#SAFranchiseFriday featuring Chicken Xpress

BACKGROUND
Chicken Xpress is a franchise designed by Africans for Africans and in the true spirit of franchising Chicken Xpress franchisees are in business for themselves, but not by themselves. Driven by their passion for building a truly African brand and with a no frills, no fuss approach, their street-smart leadership team has developed a franchise model that is truly accessible to all.

Their streamlined business model with its established operational system affords franchisees the opportunity and ease of mind to become multi-unit operators. Their affordable set-up cost is geared to ensure that they achieve their objective of growing their brand footprint and establishing multiple stores in every region across South Africa.

THE CONCEPT 
Chicken Xpress is a truly South African brand with its values firmly grounded in the local community. They have gained a reputation for serving their ‘full-o-flava’ fried chicken in a fun, energetic and convenient setting. Applicants have a choice a three business models defined as the Container Model, Store Model and Drive-Thru Model.

Their customer base typically falls into the LSM 3 to 7 category and incorporates young children, students, commuters, families and business people looking for a quality, well-priced and convenient meal.

Strict criteria are applied in evaluating target store locations and the Chicken Xpress head office team assists prospective franchisees by arranging for them to view potential sites. All stores are conveniently located in high volume emerging market trading areas, on busy nodal transport interchanges, or in busy shopping centres.

On average a Chicken Xpress outlet will employ a team of six staff members, but this may vary depending on the trading hours of the store.

FRANCHISOR SUPPORT
Right from the application stage through to the store opening and beyond, the Chicken Xpress team aims to provide a seamless and smooth journey for its would-be franchisees. From the get-go their skilled operations team assists with project management, equipment and opening stock purchases, systems implementation, and training.

While the store construction is in progress, the franchise key personnel are required to attend an intensive week-long training programme held at a designated Chicken Xpress store. The programme addresses all the elements involved in running a Chicken Xpress store, including operations, stock control, marketing, management, and staffing. In addition, the Chicken Xpress training team will be in-store for the first five days of opening to ensure that everything runs smoothly and that all staff members are comfortable with performing their various functions.

FRANCHISEE PROFILE
At Chicken Xpress they believe that awesome brands are built by ordinary people who are passionate about delivering the extraordinary. They welcome applications from people who are inspired by the idea of serving full-o-flava chicken and growing their Chicken Xpress outlet into a multi-unit empire.

SNAPSHOT
HISTORY
Founder: Devon Scoulelis
Year founded: 2011
Area of origin: Umlazi, KwaZulu-Natal
CEO: Devon Scoulelis

NETWORK
1st SA franchise opened: 2011
Number of SA outlets: 22

FRANCHISE AGREEMENT
Management fee: 5% of turnover
Marketing fee: 1.5% of turnover
Agreement term: 5 Years
Renewal term: 5 Years

FINANCIALS
* Amounts quoted are VAT exclusive
Establishment cost: R894 500
Franchise joining fee: R95 000
Working capital required: R274 747 (6 months)
TOTAL average set-up cost: R1 264 247
Average monthly turnover: R208 704
Achievable gross margins: 45%

WANT TO KNOW MORE?
Contact Sive Nqonji on 031 569 1900 or info@chickenxpress.co.za
www.chickenxpress.co.za