Here’s How Much It Costs To Open A Steers Franchise In South Africa
Opening a Steers franchise can be very lucrative business decision as it is one of South Africa’s most recognisable quick-service restaurant brands. The company has built the brand to be a one of the most credible and reputable fast food restaurant chains the country.
It is estimated that Steers franchisees can pay between R1.7 million – R2.5 million for a franchise, depending on the size and type of restaurants they want. The initial franchise fee for a standard Steers restaurant is R159 900, while the fee for a drive-thru Steers is slightly increased at R175,700. The company’s approximate set up cost for a standard Steers franchise is R1,650,000 and this amount excludes VAT, joining fee and contingency.
The set up cost when one wants to go into the fast food restaurant business includes equipment, shop fitting, wet works, furniture as well as fixtures. In comparison, the approximate set up cost for a drive-thru Steers franchise is R2,350,000. In addition, Steers franchise owners are expected to pay 6% of their monthly turnover in royalty fees and 5% of monthly turnover for advertising.
Opening a Steers franchise is a business venture that needs a person that is able to take the existing business model of the company and use it to expand their own franchise. The venture is not like when one is starting off a new business, here the brand and company is already established thereby making it easier to see success in the franchise one buys. The franchisee just needs to make sure that the standard in food and service that Steers is known for is not dropped but maintained as the company has a lot of loyal customers that can support the business because they already trust Steers and its services.
The franchisees have to worry about the operations of their franchise and Steers deals with making sure that it’s brand is well marketed to the public. This will help the franchisee to focus more on making sure that the service and food that it gives its customers is of top quality as this will also reflect on Steers’ brand as a whole.
By Thomas Chiothamisi
