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News Cafe recently hosted its spectacular awards ceremony: Night of a Thousand Glasses hosted by Cape Legends, at the Pearl Valley Golf Estate and Spa in Franschoek, Cape Town.
In celebration of true excellence; the awards ceremony recognises outstanding service amongst its franchisees and suppliers, who have made significant contributions to the overall values and image of the Brand during the course of the year.
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| FRANCHISEE OF THE YEAR: NEWS CAFE RIVONIA |
MARKETER OF THE YEAR: NEWS CAFE MENLYN |
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News Cafe Background
The first News Cafe opened its doors in 1995 in Hatfield, Pretoria. The five founders, namely Stavros Florias, Lambros Argirys, Evan Florias, Nick Eleftheriadis and Michael Deftereos, with their various qualifications and vast experience in the food and beverage industry, were determined to share this unique lifestyle concept. With this in mind, they began on a slow and determined expansion drive; the main goal has always been to ensure great sites and great operators.
Their thinking clearly struck a chord with the South African public and over the last 14 years, News Cafe has continued to grow from strength to strength. Today, we're a trendy, fashionable rapidly growing, international brand
Currently, we have approximately 44 franchised stores opened in local major cities like Johannesburg, Cape Town, Durban and Nelspruit. The most recent of them being: News Café Wonderboom Junction, News Café Karen Park and coming soon: News Café Umhlanga and News Café Emperors Palace.
Outside of our boarders, we also have stores in Nigeria, Botswana and have just opened our first flag ship store in India – Delhi.
We are proud to say that we are winners in many awards in the food, beverage and service sector having been voted “Best Cocktail Bar” 11 years in a row and “Best Pick Up Spot” for 4 years in a row.
We believe famous places attract famous people, this is the place to see and be seen and with our high standards and age restricted evenings, it truly is a place where the Vibe is good
An introduction to the great world of News Cafe®
There are many opportunities in areas that we believe would be suitable for further News Cafés. In this regard, Fournews Developments (the Franchisor), welcomes enquiries from suitable individuals and/or organizations who believe a particular site, area or country to be fitting, but which new area/site will not encroach on any other News Cafés’ territory.
Should you have the necessary credentials required (namely, access to capital, organizational competence, experience and passion for the restaurant industry), we would welcome your proposal/s. Below, we have listed the most frequently asked questions for your familiarity and should you be interested in being part of the Vibe, kindly e-mail a short description of your and/or your Company’s experience to leo@fournews.com as well as your suggested area/site and we shall assess and respond to your enquiry as soon as possible.
What is News Cafe®?
News Cafe® is a high street café, cocktail bar and entertainment venue that challenge’s the average perception of service by offering a unique, relaxed and entertaining dining experience created by a dedicated and professional team who are committed to giving our guests a little more than they expect. News Cafe® has status, it’s aspirational, it’s trendy and it’s about the vibe.
Our Philosophy
We are guest focused and service driven. Our primary focus is the reason we are in the food service industry – to make sure our guests are excited about the service they receive. Our vision is to be the best, not the biggest. Although we benchmark on guest averages, it is more important to us to have guests that are thrilled with the experience when they leave. All News Cafe® franchises must be owner operated as we entrust the representation of our brand to the owner or franchisee only.
What are the site criteria?
The selection of our sites is paramount to the success of the business. Our criteria demand a high street venue with good visibility, into and out of the store, to passing trade. In addition the site must be at street level with good proximity to convenient parking. The size requirements vary between 300m2 and 450m2 (square meters) with an additional 80m² – 120m² outside seating. Our sites must send one message out – ‘welcome friend, come in and join us’.
What sites are available?
One of the factors attributing to the success of News Cafe® has been the marriage of the operator to the right site. Although limited sites are available, our team works hard to secure the best site for News Cafe® Franchisees. We will entertain proposals for new sites, provided the site meets the basic criteria, the rental is reasonable and it is a great News Cafe® site.
How much does a News Cafe® cost?
The average set up cost of a News Cafe® is between R 4 - R 5 million depending on the size and location of the store. This excludes any potential Tenant Installation (TI) allowance received from landlords. This is for a ‘turn-key’ operation exclusive of Franchise Fee, opening stock, any form of deposit and VAT.
Cash Flow needed is as follows: (These figures are estimates) |
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| Cost of Store (excl. VAT) |
R 3 750 000 |
| Sign-Up Fee (excl. VAT) |
Regional pricing applies |
| Initial Stock (excl. VAT) |
R 150 000 |
| VAT |
R 560 000 |
Expenses before opening
(please note this does not include deposits such as Landlord deposits, Telephone, Water, Electricity etc.) |
R 100 000 |
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R2 500 000 of these funds must be unencumbered.
Unencumbered:Property that is not subject to any creditor claims or liens.
For example, if a house is owned free and clear (meaning the owner owes no mortgage to anyone), it is unencumbered. Also, if a person were to buy stocks with cash rather than on margin, it is unencumbered.
When are funds needed?
- The upfront Sign Up Fee is payable on signature of the Franchise Agreement.
- One week later R1 000 000 deposit is required with a letter from the bank stating that the balance of the funds are available.
- One month after the deposit has been paid another R1 000 000 is required.
- The balance remaining to be paid 2 weeks before opening of the store.
What are the Franchise and Royalty Fees?
The monthly Royalty Fee is calculated on 6% of turnover with a minimum of R30 000 ex VAT.
The monthly Marketing Fee is calculated at 3% of turnover.
(All amounts quoted are exclusive of VAT)
Do I need restaurant experience?
