Sophie Bennett
Chicken Licken is a South African fast-food fried chicken restaurant chain that was founded in 1981 by George Sombonos. The company has since expanded to 268 profitable units, operating in South Africa and other countries. Chicken Licken is ranked as the second-biggest fast-food brand in South Africa and the biggest non-American-owned fried chicken franchise globally. The company offers franchising opportunities with an upfront franchise fee of R180,000 and a total investment of at least R4 million. The franchise agreement typically spans ten years, and franchisees receive comprehensive training, ongoing support, and marketing resources.
| Characteristics | Values |
|---|---|
| Initial Investment | R4.8 million |
| Franchise Fee | R180,000 |
| Total Investment | R4 million to R6.8 million |
| Working Capital | N/A |
| Application Fee | N/A |
| Royalty Fees | 12% |
| Marketing Fees | 12% |
| Advertising Fees | 12% |
| Duration of Franchise Agreement | 10 years |
| Prior Experience Required | Yes |
| Market Availability | Yes |
| Type of Food | Fried chicken, burgers, salads, desserts, beverages |
| Type of Franchise | Fast food, drive-through |
| Number of Outlets in South Africa | 247 as of 2013 |
| Parent Company | Golden Fried Chicken (Pty) Ltd |
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What You'll Learn
Franchise costs and fees
Chicken Licken is a well-known fried chicken fast-food chain in South Africa, with a long history in the country. It was founded in 1981 by George Sombonos, whose father owned the Dairy Den restaurant in Johannesburg. The first Chicken Licken franchise was offered for sale in the same year, and the company now enrols 268 profitable units worldwide, including 247 outlets in South Africa as of 2013.
Chicken Licken has a unique Fly-Thru business model, which is a simplified drive-thru experience that caters to the growing demand for convenience and speed. This, along with its strong brand recognition, proven business model, and comprehensive support for franchisees, makes it a lucrative franchise opportunity.
The franchise fee for Chicken Licken in South Africa is estimated to be around R4 million to R6.8 million, with an upfront franchise fee of R180,000. The total investment amount depends on the store's size, type, and location. For a drive-through option, the investment amount can be around R3 million more. There are also ongoing fees for advertising, marketing, and royalties, which total 12%.
Prospective franchisees should evaluate their prior business experience and the market availability for Chicken Licken franchises in their desired location before applying. Approval will only be given to candidates who meet all the requirements, including financial stability and proximity to the proposed site.
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Business experience and acumen
Chicken Licken is a well-known fried chicken fast-food chain with a long history in South Africa. It was founded in 1981 by George Sombonos, the son of a Greek immigrant restaurant owner. The company's presence in the townships during apartheid helped establish a loyal customer base among Black South Africans. As of 2013, there were 247 Chicken Licken outlets in South Africa, with 12 outlets in Botswana.
To open a Chicken Licken franchise in South Africa, you will need a significant amount of capital. The upfront franchise fee is R180,000, and the total investment amount is estimated to be at least R4 million. If you want to build a drive-through option, the cost could be closer to R7 million. These costs cover the franchise fee, working capital, premises, and other initial expenses.
Chicken Licken is looking for franchisees who are financially stable, have business acumen, live close to the proposed site, and are prepared to become fully involved in running the business. They require franchisees to have the attributes of a business owner and to be owner-operators. This means that you should have the necessary business experience and skills to successfully manage and operate a Chicken Licken franchise.
When evaluating your business experience and acumen, consider your track record in business or entrepreneurial ventures. Have you successfully started or managed a business before? Do you have experience in the hospitality or restaurant industry? Do you have the financial literacy and management skills necessary to oversee the operations of a Chicken Licken franchise? These are important factors that Chicken Licken will consider when evaluating your application.
In addition to your business experience, Chicken Licken will also assess your strengths and weaknesses. They will look for individuals who are dedicated, hard-working, and have the ability to lead and manage a team. As a franchisee, you will be responsible for the day-to-day operations of your outlet, including staff management, customer service, inventory management, and financial oversight. Ensure that you have the necessary skills and attributes to effectively handle these responsibilities.
Lastly, it is important to note that the Chicken Licken franchise model has specific requirements and guidelines that franchisees must adhere to. They have a proven business model and a comprehensive support system in place to ensure the success of their franchisees. As a franchisee, you will need to follow their established systems and processes, which include their unique Fly-Thru Model, efficient cost control measures, adaptable business approach, and strategic use of technology. Understanding and embracing their business model demonstrates your business acumen and commitment to their brand.
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Market availability and demand
Chicken Licken is a well-known and trusted brand in South Africa, with a long history in the country. The first Chicken Licken restaurant was opened in 1981 in Johannesburg, and the company began offering franchises for sale the same year. Since then, Chicken Licken has expanded to 247 outlets in South Africa as of 2013, with additional outlets in Botswana and potential plans to open a store in the Bronx, New York.
The South African fast-food market is highly competitive, with a mix of well-known chains and newer, exciting brands. Chicken franchises, in particular, are among the most popular and expensive takeaway businesses in the country. South Africans consume a significant amount of poultry, and several brands, including Chicken Licken, KFC, and Nando's, have capitalised on this demand by offering ready-to-eat chicken options. Chicken Licken's unique selling point is its focus on efficient cost control, allowing it to offer high-quality products at competitive prices, attracting value-conscious customers. This has helped the brand establish itself as the second-biggest fast-food brand in South Africa and the biggest non-American-owned fried chicken franchise globally.
