Ref. No - BFS936286

LocationSouth Africa, Gauteng

Ref. No - BFS936286

Sector - Food

Asking Price
R1,500,000
Monthly Profit
R97,085
Asset Value
R 304,732
Stock Value
R 90,000
Yearly Net Profit
R 1,165,020

Summary

This chicken takeaway business has a unique winning formula - simple menu, food sold by weight, and a loyal following. The basic offering keeps things streamlined, making it a profitable venture.

Give me more information

Fully describe the business's activities?

This is a mostly a self-service business (no other food business in the area works this way) where only a small portion of the orders are prepared on demand, which is very time consuming, the biggest seller is self-service. Food is prepared beforehand, put out for sale and the customer selects, pays and leaves. quick turnaround.

They have a small but profitable menu so they don't have hundreds of products that can expire.

The business is quite self-sufficient as it has its own backup power and water to keep things running when there is load shedding and water problems.

How does the business operate on a daily basis?

The business enjoys strong and consistent support from the local community, with many loyal customers who visit regularly and continue to return year after year. Having operated from the same premises for more than 30 years, the business has built a solid reputation and has become a well-known and trusted name in the area. Over time it has established itself as a familiar part of the local community, with generations of customers returning for the same quality and flavour they have come to expect.

Its reputation has also spread well beyond the immediate neighbourhood. Customers are known to travel from surrounding areas such as Soweto, Krugersdorp, Roodepoort and even Carletonville specifically to purchase the chicken. This continued demand is largely due to the distinctive taste and the unique blend of spices used in the preparation, which sets the product apart from other take-away options and keeps customers coming back.

What Advertising/Marketing is carried out?

None whatsoever

What competition exists?

While there are other fast-food outlets in the surrounding area, this business stands out due to its own distinctive recipe, which gives its chicken a flavour that cannot be found at any other take-away. The preparation methods and overall business model are also unique, contributing to the strong customer loyalty the business has built over the years. Further details regarding these processes and the operating model will be shared with serious and qualified buyers.

Having successfully operated for more than 30 years, the business has demonstrated remarkable longevity and resilience. It is currently the only original take-away business still operating in the town, with many of the others that once existed having closed down over time. This long-standing presence has helped establish the business as a well-known and trusted part of the local community.

How could the profitability of the business be improved?

Profitability could be further improved by extending the current trading hours, as the business currently operates within a 45-hour work week. Longer operating hours, particularly during peak evening or weekend periods, could increase sales and capture additional customer traffic.

There is also an opportunity to expand the product range. Introducing additional items such as chicken burgers, pies, sandwiches and other complementary takeaway options could attract new customers and encourage existing customers to purchase more per visit. The exact product mix could be adjusted depending on the target market the new owner wishes to focus on.

Further growth could also come from offering value meals, family combos, or lunch specials, as well as introducing delivery or online ordering services. These additions could help increase both customer reach and average transaction value, ultimately improving overall profitability.

Give a breakdown of staff/ functions/ length of service?

Two kitchen hands handle most of the daily kitchen duties, including cutting the chicken, cooking and cleaning. Both have been employed by the business since 2010 and are very familiar with the operations.

A newer staff member, with approximately four years of service, mainly assists in the kitchen and has only recently started learning how to cook the chicken (training began in August 2023).

There is also one employee who is able to cook all the menu items and can operate and manage all the ovens on her own, although she does not cut the chicken.

Do any have management potential?

1 employee can assist at the counter but not manage or run the business

How involved is the Owner in running the business?

Owner is full time involved , as you will decide on quantity of ovens per day.

When does the current lease end?

The lease is month-to-month. The business has been in the same location for the last 30 years.

What are the trading hours?

Monday to Friday 8h00 to 5h00

Saturday 8h00 to 2h00

If business allow we will be open later on a Saturday

What are the main assets of the business?

Chicken rotisserie ovens, gas chip ovens, large boiling table and generator to run whole business and water tank to keep everything clean

Strengths?

*Long-standing presence – Having operated successfully for many years, the business has proven stability and reliability. Its long history has helped establish a loyal customer base and strong reputation.
*Unique recipes – The chicken is prepared using a distinctive recipe and blend of spices that sets it apart from other takeaway outlets. This unique flavour profile keeps customers returning and travelling from surrounding areas.
*Unique ordering process – The business operates with its own established ordering system, which has been refined over time to suit the customer base and improve operational efficiency.
*Food preparation allows for forward planning – A large portion of the food is prepared in advance, which allows for better planning of production, improved consistency in quality, and more efficient kitchen operations during busy periods.
*Focus on lower LSM markets – The business caters to a price-sensitive market segment, offering affordable food options that appeal to a large and consistent customer base.
*Convenient location close to customers – The business is situated close to its primary customer base, making it easily accessible and encouraging regular visits from nearby residents.

Weaknesses?

*Location in the CBD – While the business is well-placed for existing local customers, being in the central business district may limit visibility to new customers who do not travel to the area regularly. Additionally, CBD locations can sometimes face higher rental costs, parking limitations, and congestion, which could affect customer convenience.
*Limited marketing exposure – The business relies primarily on word-of-mouth advertising. While effective with loyal customers, there is minimal active marketing or digital presence to attract new audiences.
*Dependence on key staff – Certain employees hold essential skills for cooking or operating equipment. This dependence could pose operational risks if staff turnover occurs or absences happen

Opportunities?

*Expand the menu offering – There is an opportunity to introduce additional menu items such as chicken burgers, pies, sandwiches, combo meals, or family meals. Expanding the product range could attract new customers and encourage existing customers to increase their average spend per visit.
*Improve or redesign the store layout – A different or improved layout of the business could help create a more efficient workflow in the kitchen and ordering area. This could reduce waiting times, improve customer flow during busy periods, and potentially increase the number of orders that can be handled.
*Extend trading hours – The business currently operates within limited hours, and extending operating times could capture additional sales. Opening earlier, closing later, or trading more on weekends could attract customers who are currently unable to visit during the existing hours.
*Introduce meal deals or promotions – Offering value meals, family combos, or lunch specials could help increase sales volume and attract more price-conscious customers.
*Delivery or takeaway expansion – Introducing delivery services or partnering with delivery platforms could expand the customer reach beyond those who are able to visit the store in person.

Threats?

Worsen economy as clientele are price sensitive

What is the reason for the sale?

Owner retiring

Contact | Enquire

Joe

Joe De Gouveia

LocationSouth Africa, Gauteng

Preferred method of contact

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