- Players: Adriaan de Bruyn (left) and Kobie Malan
- Franchise: The Daily Coffee Café
- Established: 2013
- Visit: thedailycoffeecafe.co.za
In 2013, banker Adriaan de Bruyn gave up his job in the risk management department at Capitec Bank and decided to take his friends’ advice literally.
“They always made fun of me saying: ‘You’re sitting in coffee shops all the time, why not buy one so you can have coffee for free?’” he says. Today Adriaan is the Group CEO of The Daily Café Group and has expanded his coffee café franchise faster than he ever dreamed possible.
Entrepreneur sat down with Adriaan to uncover his formula for success. And it goes far beyond The Daily Coffee Café’s exclusive coffee blend and modern-meets-rural atmosphere.
How did the idea of The Daily Coffee Café come about?
I researched why only some coffee shops do well. The answer was what I’ve built the success of The Daily Coffee Café on.
People go to coffee shops to connect — food and drinks are secondary to the experience. I didn’t just want a typical coffee shop.
I wanted an atmosphere that would attract men and women. I told my brand designer I wanted an industrial look, with copper, steel and wood and dubbed it New York meets Karoo.
Related: Coffee Shop Business Plan
Describe The Daily Coffee Café’s growth path
After opening the first store in Paarl in 2013, it immediately took off. I opened another and it also did so well that my third café followed 18 months later. Patrons enjoyed what we offered and their interest in the concept was so overwhelming that I decided in 2015 to franchise the business.
I had my systems in place for profitability and no other coffee chain in South Africa offered this trendy and modern type set-up. They all looked like one another, even serving the same tasting coffee. It was time to introduce something with appeal.
Kobie Malan joined me as my business partner and together we focused on expanding our franchise nationally.
Our objective is to continue growing in all the major locations in South Africa and to bring our franchise concept within reach of all South African franchise investors.
Who is your ideal franchisee?
It’s important that the franchisee relates to and buys into the franchise; someone who’s willing to follow the rules and follow through on our systems.
We know what works and what doesn’t. But as we also encourage independent thinking, franchisees are given 10% leeway in what they want to offer.
Distinctive specialties are allowed in addition to our standard menu. For example, some of our cafés are located close to gyms, so their menus are tailored to the lifestyle and dietary preferences of these patrons.
Why is The Daily Coffee Café a solid franchise investment?
Not only the individual parts, but particularly the combination of what we offer makes investing lucrative and rewarding.
It’s affordable. For a financial outlay from only R900 000, the franchisee gets a stylish turnkey start-up business, operational within 45 days.
Growth is certain. The investment is made in a fast-growing and sustainable café life industry in South Africa where there is increasing demand for good coffee. And it’s made in our established and sought-after brand.
We offer dedicated skills transfer and back-up. Franchise fees are not fixed, but linked to turnover at 5%. It’s therefore just as important for the franchisor as it is for the franchisee that the franchise is successful and profitable.
The bottom line? An average return on investment of 48% is not to be sneered at.
How important is a new menu in the franchise landscape?
We feel good when we continually delight our clientele. We therefore vary our menu three times a year to provide for seasonal adjustments and to offer only the freshest ingredients. We consider what’s trending in the marketplace and, most importantly, we listen to, and implement feedback from our patrons.
Our policy to adjust our menu and our ability to do so with ease is a competitive advantage.
How much does purchasing a Daily Coffee Café franchise cost?
The capital investment is from R900 000 (excluding VAT) for a full turnkey café. A further R80 000 should cover the rental agreement deposit, opening stock and initial working capital.
No joining fees is required. Those who have bought in believed in our business even before committing to it. There is no need to pay to prove that.
What kind of training and support does The Daily Coffee Café offer?
During start-up our full team is involved to prepare the café for opening day. This includes shop fitting, recruitment and skills transfer to all members of staff. We also ensure that they understand and buy into the ethos of the business.
Our executive head office team consists of an operations manager, two corporate chefs, a corporate barista, a brand developer and a content writer, with Kobie and I actively leading the way in supporting our franchisees in matters ranging from managing their businesses through to quality control and refresher training.
Talk us through your expansion plans
Besides our home territory — the Western Cape — our objective is to escalate our expansion in KZN and Gauteng because the market between Cape Town and the main centres in these provinces isn’t that different.
We’ll continue to select smaller and modern boutique style shopping centres as locations for our cafés. Not only does the upmarket nature of these premises complement our stylish character, but it allows us to really showcase The Daily Coffee Café as the ultimate neighbourhood rendezvous where good coffee and pleasant company go hand in hand.
What makes The Daily Coffee Café unique to other coffee shops?
Our coffee is uniquely blended for us and is a special combination of beans that offers a cup above the rest.
