for reasons best known to the company.
He said, “In the process, he lost a lot of money as well, because of the police case and the fact that he was subsequently nabbed and grilled by the Crime Branch officers in Coimbatore.” Banerjee was issued summons to report to the Coimbatore police with all the relevant documents and statements of accounts, as was Ravindran. The sleuths have also been trying to nab the Australian duo. It has been learnt that Austin has been trying to sell the All India franchise to a Mumbai-based entrepreneur.
Nsw Australian here also been frauded by Austin and his crew in exact same manner and still trying to follow up as have now lost home and still being threatened by silverchef company supposedly supplying of equipment that we dont have, so now going bankrupt :( sad times now for my kiddies, cost us $90,000 initial setup and extra losses of approxiamately $74,000 and now being threatened from supply company for $27,400 immediately 2yrs after the fact???
ReplyDeleteThe article is very good and informative. Thank you for the author.
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