The franchise sector is a rapidly growing one in South Africa- a country with plenty of potential for growth. Highly lucrative investment options, they can be a great way establish a self-owned business, with the added benefit of being backed by a much larger reputation. Franchisees essentially invest on an established brand, which presents a number of distinct advantages. The fast food industry is arguably one of the biggest in the world. It’s unsurprising then, that a few of the world’s top ten brands operate within this sector. This post highlights a few brands with lucrative franchising opportunities you may want to consider.
McDonalds
The world’s largest fast food chain, and highly popular all over the world, McDonalds has numerous outlets in South Africa, having opened its first restaurant in the country in 1995. For potential franchisees McDonalds presents a lucrative business model. The application process can be quite rigorous, with thorough background checks, personality screenings, in-store assessment periods and in-depth interviews, but the rewards can be well worth it. Despite the growth opportunities in South Africa, the company remains discerning when it comes to franchise selection.
KFC
This American fast food giant is highly popular in South Africa. The company has a strict set of minimum criteria that must be met in order to qualify as a franchisee. Aside from the application fee payment, potential franchisees must meet the following requirements:
Sufficient funding, availability for in-store training programmes, good employment track records, demonstrated ability to focus on customer service, business acumen, leadership ability, BEE compliance and other factors. With its initial store opening in South Africa in 1968, the company now has about 500 franchises countrywide. Consistently rated South Africa’s favourite franchise, KFC is also one of the world’s top 10 Brands.
Burger King
A new arrival on the South African scene, this fast food chain is fast gaining a favourable reputation nationwide. Franchisee applicants must be prepared to demonstrate a high adherence to the Burger King brand philosophy.
The application process includes:
Assessment of entrepreneurial skills, business acumen and a passion for system catering, as well as the funds and ability to open up to five restaurants in as many years.
Chicken Licken
A proudly South African fast food chain, this company encourages all its franchise partners to look at a franchise as a ‘nest egg’ that will yield high returns if properly managed.
A company with a strong loyalty base in the country, Chicken Licken is renowned for its affordability and quality of food.
Nandos
This world-famous brand has established a firm foundation within the South African market. Its grilled chicken menu has become a staple for many consumers. Potential franchisees are thoroughly screened for suitability, with relatively few making it through the selection process.
The company stresses the uniqueness that they look for in franchise partners, above and beyond financial resources and basic business skills. There are currently 54 franchises in South Africa. The franchise can also be found in 24 countries, represented by 900 stores.
Wimpy
With a long, successful history in the South African market, Wimpy is a trusted restaurant and brand. Its popularity is evident in its status as one of the leading franchise groups in the country. Wimpy is searching for franchisees who can display a high level of financial responsibility and good business practices. Originally founded in the UK, Wimpy opened its flagship store in the South African market in 1967. Ironically, in 2007, Wimpy SA bought out the original Wimpy brand in the UK.
Steers
Another Proudly South African food brand, Steers has a large number of branches all over the country. Steers gives franchisee the necessary training and guidance they need to carry the brand forward. They also provide assistance in marketing, manufacturing and distribution where required. Started in 1960, Steers no has 522 franchises nationwide. Start-up costs amount to R1 250 000.