#SAFranchiseFriday featuring Big Joe's Real Pies

BACKGROUND
Big Joe’s Real Pies is a specialist retail store supplying competitively priced fresh, high quality home-made pies to the retail and wholesale market. Until early 2016, when a decision was taken to change the business model, Big Joe’s was the manufacturer and supplier for Deeghuys pies. The first Big Joe’s retail store in Hermanus was an immediate success and three successful years, a second store was opened nearby, in Strand, to further refine the business and franchise model.
The Big Joes franchise company is headed up by Hennie Andrews, founder of King Pie and Pieter van der Merwe, founder of PNA and former Managing Director of Deeghuys. Each partner brings a unique set of skills to the table and together, they have created a sustainable profitable business model.

THE CONCEPT
A proven concept, superior product presentation and favourable pricing mean that even in the current economic climate Big Joe’s is a highly competitive business. Consumer trends have shown increased spending at factory-type stores where there is an increased perceived value for the customer and Big Joe’s has taken this into account in their store development. Their unique-to-the-pie-industry open-plan store layout means that customers can see first-hand and up close how the fillings are prepared, the pastries are made and the pies are produced.
Drawing on Hennie’s experience in pastries and proven filling recipes, Big Joe’s has created superior pie quality equal to any pie anywhere in the world.
The primary target market is the general broad spectrum consumer. Experience has shown that customers are increasingly buying boxes of pies rather than just a single pie to enjoy for lunch and in the current economic climate, where consumer buying power is under pressure, Big Joe’s bulk pricing structure is a welcome relief.
Although Big Joe’s is a strong destination-oriented retailer, high-traffic mall locations create a win-win for the landlord, consumers and the franchisee.

FRANCHISOR SUPPORT
The franchisor provides a turnkey solution that includes site selection, lease negotiations, store planning, layout and design. The Head Office team will be on-hand throughout the store establishment and opening process to provide support and ensure a successful store launch.
The franchisor also provides pre-opening and in-store training as well as pre-opening and opening marketing campaigns.

FRANCHISEE PROFILE
Applicants must be coachable, hardworking, system-oriented and driven individuals. The ideal franchisee is a hardworking, hands-on individual who is willing to spend time in the outlet. Franchisees should be passionate about food, customer service and have the ambition to develop and grow their business. Applicants will benefit from prior business ownership or management experience.

SNAPSHOT

History
Founders: Hennie Andrews & Pieter van der Merwe
Year founded: 2013
Area of origin: Hermanus, Western Cape
Directors: Hennie Andrews & Pieter van der Merwe

Network
1st SA franchise opened: 2016
Number of SA outlets: 2

Financials
* Amounts quoted are VAT exclusive
Average set-up cost: R1,5 million
Initial joining fee: R150 000
Average monthly turnover: R250 000
Achievable gross margins: 60%

Franchise agreement
Management fee: 6% of turnover
Marketing fee: 2% of turnover
Agreement term: 5 Years
Renewal term: 5 Years

WANT TO KNOW MORE?
Contact Pieter van der Merwe on +27 83 417 2841 or emial pieter@bigjoes.co.za
www.bigjoes.co.za