Wimpy/Spar

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Hi All
Doing a bit of reading on what possible business to go into when the time comes. I have thought about 2 franchises.

Spar or Wimpy. I like the idea of a spar as you can choose your earning level although I think it's one of those businesses that you need to work really hard at and be on your feet 24/7. It also high turn over with low returns but I feel if you can put in the effort then you can make a nice steady income. I have a bit of experience with running a shop although it was nothing the size of a Spar.

I have always thought that Wimpy is a great business but I have no idea what kind of money they make.

Does anyone have any advice on these two or any others?
 

Rory

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I imagine being on your feet all day will be healthier than eating wimpy all the time... Other than that I can't comment much except I'm surprised at the "low returns" with spar looking at their prices lately...
 
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From what I been told a store turning over R15 mill makes between R200k - R250k and costs between R5mil - R7 mil....
 

Rory

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That doesn't sound good at all. Most people should be able to make 200k+ without spending 5mil first and taking on such risk. (I presume we talking per year here).
 

viper357

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There's only 2 businesses to run in this Country, KFC and a bottle store, right next door to each other.
 
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There's only 2 businesses to run in this Country, KFC and a bottle store, right next door to each other.
I'de be a bit worried about buying a bottle store just yet, the supermarkets are trying hard to get the OK to sell beer and stuff in their stores...that would spell the end of it for bottle stores if they get it right...
 

viper357

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Hmmmm, seem to be heading the same way as the UK, there you can walk into your local Pick 'n Pay (Tesco's) which is open 24/7 and pick up your fav bottle of brandy, right next to the milk section :D
 

Kanga

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KFC, nope, not at this stage chicken prices are increasing day after day at his stage and I dont think its going to let up any time soon. Remember a large portion of KFC clientèle is LSM 2&3 i.e. it going to become unaffordable for them soon.

Wimpy, hard work and has to be the right place, very hands on.

A well run Spar, especially Superspar, now there is a business, you train floor managers, and eventually you will have one or 2 that will run the shop, (incentivise them on GP earned) Remember groceries are a draw card and as such run low Gp%, however the fruit and veg, butchery, bakery and lately (to a large extent) the HMR (home meal replacements) are making big margins compared to canned beans.
Yes there are some poorly run spars, however no well run spar battles to make a living

IMHO
 
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Thanks Kanga that makes me feel good, do the figures I been given sound correct....15 mill a month sounds like alot of stock. 500K a day... almost unreal... I hear Spar are very good at training new franchise holders in getting things going. I agree with the wimpy but I recon they make really good cash BUT not as good as a well run Spar.
 

Kanga

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Oh and of course Country Spars are making big money, Khayalitsha makes stupid money as well as Thoyandou (incedently the biggest Spar in the world) and It didnt start that way
 

Kanga

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Thanks Kanga that makes me feel good, do the figures I been given sound correct....15 mill a month sounds like alot of stock. 500K a day... almost unreal... I hear Spar are very good at training new franchise holders in getting things going. I agree with the wimpy but I recon they make really good cash BUT not as good as a well run Spar.
Nice thing about Spar is their training is awesome as you say, add to this that they have independent consultants approved by Spar for each department and there suppliers look after them, P&P family stores are catching up fast too.

That sort of turnover is for a very big Superspar (there are bigger, sure, much bigger) but that isnt for a KwikSpar. Return, I reckon once you are up and running well R250K return is at the low end of the scale. BUT its hard work in the beginning
 

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