Yes! Our requirements are not only for restaurant or culinary experience but also for strong management and business experience. It is a common misconception that by trading under the name News Cafe® your business will do well. Our brand is about people and it requires you to give it personality. We need people with passion, drive and commitment. Operating a News Cafe® may seem glamorous but it involves hard work and long hours from people that are self-motivated achievers… are you one of those people?
Other Things I Should Know
There are 3 main criteria to be met. They are the following:
- "Owner Operator" - Operator of the store has to be at least a 25% shareholder in the business.
- "Finance" - Ensure that you have the required finance as stipulated above.
- "Sites" - These will be agreed upon by yourself as well as Fournews Developments.
For more information contact Leonie or Lambro on (011) 452 8770 (More contact info) |
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This month (November) sees the opening of the very first News Cafe in Delhi, India. With 40 franchised stores currently in operation across South Africa, extensive market research was conducted over a three-year period in each India and China, before franchising partner, Numbers Only, was secured in the Republic of India.
With its dedicated hotel and restaurant division, as well as hospitality experience within the Indian and USA hospitality markets, Numbers Only approached News Cafe with an initial roll-out proposal. Three key geographic regions were proposed in cosmopolitan suburbs of Delhi, Hyderabad and Mumbai. A master license and royalty fee was negotiated, with the official deal signed in February 2009.
Says Alan van der Westhuizen, News Cafe General Manager, Restaurant Division, “We are very excited to be breaking new territories within India. Unlike other parts of the globe, there is much money and potential within the Indian economy. An enormous ex-patriot community exists with the presence of major corporations utlising the country’s colossal workforce. As such, initial reactions to the contemporary SA News Cafe brand have been incredibly positive.”
The 200-seater Delhi store is situated within an affluent suburb, on the third floor of an up-market retail mall, with décor comparable to that of any existing SA News Cafe interior. Subtle differences have however been incorporated through the use of more jewel colours in fabrics. In terms of building materials, less wood and more locally quarried granite can be found on the floors, walls and counter tops.
Select changes to the menu have also been effected. Due to the trading hours of the store (10h00 to 02h00) the breakfast menu has been reduced considerably. Spicy flavours of a few local dishes have been added, along with rice, an Indian staple. After much deliberation, beef remains on the menu, despite the customary religious beliefs of the local Hindi population. This in order to cater specifically to the thriving international community of the store neighbourhood.
Concludes van der Westhuizen, “We are pleased to have found a like-minded partner in India, who shares our professional and service-driven approach to business. As the News Cafe brand continues to take root and flourish outside of SA boarders, we hope to give our international competitors such as T.G.I. Friday’s, Hard Rock Café and Smokehouse Grill, a run for their money.
With shop fittings currently underway in Hyderabad, the second News Cafe store opening is expected mid-January 2010, with Mumbai following end-March 2010. |
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Following research conducted in 2009, as to the type of new entertainment outlets the patrons of Emperor’s Palace sought; the exploration revealed that consumers favoured cinemas and quite specifically, a News Cafe. The invitation from Peermont, owners of Emperor’s Palace, to News Cafe to open a franchise on site in late 2009, underlines the high appeal of the brand.
“The fact that one of our existing franchisees already boasted business interests in Emperor’s Palace made the process so much easier, as there existed an obvious synergy and a keen interest from the franchisee owners, Dawn and Pavendren Naidoo,” explains Alan van der Westhuizen, General Manager, Restaurant Division, News Cafe.
“We in turn completed a site assessment and considered all the statistics and demographic studies that the landlord had conducted. On that basis, we produced forecasts on the potential penetration and the viability of the outlet. This store is positioned on a great site in one of Johannesburg’s premium hotel, casino and convention resorts. We have no doubt that it will trade above our group average and, given the dedicated management, it should prove to be one of our flagship stores within Johannesburg.
“Though we started trading on 14 December 2009, the official launch of the new store is Friday, 11 March 2010, and we are looking forward to a great turnout,” adds van der Westhuizen.
CASINO TRAFFIC NEARLY 24/7
The new News Cafe franchise, aimed at the higher group of LSM in the age group 25-35, experiences little direct competition. In the day, it competes against the smaller coffee shop / quick service outlets and in the evening, outlets such as Tribes and the Sports Bar. The extensive seating also makes it an attractive destination; with seating for 171 inside plus 40 at the bar, as well as 123 patrons outside.
The franchise offers fast, professional service over extended hours, from 07h00 until 02h00, to accommodate the casino traffic patterns. “We appreciate that guests coming into News Cafe may not necessarily be choosing us as a destination, as they may be going to or coming from the casino. For this reason, the service must be capable of handling the peak trading times that the casino experiences. We have invested a great deal of time in training at this store and hope that it continues to maintain the high standard that we have set,” continues van der Westhuizen.
DÉCOR SERVES NIGHT AND DAY MARKET
The décor of the News Cafe outlet reflects its need to service multiple requirements over long hours. Hence, the design brief called for a front shop, sporting a separate coffee bar, and with a stylish restaurant / deli look and feel in order to promote both breakfast and lunch to the potential passing trade. The bar is situated at the back of the store to separate the front from the entertainment / bar area that leads onto the outside area. The menu remains standard to the News Cafe franchise chain. Each new store has feature design elements that are unique and this individual store is no exception. The ceiling detail, lighting, metalwork and shop fittings are all carefully blended to create a feel that is stylish, open and inviting.
“We are delighted to be part of one of Johannesburg’s premium entertainment destinations and particularly pleased with the way the Emperor’s Palace store design turned out. While we do not want to be unreasonable in our expectations, we do look forward to great results from this site,” concludes van der Westhuizen.
PLEASE CLICK HERE FOR THE EMPEROR'S PALACE GALLERY |
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