The Fish & Chip Co.’s rapid impact on the fast food franchising industry in South Africa could result in considerable growth in the near future. The company is set to continue to expand at an increasing rate with one new store opening every third day, on average. The company’s intent to expand is supported by its impressive franchisee support since commencing business in 2009. Since its inception, over 300 outlets have been established countrywide. In 2012 alone, an impressive 120 stores were opened. The establishment of these stores have also provided for some great advances in alleviating unemployment as it is estimated that about 3,300 employment opportunities have been created to date, with approximately 250 individual franchisees operating The Fish & Chip Co.’s stores. The Fish & Chip Co.’s Managing Executive, Marcel Strauss, notes that Taste Holding’s decision to purchase the company in November 2011 was based on the sound business proposition that the acquisitio...

For any company operating in any industry, it is critical to adapt to trends related to the market space they operate in. Sally J’Arlette-Joy, founder and CEO of the highly successful Sandwich Baron franchise, elaborates on why it is so important for food franchises to adapt to trends within the franchising market. A company’s ability to accurately identify emerging market trends that have an impact on its success, and adapt its branding and marketing model accordingly, will ultimately determine if it only thrives in the short term or invigorates a longer term impact amongst its stakeholders. Similarly, the food franchising industry is one which is constantly evolving, and it is therefore vital that companies stay abreast of trends within this market in order to maintain a strong brand presence, and capitalise fully on market opportunities. Trends in the food industry tend to primarily relate to developing food concepts to increase short or long term profit. This would include i...

Know the rules and play to win By Carl Bates Your favourite team has just come back onto the field after half time. All you feel is dread. They look tired and downcast, their communication is poor and they are just all over the place. Their opponents, on the other hand, look excited and energised; they are smiling yet incredibly focused. What is the difference? The opponents are playing to win as a team and are having fun in doing so. Being in business is just like a sports game. When you and your team are focused and clear on what you need to do, anything is possible. While you may lose a match, there is always the bigger championship at play. In my book, The Laws of Extreme Business Success, I explore the similarity between business and sport in the Law of Business as a Game through three key elements. The first element is having a winner’s mentality. This means that you are confident about your ability to succeed and are motivated to push that little bit further every day...

How do you benefit if your franchised real estate agent is a member of the Franchise Association of South Africa? By Jan Davel Some franchisors include ‘accreditation’ and ‘award’ symbols in their advertising material, relying on the consumers’ and prospective franchisees’ lack of knowledge with regard to the significance or importance of such symbols. Some of these commonly used symbols offer no benefit to consumers and often its relevance to the franchisor’s industry is dubious. Whether intentional or otherwise, the use of such symbols may also be misleading. It pays for prospective franchisees to be informed about the value such ‘accreditation’ and ‘award’ symbols actually afford a franchisor. In other words, don’t take everything at face value and be sure about the accreditations your future business partner actually enjoys. Take the real estate industry as an example. With the transformation of this highly lucrative, but potentially risky industry into a highly regulated ...

What you need to know about compiling an effective Operations Manual before embarking on your franchise expansion plan. By Lindy Barbour In our previous article we discussed the importance of a proven pilot and the franchise package elements as the key ingredients in the franchise expansion plan. In fact, the franchise package elements are critical to the franchisor’s ability to establish and maintain a successful and prosperous relationship with his franchisees. The franchise package should include the following: • An Operations Manual; • Legal Agreements – The Franchise Agreement; • The Disclosure Document; and • The Franchise Prospectus and Recruitment and Selection Programme. Over the next several issues we will be addressing the elements of the franchise package individually and we start off by taking a look at the Operations Manual. As franchise consultants we are often contacted by prospective franchisors labouring under the impression that they only require a ...

When a small business begins growing, it can outstrip the ability of the owner alone to keep pace with all the tasks needed to keep things on track. The only way to keep the business growing is by hiring staff. It is at this vital point of a business’ development that things can get complicated for a small business owner, unused to making staff decisions that literally could ‘make or break’ a thriving business, says Standard Bank Clive Pintusewitz, Head of Small Enterprise at Standard Bank, says: “It is often said that people are the most valuable asset of any business. Ensuring that your employees are indeed assets means being cautious and ensuring that they fit your business, and making sure you manage staff effectively.” This was the message conveyed to entrepreneurs in the third episode of the Standard Bank Business Coach Webcast Series, streamed on 17 April. Mr Pintusewitz says that vital things to be kept in mind when selecting and hiring staff include: • Understanding ...

