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Company Reports - "Old Fashioned" Fish and Chips  

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"Old Fashioned" Fish and Chips

Cooking up a storm in South Africa

Melissa Rudd

"Old Fashioned" Fish and Chips on its way to opening 300 stores as it targets global domination
Cooking up a storm in South Africa

“Old Fashioned” Fish and Chips was established in 2002. In the decade to follow, it has grown to have 211 stores across five borders in South Africa. Originally targeting consumers of a low socio-economic status, the brand became so popular thanks to its high quality food that it began attracting a much broader audience. 

Having began as a standalone takeaway in Elma Park, Edenvale, the brand has certainly come a long way. Its popularity has soared to such an extent that it has set a target to have 310 stores before March 2012. Each franchisee is provided with all equipment and supplies ready to begin trading.

“We aim to give the customer that original, delicious fish and chips taste experience, but serve it to them in a clean, modern setting,” states the company's website.

“Old Fashioned” Fish and Chips uses only organically sourced products, adding a traditional secret spiced batter to coat the fish and scouring South Africa to find the very best A Grade potatoes.

The franchise aims to “bring back the old on the corner chippie that we all loved, but with friendly service and better pricing,” according to its website.

COMPANY HISTORY

The concept of the fish and chips store is a traditional one, originating from Harry Ramsden's stores in the UK almost a century ago. Alfred Pereira then attempted to bring fish and chips shops to South Africa, leading his niece, Emilia De Sousa to start up “Old Fashioned” Fish and Chips.

Emilia's son Nicolas De Sousa is the Operations and Marketing Director and says the company operates on a strong family ethos, which he believes is one of the reasons why it has been so successful.

“The fact that we are a family-run business means that we are all involved on a professional and personal level. We don't have any corporate conflicts and different motives because we are united in the same cause and have the same ambitions for the company.”

With many years' experience in the management trade, De Sousa has helped to develop the brand and ensure the right people are involved with the business, managing personalities and the operational structure.

De Sousa says that although there is a corporate business model, operations “are family oriented” and that the brand ethos has a strong core model which resonates through each franchise.

STAFF MANAGEMENT

The company operates a stringent recruitment process to assess both skill levels and personality. De Sousa says that the main focus when recruiting and attracting staff is that they have the same principles as he and his family have and like to implement in the business.

The most desired quality in franchisees is entrepreneurial spirit. Although some do not have qualifications, they may be taken on due to their personal assets, with the system being remodelled to suit their skills. All training is carried out in-house, and the company also offers services for schools and colleges.

OPERATIONS

The “Old Fashioned” Fish and Chips distribution centres are headed up by Paul Mendonca (Managing Director of Distribution Centre), with representatives providing support and quality control.

The company works directly with a select group of strategic partners for procurement to attain exclusive deals. “Old Fashioned” Fish and Chips has held a 24-month partnership with Pepsi which enables them to utilise the major brand's demographic outreach and work off Pepsi's current supply and data when franchises open in a new area of the country. De Sousa says this makes it “the official drink” of the company.

“Not only have we made this an official draw card to our business but the partnership with Pepsi has extended its creativity and offering and has led to a rise in impulse purchasing among our customers”, says De Sousa.

The organisation's primary method of advertising is sponsorship of major sporting teams such as The Stormers/Western Province Rugby Union and personalities which extend to national figures including Bryan Habana, Jaque Fourie and Jean De Villiers who form part of the South African rugby team.

INVESTMENTS

Along with the bold target of reaching the 310 store mark before March 2012, “Old Fashioned” Fish and Chips also has a global ambition to open stores internationally, which is expected within the next 12 months or so.

As well as investing in sponsorship deals, the company is also on the brink of launching a highly confidential new brand, with 75 stores to open this year as a second investment.

FRANCHISES

The company offers an attractive package to franchisees, offering strong support from Head Office to eliminate the brand management side of operations from individual stores.

Most remarkably, says De Sousa proudly, the franchisee often sees a return on investment (ROI) within the first 11 months of operation, with one particular store taking a mere three months to see a ROI.

Each store has a total cost of R450,000 excluding VAT, with a minimum of R100,000 required for a deposit which will ensure the newly signed franchisee a hold on his/her desired area of trade, a five-year contract and the start of negotiations with the landlord of the preferential property.

Work will then begin on the newly purchased store, including floor to ceiling tiling, equipment, interior and exterior signage, menus, marketing material and in-depth training for all newly recruited staff members.

FUTURE AMBITIONS

“Old Fashioned” Fish and Chips' aggressive growth rate has only served to increase the future goals and targets set by the De Sousa family.

“We have great expectations for the next five years,” De Sousa states. “At the moment I would say we are only running at about 5 percent of the capacity we could do in South Africa. This will increase significantly with the opening of new stores in the country. On an international scale, I think we can become a global market leader.” Based on its impressive performance to date, this traditional family-run franchise certainly has the right recipe for further success.

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