Connect with us

Company Posts

(Watch) Ocean Basket’s Top Lessons Learnt From 21 Years Of Being In Business

Ocean Basket started off with just six tables in a 60 square metre restaurant. Today there are over 201 restaurants in 16 countries around the globe. Entrepreneur spoke to CEO Grace Harding about how Ocean Basket has gone from a Pretoria deli/restaurant, to a seafood powerhouse worldwide.

Nedbank Franchising

Published

on

grace-harding

Watch this video of Grace Harding of Ocean Basket on the Franchising model.

Vital Stats

  • Player: Grace Harding
  • Franchise: Ocean Basket
  • Established: 1995
  • Visit: oceanbasket.com

What was Ocean Basket’s biggest challenge in 21 years of operation?

It’s difficult to talk about one challenge, but one of the the biggest challenges any business faces is keeping the pieces of the puzzle together and relevant. Accepting and embracing changes in the world, no matter how difficult it may be is also important, as is remaining curious and keeping a great bunch of people together. And finally, working as one — unity is key.

Related: Ocean Basket’s Fats Lazarides Honoured

What’s the most valuable lesson you can pass on to aspiring franchisors?

The key lesson is to truly define what you want to get out of your life and business. Why are you choosing this business model? It’s not a sure recipe for expansion.

It is a commitment to have your entire family of in-laws living with you in your house, wanting to change your curtains and complaining about your food.

ocean-basket-new-look-store

How do you remain relevant?

Remaining relevant is all about remaining curious and caring. Caring about your franchisees (I no longer use this word — we now use client), caring about your suppliers, your consumers, your country, the environment and the things that directly and indirectly affect people around you.

We cannot close our eyes to world hunger, to the oceans suffering because of plastic and other waste, or to the fact that we need to play a part in uplifting people in our companies and country. We’re doing well by doing good. Generosity is a key differentiator: Generosity of spirit, sharing knowledge, ideas and finding ways for many to benefit.

How do you plan to be more distinctive and unique in the market you’re in?

This is what we believe in:

  • Focus, focus, focus — the less noise for the consumer, the easier it is for her to hear us.
  • Putting your client’s success at the centre of your universe. Their success will lead to an improved consumer experience.
  • Connecting the dreams of our people to the dreams of our business. This will make us unique as it will drive one thing that we all care about. No employee cares about your business unless it has some personal meaning. This is why I say generosity and having an outward focus is key.

Related: From the Frying Pan into the Fire: The Story of Ocean Basket

Why would you recommend Ocean Basket to aspiring franchisees?

ocean-basket-franchisee

Ocean Basket is personal. We are driven by everyone’s success and not by only delivering shareholders’ wealth. Our value systems are rooted in mutual success and the success of the consumer. We are a company that co-creates with clients and consumers.

We take tough feedback, we strive to fix things and we hold very personal relationships. The other things are must-haves — great products, support, a strong supply chain and good advertising.

Why it’s important to have a strong relationship with banking partners?

Everyone in the value chain needs to connect and walk the same road together. Our banking partners need to not only play a financial role, but we all have to make sure they get us. Nedbank gets our business and understands the challenges we face. The more effort we spend on including our banking partners, the more beneficial it will be for all involved.

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.

Advertisement
Comments

Company Posts

The Alfa Romeo Stelvio – More Than An SUV

The All-New Alfa Romeo Stelvio draws inspiration from the legendary mountain pass linking Italy to Switzerland, with 48 hairpins in quick succession.

Alfa Romeo

Published

on

alfa-romeo-stelvio_3
Prev1 of 5

The All-New Alfa Romeo Stelvio draws inspiration from the legendary mountain pass linking Italy to Switzerland, with 48 hairpins in quick succession. The Stelvio pass is widely seen as one of the most beautiful and engaging roads on the planet.

Prev1 of 5

Continue Reading

Company Posts

Win A Business Makeover With Retail Capital To The Value Of R250 000

Retail Capital is giving SMEs an opportunity to win a makeover to build their brand with an investment of R250,000.

Retail Capital

Published

on

share-your-vision

Retail Capital is giving SMEs an opportunity to win a makeover to build their brand with an investment of R250,000. During the summer campaign, SMEs are encouraged to share the vision of how they would like to see their business grow, and led by a team of experts, Retail Capital will work with the winning SME to help make their vision come true.

