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Simply Asia Franchise Costs, Profit & Requirements For 2024

by Nick

Simply Asia is a prominent franchise in the South African food industry, specializing in Thai cuisine. Founded in 2003 by Chai Lekcharoensuk, the brand emerged from a desire to provide authentic Thai food that was previously lacking in the region. The first restaurant opened in Cape Town and quickly gained popularity, leading to a rapid expansion of the franchise. Today, Simply Asia has over 64 locations across South Africa, making it a leading player in the Thai restaurant market.

The franchise offers two main formats: Sit-down Restaurants and Express Stores. Sit-down Restaurants are designed for a full dining experience, while Express Stores cater to quick service and take-away customers. This flexibility allows franchisees to choose a model that best suits their investment capacity and market conditions.

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Simply Asia Brand Introduction

Simply Asia’s menu features a variety of traditional Thai dishes, including noodles, curries, and stir-fries, all prepared with authentic ingredients sourced from Thailand. The brand prides itself on delivering quality meals at affordable prices, appealing to a broad customer base. Its commitment to quality is supported by a central kitchen that produces core sauces and other items, ensuring consistency across all locations.

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see also: Omusubi Gonbei Franchise

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The restaurant’s ambiance reflects Thai culture, providing customers with an immersive dining experience. The franchise’s growth has been bolstered by effective marketing strategies and a strong focus on customer service.

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Simply Asia Franchise Cost

Starting a Simply Asia franchise requires a significant investment. The costs can vary depending on the type of store and location. Here’s a breakdown of the financial requirements:

Commitment Fee: R20,000 (this fee is refundable if the application process is withdrawn).

Franchise Fee: R100,000 (excluding VAT), which includes rights to use the brand name and concept.

Joining Fee: R100,000 (this covers training and initial support).

Average Investment Required:

Sit-down Restaurant: Approximately R1.5 million.

Express Store: Approximately R1.1 million.

Minimum Unencumbered Cash Contribution:

Sit-down: R750,000 (50% of set-up costs).

Express: R550,000 (50% of set-up costs).

Monthly Royalties:

Franchise Fee: 7% of monthly net sales.

Marketing Royalty: 3% of monthly net sales.

These figures indicate that potential franchisees should prepare for an average total investment ranging from R1.1 million to R1.5 million for Express Stores and up to R1.8 million for Sit-down Restaurants.

Simply Asia Franchise Conditions

To become a Simply Asia franchisee, applicants must meet certain conditions:

Business Experience: Previous experience in business management is preferred.

Financial Stability: Franchisees must demonstrate sufficient financial resources to cover the initial investment and ongoing operational costs.

Interpersonal Skills: Strong communication skills are essential for managing staff and building customer relationships.

Commitment to Quality: Franchisees must adhere to Simply Asia’s standards for food preparation, hygiene, and customer service.

Willingness to Learn: A commitment to participating in training programs provided by the franchisor is required.

These conditions ensure that franchisees are well-equipped to operate their businesses successfully within the Simply Asia framework.

Simply Asia Franchise Process

The process of becoming a Simply Asia franchisee involves several steps:

Initial Inquiry: Interested parties should contact Simply Asia through their official website or franchise information channels.

Application Submission: Prospective franchisees must complete an application form detailing their business experience and financial background.

Assessment Process: The franchisor conducts assessments through interviews and tests to evaluate the suitability of the applicant.

Commitment Fee Payment: A commitment fee of R20,000 is required at this stage to cover application processing costs.

Franchise Agreement Drafting: If successful, the franchisor will draft a franchise agreement outlining terms and conditions.

Training Program: Franchisees undergo comprehensive training covering operational procedures, marketing strategies, and customer service standards.

Site Selection Assistance: The franchisor assists with site selection and lease negotiations for the new store.

Store Setup: Franchisees set up their stores according to brand specifications with support from the franchisor.

Grand Opening: After completing all preparations, the store is launched with promotional activities coordinated by Simply Asia.

This structured process ensures that new franchisees are well-prepared to run their operations effectively from day one.

Simply Asia Franchise Profit

The profitability of a Simply Asia franchise can vary based on several factors including location, management efficiency, and market demand. However, several key points highlight its profit potential:

Revenue Streams: With diverse menu offerings and both dine-in and take-away options, franchises can attract various customer segments.

Brand Recognition: As one of South Africa’s leading Thai food brands, Simply Asia benefits from established brand loyalty which can drive sales.

Marketing Support: The franchisor provides ongoing marketing support which helps increase visibility and attract new customers.

Operational Support: Franchisees receive assistance in daily operations which can enhance efficiency and reduce costs.

While exact profit margins can differ widely among individual franchises due to local market conditions, many franchisees report satisfactory returns on investment within the first few years of operation.

Conclusion

Simply Asia presents an attractive opportunity for aspiring entrepreneurs looking to enter the food service industry through franchising. With its strong brand presence in South Africa’s Thai cuisine sector, comprehensive support systems for franchisees, and potential for profitability, it stands out as a viable option for those with the requisite financial backing and management skills.

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