The pie business was a very popular business in South Africa in the past decade, it has seen some decline over the recent years but is still popular nonetheless. This is a guide on how to start a pie business in South Africa.
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Pies were very popular in South Africa in the early 2000s and the decade between 2000 and 2010. However, there are not as popular today, having been overtaken by things like pizzas and burgers. Pie shops like Pie City and King Pie are still very popular and pie is still sold at many outlets as part of a larger menu.
Building your own pie business from scratch might be very challenging and It’s something that I personally don’t advise you to do. A much better option is buying an already existing pie franchise or being part of it. This article will mostly focus on that.
Buying a franchise
A franchise is much easier to start with, you buy into an already existing brand like Pie City and get to have your own Pie City shop. The main benefit is that you won’t have to spend money trying to build brand awareness. People are already familiar with the brand, and you will also be given a manual on how to run the business.
The estimated setup cost for King Pie is around R450 000 – R500 000. The joining fee is R55 000 and you will also have to pay royalties every month. Royalties are usually a percentage of your income which is usually between 8 – 12%. This amount is for opening a big King Pie store.
King Pie also offers cheaper options like express units, kiosks and mobile kiosks, the startup cost for a mobile kiosk is as little as R150 000.
Another popular franchise is Pie City, which also has similar franchising options to King Pie. The express unit is commonly is very mobile and looks like a caravan. It allows people to hook up the caravan and set up shop wherever they feel like. This is why you sometimes find people pulling the caravan with a bicycle around town.
This was a guide on how to start a pie business in South Africa. Do you have any thoughts or questions? Comment below.