CHOP AND CHANGE
Turning the braii into big business
SHISANYAMA outlets have become sizzling businesses. They started out in townships in the early years of South Africa’s democracy and are fast competing with established eateries and fast foods outlets such as Spurs, KFC, Chicken Licken and Nando’s.
Mzoli’s Palace’s owner, Mzoli Nqcawuzele, wants to franchise his business model.
Mzoli’s is a popular hangout in Gugulethu, Cape Town. It was started in 2003.
Nqcawuzele started his business with R2 000 in his pocket. Today, he makes thousands more as the business attracts everyone, from politicians, local celebrities to business people. It has become one of the mandatory stops in Gugulethu.
Rita Zwane, founder of Imbizo Shisanyama fondly known as “Busy Corner”, is also in talks on franchising her concept.
Zwane, who is also ambassador of the National Youth Development Agency, is always having to fend off local and international business suitors who have been trying to buy her company. Some of the suitors come as far as China.
“Shisa Nyama a Time to Braai”, based in Midrand, is the only one that has managed to get accredited by the Franchise Association of South Africa so far.
It has branches in eMalahleni, Pretoria and two new ones will be launched in Bela-Bela and Fourways. Outside the country, Shisa Nyama a Time to Braai has spots in Botswana and Swaziland.
Shisa Nyama a Time to Braai has two types of outlets, the most affordable being the fastfood concept at R470 000 and the restaurant costs R904 000.
Co-owner Fatima Cele says she saw a niche to move the phenomenon into the suburbs where blacks had not lived before but moving in as they move up the social ladder.
She has had some tough headwinds as some by-laws restricted the growth of her business.
Cele reckons most landlords confuse the shisanyama business to a shebeen, and think it caters to blacks only. She says she constantly has to re-educate property owners about the business.
It is the same issue that Nqcawuzele faced. He says one of the ideas behind Mzoli’s Place was to get people from all walks of life to “meet over a piece chop”.
On Tuesday, the country will be doing just that as it celebrates “Braai Day” on Heritage Day. The National Braai Day and Castle Lager also plan to break the world record for most people braaing at the same time.
Nqcawuzele inspired former photo-journalist Panyaza Mcineka from City Press to start his own business, 707 Panyaza, in Soweto. He used his R300 000 retirement package so he could avoid asking for financial help from the banks.
It was not easy, and Panyaza’s business bombed out in the first eight months of its launch in Mofolo, Soweto.
After a two-month “break”, he tried again — this time in Rockville, Soweto, where it managed to stay afloat for five years. Panyaza says he did not know that being one’s own boss was such an unforgiving hard slog. “People who are not ready to work long hours should not try to run their own business,” he says.
Zwane says “they [aspiring entrepreneurs] must be prepared to kiss their social lives goodbye”.
Similar advice is dished out by Nedbank head of new business development Mark Rose. He says the bank views the shisanyama businesses in the same way it views any other entrepreneurial opportunities for funding.
“We understand that our diverse communities provide a wide range of entrepreneurial opportunities that may previously not have been in the mainstream business sector, but due to shifting trends and dynamics are now viable.”
But Absa’s head of enterprise development, Sisa Ntshona, warns that it’s a volatile business, and location, differentiation and sustainability of the business are crucial.
“Many of these businesses do not survive past the original owners. Thus many do not hold the intrinsic value of a going concern,” he says.
After his first disaster, Panyaza learnt quickly. Today his business is still without debt and has broken even.
And like most shisanyamas, it has multiple revenue streams such as venue hire, event sponsorship deals from corporates and actual braais. Then there are the ancillary businesses — like car washes that flourish outside the venue run by pupils on weekends.
Shisanyama spots have become favourite hangouts for South Africa’s emerging middle class to network. Cele says she is trying to roll out Shisa Nyama a Time to Braai to suburbs which blacks are moving into.
Imbizo Shisanyama fondly known as “Busy Corner” in Ivory Park has been trying to differentiate itself.
Unlike Shisa Nyama a Time to Braai, which only focuses on grilled meat, Busy Corner also offers African cuisine.
Chaf Pozi, which is situated beside the iconic Orlando Towers in Soweto, has also been one of the favoured spots since its official opening by Sipho “Hotstix” Mabuse in 2010. It also offers daredevils a 100m bungee jumping experience off the top of the towers. Comment on this: write to letters@businesstimes.co.za or SMS us at 33971 www.timeslive.co.za