Franchising.

Transcription

1 Franchising

2 oth The look and feel

3 Exterior Look & Feel

4 Background Big Joe s real pies is a specialist retail and wholesale pie bakery focused on manufacturing and supplying of the highest quality fresh homemade pies. The prime target market is the general broad spectrum consumer. Although Big Joe s is a strong destination orientated retailer, high traffic mall locations creates a win-win for the landlord, consumers and Big Joe s. Our already competitive pricing structure is conducive for selling our pies in bulk to the general consumer as well as the wholesale market. The success of this concept has already been proven to be in high demand in our existing stores. In line with international consumer trends, the Big Joe s shop has a modern open plan design and layout to enable customers to see how the pies are freshly manufactured daily.

5 Background Big Joe s manufactured and supplied all the Deeghuys Group outlets with pies from 2013 to January At Big Joe s it was decided to change the business format and to focus on retail franchised outlets and stop the manufacturing for Deeghuys. The first Big Joe s pie bakery shop opened it s doors during 2013 in Hermanus,Western Cape. It was an instant success and as a result of the continuous growth over 3 years of trading, it was decided to open a second store nearby in Strand, Western Cape to test and to further refine the business and franchise model. Big Joe s is a proven concept and our product presentation together with favourable pricing favours the current poor economic circumstances offering high standard products at affordable prices. The company is headed by Hennie Andrews (Founder King Pie & Butterfields) and Pieter van der Merwe (Founder PNA and former Managing Director Deeghuys), each member brings a unique set of skills and talent together, creating a sustainable profitable business model.

6 The Concept Wholesale to the public: Economic pressure reduces the buying power of the consumer, this pressure acts in our favour considering our pricing structure. The consumer enjoys bulk prices and thus purchase larger quantities for a family meal at a very good deal. Experience in our current stores proven that more and more boxes (i.e. 9 pies per box at R99 and 14 pies per box at R150) are being sold to the public, than simply one client buying a pie to eat for lunch. Factory store feel: Customers are given the opportunity to see first hand and close up how the fillings are prepared, the pastries are made, and the pies are baked, it s an open plan shop that invites people in. The consumer trends have shown the increased spending at factory type stores as there are an increased perceived value for the customer. Freshness: A customer visiting our store is guaranteed that the pie was made and baked on site, daily with unquestionable freshness, which makes the customer feel confident in every pie purchase made. Real Pies: Our pies are baked from scratch, all of our pies are all-natural, they do not contain any food additives, preservatives or any artificial colours or flavours.

7 The Concept Taste & Quality: With Hennie s experience in pastries and proven filling recipe s, we can say with confidence that our homemade quality pies are superior to any pies in the world. We have been monitoring our customer feedback confirming once tasted a Big Joe s pie, you don t eat any other pie. Price: The industry is changing, it made sense in the early 2000 s to make all the pies in a national central kitchen, thereafter freezing the pies and then distribute them to all the branches. However, with the rise in fuel and distribution costs as well as electricity cost to keep the pies frozen, the opportunity for our model became obvious. To contain this margin cutting battle, our model offers and ensures that a higher and more sustainable margin can be maintained whilst our prices are most competitive. The bottom line: Together with Big Joe s alignment with the current trends, we offer both the consumer as well as the franchisee a sustainable business model.

8 Support We provide franchisees with a turnkey solution that includes: Finding the right site Lease negotiations Store planning, layout and design Pre-opening and in-store training Pre-opening marketing campaign Opening marketing campaign Franchisee ongoing support Our head office team will assist you on site before and after opening, ensuring a smooth an successful store launch and, most importantly, ongoing support for the sustainable profitability of your franchise.

9 Vision & Mission Big Joe s Vision: To be South Africa s preferred freshly made and baked Real Pie wholesaler and retailer. Big Joe s Mission: Provide the nation with top quality Real Pies at affordable prices. This will be achieved through our commitment to: Always making the best tasting Real Pies Best quality ingredients Top quality people serving our customers Consistent and timeous delivery Sustainable growth Maintaining a strong value system Managing consumer trends and expectations

10 Stats and facts Description Figure Average monthly turnover R Achievable gross margin 60% Average setup cost (Start-up) R 1.5m Initial joining fee R (included in start-up cost) Management service fee 6% of turnover Marketing fee 2% of turnover Agreement term 5 Years Renewal term 5 Years Number of stores 2 Existing store locations Hermanus, Western Cape Strand, Western Cape

11 Process steps 1 Application & Brochure 2 Desktop assessment & Discussion 3 Non-Disclosure Agreement and Deposit 4 Disclosure Document 5 Price acceptance & Financing Options 6 Assessment & Business Training 7 Franchise, Disclosure & Purchase agreements 8 Finance Approval 9 Shop fitting 10 In store training 11 Settlement 12 Handover

12 SA Franchise Warehouse SA Franchise Warehouse provides funding solutions for would-be franchisees. All applicants will undergo an assessment to determine their suitability to become a franchisee. Approved franchisees will be enrolled on a five-day Small Business Management Training course presented by SA Franchise Warehouse. SA Franchise Warehouse has access to government funding to assist previously disadvantaged applicants. SA Franchise Warehouse provides franchisees with business administration mentoring and will, on an ongoing basis, report to the relevant funder on the performance and human resource related matters of each funded business.

13 Contact details Contact Pieter van der Merwe Mobile