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(Watch) Pick n Pay Franchisees Share Powerful Insights Into Running a Pick n Pay Franchise

Rudolf Bornman left his corporate 9 to 5 job and purchased a Pick n Pay store after seeking a franchise brand that aligned with his values. Here’s how he found the right franchise and banking partner.

Nedbank Franchising

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Watch this video of Rudolf Bornman, a Pick n Pay franchisee, on the franchise.

Vital Stats

  • Players: Robert Storey and Rudolf Bornman
  • Position: Franchisee
  • Company: Pick n Pay
  • Visit: pnp.co.za

How do you think being in the retail sector at corporate level helped you realise your dream of being a franchise owner?

Corporate helped me to gain the relevant experience that has enabled me to manage my business successfully. I started as a training manager in goods receiving and worked my way up to store manager.

I was later promoted to regional manager and then to general manager of Long Meadow Distribution Centre. This meant I had a good end-to-end view of the retail sector. I also completed my MBA at Henley during this time, which gave me a deeper understanding of the economic environment on both a micro and macro level and what factors will have an impact on your business.

Retail is very complex and as a good manager/owner you need to understand all aspects of the business to make it a success.

First, you need sound admin and accounting experience to ensure you manage your expenses and understand your business.

Related: Why Nando’s Is Clucking Its Way To The Top

Next, it’s important to drive sales growth through sales promotions, because without sales growth your business will suffer. Finally, looking after people (your staff and your community) is one of the key values for us and also a principle on which the founder of Pick n Pay, Raymond Ackerman, built this company.

It’s important to ensure you have happy staff who feel cared for. They need to be managed with clear rules, expectations and processes to protect them and your business. Our staff face our customers daily and need to deliver excellent service to them.

What was it about Pick n Pay’s values that appealed to you?

pick-n-pay-franchise

Pick n Pay is still a family-owned business and a very strong brand in the South African retail market. Its focus is on long-term sustainability and not just short-term profits. Head office continues to invest in the brand’s sustainability and long-term growth.

As a franchisee with your own long-term growth goals, this is appealing. The company also has strong values that are very familiar to us and align to our values. Both my business partner and I know the Pick n Pay store processes from store operation to support, and this is a huge advantage for us.

With tight margins, you can’t afford to make any mistakes. We just have too much at risk and need to ensure we minimise that risk and get a good return on our investment.

Pick n Pay is a growing company and this also gives us the opportunity to grow our business. We have the opportunity to buy or open more stores due to the growth of the company.

It’s therefore very important to us to get our business profitable and paid off as quickly as possible, enabling us to open more stores as multiple-unit franchisees.

Why did you choose franchising?

pick-n-pay-south-africa-store

My business partner, Robert Storey, and I wanted to run our own business. Franchising was the best way to enter the retail sector. Due to the competitive nature of this sector in South Africa, it’s important to be part of a strong brand to ensure that you as franchisee are successful and get a good return on your investment with long-term growth and sustainability.

Pick n Pay is a strong, established and successful brand, with a tried, tested, and above-all proven franchise model. While I was researching which brand I wanted to invest in, I looked at various business models and the Pick n Pay franchise model was the best fit for us.

We both had many years of experience in the corporate world, and the brand and its values were appealing to us. We’re proud to be ambassadors for this brand, and that’s the way franchisees should feel. You’re joining an existing system that stands for something.

Related: When You Need More Than A Sympathetic Ear For Your Cashflow Woes

What’s the biggest challenge you face as a franchisee?

pick-n-pay-franchise-store-layout

Cash flow, cash flow, cash flow. Without a positive cash flow, you’re doomed. You cannot manage a successful business without managing your expenses and purchases. Without stock, you cannot grow sales and without sales growth you’re doomed.

Second to this is staff. It’s a challenge to get strong and reliable management and keep good staff. People do get other opportunities in life and they will naturally go for those opportunities once presented to them. That’s why you need to treat your people with respect and dignity and always motivate them.

One of our key principles is to treat our staff like family; we put them first. As owners we have a responsibility towards our staff. You need to reprimand and build them, encourage them and reward them for good work done. We believe this enables them to deliver excellent service to our customers.

How would you advise aspiring franchisees on navigating the industry?

Make sure that whatever you do, you’re passionate about. We’re passionate about food; I love good food. We’re also passionate about the business and serving customers.

