South Africa’s first Ribs & Burgers restaurant opened at Menlyn Maine in late September. A further 20 to 30 locations will apparently open in key metropolitan markets throughout the country over the next three years.
Ribs & Burgers takes the typical burger offering and adds a modern sensibility with a healthy twist. The size and format of the offering will be modified based on the locations chosen.
The best South African free-range, grass-fed beef, as well as free-range chicken will be served. Healthy, delicious sides and salad will be tailored specifically for this market, providing wonderful alternatives for those looking for a lighter meal.
The roll out in South Africa is being powered by Natasha and Savva Sideris, a brother and sister team with over 30 years of collective experience in the restaurant business, and best known for the tashas brand.
Nic Marot, who has over 12 years of experience in the food business as a seasoned restaurant consultant with a keen passion for well-sourced meat and healthy food, will be spearheading the new venture.
Thinking Of Going Into Franchising?
Do you think you have what it takes to be successful in the Franchising Sector in South Africa? Morne Cronje, Head of Franchising at FNB Business, says you need to consider the following aspects.
A lot has been said about franchising being one of the resilient sectors in our economy as it contributes approximately 13,3% to South Africa’s GDP. Thus, people might consider the route of owning a franchise in their entrepreneurial journey.
Morne Cronje, Head of Franchising at FNB Business says:
“Franchising has a lot of advantages than starting a business from the ground up as the failure rate in franchising is less than 10% compared to the high failure rate of traditional start-up businesses.”
Cronje shares the following factors that should be considered when going into franchising:
- Conduct research: Deciding to open a franchise can be daunting and exciting at the same time. Potential franchisees need to do a thorough research on the franchise industry before taking the actual steps to open one.
- Choosing a franchise that suits you – There is a wide variety of sub-sectors in franchising and entrepreneurs needs to select one that appeals to their interests and ambitions. The rule of thumb says; it is better to choose a sub-sector that you are passionate about. For example, if someone is passionate about food, it may be worth looking at franchises that appeal to such a passion.
- Shadow franchisees – Spend at least one day with a franchisee to get to know more about how they run their business. This will give you an insight on how franchisees (one who purchases a franchise) spend their time and what the key focus areas are to run a successful business.
- Location, location and location – If the franchisor (owner of the overarching company, trademarks, and products) has not identified a site, a franchisee will need to start looking for a location. On the other hand, if the franchisor proposes a site, you should still do an in-depth analysis to check the viability of the location. Check out the site with respect to size and affordability, access to utilities and security, proximity to your target market, visibility and availability of parking. The location of competitors is another important consideration.
Related: SA Fast Food Franchising On The Rise
“Just like any other business, don’t just go in franchising blindly; understand the pros and cons of the industry. It is highly recommended that you consult before choosing to own a franchise. At FNB, we provide financial and operational tools that are designed to accelerate and support the growth of franchisees,” concludes Cronje.
Franchise Award Winners Reflect Global Consumer Trends And Commitment To Growing The Economy And To Job Creation
The Franchise Association of South Africa (FASA) held its Awards for Excellence in Franchising sponsored by Sanlam with the winning brands reflecting what’s trending in worldwide consumer circles and cementing the franchise community’s commitment to growing the economy and to job creation.
The Franchise Association of South Africa’s Awards for Excellence in Franchising, sponsored by Sanlam, reflects what’s trending in worldwide consumer circles and cements the franchise community’s commitment to growing the economy and to job creation.
The results reflect trends identified by the Nielsen Consumer 360 survey, which looks at the key drivers that will shape consumer opportunities until 2025. It shows that as South Africa’s population becomes more urbanised, with different product and service needs for the Generation X and Y’s, there will be a keen focus on the health and wellness sectors.
Health and fitness: The trends to watch
The FASA Awards this year clearly reflected those worldwide consumer trends in health and wellness in the two top awards:
Kauai as Franchisor of the Year – who continue to ride the trend wave in the health food revolution are reaping the rewards for their innovativeness.
“We are thrilled to be judged ahead of the curve both in consumer trends and in brand strategy, says Guy Le Ray Cook, Franchising Executive for Kauai. “Not only have we had our best year in 22 years of trading with 25% year on year growth and 4% improvement on Net Profit percentage, but we have upped our game in introducing innovative communication strategies. From being the first to market with our new app that includes order ahead, loyalty and cashless payments adding a minimum of 5% additional overall sales in loyalty transactions – to introducing our K Konnect platform that allows everyone – from kitchen staff to franchisees to get information and share day-to-day experiences on a live cell phone platform.”
Body20 with their Brooklyn, Pretoria branch taking the Franchisee of the Year Award – who’s 20-minute EMS (Electro Muscle Stimulation) training per week, has revolutionised how we keep in shape.
So confident are Body20 that their revolutionary EMS Studios will become one of the most influential fitness franchise companies in the world – they are opening new studios in South Africa at a rate of almost one a month and have already broken into the USA market with great success. Says Bertus Albertse, CEO of Body20; “The combination of state of the art EMS Technology, modern personal training and rapid fitness results make Body20 the most exciting franchise opportunity in fitness this decade. It’s a low-staffing business model, with fast break-evens and impressive returns – our 36 outlets in just over three years attests to that.”
