Retsol purchases 50% of Chicken King
Chicken King currently has 46 stores, with six having opened in the last six months and another four planned before the end of 2006. The company achieves a total store turnover of more than R100 million per annum.
Long-term partnership
Explains MacKenzie, "Retsol only takes on a project if we feel that we can grow it into a substantial company. When we get involved with the management of a company, it is a long-term partnership, with proper equity participation.
"Retsol's shareholding in Chicken King will enable us to utilise Retsol's experience and expertise to 'explode' the Chicken King brand into the market, while leveraging off the brand's enormous growth potential."
He adds, "Furthermore, Chicken King recently won the Special Merit Award at the International Franchise Expo (IFE 2005), and was voted finalist in the category FASA New Franchisor of the Year 2005. With accolades like these already in the bank, we have good reason to feel confident about the future of Chicken King!"
Looking out for opportunities
Wayne Duncan, another Retsol director, says that Retsol is also on the lookout for one or two more franchise opportunities. He comments, "Retsol is able to implement operational systems to make businesses really efficient and successful. With Chicken King, the group will invest considerable resources and expertise in this new brand and all available synergies will be exploited between the two companies. "
Retsol's next steps will be to source the right new sites for new franchises, to ensure that the brand is available in busy high street areas and inter-nodal transport hubs such as taxi ranks, bus stops, railway stations, etc.
Kobus Coetzee, current and ongoing MD of Chicken King, says, "Chicken is the largest fast food group consumed in South Africa and is rapidly growing. Given the size of this market, there is definitely room for the growth of Chicken King, particularly given Chicken King's great menu of healthy options that has something that appeals to everyone. Retsol will take Chicken King to the next level, with their infrastructure, systems, proven franchise skills and marketing abilities.
Existing team to continue
"In addition, the deal with Retsol will see the existing Chicken King team continue with their current roles. This was an important consideration for me in my decision to sell the 50% shareholding to Retsol."
Both MacKenzie and Duncan have strong franchising credentials, with MacKenzie having founded Debonairs Pizza as a university student and growing it into a business that went on to become a great success story, winning many accolades. Duncan is a successful entrepreneur who started Canway, a mass-market furniture retailer that was sold to Profurn. Retsol manages approximately 140 outlets across South Africa, for Ola Milky Lane and Juicy Lucy. Bread Ahead outlets are either owned by Retsol or in joint venture.