The 1st Quarter 2013 FNB Estate Agent Survey (released just before Easter) indicates that many estate agents, in the lower, middle and upper end of the market, are seeing positive signs of market recovery. According to the report the property market is doing better overall: “Overall 1st Quarter Residential Demand Activity Indicator rose noticeably, from the previous quarter’s 5.89, to 6.57. This is the highest level since the 1st quarter of 2007, which was just prior to the big slump in the residential property market”. In essence this indicator points to an increased demand for property in most of the larger residential markets. It is common knowledge that the lower income segment of the market has done well over the past year or so, whilst the high end of the market has taken strain. That seems to be changing; although the report makes it clear that, for now, the lower end of the market retains its lead in terms of demand, it does make it clear that the middle and upper ends of ...

South Africa may have a fierce rivalry with their New Zealand counterparts on the rugby field, but when it comes to ice cream, it seems the two nations make wonderful things happen. New Zealand Natural Ice Cream has officially launched their very first parlour in Menlyn Park Shopping Centre, Food court, Upper level 38, Entrance six.  This opening brings to South Africa a range of New Zealand made premium ice creams, sorbets & frozen yoghurt, as well as a range of smoothies, sundaes, delicious pancakes, gourmet waffles and fresh fruit juices. However, the story actually begins a long time ago and is closer to home than you might think.  It took a South African twist of fate for the brand to really get off the ground. The Company began as a small ice creamery in Christchurch, in New Zealand’s South Island, in 1984. New Zealand has perfect conditions and dairy pastures for making the finest ice cream.  The brand quickly became famed for ice cream with no artificial...

Effective leadership can mean the difference between success and failure.  By Gerhard van Wyk While many theories and definitions as to the nature of leadership exist, for leaders to be successful they must be able to exert influence and also motivate and inspire a productive working environment. In the context of the franchise environment, leadership refers to the influence a franchisor exerts over franchisees and the franchisor’s ability to persuade franchisees to willingly work towards achieving the franchisor’s organizational objectives. To successfully manage the individuals and groups that comprise a franchise network, effective communication is essential. Effective communication requires that the franchisor communicates the company’s vision, mission, goals, strategies and expectations to the franchisees, but also that the franchisor will listen to the franchisees’ problems and expectations. Closing the gap between goals and planning requires that the franchisor takes ...

With a new owner at the helm, Scooters Pizza Florida Junction is ready to serve pizza lovers on the West Rand with only the best pizzas at this refreshed store. The store, situated at Florida Junction Shopping Centre, welcomed its new owner, Rudolph Shawe and showed off its new look on Monday, 8 April at an elaborate opening event. Scooters Pizza, which was rebranded in 2012, is now boasting a more energetic feel that is sure to ignite a ravenous hunger for pizza among customers. Shawe, who was previously involved in an importing and distribution business, is confident about his ownership and the difference that his management style will make to the dining experiences of his customers. “I am thrilled to be able to add value when serving the people in my community and fully intend to ensure that customers enjoy a dining experience unlike any other. I have no doubt that visitors to our store will appreciate the high level of customer service we are able to offer and become loyal p...

Dried fruit and nut aficionados can look forward to a diverse range from a well-known producer in Montagu. Altogether 120 new products – including dried fruit, raisins, nuts, seeds and various combinations – are handpicked, sorted and packed to suit a wide range of needs and tastes. They are already available at more than 50 new boutique outlets throughout the country and some more will be opening soon. Montagu Dried Fruit & Nuts has been operating from the Klein Karoo town for the past 20 years and has a solid reputation for reliable, nourishing products. The range consists of fruit, seeds and nuts in bars or rolls, snack- or strip packed or even in the form of sweets – all in bright, attractive packaging allowing a clear view of the quality assured contents, including a best before date.  On top of it they are very good for your health. Dried fruit is rich in potassium, calcium, iron, phosphor and magnesium and as anti-oxidants they assist the body in the cleansing of it...

The rapid rise of a Sandwich Baron employee from a lower level position to an office managerial role has validated the assertion that this food franchise offers exciting and viable business growth opportunities for individuals aspiring to make their way up the corporate ladder. 33-year old Pearl Xakata is one such success story. Xakata started off at Sandwich Baron at a basic service level, first working in the kitchen and then progressing on to managing the cashiers. In 2007, she was promoted to Assistant Manager within the same franchise, and had to learn the franchising ropes quickly, with her duties entailing answering queries, dispatching orders, receiving counter sales, dealing with kitchen staff and ensuring that finances balanced efficiently. After the store that she worked at was sold to new owners, Xakata was asked to leave as the new franchisees had taken the strategic decision to employ their own staff. After leaving, Sandwich Baron Managing Director, Sally J’Arlette-J...

