CO56 Eat life

COVER STORIES

EAT LIFE! PROFITS THROUGH SUCCESS

By Staff Writer • July/August 2017 • Issue 56

Caramello’s is a classic example of a brand that has developed, evolved, and kept pace with the transitional transformation necessitated by the ever-changing market needs and trends.


Brothers Rodos and Chris Ioannides opened the first Caramello’s outlet in 2002 and for many years this ‘Golden Brand’ endured, standing the test of time while capitalising on the rewards reaped from their customer-oriented focus and excellent service. Making it through the first ten years of testing trade paved the way for developing a sound franchise model and established the pillars on which the business’ success was built — people, product and equipment.

Today, Caramello’s prides itself on being a market leader targeting high-end consumers with its unique offerings. In addition to an exciting and extensive menu catering for breakfasts, brunches and value-for-money lunches, Caramello’s is especially proud of its unique selling proposition — South Africa’s leading Cakery. With up to 25 daily cake options, Caramello’s is a sweet treat paradise for those who live to indulge in choice and comfort.

Caramello’s started franchising in 2013 and have since established themselves as a dominant brand in central South Africa, achieving a 70 percent expansion rate over the past two years. From this solid base they are now looking to expand their footprint in southern Africa.

With the support of an experienced, knowledgeable and hands-on operational and marketing team, Caramello’s franchisees benefit from initial training, the turnkey set-up of new stores, ongoing operational, marketing, and financial support and guidance. Their central kitchen guarantees consistency and quality in product delivery and ensures that the Caramello’s network enjoys a consistent supply of coffee, recipe ingredients and, of course, their exclusive cake offering.

SA Franchise Warehouse Publishing Editor, Kobus Oosthuizen, sat down with Gianni D’offizi to find out what is behind the success of the Caramello’s brand.

KO: In your opinion, what is it that differentiates Caramello’s from its competitors?
GD: At franchise level we offer our franchisees superior, hands-on support and this sets the tone for the level of service franchisees offer their customers — without them we have no business. We focus on providing our franchisees with quality systems and well-thought-out procedures, always bearing in mind that ‘health’ in our industry relies on financial security and healthy relationships. Continuous, clear communication allows us to build and maintain healthy relationships with our franchisees.

KO: Since we spoke last the Caramello’s brand has developed and evolved. What was your motivation for the transition and how did you accomplish it?
GD: By embarking on extensive research (which included hearing what our customers had to say) and with the benefit of extensive travel, it became apparent that without continuous development, menu and brand fatigue would be our ultimate destination. In addition to delivering consistent quality and good service, customers require a continuous sense of excitement.

KO: How would you describe the ideal prospective Caramello’s franchisee?
GD: While the financial prerequisites would need to be in place, it is people of humble character with strong leadership skills, who exhibit family values, morals and ethics, and will do what it takes no matter the challenge or the circumstance, that succeed. The ability to demonstrate understanding and treat others with compassion and dignity will earn them the respect and trust of customers and staff alike.

KO: What drives you as a company and as franchisor?
GD: We are innovative and creative and are as comfortable in the kitchen as we are in the boardroom. Self motivation is a God-given gift that, when combined with a passion for people and the industry, results in an enthusiastic and resourceful approach that strives for success on a day-to-day basis. As an organisation we hold our responsibility towards our families and our stakeholders in high esteem and we acknowledge that we too need to serve in order to achieve success. Seeing our franchisees prosper is what drives us to succeed.

KO: Why should a prospective franchisee choose Caramello’s?
GD: With the collective experience offered by myself, Rodos and Chris who together have more than 60 years’ trade experience, I can confidently state that Caramello’s offers the highest quality training, operational support, and financial direction. We are a team who “does what it takes“!

KO: Please provide some insight into the process involved in opening a new Caramello’s outlet, the investment required and the return on investment (ROI) franchisees can expect.
GD: While our average set-up cost is summarised on our webpage, the initial investment required will depend on the site selected, the extent thereof, the services in place, landlord contributions, and various other factors. The projected return on investment (ROI) is estimated at 24 months, but is subject to the level of financial and operational controls practised by the franchisee. Caramello’s is not the kind of business where the ‘model’ banks your buck; it requires franchisees to be hands-on operators who follow the criteria and adhere to the prescribed systems, procedures, and standards if they are to achieve an ROI in an acceptable period of time.

Extensive competitor research has revealed that our set-up cost is almost half that of our competitors’. As a franchisor, we do not believe in making profit off a franchise prior to commencement of trade of a new store; our profits will arise out of healthy, sustainable outlets and business models.
 
For more information about Caramello’s franchising opportunities, visit www.caramellos.co.za.
Gianni D’offizi
SA Franchise Warehouse Publishing Editor, Kobus Oosthuizen, sat down with Gianni D’offizi to find out what is behind the success of the Caramello’s brand.

KO: In your opinion, what is it that differentiates Caramello’s from its competitors?
GD: At franchise level we offer our franchisees superior, hands-on support and this sets the tone for the level of service franchisees offer their customers — without them we have no business. We focus on providing our franchisees with quality systems and well-thought-out procedures, always bearing in mind that ‘health’ in our industry relies on financial security and healthy relationships. Continuous, clear communication allows us to build and maintain healthy relationships with our franchisees.

KO: Since we spoke last the Caramello’s brand has developed and evolved. What was your motivation for the transition and how did you accomplish it?
GD: By embarking on extensive research (which included hearing what our customers had to say) and with the benefit of extensive travel, it became apparent that without continuous development, menu and brand fatigue would be our ultimate destination. In addition to delivering consistent quality and good service, customers require a continuous sense of excitement.
KO: How would you describe the ideal prospective Caramello’s franchisee?
GD: While the financial prerequisites would need to be in place, it is people of humble character with strong leadership skills, who exhibit family values, morals and ethics, and will do what it takes no matter the challenge or the circumstance, that succeed. The ability to demonstrate understanding and treat others with compassion and dignity will earn them the respect and trust of customers and staff alike.

KO: What drives you as a company and as franchisor?
GD: We are innovative and creative and are as comfortable in the kitchen as we are in the boardroom. Self motivation is a God-given gift that, when combined with a passion for people and the industry, results in an enthusiastic and resourceful approach that strives for success on a day-to-day basis. As an organisation we hold our responsibility towards our families and our stakeholders in high esteem and we acknowledge that we too need to serve in order to achieve success. Seeing our franchisees prosper is what drives us to succeed.

KO: Why should a prospective franchisee choose Caramello’s?
GD: With the collective experience offered by myself, Rodos and Chris who together have more than 60 years’ trade experience, I can confidently state that Caramello’s offers the highest quality training, operational support, and financial direction. We are a team who “does what it takes“!

KO: Please provide some insight into the process involved in opening a new Caramello’s outlet, the investment required and the return on investment (ROI) franchisees can expect.
GD: While our average set-up cost is summarised on our webpage, the initial investment required will depend on the site selected, the extent thereof, the services in place, landlord contributions, and various other factors. The projected return on investment (ROI) is estimated at 24 months, but is subject to the level of financial and operational controls practised by the franchisee. Caramello’s is not the kind of business where the ‘model’ banks your buck; it requires franchisees to be hands-on operators who follow the criteria and adhere to the prescribed systems, procedures, and standards if they are to achieve an ROI in an acceptable period of time.

Extensive competitor research has revealed that our set-up cost is almost half that of our competitors’. As a franchisor, we do not believe in making profit off a franchise prior to commencement of trade of a new store; our profits will arise out of healthy, sustainable outlets and business models.
 
For more information about Caramello’s franchising opportunities, visit www.caramellos.co.za.
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