Steady Growth for Franchise Opportunities in South Africa
Rise of the fast casual dining sector
“Business owners may be taking strain amid weaker economic growth, but the franchising sector is growing steadily in South Africa,” says Louis Germishuys, CEO of Galito’s. In fact, survey findings from The Franchise Association of South Africa shows that the sector continues to be a major player in the economy, where emerging markets have become fertile ground for franchising to take root.
“Given that fact that the sector covers a wide range of industries, franchising contributes a healthy percentage to the country’s GDP and it offers businesses and SMEs the opportunity to access different sectors, including international brands and markets,” says Germishuys. “And while the markets are crowded, with a differentiated product, controlled supply chain for unwavering quality, entrepreneurial flair and the right partnerships, new opportunities are plenty.”
Some of the biggest failures in the sector, according to Germishuys, is not understanding the market requirements, not having control of the supply chain and an inconsistent product and falling into complacency when it comes to how much work success really takes. “The mistake many people make is that they choose their partners based on how deep their pockets are. However, if your partners are not invested in the business in terms of passion and a shared vision – these partnerships will fail, or worse yet – the business will. Having a positive franchisee-franchisor relationship is critical for success.”
Galito’s has had strong success in the market since its inception in 1996. Today, the franchise has 130 stores in 14 countries, across 4 continents and has become synonymous in the fast casual dining sector. Typically restaurants in this category do not offer full table service, but offer a higher quality of food and atmosphere than traditional fast food.
“The term fast casual has been around for a while, but more recently has come to the fore as consumer preferences have changed where consumers are looking for higher quality of food, but the desire to find a healthier alternative does not supersede the need to eat on the go,” adds Germishuys. “As a result, this classification is increasingly becoming recognised in the food industry and in the franchise space to define a ‘new’ category which presents itself with it’s own set of opportunities.”
The franchise space in South Africa is changing and growing but for entrepreneurs looking for a different challenge, it has become a viable option – and is a great avenue for job creation.
“There will always be challenges in any industry and franchising is no different, but the market is conducive to growth and with the right partners, the right mindset and skills – the growth in South Africa and even across Africa and internationally is substantial,” concludes Germishuys.
Galito’s is the only African-born ‘fast casual’ dining chain that focuses on bold simplicity, for flame-grilled chicken lovers across the globe, who hunger after meaningful value in an era of fresher, higher-quality produce. A flame-grilled chicken franchise that is focused towards fast, fresh and bold African flavour. Born in Africa and taken to the world, Galito’s is targeted at ‘hotsteppers’ with its lively setting and bold flavours.