The 2014 FASA Awards Went to…
From left to right: Gilbert Mpofu of Mike’s Kitchen (Field Service Consultant of the Year); Grant Brady of Car Service City (Brand Builder of the Year); Sydney Butler of Pick n Pay Express (Newcomer Franchisor of the Year); Andy Raouna of Hot Dog Cafe (Franchisor: Leading Developer of Emerging Entrepreneurs); Natasha Bohmer of Car Service City (Winner: Vote for Favourite Brand); Jonathan Pepler of Silverline Group (Franchisor of the Year); Esna Colyn of Perfect 10 (Franchisee of the Year).
Ian Jacobsberg toasted the success of franchising in South Africa at the FASA Awards for Excellence in franchising on 9 April, which has grown to become one of the most important business sectors contributing close to 10% to the country’s GDP, with 668 franchise systems with close to 30 000 franchised outlets in over 17 business sectors employing over 300 000 people. In a recent survey conducted by FASA, the sector generated a turnover of R302 billion with an estimated 3 700 new franchises added to the South African economy in 2012. “Despite the economic downturn franchising continues to be a dominant business format as far as SME development is concerned. Across the globe small business is recognized as the safety net of any economy and franchising is proving to be quite resilient even in this economic climate.”
The categories honoured at the FASA Awards include:-
FRANCHISOR OF THE YEAR
This most prestigious award celebrates the success of the franchisor who has made a significant impact in the marketplace and who has, through effective business management and marketing, achieved outstanding financial results and a significant growth in his sector. The runners up in this category were:
1. DREAM NAILS BEAUTY
Started in the early 1980’s when it introduced nail systems to South Africa, this 28-year old brand has become the largest and most desirable beauty franchise group in South Africa. Under the stewardship of Imbalie Beauty, with their multiple brands, Dream Nails Beauty offers franchisees world class systems, ongoing business and beauty training and continuous innovation.
2. CASH CONVERTERS
Cash Converters, recognised as a world leader in the trading and marketing of quality second-hand goods and providers of loans, revolutionised the second hand market in South Africa. Through market innovation and operator participation, Cash Converters offers viable business opportunities and an exciting and enjoyable shopping experience for thousands of people from all walks of life.
The Winner …. SILVERLINE GROUP
Breaking new ground as the only franchised construction company in South Africa, Silverline, with 30 outlets growing at a rate of 25% annually, offers a low initial franchise investment opportunity with exceptional ROI and a unique offering. Specialising in light steel frame construction and high performance alternative building solutions, it is changing the future of the construction industry by using state-of-the-art technology to plan, model and construct buildings that are strong, durable, energy efficient and totally green.
FRANCHISEE OF THE YEAR
This award honours the franchisee’s success in running his/her own business and contributing to the overall success of their franchisor. With close to 30 000 franchisees in South Africa, they form the backbone of the franchising sector. The runners up in this category were:
1. ABRIE ERASMUS OF MIKE’S KITCHEN, MTHATHA, EAST LONDON
A driven entrepreneur, who uses his passion and skills to grow his wealth through several business interests, Abrie Erasmus manages his Mike’s Kitchen outlet with passion and dedication to the fundamental principles of strategic management, sound human resources, pedantic financial analysis and attention to detail.
2. REON KOCKJEU OF ON-TAP, East London
Reon has been a successful franchisee for 18 years, having taken over a non-performing franchise – determined to turn it around. This he did through strong leadership, a positive attitude, teamwork and by revamping and revitalising the business creating a lifestyle store that continues to be one of the group’s top performers.
The Winner…KALAI MOODLEY OF PERFECT 10 IN BALLITO, KZN
Franchisee Kalai Moodley has, from the beginning, embraced her relationship with her franchisor and understood the importance of having good systems and structures in place to run a successful franchise operation. Her focus on employing and training a winning team has enabled her to attract and retain a large loyal client base.
FRANCHISOR – LEADING DEVELOPER OF EMERGING ENTREPRENEURS
This category focuses on the need to empower the small business sector and encourages the franchise ethic in our emerging markets through entrepreneurship, skills transfer and job creation.
The award went to … HOT DOG CAFE
As the first franchisor to receive a grant from the Jobs Fund, Hot Dog Cafe has provided a unique business opportunity whereby unemployed, unqualified and previously disadvantaged aspirants are trained and mentored from start to owning a sustainable and profitable franchise. The Hot Dog Cafe model promotes an entrepreneurship culture, skills development and the creation of jobs. The proven cadet program and ongoing mentoring ensures the candidates are provided with the necessary skills and training, both theoretical and practical, which ensure success within its structured franchising environment. The outstanding achievements in the development of emerging franchisees has resulted in Hot Dog Cafe partnering with the Jobs Fund to train 372 cadets of which 310 will be gainfully employed and 60 will become franchisees owning their own businesses. Hot Dog Cafe has been granted R17 million funding from the jobs fund as well as another R18 million from other funders, including the PIC, which will also provide sites thus enabling the proven initiative to realize the target number franchised outlets to be opened. The trust and confidence shown by government and the numerous financial institutions demonstrates not only Hot Dog Cafe’s inherent success of this business format, but also the success of its past entry-level empowerment initiatives.
