No longer available: Chicken Franchise Restaurant and Takeaway

Details

Summary: Sizzling Mexican Chicken Franchise with Unmatched Demand and Effortless Operation in a Prime Location, Backed by Exceptional Franchisor Support.

Background

A Mexican Chicken Franchise with a Proven Track Record of Success and Growth

This successful franchise specialises in serving mouth-watering Mexican chicken dishes to its customers. With a focus on the restaurant, takeaway and delivery markets, the business has already achieved impressive results with an excellent opportunity to increase revenue generated from these sales channels. This well-established business offers excellent opportunities for growth and expansion, particularly in the takeaway and delivery markets.

Established in September 2019, this business has been in operation for 3 years and 2 months, providing its owner with a reliable and steady income stream. With the current owner has established and run the business from the beginning, the franchise has a strong foundation and a deep understanding of the market and customer needs.

Breaking down the sales channels, the average breakdown for the past 6 months is as follows:

Sit-down dining: 52%

Take-away: 26%

Delivery: 22%

This Mexican Chicken Franchise is a valuable investment opportunity for those seeking to join a thriving and well-supported franchise network. With its proven track record and excellent franchisor support, this franchise is a solid business for those looking to enter the food and beverage industry.

Present

Optimized Operations and Strategic Marketing Drive the Success of this Mexican Chicken Franchise

This Mexican Chicken Franchise operates efficiently daily, with the support of dedicated managers and a loyal customer base that includes regular diners, walk-in customers, takeaways, and deliveries.

To attract new customers and keep its brand front-of-mind, the franchise leverages the power of the franchisor’s marketing and promotion efforts, localised marketing and a highly visible location. The franchise also utilises various advertising and marketing tools, including its own app, website, and partnerships with platforms like Mr D and Uber Eats.

This franchise does not currently have contract work, allowing it to focus solely on its core business activities. The competition in the area includes other restaurants, but the franchise benefits from the high foot traffic.

Seasonally, the franchise has demonstrated steady growth and a consistent turnover, making it a reliable and lucrative investment opportunity. With a focus on optimised operations and strategic marketing, this Mexican Chicken Franchise is poised for continued success and growth.

Financial

Is the business VAT Registered?
Yes

What VAT documentation is on file?
Will be discussed with serious buyers

Are there up-to-date Management Accounts available?
Yes, December 2022

What Balance Sheet and Income Statements are available?
AFS 2022

What percentage of the business is cash/credit?
100% Card and Cash

What is the age analysis of the debtor’s book?
None

Maximising Profitability and Expanding Opportunities for this Mexican Chicken Franchise

To enhance the profitability of this Mexican Chicken Franchise, the business would benefit from a more hands-on owner and increased marketing efforts. The proximity of the franchise to various businesses and embassies presents an opportunity to expand into the catering and event space for these organisations. Additionally, the nearby stadium provides a potential market for sports event catering.

Unfortunately, seller financing is not available currently. However, by leveraging the untapped potential for catering and event services, as well as implementing targeted marketing strategies, the profitability of this Mexican Chicken Franchise can be significantly improved.

Operations

Staffing:

What is the total staff complement?
15

Give a breakdown of staff/ functions/ length of service?
2 Managers, 2+ yrs and 6+mths

1 Kitchen Asst/ 1+yrs

4 Kitchen Assistants, 1+yrs, 2 mths, 3mths and 1 mth

4 Waitrons, 1+yrs, 1+yrs, 3+yrs and 1+yrs

Do any receive special perks or incentives?
Long service awards, Maternity leave bonus

Are they on contract?
Yes

Do any have management potential?
Yes, the 2 managers have potential

How involved is the Owner in running the business?
The current owner lives in another town away from the business

Premises

The current lease for this Mexican Chicken Franchise is set to end in August 2025, and a new lease will be required for the buyer. The annual escalation percentage for the lease is 6%.

The franchise operates during the following hours: Sunday to Thursday from 9:30 am to 9:00 pm, and Friday and Saturday from 8:30 am to 10:30 pm. The franchise covers an area of 180m², and a copy of the lease is available upon request.

The buyer must obtain a  business trading license to operate this franchise. A deposit of at least three months’ rent is expected, with the current owner putting down a deposit of R204,203. The buyer can ensure a stable and profitable future for this Mexican Chicken Franchise by securing a favourable lease agreement and obtaining the necessary licenses.