Communication is the key to success
What has shown up quite clearly in the 2018 FASA Awards is the franchisor’s commitment to assisting franchisees weather the economic hard times through innovative communication strategies – whether through their field service monitoring or reaching their markets through the latest customer loyalty apps.
- Kauai who took a second award in Brand Builder of the Year is leading the way by establishing successful customer loyalty apps with key partners such as through the 93 Virgin Active Health Clubs and through Discover Vitality and Discovery Insure – building their customer base, raising their brand awareness and boosting their bottom line.
- Kauai’s field service consultant Lawrence Lindeque won Field Service Consultant of the Year through the effective business monitoring and mentoring of the franchisees in his area resulting in double digit growths in all his stores.
Contributing to job creation
Job creation is on everyone’s lips since President Cyril Ramaphosa set a goal of creating half a million jobs in the next year. A tall order, one might argue, but with franchising’s duplication model, this is the one sector that can make a meaningful contribution – the sector’s 845 franchise systems, 40 500 outlets employing close to 400 000 people and contributing 13.3% to the country’s GDP – is testament to that.
KFC took the Job Creator of the Year Award – with their 20 500 employees across 1 053 outlets since they opened their first outlet forty years ago, they take the lead in making an incredible contribution to job creation. If one adds the indirect jobs they create through their supplier network and partners, their contribution is compounded and to be lauded.
Hall of Fame Award salutes Ian Fuhr, the man behind the Sorbet brand of Beauty Salons
Behind every successful brand is an entrepreneur with the vision to take a concept and build it into a household name. This year the Franchise Association have honoured Ian Fuhr, entrepreneur extraordinaire, who revolutionised the franchising model with his Sorbet brands by redefining customers as ‘guests’ and staff as ‘citizens’ – putting service and support ahead of sales and profit. The culture he installed in his businesses is that, ‘if the service is excellent and the citizens feel validated and cared for… the money will automatically follow.”
Sanlam, sponsor of the FASA Franchise Awards is proud to be associated with the Franchise Association of South Africa, the body representing the franchise industry in South Africa. “South Africa is in dire need of economic growth” says Kobus Engelbrecht, Marketing Head, Sanlam Business Market.
“Franchising is an effective way to create new businesses as well as new employment opportunities that will stimulate this much needed economic growth. By recognising and rewarding outstanding performance in the franchise industry, we are building and promoting franchising as a business concept as well as an excellent career option.”
Vera Valasis, Executive Director of FASA, who has just returned from representing South Africa at the World Franchise Council reports that, whilst the effects of global economic turbulence is affecting some countries more than others, almost all report that franchising is still alive and well and making huge contributions in their respective economies and to franchising globally. “As a global phenomenon, franchising remains one of the drivers of entrepreneurship, small business development and job creation.”
How Everyone Can Help With Youth Empowerment
Youth unemployment in South Africa is everybody’s problem, so we must make Youth Month a rallying point to tackle it afresh, says Cash Converters CEO Richard Mukheibir.
“It is quite simple – we must all look at ways to take on the challenge,” says Cash Converters CEO Richard Mukheibir. “The only rational and useful response is, ‘Yes, we can!’”
In recent years, youth unemployment, upskilling and empowerment have been key issues discussed in the State of the Nation Address. President Cyril Ramaphosa also recently launched the Youth Employment Service. But, says Mukheibir, this is not only a task for government – everyone in business can contribute to youth development.
“From mentoring interns to job creation, we can all offer our expertise and resources to help enable young people to build careers and their own businesses,” he says. “We should all look for opportunities to assist where we can.”
Franchising, for instance, is a way for independently minded individuals with a flair for business to build their own SMME even though they have relatively limited resources. At Cash Converters, for example, new franchisees need to invest a minimum of R1.5 million and receive a turnkey store with three income streams and supported by best-in-class systems and professional advice.
“This is an ideal way to make a mid-career move into making that dream of being your own boss come true,” says Mukheibir. “In the process, you will also be creating jobs for young people who can develop their skills and assets to follow in your footsteps in due time.”
Related: Cash Converters Franchise Listing
The Cash Converters franchise, founded in Southern Africa in 1994, now has more than 80 franchise stores. These have so far created more than 1 000 jobs, with nearly 60 percent of staff currently aged under 35.
“Each store employs an average of 12 staff, who support an estimated 60 people between them,” says Mukheibir. “These are franchisees contributing beyond their own families to the whole country’s economy and to social development and cohesion. Across the company, we also provide ongoing business training with more than 250 modules so far available on our innovative, in-house e-learning platform.”
One of his top pieces of advice to anybody wanting to develop their career is to choose a job or a business that offers a supportive environment. Interviews with the world’s top business people always recount their stories of how they got to the top because of advice and support offered by other experienced people around them, he notes.
“This is a concept that we know very well in South Africa – we call it Ubuntu,” says Mukheibir. “Our country’s youth needs and deserves a better future. We must be prompted by Ubuntu to reach out across the generations and give them that helping hand.”
Commitment to five core values – passion, professionalism, integrity, respect and collaboration – makes Cash Converters a brand with best business and best interpersonal practice at heart, Mukheibir believes.
“Anybody buying into a business should always take the time to assess such factors and not just the numbers and the bottom line of the deal,” he advises. “We all need hard work and energy to succeed but we also all need to share insights and discuss problems.”
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