If enthusiasm is the first ‘brick’ in starting a new business venture, then administration and documentation form part of the foundation that provides a solid base for a business to grow. Clive Pintusewitz, Head of Small Enterprise at Standard Bank, says that time spent on documentation sets a professional tone for any business. This was also the key message for entrepreneurs in the second Standard Bank-sponsored Business Coach webcast, streamed last night (3 April 2013). The webcasts bring free, on-tap support to entrepreneurs on topics related to managing a business. “Documented procedures ensure that the various tasks in your business are done consistently and accurately,” says Mr. Pintusewitz.  He says that the basic building blocks of good administration and documentation are: • Written policies and procedures These ensure that you have a constant reminder of when and how things should be done, whether it is on a daily, weekly or monthly basis. This means that things...

The franchising industry has always been an enticing business prospect as it offers entrepreneurs a tried and tested formula that is backed by training and support which will assist in managing a business with less risk. Entrepreneurs who are dedicated and hands-on will assuredly have what it takes to make any franchise business a success. Although the concept of franchising has enticed business men and women, the industry has shown remarkable growth amongst female ownership in recent years, proving that franchising is a viable business option for all. A study conducted by Pricewaterhouse Coopers and the International Franchise Association revealed that female business owners account for roughly 25% of franchise unit ownerships to date, with figures rising continuously. Lindelwa (Lindy) Jali is a great example of a female franchisee who has successfully applied the franchise business model to achieve success within The Fish & Chip Co. family. With two stores located at Stone T...

South Africans have become used to our energy supplier ‘crying wolf’. After the debilitating electricity blackouts back in 2008 when we all rushed out to buy generators and businesses geared themselves to operate with alternative power, Eskom has, over the past five years threatened power cuts which, by and large, didn’t happen. Now, word out there is that this time it’s for real and South Africa can expect rolling blackouts this winter. With the chaos at the Madupi Power station, maintenance woes at Koeberg and a narrowly averted strike at Exxaro in Mpumalanga, Eskom is once again appealing to the public and business to go easy on electricity usage. At a series of regular breakfast seminars held by the Franchise Association of South Africa (FASA) for members, both franchisors and franchisees have voiced their concern that this second round of rolling blackouts will have an even greater impact on their businesses than those in 2008. The general feeling was that back then businesses ...

The right and wrong of surveillance in the workplace, Contributed by iFacts Removing your people risk A kind of paranoia is stealthily finding its way into the workplaces of the world's developed nations, an echo of George Orwell's novel 1984 in a rebirth of Big Brother, this time in human and/or digital form. This kind of creepiness is increasingly worrying US workers who are under workplace surveillance. Answers investigators are trying to find centre on whether or not intelligence gathering in the workplace, overtly or covertly, is ethical and/or legal. Some of the more cynical maintain that if workers are innocent of underhanded dealings, they won't mind being spied upon and might even enjoy displaying their morality. More liberal indignation insists that privacy is a human and civic right and that no-one or ‘no thing’ should be permitted to invade it. That point of view, however, is not universally held and even exists in different layers depending on where i...

Franchisors who fail to adhere to the CPA requirements regarding disclosure place their company at a substantial risk and may even find themselves facing stiff fines and/or imprisonment. By Eugene Honey Despite the fact that the Consumer Protection Act (“CPA”) came into operation on or about 1 April 2011, there are still numerous franchisors who have not prepared Disclosure Documents, or who are not furnishing their prospective franchisees with a compliant Disclosure Document.  This clearly places the franchisor at substantial risk. Regulation 3(1) of the CPA stipulates that every franchisor must provide prospective franchisees with a Disclosure Document, dated and signed by an authorized officer of the franchisor, at least 14 days prior to the signing of the Franchise Agreement.  The Disclosure Document should, at a minimum, contain the following: • The number of franchised outlets, • The growth in the franchisor’s turnover, net profit and number of franchised ou...

April 2013 Playing on its strengths by reaping the benefits of integration and a global network of sales and service, Marel showed solid revenue growth over the past year. In particular, local subsidiary Marel SA has seen growth of 20%. This is especially impressive in the context of the global organisation’s results, which report revenue growth of 6.8%. Theo Hoen, CEO of Marel states “A healthy 6.8% growth in a challenging market is an achievement. In the last four years we have grown immensely. We have introduced a steady pipeline of new products, strengthened our sales and service network, and at the same time we have merged several companies into one. Last year we saw strong growth in our fish segment and in fourth quarter we saw signs of a turn-around in the meat industry. We maintained our position as market leader in further processing, and the poultry segment remained the backbone of our revenue base with returns above target.” A leading provider of advanced equipment,...