Many coffee shops make the mistake of not playing for the crowd anymore. We blend our coffee specifically to go well with milk as 50% of our sales are cappuccinos. We’re not just selling good coffee or food, we offer an emotionally inviting space where patrons enjoy quality time with friends, conduct business discussions or enjoy precious me-time moments.
Besides free WiFi and comfortable chairs, every café has snug couches that add to the homely feel. In fact, interested franchisees often comment on how they felt at home when they first entered our cafés.
What does a franchise cost?
|Establishment cost||R900 000
|Initial stock cost||R30 000|
|Monthly royalty fee||5% of turnover|
|Average store size||150m2 to 200m2|
|Recommended staff||Up to ten, including manager|
|Average time to breakeven||Within three months|
|For more information email: firstname.lastname@example.org or visit www.thedailycoffeecafe.co.za.|
Spur’s Got A Taste For Success
With eight brands across five countries, the Spur Corp’s secret sauce to success has all the best ingredients — most importantly, its franchisees. Sacha du Plessis, Group Marketing Executive at Spur Corporation, explains the company’s 51-year journey in creating some of the most popular places to eat the world over.
What is the biggest contributor to Spur’s success?
Since the beginning, we’ve made an unwavering commitment to run restaurants that are operated by entrepreneurially-minded owners who put the customer first. Customer satisfaction is one of Spur Corporation’s most important value drivers, we partner with people who ensure we retain and grow a loyal customer base. We seek to work with franchisees who take pride in the training of their staff and prepare food with passion.
This mindset has been alive for over 50 years in our staff and franchisees.
Please share some of the challenges Spur encounters as a franchisor?
We have a sizable franchise network and a big priority is to ensure that we meet customers’ expectations in every single franchise they visit. Another challenge is finding the best franchisees to partner with, people who are aligned with our company values and customer orientation.
In terms of growth, it is sometimes challenging to find the correct locations per brand and to ensure the rental is at a level where it’s sustainable for the franchisee. The management of our marketing communication to ensure we remain relevant and distinctive in an ever changing landscape can also be a challenge.
Name a few of the qualities you look for when selecting franchisees?
Our business was built on a highly focused customer orientation and centred on a love for food. Our franchisees need to be focused on the customer: Pleasing the customer, meeting the customers’ needs and being willing to spend large amounts of time in growing a business that essentially is the hospitality industry and is really about people. Our franchisees are people who have an appreciation for, and love, food as well as serving their local community over and above their product.
Why is Spur a solid investment for entrepreneurs seeking to pursue franchising?
We’ve invested greatly in growing our brand over a long period of time. Spur was founded by our Executive Chairman Allen Ambor in the spirit of entrepreneurship. Over the past 51 years, we’ve built a track-record of comprehensive operational, finance, marketing, IT, training, procurement, distribution and development support. Our marketing approach grows sustainable brands in a considered and well researched manner.
Our customer scope is broad, so while our main brands are focused on the wider South African market, we also have niche brands. This track record reassures the franchisee and broader market about Spur Corporation’s credibility.
What kind of support can a franchisee expect when joining Spur?
Franchisees can tap into expertise that’s been built up over five decades. We provide franchisees with the most effective tools to help manage and sustain their businesses successfully. Our operational support is wide-reaching and includes access to procurement, development, logistical as well as IT support. Skills development is one of the most important ways in which Spur Corporation supports its franchisees to run successful businesses.
Marketing support enables franchisees to actively identify opportunities and get assistance in developing and implementing bespoke marketing plans for each restaurant. Most importantly, when a franchisee joins Spur Group he or she gets access to cutting-edge management know-how from an experienced team of people who are passionate about our business.
Why is it important for successful franchises such as yours to have a strong banking partner and how does it benefit the franchisee?
Buying into a brand is a substantial investment for a franchisee, so they need a banking partner that will help with financial planning and running the business. Nedbank has built relationships with franchisees while helping to open and maintain their businesses.
Muscle And Grill Is Your Daily Chef. We Provide Fresh, Nutritional Food At Affordable Prices
It isn’t always easy to stay in tune with both body and mind. We do all the prepping for you so that you can keep up your pursuit of greatness.
- Brand: Muscle and Grill
- Established: 2018
- Website: www.muscleandgrill.co.za
Muscle and Grill is a healthy fast food establishment based in South Africa. In the face of modern South Africa, lives spent on the go require a fuel to match their aspirations while maintaining a delicious, fast and fresh service.
As our lives swirl into life’s vast depths of opportunity, our bodies are often the product of poor health habits, while trying to keep on the move to achieve our goals. Muscle and Grill challenges this. We want to be able to support the South Africa of tomorrow by offering the food your body needs to keep reaching new heights – to keep pushing the boundaries of accomplishment with health food convenience.
At Muscle and Grill we’ve got you covered. We provide nutritional fast food that is fresh and affordable. We have your health at heart. You could start your day off with some free-range scrambled eggs or fresh oats – for lunch a mixed bowl of rice, protein and fresh vegetables – or to round off your day, replenish your mind and body with a hearty health-infused burger and all its wholesome goodness. We have not forgotten that home constitutes a hungry family who have all been active, so grab a lean beef pasta salad with some greens on the side to go.
