Franchising in 2015 – The Year That Was.
The past year was once again a busy year for the franchise industry as it continued to grow despite tough trading conditions. The team at whichfranchise has compiled the following highlights package to give you an overview some of the news headlines in 2015.
A franchising industry snapshot
The latest Franchise Association of South Africa (FASA) statistics released this past March reveals that:
- more than 320 people are employed
- in 600 franchise brands
- across more than 31 000 franchise outlets.
- The sector is also more diverse than many people believe – as a quick look at the at the range available on whichfranchise.co.za will show.
The industry body nevertheless believes that franchising is under-utilised in our economy with much room to grow. Franchising is certainly a leader in skills development, on-going job creation and sustainable income generation. Despite a tough economic climate, the survey reveals that 90% of franchisors are highly optimistic about the future growth the businesses.
- Kevin Hedderwick, the man who built Famous Brands into the company it is today, is set to retire from his position as CEO in February next year. He will continue as a strategic advisor to the group for another 12 months, after which he will assume the role of a non-executive director.
- Darren Hele, currently CE of the Food Services division moves into the role of CEO.
- Famous Brands is listed on the JSE and boasts brands such as Wimpy, Mugg & Bean and Debonairs Pizza.
The technology wave continues
- The team at whichfranchise continues to see greater take-up of technology solutions within the industry.
- Most new franchise manuals are online these days while digital advertising continues to take up a large chunk of the national advertising budget.
- Cash Converters is one of the latest franchisors to embrace this trend with their 2015 launch of an innovative e-learning and video training tool available for career planning and employee development of all levels of employees within the franchise.
South Africa continues to be an appetising destination for many international franchisors.
The latest new entrant was international doughnut company and coffeehouse chain Krispy Kreme.
Licensees Fournews Pty Ltd and John & Gerry’s Brands (Pty) Ltd plan to open 31 stores in the next five years with the first outlets in Johannesburg, Pretoria, Durban and Cape Town. Watch this space!
Taste Holdings, Nedbank and Brimstone Investment announced the renewal of their partnership, Sisonke, which offers funding to high-potential franchisees that have the ability but not the cash.
New look for KAUAI
Health food favourite KAUAI embraces a simplified look thanks to new ownership and new CEO Dean Kowarski in the driving seat. The new corporate identity, store look and feel, fresh new menu and customer experience were revealed this past July at the opening of the first new concept store situated in The Zone @ Rosebank. The new look is unassuming in its neutral palette of concrete tiles, white marble counters complemented by warm oaks and crisp black and white graphics.
The International Franchise Expo, FASA
The International Franchise Expo (IFE 2015), FASA’s 20th and taking place from 16 to 18 April at the Sandton Convention Centre, is sold out for the first year since the global financial crisis.
Imbalie Beauty is about to acquire Curves Africa
Imbalie Beauty said on Wednesday that it was set to close a deal to acquire Curves Africa, the fitness and wellness group for women, for a maximum of R20 million.
Imbalie Beauty, a franchisor and distributor of its own independent health and beauty brands, and Curves Africa, the largest fitness and wellness group for women in Africa with 87 franchised clubs across South Africa and nine franchised clubs in Nigeria, Botswana, Namibia, Zambia and Zimbabwe, look like a beautiful fit.
Some predictions for 2016
- An even tougher trading environment
- More international franchising entrants
- Local franchisors continue to expand into Africa
- Technology in the franchise industry becomes more pervasive
We’ll touch on these trends, and more, in the January edition of the newsletter.
The team at whichfranchise.co.za wish all our readers a pr
osperous 2016. We love hearing from our readers – get in touch with us if you have a story idea or something you’d like us to feature in the New Year.
Have a query about your existing franchise or would like to purchase a franchise in 2016? Drop our franchising experts a line and they’re sure to get back to you.