FRANCHISING NEEDS TENACITY & INNOVATION TO GROW

Da Fonseca believes that there is a need for all role players to come together in a concerted effort to stimulate entrepreneurship and create much-needed jobs. “I propose that we, the players in the franchise sector, become more street-smart and tougher than ever before. We need to spot opportunities as they present themselves, market harder and negotiate better so that we not only stay in business to survive, but thrive!”

“Innovation is nothing new to franchising,” continues Da Fonseca, “In fact, that’s what franchising is built on. If there is one sector that can turn disruption into opportunities, it’s the franchising sector. Business will continue to get tougher in the foreseeable future and in order to stay ahead of the game, franchisors and franchisees alike will have to be aggressive in the strategies they adopt. Being innovative and staying abreast of high-tech developments has become a crucial survival skill; we must embrace new technology, introduce new trends and adapt to new patterns in consumer tastes. Even though franchising is based on the duplication of tried and tested systems, we must remain flexible enough to act quickly.”

Government’s goal of 5-million jobs by 2020 means that, for real economic growth to happen, 90 percent of South Africa’s jobs will have to come from small business. Or rather, as futurist Clem Sunter puts it, “We need to create one million businesses and the rest will take care of itself.”

Da Fonseca is of the opinion that the franchise sector is perfectly poised to take the lead in transforming the business landscape and appeals to government to consult with the representative bodies of established businesses like FASA. “As a group of progressive franchise entrepreneurs, historically and against the odds of sanctions, we created a franchise sector that today boasts close to 90 percent homegrown concepts.

Sustainable economic transformation can become a reality only if the public and the private sector come together to optimise limited resources and utilise available opportunities to best effect,” says Da Fonseca.

Pilot projects carried out locally and internationally which utilise the social franchise format have proven beyond doubt that social franchises can operate along sound commercial principles, tapping into entrepreneurial innovation, transferring skills and creating much-needed jobs. Over time, they can generate sufficient income to become self-sustainable; some can even generate surpluses that can be ploughed back into the communities they serve.

Says Da Fonseca, “The opportunities to transform government services such as health care, renewable energy, water delivery, education and many other areas, through the social franchise format, are enormous.”

FASA’s recent Franchise Survey confirms the continued growth of the franchise sector despite the economic malaise. In fact, every second of every day, somewhere across the globe, someone will have a ‘franchise experience’. Whether they’re picking up a take-out coffee, sending a parcel to a friend overseas, going to a gym, having a facial, getting their car serviced, shopping at a local supermarket or having dinner at a restaurant, chances are that most of the establishments they frequent are franchised.

“Franchising’s contribution to South Africa’s economy over the past 50 years bears testament to the tenacity of the franchise format and the commitment of the entrepreneurs, franchisors and franchisees who contribute to the country’s growth and wellbeing,” says Da Fonseca. “As a business sector under the guardianship of FASA, the largest franchise association on the African continent, we will continue to play our part by offering sustainable business opportunities to new entrepreneurs, thus creating jobs,” concludes Da Fonseca.

OBC Chicken & Meat was established as a family business thirty years ago by a progressive group of Portuguese traders who set up retail outlets in township areas, at taxi ranks and in the CBD areas of towns. Although it has changed and grown over the years, its core values remain the same — to supply its target markets with a solid brand offering, neatly held together by the promise of quality, affordability, convenience and service excellence.

Prior to joining OBC Chicken & Meat in the post of CEO in 2008, Da Fonseca held the position of Managing Director at DDB South Africa, the local subsidiary of global communication giant DDB, where OBC was a client. During his 14 years with DDB, Da Fonseca was exposed to the workings of numerous international accounts and to best brand practices from around the world. However, being a trader at heart, Da Fonseca had always wanted to develop a brand that would eventually evolve into a household name. Taking up the reigns at OBC, a business serving the lower- to middle income categories of the consumer goods market where the biggest challenges and the real growth lay, was exactly such an opportunity and he has not looked back since. Realising the true potential of the business, he introduced professional retail and management techniques, rejuvenated the Franchise Division and developed the brand into one of the fastest growing businesses in the lower-end FMCG space.

Under his visionary leadership, the OBC management team is determined to consolidate OBC’s position in the marketplace, creating a platform for continued and sustainable growth and establishing OBC as the acknowledged leader in its sector across southern Africa. With over 50 franchised stores countrywide, OBC Chicken & Meat enjoys a strong brand presence as the ‘chicken ekhaya’ of choice and continues to prove that success in retailing lies in building a sustainable brand over the long term and winning customers’ support with range, quality and value. Says Da Fonseca, “Unlike the bigger retailers, especially those that do not franchise and can afford to carry under-performing stores, as franchise operators we have to ensure that every unit is self-sufficient — making the challenges of site selection and operator training so much more essential.” Tony has served on FASA’s council, Exco and various committees since 2014.