Ing­webu Brew­eries fran­chises beer out­lets

Chronicle (Zimbabwe) - - Business - Oliver Kazunga Se­nior Busi­ness Re­porter

BU­L­AWAYO City Coun­cil-owned Ing­webu Brew­eries is fran­chis­ing some of its beer out­lets in line with the or­gan­i­sa­tion’s turn­around strat­egy, which started in 2011.

The turn­around strat­egy en­tails that Ing­webu Brew­eries sticks to its core busi­ness of man­u­fac­tur­ing and dis­tribut­ing tra­di­tional beer in­stead of re­tail­ing.

The com­mer­cialised un­der­tak­ing com­prises brew­ery, re­tail/fran­chise busi­ness and farms.

“COBCE wishes to fran­chise some of its beer re­tail­ing out­lets lo­cated in the high den­sity sub­urbs of the City of Bu­l­awayo. Ap­pli­ca­tions are there­fore in­vited from po­ten­tial busi­ness­peo­ple who are in­ter­ested in run­ning these out­lets,” said the com­pany in a state­ment.

Po­ten­tial busi­ness­peo­ple in­ter­ested in run­ning the out­lets un­der the fran­chise ar­range­ment are re­quired among oth­ers to be res­i­dent ratepay­ers in Bu­l­awayo for a pe­riod not less than 10 years, and must be able to sup­port ini­tial in­vest­ment start-up cap­i­tal of not less than $15 000.

The po­ten­tial en­trepreneurs should also demon­strate the abil­ity to ac­quire ac­cept­able col­lat­eral and must also be able to pay fran­chise fee for al­lo­cated out­let be­fore tak­ing up busi­ness.

In the past, over 40 Ing­webu beer­gar­dens have been run as fran­chises. The fran­chis­ing strat­egy also em­pow­ers lo­cal busi­nessper­sons to take part in the de­vel­op­ment of their city.

Busi­ness­peo­ple in­ter­ested in run­ning the beer out­lets un­der the fran­chise agree­ment are also re­quired to com­mit to the day-to-day run­ning of the fran­chise busi­ness and must ap­pre­ci­ate so­cial and cul­tural roles played by such fa­cil­i­ties.

In Septem­ber, Bu­l­awayo City Coun­cil an­nounced that Ing­webu Brew­eries was strug­gling to op­er­ate prof­itably and the en­tity was not con­tribut­ing any rev­enue to the lo­cal au­thor­ity.

Ing­webu has been fac­ing vi­a­bil­ity chal­lenges in the face of fall­ing de­mand for its prod­uct and the high cost of op­er­at­ing its ob­so­lete ma­chin­ery.

About $4 mil­lion is re­quired for the brew­ery to re­fur­bish its plant ma­chin­ery and at the mo­ment BCC is not able to in­ject the re­quired cap­i­tal.

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