While South Africa’s economy is not faring well, Retail Capital CEO Karl Westvig remains optimistic about the country’s retail and hospitality sectors. “We are seeing some green shoots, with an increase in turnover in these sectors – starting from the end of September. Economic conditions remain very tough, but businesses seem to be trading well into October and we’re hoping this continues into the festive season trading.”

According to recent statistics from Statistics South Africa (Stats SA), South Africa’s retail sales rose by 5.5% year-on-year in August 2017, following a downwardly revised 1.6% gain in the previous month and above market expectations of 2.3%. It is the biggest gain in retail trade since August of 2012.

Related: How To Raise Working Capital Finance

“I do believe that these sectors will see an improvement during the summer season. But, key to this will be for small business owners to ensure that they have the right amount of stock, adequate cash flow, as well as other systems in place to meet the ever-changing needs of customers,” says Westvig.

For many small businesses, however, continually adapting to market changes requires cash injections that they don’t often have.

The prize includes the following:

  • Business plan/consulting
  • Marketing strategy
  • Design and branding
  • Website and social Media and,
  • R50k capital to gear your business.

Westvig explains that the summer campaign tagline ‘Your Vision. Our Belief’ really speaks to why Retail Capital first opened its doors. “Our goal is to see the potential of small businesses and to work with them in making these become a reality.”

He adds that the idea is not to simply help one business during the campaign either. Westvig points out that one of the biggest challenges that small businesses face in the sluggish economy is enough foot traffic through their doors. “Generally, the main hurdle in creating brand awareness and projecting credibility of their establishments boils down to establishing a strong online presence.”

“One of the first ways that South Africans identify a business or service provider that they want to work with is over social media – even in a country where the digital divide has traditionally separated the technological haves from the have-nots,” he says.

He explains that companies that don’t have a social media presence are running the risk of being overlooked entirely. “They may attract customers in their own community with signage or word of mouth, but to grow a business, they need to expand their reach – and that’s where social media comes in.”

But, the reality is that resource and time constraints mean that for many SMEs, social media is not prioritised. “Unfortunately for the average small business owner, they don’t have the time or expertise to get connected.”

Understanding the importance of having an online presence, Retail Capital has also committed to developing the digital presence of all campaign entrants. This would include setting up each entrant’s digital presence on platforms such as Google, Facebook, Twitter, Tripadvisor, Zomato and any others that may be relevant to their specific market or industry.

“As a partner to many SMEs in South Africa, we are continually looking at new and innovative ways to help provide them with the much-needed support in order for them to realise their visions. SMEs need to be supported with initiatives like targeted education and training, supportive legislation, and funding opportunities that collectively help them grow our national economy,” says Westvig.

Related: 6 Great Tips For A Successful Shark Tank Pitch

Who we are and what we do:

“More than R1.25 billion has been extended to a range of businesses including food trucks, hair salons, restaurants, spas and franchised retail stores. Many of these businesses have not been able to raise funding in any other way, other than to go to unscrupulous lenders,”says Karl Westvig, the CEO Retail Capital, a company that provides working capital with the help of innovative lending technology.

“We have also estimated that for every R160 000 we lend, we create a new job. This means that 625 jobs have been created purely by enabling small businesses to get the funding they need for working capital requirements or expansion opportunities.”

Retail Capital’s system, which enables it to advance funding to small businesses, based on real time information on credit card transactions, is providing a new funding alternative to entrepreneurs who have previously been turned away by banks. Because it is able to get actual sales information, it can approve funding immediately, and allow for flexible repayment options based on sales cycles of the particular businesses it is funding.

“This creates significant opportunity for small business owners to focus on their business and grow volumes or look for expansion opportunities rather than spend their time frantically trying to repay debt or keep the business alive after debt repayments have eaten away at any cash reserves they might have had.”

Retail Capital funding is repaid by it taking a percentage of a business’s recorded credit or debit card sales, with repayments fluctuating in line with their business cycle. This has the effect of ensuring that it isn’t overburdened with debt.

