#SAFranchiseFriday featuring Alpha Pharm

BACKGROUND
Alpha Pharm, our nation’s oldest traditional pharmaceutical wholesaler, was originally founded to serve as a buying group that would supply pharmacies in the region. Eventually establishing itself as a wholesaler, the company expanded its distribution network from Bloemfontein to Vereeniging and later Pretoria, and by the mid 1990’s Alpha Pharm, known as Kemco back then, was delivering to all Northern provinces. The establishment of Alpha Pharm (Pty) Ltd in 2015 effectively united the group’s wholesalers from the Eastern- and Western Cape, KwaZulu-Natal and Free State under one national banner.

Today, Alpha Pharma pharmacies form the largest group of independent community pharmacies, backed by the country's biggest independent pharmaceutical wholesaler. With an established franchise network of more than 410 stores across the country, Alpha Pharm services the greater South African population, geographically offering the widest reach into some of the most remote regions. 

THE CONCEPT
Alpha Pharm operates as a network of independent pharmacies, dispensaries, community pharmacies and big super stores. One of the key elements to Alpha Pharm’s success through the years has been the personal touch created by operating a series of community pharmacies. The intimate relationship between pharmacist and customer should never be underestimated and while many large corporate retailers see the provision of healthcare as just another commodity, Alpha Pharm's community-based pharmacies offer professional advice, care, service and value.

Depending on the model, a pharmacy could occupy anywhere between 80 to 400sqm and ranges from outlets located in shopping malls to freestanding outlets.

Having a highly skilled pharmacy workforce is an important element of Alpha Pharm’s long-term strategy. Each pharmacy must employ a registered pharmacist, a pharmacist’s assistant and, depending on the size of the outlet, up to six front-of-house staff. A registered nurse will also be required if a clinic is established at the outlet.

FRANCHISOR SUPPORT
The franchisor aims to add value for its franchisees by facilitating growth and progress as the key points of their relationship. As such franchisees enjoy the support of a group of nine talented and experienced specialists whose key commercial disciplines form the foundation of the national organisation.

The support offered includes negotiating with landlords, designing the store layout, branding, managing stock control systems, and providing store promotions. The franchisor has also teamed up with FrontShop Solutions to better manage and grow their front of shop by, for example, placing the right products on the shelf.

FRANCHISEE PROFILE
Franchise applicants must either be a registered pharmacist or be willing to employ a responsible pharmacist. Applicants may not have any affiliation with other pharmacy franchises and must be willing to enter into a wholesale account with Alpha Pharm.

SNAPSHOT

HISTORY
Founder: Doreen Burger
Year founded: 1972
Area of origin: Bloemfontein, Free State
Chairman: Lynton Lomaas

NETWORK
Number of SA outlets: 410 +

FRANCHISE AGREEMENT
Management fee: R1 950
Marketing fee: Available on request
Agreement term: 3 Years
Renewal term: 3 Years

FINANCIALS
* Amounts quoted are VAT exclusive
Establishment cost R700 000 to R900 000
Franchise joining fee: R1 950
Working capital required: R500 000
Total average set-up cos:t From R1,202 million
Average monthly turnover: R650 000 o R1,5 million
Achievable gross margins: 24% to 35%

WANT TO KNOW MORE?
Contact Werner Steyger on +27 63 684 1046 or werner.styger@alphapharm.co.za
www.alphapharm.net