Honchos

Honchos

Home Based:

Yes

Part Time:

No

Contact:

PAUL WIERENGA

Membership:

Platinum

Available In:Country Flag

HONCHOS began as a single store in Pietermaritzburg in 2005. Now national with 84 stores, and currently opening many more stores throughout Africa, including Lesotho, Botswana & eSwatini.

HONCHOS’ rapid expansion is attributed to a great-tasting, affordable product and disciplined supply chain management.

The HONCHOS brand constantly evolves but maintains a homegrown and modern feel that makes any location welcoming. Consistent marketing efforts ensure that the brand stays top-of-mind for consumers and that each store has a steady stream of customers. The trendy look and feel, coupled with the great prices and exceptional quality, ensures Honchos always has a steady flow of repeat and new customers across all age groups and demographics.

HONCHOS is also accredited by the Franchise Association of South Africa.

The opportunity

Honchos has various opportunities available nationally, but other locations identified by prospective franchisees will be assessed for viability.

Benefits of being a franchisee

PROVEN BUSINESS SYSTEM:

The Franchisor has proven and refined the business; this allows Franchisees to emulate this fine-tuned formula.

SKILLS BASE:

The franchise organisation allows the Franchisee access to the specialised and highly skilled knowledge of the Head Office management team whilst enjoying certain benefits of being a self-employed operator.

ONGOING RESEARCH AND DEVELOPMENT:

The Franchisee has the benefit of continuous research and development to maximise the full potential of the business and the benefits of any patents, trademarks, copyrights, trade secrets, recipes, and any processes and so forth. Furthermore, the link to a central supplier is in the franchisees' best interests.

ESTABLISHED BRAND AND TRAINING:

The Franchisee benefits from the Franchisor’s extensive experience in the food industry. The Honchos team has a vast amount of knowledge and experience, as well as the extensive training and backup that is provided. The Franchisee and staff will be trained at the initial stages, and as new training programmes are developed, further training will be provided.

SUPPLY CHAIN:

The Franchisee benefits from Honchos Franchise Group’s purchasing power and supplier negotiations on certain items. This also ensures that the quality of the products and related services is top-notch.

INITIAL ASSISTANCE:

The Franchisor will also provide a great deal of assistance with initial set-up and opening. This will include the initial training/support programme. Furthermore, a turnkey project with project management co-ordinated by the Franchisor and as agreed upon in the initial project plan will be a great advantage for the franchisee.

The Franchisor follows the business format practices of franchising in its dealings and relationship with its Franchisees. This includes, inter alia, as mentioned providing ongoing support in terms of corporate identity and market presence; group buying and product procurement; marketing, including research and group advertising; proven systems that reduce costs and optimise operating ratios, including financial consulting; as well as training and mentoring to ensure that the best food and service is offered to customers.

IN BUSINESS FOR YOURSELF BUT NOT BY YOURSELF

Franchise information:
Establishment cost (range):

Set-up Cost:

R1 850 000 – Trade Ready Store Built Including Equipment and a Joining Fee of R180 000

Additional Costs 

Training Related Costs – Meals – Accommodation – Stipends Approximately R120 000

Opening Stock – R200 000

Deposits – Rental & Other - Variable

Total Capital Required To Open A Store

Approximately R2 400 000

Recommended Working Capital:

R100 000 - Approximately

Upfront Fee:

R180 000 – Included in R1 850 000 set-up cost


Total Investment Amount:

Depending on site-specific factors we advise R2 600 000

Management service fee/Royalty:

5% of Net Sales Monthly

Marketing 

2% of Net Sales Monthly

Areas available

The following sites are currently available:

  • RANDFONTEIN -LENASIA SOUTH JOHANNESBURG
  •  HOWICK - KZN
  • BLOEMFONTEIN - CBD
  • HILTON - KZN
  • MORATIWA CROSSING - NEAR GROBLERSDAL MPUMALANGA
  • BOTLENG DELMAS - GAUTENG
  •  "MIDDELBURG - MPUMALANGA
  •  THE BOULDERS MIDRAND
  •  KRUGERSDORP
  •  SOUTHGATE - JHB SOUTH
  •  KILLARNEY MALL

IDEAL LOCATIONS

High pedestrian foot traffic past the store and off-road visibility

More middle-income areas and malls should also be considered.

Ideal Tenant Mix

  • Shoprite
  •  Boxer
  •  Near or on the way to a Taxi Rank
  •  KFC
  •  Nando’s
  •  Steers
  •  Debonairs

The proposed site – should you have a specific shop identified: 

  • Has 3-Phase Power 100 amp per phase.
  • Has outlet for extraction. This will be assessed once we have done a physical site evaluation.
  • Gas – The Gas must be placed in a Gas Cage outside the back of the shop as per Fire Law Legislation.