Market availability for Chicken Licken franchises in South Africa may vary depending on your specific location of interest. While there are already a significant number of outlets in the country, there may still be available markets, especially in higher-income areas and upmarket shopping malls. Chicken Licken's franchise model has proven successful across the continent, and the company is looking for franchisees who are financially stable, have business acumen, live close to the proposed site, and are prepared to be fully involved in the business.
When considering market demand, it is essential to understand the target customer base. Chicken Licken has a loyal customer base among black South Africans, established during the apartheid era when the company operated primarily in the townships. However, since the end of apartheid in 1994, the company has shifted its focus to expanding into higher-income areas, as the black middle class has moved out of the townships. Chicken Licken's ability to adapt to evolving consumer trends and introduce new products has contributed to its success. Additionally, the brand's strategic use of technology, such as online ordering platforms and mobile apps, has enhanced the customer experience and improved operational efficiency.
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Application and approval process
The application and approval process for opening a Chicken Licken franchise in South Africa involves several steps and considerations. Here is a detailed guide to help you through the process:
Evaluate Your Prior Experience and Strengths:
Before initiating the application process, it is crucial to assess your prior business experience and skills. Consider whether you have the necessary business acumen and financial stability to become a Chicken Licken franchise owner. Evaluate your strengths and how they align with the requirements of running a successful franchise.
Assess Market Availability:
Research the market availability for Chicken Licken franchises in your desired location. Determine if there are available markets in your area of interest before proceeding further. This step ensures that you choose a suitable location with potential customer demand.
Submit Your Application:
Prepare and submit your application to the Chicken Licken franchise team. You will typically receive a confirmation receipt via email, along with the contact details of the franchise owner. This step marks the beginning of your formal application process.
Financial and Background Checks:
Chicken Licken will conduct financial and background checks as part of their approval process. Ensure that you meet the financial requirements, including the necessary capital investment, which can range from R4 million to R6,800,000, depending on the store's size, type, and location. Be prepared to provide any additional information or documentation that may be required during this stage.
Receive Franchise Approval:
Once your financial and background checks are successfully completed, and you meet all the requirements, you will receive franchise approval from Chicken Licken. This approval confirms your suitability to become a Chicken Licken franchise owner and allows you to move forward with establishing your franchise.
It is important to note that the application and approval process may involve additional steps or requirements, and it is always advisable to refer to the official Chicken Licken franchise resources and guidelines for the most up-to-date and comprehensive information.
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Brand recognition and marketing
Chicken Licken is a well-known and trusted brand in South Africa, providing instant name recognition and customer appeal. The company was established in 1981 and in the same year, its first franchise was offered for sale. Today, Chicken Licken has 268 profitable units, operating in South Africa and other places. The brand has received awards and recognition, such as being ranked second in the Fast Food and Restaurant Chains category of the Sunday Times Markinor 2007 Top Brands Survey. Chicken Licken's presence in the townships during apartheid also helped establish a loyal customer base among Black South Africans.
Chicken Licken's brand recognition and marketing strategy have played a crucial role in its success. The company has a strong marketing strategy that includes well-developed connections with customers through social networks and websites. They have also utilised nostalgic and retro-style advertising campaigns, such as the "25 Yrs of Soul" commercial, which won the Creative Circle's Marketer of the Year award in 2007.
Chicken Licken's unique Fly-Thru Model is another key factor in its brand recognition and marketing. The drive-thru concept caters to the growing demand for convenience and speed, attracting a broad customer base. This simplified drive-thru experience sets Chicken Licken apart from other franchises, offering a quick and simple dining option for busy individuals.
In addition to its marketing and advertising efforts, Chicken Licken has also gained recognition through its efficient cost control practices. By meticulously managing internal costs, Chicken Licken offers high-quality products at competitive prices, attracting value-conscious customers. This has contributed to its success in the South African market, where it is positioned as a more affordable option than its main competitors, KFC and Nando's.
Chicken Licken's brand recognition and marketing have been integral to its success in South Africa. Through a combination of effective advertising campaigns, a unique Fly-Thru Model, efficient cost control, and a well-established presence in the market, the company has cultivated a strong brand identity and loyal customer base.
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Frequently asked questions
The upfront franchise fee is R180,000. The total investment amount is estimated to be at least R4 million, or about R3 million more if you want to build a drive-through option.
Chicken Licken looks for franchisees who are financially stable, have business acumen, live close to the proposed site, and are prepared to become fully involved in the running of the business. You should also evaluate your prior business experience before applying.
Chicken Licken was founded in South Africa by George Sombonos, the son of a Greek immigrant restaurant owner, in 1981. The first branch opened in the Johannesburg suburb of Ridgeway. During the apartheid era, Chicken Licken outlets were mainly located in townships, which presented a challenge to growth outside the townships post-apartheid.
Chicken Licken is ranked highly in customer surveys, and is considered more affordable than its main competitors, KFC and Nando's.