If you’re not passionate about retail, it will drain you and consume you. I’ve seen people who have lost everything they invested, but I’ve also seen many more people being incredibly successful in retail. It takes hard work, long hours and passion.

It’s also critical to plan and manage your family time, which is one of the main reasons why I have a business partner; together, we can share the load. You must decide what’s important for you before you start. For us, balance between work and family is essential.

It’s also important to take on a business that you have sound knowledge of. You can’t manage a successful business if you don’t understand the processes end to end. Cultural fit is also essential. Do you fit in with the franchise’s company culture and values? Are your values aligned with the company’s values? If the answer is no, walk away.

Related: Make Krispy Kreme Happen

You can’t change their values if misaligned. You’ll just end up frustrated and unhappy, and there will be conflict between you and your franchisor. It’s a lose/lose situation.

Successful franchisees need their franchisor’s support and vice versa.

Finally, brand strength is an essential ingredient. How well is the brand supported in the market sector you’re operating within? When customers have a choice between various brands in a specific area, where do they choose to spend their money?

This is a critical factor as we operate in a very competitive environment and consumers are all under pressure. Choose a brand that has stood the test of time and that you can associate with. You need to be proud of the brand, as you’re essentially a brand ambassador as well as a franchisee. When your customers experience that, then you’ll be able to grow your business.

Why is it important for successful franchises to have a strong relationship with their banking partners, and how does it benefit the franchisor and the franchisee?

pick-n-pay

It’s important for us to have the support of banking partners that fully understand the business model. We’ve looked at various financial institutions and Nedbank was very professional. In particular, they support and fully understand the Pick n Pay franchise business model.

Banking partners aren’t there just to assist with the upfront investment. It’s even more critical that you have the support of your banking partner once you’ve purchased the business. You’re under huge pressure to ensure you implement the correct processes to manage your business without impacting your customers, and believe me, this is a challenge.

You can’t afford a drop in standards as customers will leave and not return. As a franchisee you need to ensure you deliver high operational standards, are compliant with your franchising agreement and that you’re a good ambassador for the brand.

Good financial management is an essential ingredient for all of these factors, and the right banking partner will assist you in this regard.

Nedbank recognises the contribution franchising makes towards growing South Africa’s economy. Nedbank Franchising is all about partnerships – a concept we pioneered in the area of business banking in South Africa. With our client-centred philosophy ‘partnering with you to grow your franchise’, Nedbank Franchising offers clients a banking partnership founded on our willingness and ability to understand your franchise and provide you with a solution-driven service. Our unique approach allows us to deliver, through a single contact point, an integrated franchising solution centred on three key principles: localised decision-making with national support, access to specialised expertise and customisation.

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BEE

LFP Training – The ‘Agents’ Of Transformation

Implemented correctly, BEE has the potential to change the current status of South Africa’s economy. Add to that LFP Group’s focus on helping corporates to boost employee skills and engagement and upskill disadvantaged people across the country, and Louis Pulzone is aiming to make a real difference.

LFP Training

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LFP training

LFP Training is the leading provider of BEE aligned turnkey skills development training in South Africa, delivering innovative, industry-first learnership programmes to educate and upskill abled and disabled individuals in line with the BEE codes of good conduct.

LFP Training’s fully accredited learnerships are strictly aligned to BEE guidelines and allow companies to implement skills development.

To date, more than 700 companies have actively benefited from LFP Training’s solutions, reaching their desired target spend at a fraction of the cost. This solution is the most cost-effective way of implementing BEE initiatives while gaining maximum points.

The team at LFP Training comprises industry experts and combines years of experience with a passion for transformation, education and making a difference.

Today, both unemployed and employed, disabled and able-bodied people in all industries are actively benefiting and contributing to society, thanks to LFP Training’s turnkey training solutions and strategic partnerships. 

In South Africa’s tough economic environment, where unemployment levels are so high, how is LFP an ‘agent of transformation’?

It’s no secret that times are still tough in South Africa. Our economic inequality is one of the highest in the world and unemployment is still a massive concern.

While this is nothing new, the good news is that it has forced us to become more resilient and find new strategies. At a time like this, we need to invest in our people and kick-start the economy again. At LFP Group, we look to new strategies, growth and the upliftment of people to help shape the future. Being agents of transformation means that we look towards solutions for a better South Africa for tomorrow.

