Franchise Info
The name Ayobayo means ‘vibe’ and is not limited to any specific language. Ayobayo has been created and designed by a team with vast restaurant experience, namely, the very successful Dulce Cafe group, and several othesr individuals with significant food and beverage experience.
The concept has been designed to cater for the demand for African ethnic foods, as well as an exciting pizza offering. Pizza is the fastest growing product range in the ethnic market. All this is presented in an up market environment. The business consists of a combination of take away and sit down restaurant.
Why Ayobayo
- Excellent operator selection process
- Only use owner operators
- Excellent initial and ongoing training
- Strong management & operational support structure (initial and ongoing)
- Strong menu R&D support
- Strong marketing support
- Strong sustainable growth
- Experience in African restaurants
- Flexibility
Franchisee Selection
- Aside from the normal initial interview which touches on level of experience, level of intelligence, appearance, financial and other means of selection, Ayobayo may also utilize an external psychometric attitudinal test, to look at the following attributes :
- problem solving
- driver orientation
- sales and marketing
- franchise compliance
- practical leadership
- customer orientation
- attention to detail
- and resilience
Franchisees should be hands-on owner operators for their business to reach maximum potential, ideally being BEE is seen as an advantage, and having BEE management with an equity share .
How Do We Support Our Operators?
- Monthly visits by our OAs
- Continuous financial monitoring
- Need to assist visits and interventions
- On-going FOH and BOH training
- Central kitchen facility
- Monthly visits by our marketing arm
- In-house promotions
- Regular questionnaires sent out to ensure that we are aware of our franchisee’s and customers’ needs (focus groups)
Marketing
- Initial and ongoing marketing initiatives and support
- Specials (Table Talkers)
- Specials to be carried out in conjunction with mall PRO’s promotional programs
- Advertising to take place on a local basis
- Access to Simon Says PR company and Dyson Design marketing company
Concept, Theme, Design of Store and Finishes
- Ayobayo stores can vary in size from 60 sqm to 120sqm (+ some external seating – site dependent)
- Stores are designed to create a comfortable African ethnic environment with a warm and lively atmosphere
- Shop front will be glass with approx 7m sliding stacking doors, thereby improving visibility to the passing trade.
- The service counter bulkheads will have innovative menu light boxes which will include various menu food pics which will facilitate easy and quick menu item selection
- A plasma screen will feature colorful product graphics, music DVD’s and sports events
- Tables and chairs will be durable and will fit in with the overall color scheme
- The concept will not date prematurely
- All operators will contribute towards a refurbishment fund, thereby enabling them to upgrade their stores when required to do so.
- All stores will be required to implement a major revamp every five years
Target Market
- The concept caters largely for the ethnic market across all income groups
- Passing trade wanting either sit down or take away fare
- Home meal replacement fare
- Retail trade from the outlet (sauces, spices, etc)
Menu (view the menu)
- Restaurant meals supported by innovative meals and unique beverages catering to the ethnic market
- ‘Grab & Go’ fare offering quick & efficient well priced meals that have a distinct difference in preparation and presentation
- Deliveries to surrounding offices and businesses
- Daily offering with freshly prepared meals of the day
- Home meal replacement fare
- Retail product such as sauces and spices
Establishment Costs
- Stores can be located within malls, busy street side locations or close to taxi ranks
- Location of store should ideally be close and visible to the passing foot traffic
- Owner operator must have minimum 50% unencumbered cash available to invest
- Total investment for the proposed operation depends on landlord TI
- Landlord TI at Landlord’s cost usually consists of the following:
- 120 Amp three phase electricity + circuit breaker + DB
- Water & drainage to point
- Standard ceilings
- Air-conditioning + return air
- Extraction & return air to point
- Standard shop fronts
- Screeded floors
- Plastered walls with one coat PVA
- If tenant installs any of the above at tenant’s cost, landlord to credit tenant for un utilised TI
- A feasibility study is done on each store’s potential earning capacity, and the resultant ROI then determines the capital investment required to provide the necessary solution.
- Resultant business must be modeled in a manner which is mutually beneficial to all parties concerned
- Set up costs therefore vary from R675,000 to R1.0 million + VAT to open on a turnkey basis, all costs and deposits included .
Revenue Calculations
- Sales forecasts is conservatively based on the trading densities of similar outlets in the market place and the vast experience of the Ayobayo management team
- The expected trading density for an Ayobayo outlet has been calculated conservatively at approximately between R1,330/m2/pm and R2200/m2/pm
Profitability
- 60% Gross Profit on food sales
- Net profit % depends on various overhead expenses, eg rental, etc.
- It is expected that the return on investment for an Ayobayo outlet should be in the region of 15% after the first year’s trading and 18% after year 2
Rental Proposal
- The Ayobayo mission is to empower previously disadvantaged individuals to own their own businesses, to build sustainable businesses offering African ethnic fare in an up market vibey environment to the emerging market.
- It is obvious from the above that any rental agreed to will have to set at a level that will make the business a mutually beneficial business to all of the parties concerned.
- Rentals will be dictated via the expected sales revenue and overheads forecasted for each individual store and will have to be negotiated on a case by case basis.
Conclusion
- As can be seen, Ayobayo has been carefully planned and developed to participate in a unique sector of the highly competitive food and beverage market. The concept is new, fresh and addresses a yet to be professionally explored African ethnic market.
- The training, expertise and ongoing support of the national franchisor, together with the professionally staffed Johannesburg, Durban and Cape Town regional offices will also ensure that the business will be successful to the extent that it will be mutually beneficial to all parties concerned.
- One of the most important criteria for the success of this business is the positioning of the outlet.
We trust that you are as excited about the Ayabayo food concept as we are, and look forward to building one of these new and exciting concept in your development.
Please contact Martin Fuller, Director – New Business Development if you have any further queries regarding the Ayobayo concept.
Ph: 041 396 1200
Fax: 041 373 4580
Cell: 082 906 4777
E-mail: martinf@dulce.co.za
Or
Deirdre Bowers
Ph: 041 396 1200
Fax: 041 373 4580
E-mail: deirdreb@dulce.co.za