NEWCOMER FRANCHISOR OF THE YEAR
This category salutes the innovative entrepreneurship of newcomers to FASA who may have that next-new-concept that is going to take the world by storm! With 90% of our franchise brands home-grown, it is testament to the talent and tenacity of our entrepreneurs. The runners-up in this category were:
1. JIMMY’S KILLER FISH & CHIPS
A household name for the past 25 years as a leading restaurant, the fast food arm of this brand is springing up all over with their new fast food offerings and is becoming a major role player with 54 outlets offering excellent investment opportunities with reasonable set up costs.
It’s called ‘Living the Bodytec Lifestyle’ and it’s the Bodytec way of running your own successful business. The Bodytec concept is based on personal fitness training with the revolutionary EMS technology where fat content and weight are reduced through a highly effective training method used by international professional athletes and sports centres.
The Winner…PICK N PAY EXPRESS
The forecourt convenience store concept has revolutionised what was once the good ‘old corner cafe and Pick n Pay, with their Express Stores in selected BP filling station sites have made their mark since opening a few years ago. Offering fresh foods, meat, bakery products and a Wild Bean Cafe, plans are to open 150 new stores in the next 5 years.
BRAND BUILDER OF THE YEAR
The Brand Builder award is awarded to companies who have used their budgets for maximum effect and through advertising, promotional campaigns and consumer awareness, taken their brands to new heights.
The Award went to… CAR SERVICE CITY
Positioned as an all-round car servicing solution at an affordable rate, Car Service City has managed to differentiate themselves from other car servicing agents, as well as independent workshops to become a trusted, recognised car servicing brand. Car Service City’s philosophy is to brand from the inside out. They have chosen to communicate their brand messages in above the line advertising, radio, outdoor advertising (billboards, street poles, bus shelters and pavelites), on line as well as in-store and most importantly by their staff. An internal newsletter coupled with regular competitions ensures that staff are motivated and incentivised and engage with the brand not only when dealing with each other but also with other stakeholders.
HALL OF FAME AWARD
Each year FASA honours a personality that has contributed significantly to the franchise sector and more importantly has played a role in supporting the wider franchise community and FASA in particular.
The Award went to… CARLO GONZAGA – CEO OF TASTE HOLDINGS
If one thinks of maverick entrepreneurs who are leaving a blazing trail in their quest to conquer the world, you will always find that they are great ‘out-of-the-box’ thinkers. Carlo Gonzaga is one such entrepreneur. His marketing staff remember when he was planning to deliver a Pizza …to London! The challenge was this: 4 x riders, 1 pizza, 39 days, an epic delivery of all proportions. His staff and agency thought he was quite mad, but rather inspiring at the same time. Travelling through Africa with a pizza in a freezer strapped to the back of a BMW 1200 bike. Since that epic delivery, Carlo Gonzaga has gone on to build Taste Holdings into a force to be reckoned with.
14 years ago Carlo started Scooters Pizza in Westville in Durban. In 3 months a further 6 stores were opened and that was merely the beginning. Since 2000 Carlo has headed up the team that has driven the Scooters Pizza chain to win many prestigious awards including FASA’s Newcomer franchisor of the Year in 2002 and the FASA Brand Builder of the Year, an award it won 4 times. In 2005 the Maxi’s brand, with 28 stores, was acquired and Scooters Pizza renamed Taste Holdings to pursue the strategy of a diversified franchisor.
Taste Holdings listed on the Alt Exchange in 2006 and was moved to the main board of the JSC in 2011, with system wide sales exceeding R750 million. The subsequent acquisition of NWJ Quality Jewellers in 2008, St Elmo’s in 2010, The Fish and chip Co in 2012 and most recently Zebros in 2014. Apart from the acquisitions, time was also invested in launching Buon Gusto food services, in which over 500 of its food franchises are serviced.
Carlo guides the strategic direction of the company, its growth strategy and human capital development which now directly employs 450 people at head office level; this does not include the number of people employed by the various Fish & Chips, St Elmo’s, Maxi’s, Scooters, Zebros and NWJ outlets throughout the country. He is a unwavering supporter of the Franchise Association of South Africa and is always happy to support its events.