The hybrid model may increase potential revenue for individual stores - but adding full-service kitchens, wide menus, and bigger floor space also increases establishment costs.Newer franchises that exploit this hybrid model, like Life & Brand's Tiger's Milk, and to a lesser extent La Parada, have seen significant expansion in recent years.
The pub offers a variety of relevant food and drinks for evening entertainment, with some stores branching out into lunch and breakfast, too. A new Brazen Head franchise requires a R120 000 franchise fee and recommended capital of R150 000. Establishing a branch costs an estimated R2.4 to R3.5 million. Franchisees must pay ongoing advertising, marketing, and management fees totalling 7% of turnover.
La Parada takes a slightly more sophisticated approach than Tiger's Milk, offering a variety of South African-inspired tapas dishes in some of the country's well-heeled neighbourhoods. A new La Parada branch requires an initial franchise fee of R400 000 and costs an estimated R15 000 per square metre. Franchisees must also pay 8% of monthly turnover towards marketing and management. La Parada franchisees must have between R4.5 and R7 million available to build a new branch.
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