Ref. No - BFS937444

LocationSouth Africa, Gauteng

Ref. No - BFS937444

Sector - Food

Asking Price
R6,988,000
Monthly Profit
R119,386
Asset Value
R 6,700,000
Stock Value
R 1,488,000
Yearly Net Profit
R 1,432,630

Summary

Franchise butchery operating for 6 years. profitable and options to supply to the bulk market. Regular client base. Good location in Mall.

Give me more information

Fully describe the business's activities?

This is a Retail Chicken and Meat Franchise is a rapidly growing butchery and grocery chain targeting low‑ to mid‑income communities. The reliable Franchisor was Founded in 1987, it now hosts over 90 outlets nationwide, offering fresh and frozen chicken, fish, red and processed meats, packaged foods, specials, and convenient, affordable shopping

How does the business operate on a daily basis?

The shop runs from 07h00 to 19h00 serving over 1000 walk-in customers daily. The operation follows a structured routine:
Stock procurement and replenishment - ensuring fresh meat, chicken, dairy, bakery, processed meats, snacks, vegetables and hot foods are consistently available
Peak-hour management: Handling high foot traffic efficiently, especially during grant payout days
Daily cash-ups & profitability tracking: Leveraging an online management system to monitor sales, stock levels and gross profit.

What Advertising/Marketing is carried out?

National TV and radio advertising, controlled by the franchisor
Month-end pamphlet distribution, both national and store-customized via Facebook
Mid-month digital campaigns, enhancing visibility online
In-store promotions, customised by each store and communicated via SMS marketing, allowing direct engagement with loyal customers ..

What competition exists?

The store competes with major national retailers like Boxer, Spar, Shoprite, Pick n Pay and Roots which have all been in the Mall for longer than 2 years. The one competitor focus on the same product offering as this business. The rest have a much wider product range and although dominant they serve as a barrier for further competitors.
The shop maintains a competitive edge based on : Convenience ie being near to transport hubs and informal traders which promotes easy access for daily shoppers and Flexibility in pricing and promotions ensuring relevance to customer needs at key purchasing periods enhanced by our growing Stokvel Membership.

How could the profitability of the business be improved?

The business need to increase sales and profit margins
Braai and Go Revenue Growth: Based on industry benchmarks, a Braai and Go setup could increase turnover by 15 - 20% driven by higher foot traffic and impulse purchases. This could add R450000 to R600000 per month
Vegetable Supply Optimization: Partnering with local farmers for cheaper, fresher products can improve margins and Bakery Expansion by Collaborating with local bakeries to increase product range and attract more customers. Vegetable & Bakery Expansion due to improved sourcing and variety could increase basket size by 5-10% adding R150000-R300000 per month
Hot Food menu Growth: Expanding ready-to-eat meals can increase average spend per customer.
Increasing Stokvel Card/Membership from 10000 to 30000 could boost repeat business and direct marketing effectiveness.
Creating a database of Hawkers, old age homes, schools, guesthouses, funeral parlors and offering them bulk deals

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

Staffing Structure – Management-Run Operation
Leadership: Store Manager(4yr) Assistant Store Manager(4yr), Head of Marketing(4yr)
Retail & Packaging: Cashiers, merchandisers, deli & hot foods staff, frozen packaging & wors manufacturing teams.
Security: Outsourced security company with 5 personnel securing the premises.
Administrative & Operational Support: Admin clerk, financial systems, time attendance & stock control.
A detailed list of the staff will be provided to an approved buyer

Do any have management potential?

