Mike’s Kitchen is opening new restaurants again – here’s how much a franchise costs


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Mike’s Kitchen, one of oldest family restaurant chains in the country, is back in Kwa-Zulu Natal following its first store opening in Salt Rock, in June.

This represents the first new store opening since franchise private equity specialist, NRD Capital, acquired the group in late 2017.

NRD, with its headquarters in US, said it occupies a unique niche in the franchisee and franchisor business arena. “We are known as the franchising guys – that’s our core competency,” said new Mike’s Kitchen CEO, Salim Shermohammed.

“We are excited about our future expansion plans in this province and look forward to sharing many more memorable meals and experiences with our patrons,” Shermohammed said at the latest restaurant opening.

“After 45 years the core values of generosity, quality and family, remain intact and the cuisine continues to proudly reflect the South African heritage. We are excited about the growth prospects in KZN and plan to open a few more stores this year,” said chief operations officer, Teresa Robert.

Mike’s Kitchen now has sixteen restaurants, the bulk of which are based in and around Joburg, with one in Port Elizabeth, another in Polokwane, and one in Milnerton, Cape Town.

The chain has earmarked as many as 50 potential franchise locations including: Pietermaritzburg, Nelspruit, Kimberley, Bloemfontein, Ermelo, and a host of cities dotted mostly around Guateng.

The new 350-seater restaurant, staff complement of 40 personnel.

The cost to open a Mike’s Kitchen

“The actual establishment cost of each franchise will vary, but the ‘rule of thumb’ is that you should have at least R1.5 million of your own unencumbered funds. You should also have collateral (assets) for about one times your own unencumbered funds,” the company states.

According to SA Franchise Warehouse, the approximate setup cost (excl. VAT), starts at R5 million, with an initial franchise fee (excl. VAT) at R140,000.

  • Management services fee: 5% of turnover
  • Marketing fee: 2% of turnover


Source: BusinessTech – www.businesstech.co.za

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