We also recognise that government cannot do everything. Our goal as LFP Group is to be a leader in our industry, helping government achieve its goals for reducing unemployment. Our aim is to forge ahead with a great public-private partnership strategy.

Related: Black-Owned Businesses Need BEE Compliance

What role do you play in transforming South Africa? Why is this important?

With the shortfall in education, responsibility has fallen on corporates to provide opportunities and to upskill employees. Many companies are filling the gap between what has been previously learnt and what is required in a practical job function.

By partnering with corporates, LFP can help companies to achieve their BEE objectives and gain access to rebates, while providing education in the form of learnerships. The stipend provided by corporates to learners is invaluable in mobilising learners to grow, learn and fill roles, while having financial security.

By providing a turnkey solution, all parties benefit from our all-encompassing approach — both on and off campus.

Each solution is accredited and optimised to ensure that both the learner and the business benefit from the skills acquired. Our offering has expanded over the years based on demand for further skills development and quality education.

As LFP Group we do not only consider transformation as a process of change and opportunities for individual employment; we see it as a way of transforming attitudes and creating hope for a nation that truly needs and aspires to be that country that does not live in the past, but acts in the future. We believe that transformation is the duty not only of state and politics, but every South African. We started by transforming our Group first, and now our vision has shifted to our country.

Why did you launch LFP? What was your goal, and how have you realised that goal?

Having recognised a critical gap for skills development to help address unemployment in South Africa’s ever-changing economic landscape, I founded turnkey training provider LFP Training in 2013.

The company’s innovative programmes are aimed at educating and upskilling people who have disabilities and who are unemployed, in line with the country’s BEE Codes of Good Conduct. More than this, I am truly committed to transforming not just the employment and skills development side, but my country’s quest for transformation. LFP Group is a platform where I could achieve that objective. I also believe in creating a winning team that echoes my vision and shares my passion to deliver that goal.

With more than a decade’s experience in the education industry, I am passionate about making a difference through education and saw a gap in the market for innovative training programmes aimed at educating and upskilling. By partnering with corporates, we have trained more than

7 000 learners with an excess of 700 clients paying R70 million in stipends directly to learners in stipends or salaries; this has resulted in a 100% pass rate in their BEE verification audits. This has a tangible impact on unemployment in South Africa.

Why is investing in people the single most important thing that businesses can do?

Addressing staff development and training is often low on the list of business priorities — but the relationship an organisation has with its employees can directly impact commercial success. Continuously evaluating, refining and improving your greatest asset — your people — can maximise their potential and bring wider business benefits; not least that individuals are happier and more motivated, and therefore more productive. In a recent survey on adult learning, 41% of respondents indicated that further education helped them improve the skills they needed to do their jobs.

Continually training staff means more of them will have up-to-date and relevant skills, which are valued and respected by the industry.

Continuing to develop staff not only adds value to the company, strengthens the workforce and improves workplace efficiency — it also improves job satisfaction, encourages loyalty and ensures commitment to the success of the business. Another final piece of our human investment capital is adding value to our internal staff, and that of all the clients and leaders of the companies we serve. LFP Group has created a specialised IP and as a leader in the industry I believe that we must educate and invest in the people we’re associated with.

Related: Scoring BEE Points

How should business owners and executive teams view training?

Education is a fundamental right, and everyone should have access to it. With a passion for education, I always look to a quote by Nelson Mandela, a true advocate for education: “Education is the most powerful weapon which you can use to change the world.”

This could not be truer. The private sector is having to fill the gaps in education and companies need to innovate to provide opportunities. In the fields of STEM there is a critical skills shortage, and we need to work together to empower and advance our country and its people. One of the most critical tasks we’ve focused on is training the leaders of industry.

Many business owners, CEOs and senior management, even shareholders of corporates, fear the mention of BEE and Transformation. The reason is simple: South Africa is not transformed enough, and this is part of our vision. We must ensure that as much as we service our clients and provide the services LFP Group has set out to do, we are slowly but surely penetrating the leadership market to educate and prepare them for transformation.

The policies of BEE are constantly in the spotlight because of the opportunities it can provide. By embracing it, companies and people are able to benefit from it wholly.

What is the role of BEE in South Africa? Why should businesses embrace it?

