kelly Khumalo responds to Malema
South African vocalist and actress, Kelly Khumalo, responded to Julius Malema’s claims about her knowledge of Senzo Meyiwa’s killer. The 2014 death of the national soccer team’s former captain has remained an unresolved case, and Malema’s statements sparked renewed interest.
In an open interview, Khumalo expressed frustration, stating that she dearly loved Senzo and wanted justice to be served.
Khumalo surprised many by revealing that she knew the identity of the alleged culprit. However, she clarified that her knowledge was based only on rumors and speculations. The media and the public had mixed reactions to her statement, with some sympathizing with her situation, while others accused her of withholding vital information.
The disclosure reignited public interest in the unsolved case, leading to increased demands for a swift investigation. The relentless scrutiny and media attention have taken a toll on Khumalo’s mental and emotional health. As the nation awaits further developments, the focus should be on pursuing justice for Senzo Meyiwa and his family, emphasizing the need for a comprehensive and objective investigation to close this heartbreaking chapter in South Africa’s history.
The Cost of Opening a Top Fast-Food Franchise in South Africa
The fast-food industry in South Africa has proven to be highly successful and popular, witnessing substantial growth despite facing challenges shared by other businesses in the country. The demand for fast-food outlets has surged during load shedding, a time when South Africans tend to spend 60% more on eating out compared to load-shedding-free periods.
As a result, the fast-food market has thrived, outperforming other sectors and offering lucrative opportunities for potential franchisees. This essay delves into the financial aspects of opening popular fast-food franchises in South Africa, shedding light on the substantial investments required and the potential returns.
The Growth of South Africa’s Fast-Food Industry
The food and beverages sector in South Africa experienced nominal year-on-year growth of 15.5%, with takeaways and fast food leading the charge, growing by an impressive 33.1% in real terms. Allied Market Research projects a promising future, estimating a 7.9% annual growth rate, leading to a market valuation of $4.9 billion (R85 billion) by 2026.
Examining Franchise Costs
To gain insight into the costs associated with owning and operating popular fast-food franchises, we will explore the financial requirements of various brands.
1. KFC
KFC, the renowned southern fried chicken chain, has over 26,000 restaurants worldwide. While the company is not actively seeking new franchisees, aspiring entrepreneurs can purchase existing KFC businesses from existing franchise owners. The cost to acquire a new KFC franchise is estimated to be close to R6 million, with variations depending on location, size, and operational requirements.
2. McDonald’s
As a global giant with over 35,000 restaurants in 120 countries, McDonald’s boasts 335 locations in South Africa. While the franchising costs were not available in the latest data, opening a branch entails an average investment ranging from R4 million to R6 million. Prospective franchisees are required to contribute between R1.4 million and R2.1 million as 35% unencumbered cash.
3. Debonairs Pizza
Started by two university students with only R6,000, Debonairs Pizza has grown to around 681 stores across South Africa. While the website does not disclose the franchising costs, Famous Brands’ market research report indicates an average investment of R1.7 million and monthly royalties amounting to 12% of monthly Net Sales.
4. Steers
A popular local burger chain, Steers, has 649 branches throughout South Africa. The franchising fees involve a franchise fee of R75,000 for Drive-Thru and R68,000 for Inline outlets. The average investment required is R3.75 million for Drive-Thru and R1.97 million for Inline locations, with monthly royalties at 11% of monthly Net Sales.
5. Nando’s
Known for its flame-grilled peri-peri chicken, Nando’s has around 925 restaurants in South Africa. Opening a Nando’s branch requires an application fee of R37,500 and a franchise fee of R250,000. The average investment ranges from R5.4 million for Inline to R6.7 million for Drive-Thru outlets, with 50% unencumbered cash contribution.
6. RocoMamas
With 88 restaurants nationwide and 17 international outlets, RocoMamas has become a trendy destination for burger enthusiasts. To own a RocoMamas branch, an average investment of R4.6 million is needed, with 60% unencumbered cash contribution amounting to R2.7 million and a surety of R2.2 million.
7. Chicken Licken
As the largest non-American-owned fried chicken franchise in the world, Chicken Licken operates 286 stores in South Africa. To open a Chicken Licken branch, the franchise fee is R180,000, and the average investment ranges from R4.8 million for Inline to R6.8 million for Fly-Thru outlets. Prospective franchisees must contribute 50% unencumbered cash.
8. Simply Asia Thai Food & Noodle Bar
Simply Asia, with approximately 64 stores in Western Cape, Gauteng, and KwaZulu-Natal, requires an investment of R1.5 million for Sit-down and R1.1 million for Express locations. The franchise fee is R100,000, and a 50% unencumbered cash contribution is mandatory.
9. Roman’s Pizza
The Roman’s Pizza chain, with 248 outlets across South Africa, involves a franchise fee of R90,000 and an average investment of R2.7 million (including R100,000 working capital). A minimum of R130,000 in unencumbered cash is required.
Conclusion
The fast-food industry in South Africa remains a lucrative business venture, witnessing consistent growth and high demand, especially during load shedding periods. While the costs associated with opening top fast-food franchises are substantial, these investments present potential for promising returns in a thriving market. Entrepreneurs considering entering this dynamic industry must carefully evaluate the financial requirements and opportunities each franchise presents before making a decision.
