#SAFranchiseFriday featuring Nkukhu Box
Nkukhu Box is a home-grown concept that embraces African township culture and speaks to the now Kasi generation. The Nkukhu Box philosophy is to offer service on par with international standards, essentially ‘bringing the world’s best to our own’.
Assembled from specially designed shipping containers, Nkukhu Box offers franchisees a reduced set-up cost and a business model that circumvents long-term binding lease contracts with expensive rentals and reduces operational expenses.
The Nkukhu Box competitive advantage lies in the fact that they prepare familiar, local food using state-of-the-art equipment and carefully engineered sauces and flavours. Product quality is ensured through a frequent food testing and continual investment in the company’s central distribution kitchens and training centres. In addition to quality meals, Nkukhu Box provides a township lifestyle eating experience while delivering international standards.
Grilled chicken, which is the mainstay of the Nkukhu Box offering, is available in a variety of flavours, from sweet and sour, lemon and herb to mild, hot and extra hot. The Nkukhu Box menu range also extends to classics such as kotas and designer kotas, a ‘pimped’ up version of the traditional South African spatlo. With names such as the Cheese Boy, Boss Zone and Last Number, there is a South African township story in every bite.
With the understanding that location contributes significantly to the success of any business, Nkukhu Box outlets are conveniently located within residential areas frequented by their target demographic and are ideally suited to newer township sections with bonded housing. An ideal site is a vacant plot of approximately 25 by ten meters with access to electrical power and the municipal drainage system. Additional space for customer parking will be an added benefit. While corner sites are the ideal, all locations should offer high visibility, easy access and high foot traffic.
The set-up cost includes all development costs including site preparation, landscape design, staff training, uniforms, initial stock, equipment and store launch promotions.
From their warehouse in Midrand the franchisor supplies franchisees with all their core menu products. Taking advantage of bulk-buying prices and passing the benefit on to franchisees ultimately contributes to improved gross margins.
Nkukhu Box employs a creative marketing strategy that appeals to the township market and the franchisor works only with advertising agencies that understand their market. As an organisation committed to the success of its franchisees, the franchisor contributes significantly to any marketing activities.
Achieving success in this industry demands hard work and long hours. Preference will be given to owner-operators and applicants with at least five years’ managerial, significant other leadership or teaching experience.
Founder: Itumeleng Mpatlanyana
Year founded: 2015
Area of origin: Mamelodi, Gauteng
CEO: Itumeleng Mpatlanyana
1st SA franchise opened: 2017
Number of SA outlets: 8
Management fee: 5% of turnover
Marketing fee: 2% of turnover
Agreement term: 5 Years
Renewal term: 5 Years
* Amounts quoted are VAT exclusive
Establishment cost: From R1,032 million
Franchise joining fee: R150 000
Working capital required: R60 000
TOTAL average set-up cost: From R1,242 million
Average monthly turnover: R475 000
Achievable gross margins: 50% to 55%
WANT TO KNOW MORE?
Contact Itumeleng Mpatlanyana on +27 11 805 0232 or firstname.lastname@example.org