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SA Food Franchises In Aus


syria1
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Hi All,

I would appreciate your thoughts on opening SA Food Franchises In perth..Like Mochachos, Skippers and the like..Is this workable in the Aus market and what sould be considered?

Thanks in advance.

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I really have no expert knowledge of marketing in WA so I just offer my street opinion:

I would think the value of a franchise is in the brand name. Everyone in South Africa knows Skippers, Machachos, Nandos, Spur etc. Here in Aus no one knows the South African brand names - so if you open any one of them, as long as you have one store only, you are not a "franchise" in the minds of the people but simply a one-man business. And your one man business will have to compete with all the other one man businesses on an equal footing without the market power that a franchise gives. Except you will actually be at a disadvantage because you will be paying franchise fees when the others won't; and you will not be buying the brand value because there isn't any in Aus.

To give you an example: Spur opened up in Mandurah (south fo Perth) in December. The South Africans went made and support it like crazy, but to the Aussies it is just one of many restuarants. They have no concept of the South African national identity that is so tied up with Spur's slogan "The official restuarant of the South African family". There are many fish and chip shops in Mandurah. Skippers would just be one of many.

That is not to say you cant make it a success, but you will be effectively be building up a franchise in Aus from the start. And then why build up someone else's brand name. If you are going to make a fish and chip shop succesful then you would be better off starting "Syria's Fish Shop"

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[Hi Syria

My husband and I were in WA last year and ate out in the many foodhalls available. We were so excited to notice Nandos in a few of them. However what disturbed us was the total lack of support by the public. Compared to the other choices available Nandos was also more expensive.

We had similar thoughts about an SA franchise but as everything Jordy says is true. There are amazing Aus franchises available and they are so well organised and very well supported.

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In the UK the Nandos are doing very well, dont know how long they have been there. Over here in Sydney the Nandos seem to be steady to busy (when I walk past or go in). Again, dont know how long they had been here. There is much less of them here than over in UK. But a colleague was telling me how disgusting her husband thinks their food is and how much better Oporto chicken places were. Have never been but, if Oporto is similar there might be a big competition for business. I can see people struggling to except a Portuguese/South African restaurant over a 100% Aussie one. The ex-RSA market is too small to rely on, you have to bring the Aussies to love your food.

PS. I have never lived anywhere where people are SO into their chicken!

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Nando's was in the UK in 1997/1998 already. Not sure about in OZ

Nando's in SA is more pricey than other fast foods (eg Kentucky/McDonalds).

In SA a half chicken meal would cost around R54.00 I think. Here in OZ it is about $15-16. (Not sure how that compares to Kentucky/McD - not been yet).

Also the Nando's brand here doesn't advertise themselves as South African. At most it will reference a taste originating in Africa (Portugese explorers). Their products also indicating made in SA for distribution in Australia.

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We support out local Nando's at the Sanctuary lakes centre...the quality is very very good and portion sizes generous..best nandos Ive ever had..there are 2 in point cook (town centre and sanctuary lakes) and one in werribee.

Price is okay if you consider a Cole's family size roast chicken is $10....

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You pay a premium for a franchise, reduced risk being one of the main benefits. Trying a new franchise in Oz negates that benefit. Rather buy into one of the local franchises. I had a long look at several of the food franchises, and Domino's was one of the better ones IMHO. Also remember that location is as important as brand in the fast food game.

Do not underestimate the differences between SA and Oz - King's Pie could make no impression here despite the fact that every South African would swear that their pies are much better than anything that's available here.

Good luck!

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You pay a premium for a franchise, reduced risk being one of the main benefits. Trying a new franchise in Oz negates that benefit. Rather buy into one of the local franchises. I had a long look at several of the food franchises, and Domino's was one of the better ones IMHO. Also remember that location is as important as brand in the fast food game.

Do not underestimate the differences between SA and Oz - King's Pie could make no impression here despite the fact that every South African would swear that their pies are much better than anything that's available here.

Good luck!

Thanks all for input...

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  • 2 years later...

I must say, I tried a local Nandos (in Carina village, I think it was) and wasn't impressed at all!!! Food was insipid and the portion was tiny by the standard I was used to in SA.

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You pay a premium for a franchise, reduced risk being one of the main benefits. Trying a new franchise in Oz negates that benefit. Rather buy into one of the local franchises. I had a long look at several of the food franchises, and Domino's was one of the better ones IMHO. Also remember that location is as important as brand in the fast food game.

Do not underestimate the differences between SA and Oz - King's Pie could make no impression here despite the fact that every South African would swear that their pies are much better than anything that's available here.

Good luck!

Those guys from King Pie lost a small fortune :(

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I must say, I tried a local Nandos (in Carina village, I think it was) and wasn't impressed at all!!! Food was insipid and the portion was tiny by the standard I was used to in SA.

I agree. They use those awful caged birds that taste foul rather than fowl and don't have a decent Portuguese bun to put the chicken in. Generally I find fast food pretty gross in Aus (my 11 year old son refuses to eat most of it as it makes him feel so bad) so fast food in our house is usually sushi.

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