If implemented correctly, BEE has the potential to change the current status of our economy. B-BBEE addresses transformation in South Africa through ownership and management in companies, upskilling of employed and unemployed people and growth of the economy and smaller enterprises through enterprise and supplier development.

Investment in B-BBEE and compliance creates massive business opportunities for your organisation in the form of public sector contracts and business from other B-BBEE compliant companies. This provides a competitive edge.

As LFP Group we recognise that BEE and transformation in the labour and corporate sector, will be with us for a long time. As an industry leader we must be on top of our game and always be at the forefront of knowing our industry, and more vitally what is to come. This will allow us to address the historical imbalances and assure that all citizens in our country have skills and an opportunity for a long-lasting and sustainable job.

What does LFP Campus do?

The LFP Campus is a blended online learnership platform that makes it possible for clients to gain substantial points towards their skills development spend in line with the BEE codes.

Applicable to all industries, this popular offering avoids downtime and loss of productivity, while supporting flexibility, thanks to a blended online offering which can be undertaken outside of working hours.

LFP Training has not only aligned its online initiative to the BEE codes but also made it possible for clients to do so at a fraction of the cost — all while being eligible for government initiatives such as tax rebates, youth subsidies and other grants.

Clients are now able to claim the salary of an enrolled employee for the full duration of the learnership without compromising on their business’s operational requirements.

Clients can also claim more than 500% of the actual spend towards their skills development target spend.

LFP Group’s offerings

Youth Employment Services Implementation Programme

A staggering six million youth aged between 18 and 34 are still unemployed and this is the exact reason why LFP Group is coming to the fore.

With the Youth Employment Service (YES) initiative — officially gazetted on 28 August 2018 — aimed at creating one million jobs within the next three years, companies can now earn additional BEE benefits.

The LFP Group, in support of the YES programme, recognises the critical role that South Africa’s youth play in shaping the economy and our country. LFP now offers YES programme management implementation to benefit clients and individuals.

The offering includes:

  • Comprehensive assessment of the employer to determine YES eligibility and management of the entire project.
  • Recruitment of the youth and full registration of recruited youth onto the YES initiative.
  • Registration of the client on the YES initiative.
  • Coaching, mentorship, a personal development plan and key performance indicators.
  • Access to permanent placement opportunities for youth not absorbed upon completion of the YES initiative after 12 months.
  • Compilation of verification file containing supporting evidence for YES and B-BBEE recognition.

Related: BBBEE Employee Share Schemes – Should I Or Not?

LFP Permanent Placements

LFP’s attentive team of trained experts source talent in line with a company’s B-BBEE scale and predominantly recruit for roles in the fields of administration, healthcare, technology, retail and start-up hiring.

With a clear understanding of each clients’ needs and objectives, LFP Permanent Placements has a proven track record with a project completion rate of 97% and the remaining 3% attributed to unforeseen circumstances such as project shutdowns, health issues, relocation etc.

LFP Payroll

More than learnerships, LFP prides itself in providing its clients with a turnkey solution. For this reason, LFP not only handles recruitment, training, facilitation and paperwork for learners, but also takes care of outsourced payroll requirements.

LFP Group has a dedicated and trained administration team to handle the day-to-day management of a company’s learners’ stipends, temporary employees and permanent employees.

BEE CONNEX

Changing and adding suppliers is a complicated and tedious task, but as a company’s BEE needs evolve to meet the demands of new legislation and accommodate further company growth, the need for more knowledgeable and reputable suppliers becomes inevitable.

BEE-Connex is a first of its kind app, changing the way South Africa does business in the BEE industry.

It’s as simple as downloading the BEE-Connex app and signing up to the biggest and most reputable network in South Africa. Here clients receive a host of benefits including:

  • Enjoying hassle-free BEE.
  • Getting connected to the right supplier in just a few simple steps.
  • Gaining access to a comprehensive network of verified suppliers who understand and can meet your specific needs.
  • An easy, cost-effective solution to gain maximum points.

Visit www. lfptraining.co.za for more information

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Company Posts

Choose A Job You Love, And You Will Never Have To Work A Day In Your Life

Join Col’Cacchio’s 26-year-long love story.

