#SAFranchiseFriday featuring Melissa's

BACKGROUND
It was their shared appreciation for the classic and quality things in life that inspired husband and wife team Mark and Melissa to create a brand that champions these values. Driven by popular demand, the business has expanded into 19 stores nationwide with more national stores in the pipeline.

Today, Mark and Melissa continue to be involved in driving all aspects of this multi-faceted business. The company has entered a very exciting phase of growth driven by new franchised stores, an extensive wholesale division supplying franchised stores and over 300 national retailers, as well as an e-commerce platform. Additional business units include exports, corporate gifting and hospitality.

THE CONCEPT 
Melissa’s offers a unique café and retail experience for discerning customers with an eye for quality and an appreciation for the finer details. The company is continually researching, developing and evolving their offering to ensure that the brand remains ahead of the curve and relevant to their upper income LSM 8 to 10 customer base.

The Melissa’s Food. Home. Gift format is the original Melissa’s concept where customers can shop Melissa’s range of food and homeware products alongside a sophisticated café style restaurant serving light meals, cakes and artisan coffee all day. With their attention to detail in every product, packaging design and unmistakable signature navy and white branding, the Melissa’s branded product range is unmatched in South Africa.

Melissa’s stores range in location from prime independent sites in high-income suburbs to high-traffic locations in malls and local shopping villages. The interiors are fitted with the finest quality finishes, creating a warm and inviting atmosphere that offers a home away from home. The carefully considered design is brought to life with layered colour, texture and product. Their exclusive range of homeware, food and gift products is strategically merchandised around the store, creating that unmistakable Melissa’s atmosphere and a feast for the senses.

While the volume of staff is dictated by the size and seating plan of the individual store, a typical staff structure comprises store managers, cashiers, baristas, waiters and back-of-house kitchen staff.

FRANCHISOR SUPPORT
In addition to advice and guidance from Melissa’s founders, assigned area managers provide ongoing direction and support. Franchisees receive assistance with locating suitable store premises, while the store design and set-up is managed by the Melissa’s project management team who will hand over a fully operational store.

The franchisor also offers training for owners and managers, assists with business management, recruitment and staff training, and provides ongoing national and local marketing support.

FRANCHISEE PROFILE
With years of experience and a proven track record, Melissa’s knows what it takes to operate a successful franchise. Solid business acumen, passion for the brand and an eye for quality are just some of the key traits franchisees should possess.

SNAPSHOT
HISTORY
Founders: Melissa & Mark van Hoogstraten
Year founded: 1996
Area of origin: Cape Town, Western Cape

NETWORK
1st SA franchise opened: 2014
Number of SA outlets: 19

FRANCHISE AGREEMENT
Management fee: 6% of turnover
Marketing fee: 1% of turnover
Agreement term: 5 Years
Renewal term: 5 Years

FINANCIALS
* Amounts quoted are VAT exclusive
Establishment cost: R4,6 million
Franchise joining fee: R400 000
Working capital required: Available on request
TOTAL average set-up cost: From R5 million
Average monthly turnover: R630 000
Achievable gross margins: 58%

WANT TO KNOW MORE?
Contact Anneke Feldtmann on +27 21 888 2999 or anneke@melissas.co.za
www.melissas.co.za