FNB Franchise & Leadership Summit: The growth of emerging market franchises
Presented by Gerald Brown, Franchise Executive: DoRego’s, a member of the Spur Group
Gerald opened his first Captain DoRegos franchise in Kimberley in 1996. He made the transition from franchisee to franchisor when he purchased the franchise in 2005. He subsequently sold it to the Spur Group in 2012 and is now the Franchise Executive at Spur Corporation. He is actively involved in the brand and with the management of his own Captain DoRegos stores.
The brand and its market
Captain DoRego’s brand vision is to serve quality food quickly and at an affordable price. Established since the early 1970s, the company has about 70 outlets throughout South Africa, Lesotho and Mauritius. More recently, following an extensive facelift, the company was acquired by the Spur Corporation which plans to extend its reach into the rest of Africa.
Gerald started his presentation by pointing out that emerging markets everywhere are growing significantly faster than their developed counterparts, thus they offer greater opportunities. Some South African companies, like Shoprite are well represented throughout Africa. Chicken Licken has grown to become the largest quick service chicken chain in the world outside the USA.
In South Africa, the black middle class is growing at a rapid pace. This makes them cash-rich but time-poor, fertile ground for the expansion of franchises that offer their customers convenience above everything else. Captain DoRego is focussing on the lower end of the local market and Gerald provided some key pointers for dealing with this market successfully.
Characteristics of LSM 1-4 markets