Nedbank and Chesa Nyama have announced a strategic funding agreement through which Nedbank will offer financial assistance for prospective Chesa Nyama franchisees.
Chesa Nyama is the hero-brand in the Gold Brands Investments stable, which also houses Chicken Wild Wings and Ribs, Pitaland and 1+1 Pizza, as well as the Blacksteer steakhouse and rib shack brand originally founded in 1963. Gold Brands Investments recently announced its intention to list on the Alt X of the Johannesburg Stock Exchange.
Apart from finance for new stores, Nedbank will also offer financing for resale transactions, multi-store franchise purchases, advice on alternative energy solutions as well as upgrades and refurbishments. Nedbank will also provide free financial management training for qualifying franchisees, as well as other business products such as transaction solutions and business insurance.
“Chesa Nyama is already an exceptional value proposition for franchisees,” said Chesa Nyama’s CEO, Stelio Nathanael. “The partnership with Nedbank will offer a diverse array of finance and education services, providing franchisees even more scope for success in their businesses. It forms part of our mission at Gold Brands to uplift the communities in which we operate and we do this by identifying and supporting entrepreneurial initiative and assisting to create job opportunities.”
The goal is to streamline processes and enhance the financial management capabilities of franchisees in the most cost-effective manner.
Personal wealth through entrepreneurship
Nedbank’s national franchise manager, Laurette Pienaar, said: “Nedbank has worked hard for the reputation as a bank that wholly supports and nurtures small business development. Partnering a franchise brand that has the track record of Chesa Nyama adds to this by providing a way for South Africans to increase their personal wealth through entrepreneurship.”
As a franchise brand, its rapid growth in three years is attributable to the fact that Chesa Nyama offers a unique franchise model that has a low cost of entry with affordable fixed franchise fees and high returns. The brand concept of a flame-grilled A-grade fresh meat hearty meal with braai sides has captured the imagination of South Africans, with over 2 million patrons visiting stores monthly. It has tapped into a previously neglected market for South African braaied meat in a formalised fast-food environment and has created its own niche market.
The success of Chesa Nyama is illustrated by its growth to 294 stores around the country as well as Zimbabwe, Swaziland, Botswana, Namibia, and Lesotho, and with 85% black-owned franchises it has proven its commitment to creating opportunities for black entrepreneurs. The brand is set to open five new stores before the end of 2015, and aims to have 330 stores operational by February 2016.
Reference: BIZCOMMUNITY website – www.bizcommunity.com