- South Africa’s take-out pizza market is heavily franchised.
- Historically, it has also been one of the most popular fast food sectors in South Africa.
- There are several franchise options available in South Africa, ranging from container stores to full service restaurants.
- You can pay as little as Rand 1.5 million at the bottom of the market, but a full-service pizza place can cost several times as much.
- Here’s how much it costs to open your own pizzeria Roman’s Pizza, Panarottis, Pizza Perfect or Debonairs in 2021.
- For more stories go to www.BusinessInsider.co.za.
Although pizza has traditionally been one of the best performing fast food sectors in South Africa, it has had a tough time lately. Even before Covid-19, intense competition in the industry saw several brands come and go, and drastic price drops from others to entice customers.
On the surface, however, a pizza franchise is a pretty attractive option. There are different store formats, from kiosk-style take-out to full-service restaurants. And at the lower end of the scale, pizza franchises represent some of the cheapest food franchises you can buy in South Africa.
If you’ve always dreamed of owning a pizza place, or want to take advantage of South Africa’s appreciation for inexpensive Italian food to produce, here’s how the country’s top franchises rank.
The first Roman’s Pizza branch opened in 2002, and the brand quickly made a name for itself by offering two pizzas for the price of one. Today there are around 200 branches spread across the country and they are always looking for new franchisees to open stores. According to Roman’s Pizza, the ideal franchisee is passionate about the trade and open to working long hours.
The store offers four to six weeks of training and carefully analyzes new locations before opening branches. Once the head office determines the viability of a new site, it will equip it with up to three ovens, kneaders and dough sheeters.
To buy your own Roman’s Pizza branch, you will need to pay an initial membership fee of R90,000. Building a new branch costs around R 2.6 million, half of which must be available as unencumbered cash. . You will also need a working capital of 100,000 Rand.
Once established, Roman’s charges 8% of monthly turnover for management and advertising costs.
Panarottis, owned by franchise giant Spur Corporation, is one of the most established pizza franchises available for purchase in South Africa. Panarottis has two store formats available for purchase – a standard store that offers a wide Italian menu for sit-down meals and express branches that focus on take-out.
If you want to open your own Panarottis store in South Africa, you will need at least 1.2 million rand for an express format and 4 million rand for a full store. Panarottis does not publicly disclose franchise fees, working capital, management and marketing fees.
Pizza Perfect began in 1989 and currently has over 100 franchise stores across South Africa. The company is proud to create fresh pizzas in its stores in open kitchen format, using a wood-fired oven.
Pizza Perfect is always looking for new franchisees to join its network. They are particularly looking for people who are passionate about providing excellent service and willing to work in the field in the day-to-day operations of the branch.
A new Pizza Perfect branch requires an initial fee of R85,000. The average cost of setting up a Pizza Perfect branch is currently R 1.2 million, excluding VAT, but varies depending on the size of the store. Franchisees must have 50% of this amount in the form of unencumbered cash. Once operational, franchisees must pay monthly royalties of 9% of sales for royalties and marketing.
Debonairs Pizza, which is part of the Famous Brand Group, is one of the most established pizza franchises in the country. There are over 600 branches spread across South Africa. Although some provinces have strong subscribers, the group is still looking to recruit new franchisees.
Four Debonairs store formats are available for the franchise, and each caters to different markets and offers different prices. The cheapest option available is a container concept, followed by a mall concept, express store, and standard debonair.
All potential franchisees must pay an upfront fee of between R50,000 and R68,000, depending on the size of the store. A standard Debonairs costs around 2.24 rand to set up, a mall store 2.38 million rand to set up and an express format 2.05 million rand. The cheapest option is the Container Concept, which costs around R1.5 million.
Famous Brands requires franchisees to have working capital of R 250,000 to R 450,000 and R 55,000 to R 95,000 for initial stock. The group also charges monthly marketing royalties and royalties of 12% of revenue.