Col'Cacchio

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Vital Stats

  • Joining fee: R125 000
  • Monthly management fee: 6% of turnover
  • Monthly marketing fee: 2% of turnover
  • Total investment: approx. R2.5m to R4.2m (turnkey) Size: 140m2 to 350m2
  • Unencumbered cash (before loan): 50% of total investment

(Above figures exclude VAT) 

“Owning your own restaurant is like owning your own future.” – Dominic Dempers, Franchisee Durbanville, Belvedere & Meadowridge Cape Town

We’re looking for passionate franchisees who will love our brand as much as we do.

Why you should join this delicious success story

colcacchio-pizza-franchise-dessert

  • Assistance with site selection & lease negotiation
  • Store design & build
  • Full training provided for management and staff
  • Marketing & operational support
  • Product innovation & menu development
  • Efficiency in all systems
  • Healthy margins.

Related: 300 Business Ideas To Inspire You Into Entrepreneurship

#FoodwithaStory

“Our journey started with a single restaurant on the foreshore with the aim to serve the very best pizza around” – Greg Mommsen, Business Developer Director

“Watching this brand grow and empowering people has been immensely rewarding. We have staff that have been with us for over 20 years. It’s like a family, we work hard, we laugh, we cry, we celebrate and of course, we eat a lot of pizza.” – Michael Terespolsky, Founder and Managing Director

“Becoming a franchisee is an amazing opportunity to join the family and become part of the Col’Cacchio success story. We’re 100% behind out franchises at every step, making sure that we all continue to learn and flourish” – Greg Mommsen, Business Developer Director 

“It has been filled with challenges along the way, but all the rewards have made every moment worth it.” – Michael Terespolsky, Founder and Managing Director

Related: Got An Awesome New Business Idea? Here’s What To Do Next

Visit www.colcacchio.co.za or call Tarryn Godley on 084 800 7264 and let’s get this adventure going.

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Travel At The Touch Of A Button

The revolutionary Travelit app has been developed for the global marketplace to meet your business travel needs.

Tourvest

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Travelit has launched an easy-to-use mobile app that simplifies the trip approval process, provides a full trip itinerary and assists in management of travel expenses.

“The app is designed in South Africa, for the African and global marketplace,” says Wayne Muirhead Chief Sales Officer at Travelit. “We have developed the app locally with our own developers, and opted not to use a white labelling solution.”

The app interface enables the requirements of travellers, approvers, users, as well as finance and procurement role players to be met so each trip is seamlessly planned and executed.

Stress-free financial administration

“Expense management is an integral part of the complete travel cost; businesses want to understand their complete travel bill,” says Wayne. This is why the app incorporates features that facilitate:

  • Capturing of photographs of receipts real-time
  • Immediate allocation of expenses to the correct description
  • Uploading expenses for workflow approval
  • Attachment of an expense to a travel trip, or generating a non-travel related expense.

Simplified trip approval process

In addition, approvers’ features enable simple visibility into the trip’s cost and details:

  • Approval of booking requests
  • Trip confirmation once trip has been successfully approved
  • Managing alerts — approval notifications, pre-trip notification as well as travel notifications
  • Out of office activation for approvers.

Related: How Travelit Makes Travelling Affordable For Small Businesses

Trip management made easy

With Travelit’s new app, travellers have the ability to update, create new profiles directly from their phones and update and store all their information, including:

  • Updating of profile details
  • Personal information
  • Visas, passports, meal types, seating preferences
  • Loyalty programmes.

As a traveller, when you are travelling, you require information, updates and access to your travel documentation in real time. The Trip Manager function provides you with this through the following functions:

  • View current, pending and past trips
  • Trip itinerary information
  • View trips that are awaiting approval
  • View supplier vouchers
  • Locate properties via the Map option
  • Boarding passes are available
  • Real-time alerts to travellers.

Related: Save Up To 25% On Your Travel Costs

Happy travels

“We have done a soft launch with the app and offered it to strategic users and clients within our ecosystem,” says Wayne. These corporates have enjoyed the functions within the app, such as:

  • Real time information for the traveller (itineraries, vouchers, boarding passes)
  • Approval notifications and the approval capability
  • Notifications
  • Contact information for the consultants after-hours, and assistance
  • Access to the traveller profile to ensure their data is updated and correct
  • Check-in to the airline.

The Travelit app is available in the Google Play Store and iOS Store. Travelit will make monthly app releases by offering users ongoing functionality and features.

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