“In the past six years since starting the business, small businesses have had the benefit of R1 billion in funding they would have been unable to get through traditional channels,”says Westvig.

Against the backdrop of recessionary conditions in South Africa, Retail Capital’s client information reveals growth in informal sector turnover across a number of industries.

“We believe that growth in the informal sector is outstripping that of the formal sector,”says Westvig.

As a large proportion of the businesses it funds are women- and black-owned, there is evidence that entrepreneurs who have previously been excluded from access to finance are now enjoying success now that their access to finance problem has been solved.

Win A Business Makeover with Retail Capital

Continue Reading

Business Landscape

How Investors Can Take Advantage Of The Rand’s Currency Trading Rates

Negative sentiment is likely to be pervasive with the SA economy, and it will take more than a new figurehead in government to right the wrongs of a mismanaged economy.

Harald Merckel

Published

on

south-african-rands

The USD/ZAR currency pair is trading in the 13.65 range heading into mid-December 2017. Over the past year, the 52-week low was 12.3126, and the 52-week high was 14.5742. As one of the more volatile currencies in the trading spectrum, the ZAR is closely associated with the political shenanigans taking place in South Africa.

The year to date return for the currency pair is -0.50%, after having started 2017 at 13.7351. Much of the activity taking place with the ZAR is speculative. Futures contracts are largely responsible for the whipsaw movements in prices.

Wilkins Finance strategists stress the importance of credit ratings agencies on currencies:

‘Whenever credit ratings agencies such as Moody’s and Fitch downgrade their assessments of the South African economy, this has a negative impact on the ZAR. The impact is not always predictable however – towards the end of November 2017, the USD/ZAR had appreciated after the recent ratings downgrade of the economy.’

Moody’s Investors Service downgraded South Africa’s economy to a rating of Baa3. This is the lowest rating level for Moody’s. Further ratings will be announced in February next year. Fitch has already downgraded the foreign currency and local currency to BB +, but has offered a stable Outlook for the ZAR.

Related: The Business Of Anxiety In Business: Giving Heroes Permission To Feel Vulnerable

That S&P also downgraded the South African economy to sub-investment grade is an important decision, and one that will have negative ramifications for the South African bonds market. Now, the Barclays Global Bond Index will no longer feature South African bonds. That South Africa’s bond market will be excluded from the World Government Bond Index will also be a bugbear to any hopes of the ZAR appreciating.

Interest Rates in the South African Economy

The South African interest rate is highly attractive to foreign investors, given that the UK, US, Canada, Japan, and European bank rates are at historic lows. There is little to be gained by investing cash in fixed-interest-bearing securities in these economies. The current interest rate in South Africa is 6.75% (as at November 23, 2017). The interest rate has dropped to expand economic activity in the country.

Overall, South Africa’s inflation rate for the year is expected to remain at 5.3% dropping to 5.2% in 2018 and rising to 5.5% by 2019. Global investors remain concerned about the risk/reward environment in South Africa. The country has experienced significant capital outflows in recent years, driven in large part by uncertainty regarding future prospects. The USD/ZAR was trading at 14.60 in late November, and current ZAR strength is being attributed to USD weakness.

Related: Offshore Business Opportunities Abound For South African ‘Oldpreneurs’

Factors on Both Sides of the Atlantic

One of the major economic events affecting exchange rates will be the reconciliation of the House and Senate bills on US tax legislation. Any major overhaul of the US tax code will invariably result in a dramatically boosted USD, and a weakened ZAR. For traders, it appears to be short-term call options on the local currency and long-term call options on the USD.

It is evident that currency traders are hedging against the ZAR over the long-term. The fundamentals of the economy are structurally unstable. The power grid infrastructure, water supply problems, and political instability at the highest echelons are but a few of the many problems plaguing South African growth prospects.

However, the ZAR will draw strength from the election of a credible leader, and this will be particularly noteworthy with Cyril Ramaphosa’s appointment. Overall, negative sentiment is likely to be pervasive with the SA economy, and it will take more than a new figurehead in government to right the wrongs of a mismanaged economy.

Continue Reading

Trending

FREE E-BOOK: How to Build an Entrepreneurial Mindset

Sign up now for Entrepreneur's Daily Newsletters to Download​​