Retail Trends 2019



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Fasa Awards honour SA's leaders in franchising

The Franchise Association of South Africa's (Fasa) Awards for Excellence in Franchising held recently, saw health food brand Kauai walk off with multiple awards including the coveted title of Franchisor of the Year. The annual awards, sponsored by Sanlam, recognise the industry's top franchisors and franchisees, and their vital contribution towards job creation in the country.

Fasa Awards winners, left to right: CW & Stiaan Pieterse of Body20, winners of Franchisee of the Year; Lawrence Lindeque of Kauai, Field Service Consultant of the Year; Neo Matjila of Kauai, for Brand Builder of the Year; Guy Le Ray-Cook of Kauai, for Franchisor of the Year; and Akhona Qengqe of KFC, for the Job Creator of the Year Award.

Franchisor of the Year: Kauai

Aside from being named Franchisor of the Year, Kauai also took the award for Brand Builder of the Year by establishing successful customer loyalty apps with key partners – such as through the 93 Virgin Active Health Clubs and through Discover Vitality and Discovery Insure – building their customer base, raising their brand awareness and boosting their bottom line.

Kauai's field service consultant Lawrence Lindeque also won Field Service Consultant of the Year through the effective business monitoring and mentoring of the franchisees in his area, resulting in double-digit growth in all his stores.

“Not only have we had our best year in 22 years of trading with 25% year-on-year growth and 4% improvement on Net Profit percentage, but we have upped our game in introducing innovative communication strategies," says Guy Le Ray Cook, franchising executive for Kauai.

"From being the first to market with our new app that includes order ahead, loyalty and cashless payments adding a minimum of 5% additional overall sales in loyalty transactions, to introducing our K Konnect platform that allows everyone from kitchen staff to franchisees to get information and share day-to-day experiences on a live cell phone platform.”

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Franchisee of the Year: Body20, Brooklyn

Body20's Brooklyn, Pretoria branch scooped the Franchisee of the Year award. Fasa says Body20's 20-minute EMS (Electro Muscle Stimulation) weekly training has revolutionised how we keep in shape. The company is so confident that its EMS Studios will become one of the most influential fitness franchises, they are opening new studios in South Africa at a rate of almost one a month and have already broken into the USA market with success.

Bertus Albertse, CEO of Body20, explains, “It’s a low-staffing business model, with fast break-evens and impressive returns – our 36 outlets in just over three years attests to that.”

Job Creator of the Year: KFC

KFC took the Job Creator of the Year Award. With 20,500 employees across 1,053 outlets, the fast food brand makes a notable contribution to job creation in the country. "If one adds the indirect jobs they create through their supplier network and partners, their contribution is compounded and to be lauded," adds Fasa.

Hall of Fame: Sorbet's Ian Fuhr

Ian Fuhr, the entrepreneur behind the Sorbet brand of beauty salons, was honoured for his contribution to the sector. He was credited for "redefining customers as ‘guests’ and staff as ‘citizens’ – putting service and support ahead of sales and profit."

According to Fasa, "the culture he installed in his businesses is that if the service is excellent and the citizens feel validated and cared for... the money will automatically follow.”

Fasa bestowed the prestigious Hall of Fame award to Ian Fuhr (left), entrepreneur and founder of the Sorbet brand of grooming stores.

Stimulating economic growth

“South Africa is in dire need of economic growth,” says Kobus Engelbrecht, marketing head, Sanlam Business Market. “Franchising is an effective way to create new businesses as well as new employment opportunities that will stimulate this much needed economic growth. By recognising and rewarding outstanding performance in the franchise industry, we are building and promoting franchising as a business concept as well as an excellent career option.”

#BizTrends2018: Is franchising future-proof?

Modern-day franchising has been with us since the mid-1950s when it made its presence felt in the USA. Subsequently, expansion was swift and within a few short years, the concept had conquered the world.

By Tony Da Fonseca 9 Jan 2018

Vera Valasis, executive director of FASA, who has just returned from representing South Africa at the World Franchise Council reports that, whilst the effects of global economic turbulence is affecting some countries more than others, almost all report that franchising is still alive and well and making huge contributions in their respective economies and to franchising globally. “As a global phenomenon, franchising remains one of the drivers of entrepreneurship, small business development and job creation.”
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