Related: SA Fast Food Franchising On The Rise
It isn’t always easy to stay in tune with both body and mind. We do all the prepping for you so that you can keep up your pursuit of greatness.
It was once said that great ideas are born from ones’ frustrations. That is exactly how Muscle and Grill came about. Having no real on-the-go option to stay healthy, or having the time to prepare to be healthy, became a huge frustration for us. We struggled to find enough hours in the day to keep up with a busy lifestyle and still eat healthy while on the move. Our work came first and our lifestyles suffered.
The vision for Muscle and Grill is to make it possible to stay healthy on the go. We want healthy food to be easily accessible for all walks of life.
Our mission is to provide quality, healthy fast-food. The food we provide is delicious and will keep you coming back for more.
Muscle and Grill works on an almost self-service basis. The point of sale system is customer operated where you can select what meal you would like to have. Once payment has been processed electronically the kitchen staff will receive the order and prepare it to spec. Muscle and Grill will be a completely cashless business, making it super-efficient for consumers and business owners.
The concept of Muscle and Grill is partnered with Puré Frooty. Puré Frooty is a self-service smoothie bar which prepares smoothies for you at the touch of a button. You can have a store with or without a machine – the choice is yours. Both concepts look to promote the idea of healthy living on the go.
We’ve looked to compliment our values by looking after that which grounds us. Our packaging and utensils are all eco-friendly, as we believe ‘going-green’ is not just a choice of eating but of the environment too.
So, when you are ready to join the next revolution in the fast food industry contact Muscle and Grill at email@example.com or visit the website at www.muscleandgrill.co.za to inquire on our franchise options today. Achieve your goals, stay on the move and look after yourself through Muscle and Grill.
Nando’s Is Firing Up The East
Carlos Duarte has been part of the Nando’s brand since inception. When his brother Fernando co-founded the flamed grilled chicken brand in 1987, Carlos soon participated in its success and today owns four highly successful franchises in Johannesburg — three in the east and one in the south. Here’s how it all began.
- Player: Carlos Duarte
- Franchise: Nando’s
- Position: Franchisee
- Visit: www.nandos.co.za
What were you doing before becoming a franchisee?
I was in the audio visual technology field, as an employee. Then I joined Nando’s as an assistant manager in the Savoy and Rosettenville corporate stores. Franchising was my first experience of entrepreneurship.
Why did you decide to become a franchisee?
When my brother, Fernando Duarte, launched Nando’s in 1987, I noticed its quick growth and wanted in on the action. Being assistant store manager prepared me for when the opportunity to run my own store came along soon after.
What prompted you to partner with Nando’s?
I joined Nando’s in 1991 as a joint venture partner. At the time, Nando’s hadn’t yet franchised its operations, and the JV partnership meant the brand owned 51% of the business, while I owned 49%. My first franchise store was in Edenglen in 2001.
Describe some of the challenges of running not one, but four franchise locations
At the Edenglen store, we initially battled with sales and getting feet into the store. To be honest, I think the area was overtraded at the time, so it wasn’t the best location. Since acquiring the store in Lambton, Germiston, another in Greenstone and a third in Comaro, I’ve learnt to be cleverer in how I do things — and how I handle some of the same challenges — and learn every day from the brand itself.
Name some of the benefits you’ve experienced as a Nando’s franchisee
Nando’s is 31 years old this year. We’re in 30-odd countries worldwide with thousands of stores across the globe. As franchisees, we leverage off the dynamism of an operational business that’s known for its marketing — customers talk about our ads and they love our food.
What kind of support do you receive from Nando’s as a multi-unit franchisee?
Besides the popular marketing campaigns that attract customers, Nando’s has an extensive training manual along with a skills development training consultant who comes to the store for two days to help staff understand and implement it. The training is really effective — it has to be as this industry involves a very high turnover of staff and new skills need to be taught often.
Why is it important for a franchisee to have a good banking partner?
As a franchisee, your bank should understand your business — from operating costs, to overdraft needs and revamping expenses — so it has cash available for loans that can be approved quickly, with minimal hassle. On the technical side, a reliable mPOS device is imperative, especially for us, because 30% of our sales volumes are from home and office deliveries. It’s a fundamental method of payment every bank should provide its customers of a similar nature.
What advice do you have for budding franchisees on seeking out a good franchise brand and banking partner for their business?
- Do your research to ensure you’re partnering with a brand that is established, well-known and expect to pay a fair price for that franchise.
- Be aware of how the franchise brand is perceived in the market and what location opportunities are available to you as a franchisee.
- Choose a banking facility that always has the funds available to grow your business.
- Ensure the bank understands the brand’s business model and where you’re falling short.