Comprehensive Management Potential Summary
The leadership team is built on strong experience, adaptability, and well-rounded operational expertise. Each key member has demonstrated growth, resilience, and versatility, ensuring smooth store operations while maintaining customer satisfaction and financial stability.
Store Manager--- Highly experienced in food retail, overseeing butchery, perishables, hot foods, stock control, merchandising, and cashier management.
- Operates independently, achieving financial targets and ensuring seamless day-to-day operations.
- Hands-on problem solver, capable of equipment maintenance to minimize repair costs.
Assistant Manager
- Progressed through various roles, gaining security, product management, and operational expertise.
- Ensures the store runs smoothly when the manager is absent, acting as key holder and maintaining health and safety standards.
- Proven adaptability and leadership, keeping operations stable during transitions.
Head of Marketing & Administration
- Naturally confident and outgoing, excelling in in-store promotions, announcements, and radio advertising.
- Oversees key administrative tasks, including daily reconciliations, wages administration, shift planning, and stock control.
- Balances front-facing marketing with back-office efficiency, making her a crucial pillar in the business.
Admin Clerk in Training
- Resilient career progression, moving from cashier to cleaner, packaging, fruit & veg, deli service, and back to cashier before settling in administration.
- Now capable of handling most administrative functions independently.
- Works closely with the Head of Marketing, shadowing the managers and stepping in as a cashier during peak times.
Overall Leadership Strength
Our management team showcases deep industry knowledge, operational efficiency, financial control, and customer engagement expertise. Each individual has grown into their role through hard work, adaptability, and strategic leadership. Their ability to support one another, step into different roles, and maintain store performance reflects a stable and capable team positioned for sustained business success.

How involved is the Owner in running the business?

Very limited hands on involvement
- Confirms stock purchases and supplier payments, ensuring financial stability.
- Monitors store operations remotely through an online management system, accessing key reports on daily cash-ups, departmental sales, and gross profits.
- Utilizes online surveillance facilities to monitor any part of the store, reinforcing security and operational efficiency.
- Visits the store once a week on Thursdays for an overall inspection, focusing on cleanliness, organization, and business standards.

When does the current lease end?

The lease is held by the Franchisor and sub leased to the business. The lease expires at the end of Oct 26

What are the trading hours?

Mon to Saturday 07h00 to 19h00
Sunday 07h00 to 16h00

What are the main assets of the business?

Operational Infrastructure & Assets (Valued at R6,7 Million+)
✅ Retail & POS Systems – Shelving for groceries, 7 tills, parcel counter, alarm system, and PS system for seamless transactions.
✅ Advanced Cold Storage – Walk-in freezer, meat chiller, beverage cooling fridges, island freezers, ensuring product freshness and minimizing waste.
✅ Food Preparation & Processing – Butchery equipment, wrapper machines, biltong drier, scales, soft-serve machine, hot foods equipment, microwave for diverse product offerings.
✅ Technology & Security – Office automation, software, computers & server, time attendance system, cameras, and outsourced security team ensure efficient operations.
✅ Reliable Backup Power – High-capacity generator, preventing downtime during load shedding, keeping freezers and tills operational.
A full list will be provided

Strengths?

In a large mall with many national tenants.Prime location outside the mall near a busy taxi rank and hawker market
Established brand as a Franchise . The business benefit from brand recognition, supplier networks and operational support
Generator backup. Strong barrier to entry for any new competitive businesses (6 years)
Loyal established customer base

Weaknesses?

Proximity to Strong Competitors. Limited Grocery Market Share
External location may affect impulse purchases compared to stores inside the mall

Opportunities?

Leverage the small business market offering hawkers, schools, old age homes, funeral parlors, guest houses, restaurants bulk discounts. Setting up a Braai and Go Concept (Placing a container at the front of the shop)
Doubling or tripling the Stokvel Membership of loyal customers
Expanding the Hot Foods, Bakery and Vegetable offering. Sourcing product direct from the farmer

Threats?

Economic and Macro Challenges which affect prices and supply of product such as inflation, diseases(foot and mouth, bird flu)
Power Failures

What is the reason for the sale?

The current owner operates a rapidly expanding business in Krugersdorp, requiring intensive oversight and strategic input. Managing the Mamelodi business demands 2 to 3 hours of travel daily, limiting the ability to scale both operations effectively. To unlock the full growth potential, the owner seeks a buyer who can drive expansion, maximize profitability, and scale the business further.
Location

Contact | Enquire

Jannie

Jannie Jansen van Vuuren

LocationSouth Africa, Gauteng

Preferred method of contact

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