[PaperBoy]

More than you'd imagine.

Even if you have the finance, they may look for the skills you have or things you have done in the past.

[Herr]

(Original post by Bill_Gates)
How much is a Nandos Franchise? In the UK?

The holder of the master franchise in UK doesn't sell any franchise to individuals... hence all Nando's in UK are owned and operated by Nando's UK.

However if you do own some prime properties which sees sufficient traffic volume they might be willing to enter into a deal with you on a profit sharing basis in exchange for lower or no rent.

Anyway franchise isn't the best way to start your first restaurant as it is very capital intensive and usually it is rare that you would be allowed to operate one by the master franchiser unless you have :-
1) Substantial capital
2) Sound business experience and being a landlord doesn't count.
3) Good knowledge in the restaurant or high volume catering businesses. Just because you know how to cook doesn't count either

Profits don't come easy either especially if you have to pay high rental rates for the premise as in addition to paying the franchise fee, you will need to renovate that premise to their standard (this can be once every 3-5 years) and you usually have to buy or lease their equipment as well, some of them are hugely expensive. Supplies, you can only buy it from them though usually wholesale prices aren't standard, depends on your volume and markups as a whole is controlled as prices need to fall in-line nationally. Then each time there is a sale you have to pay between 1-5% as royalty. Some franchise also comes with targets so you need to guarantee them a certain amount each month or else.

I looked into several franchises before in the end realized it is better to start your own, market it well and do it well than to rely on a franchise unless you already own the premise you're not going to make money out of it. If you're really interested in doing a franchise business especially if it is your first time going into it, then look for Domino's Pizza instead... significantly easier and far less labour intensive and you can also operate it very small premises. The other alternative though rather risky is to bring in an American eatery that isn't yet present in UK... if they are interested in expanding internationally then they usually are quite good about it.... looking into the possibility of bringing in 2 right now, though into Switzerland first and then into UK.

[Bill_Gates]

(Original post by Herr)
The holder of the master franchise in UK doesn't sell any franchise to individuals... hence all Nando's in UK are owned and operated by Nando's UK.

However if you do own some prime properties which sees sufficient traffic volume they might be willing to enter into a deal with you on a profit sharing basis in exchange for lower or no rent.

Anyway franchise isn't the best way to start your first restaurant as it is very capital intensive and usually it is rare that you would be allowed to operate one by the master franchiser unless you have :-
1) Substantial capital
2) Sound business experience and being a landlord doesn't count.
3) Good knowledge in the restaurant or high volume catering businesses. Just because you know how to cook doesn't count either

Profits don't come easy either especially if you have to pay high rental rates for the premise as in addition to paying the franchise fee, you will need to renovate that premise to their standard (this can be once every 3-5 years) and you usually have to buy or lease their equipment as well, some of them are hugely expensive. Supplies, you can only buy it from them though usually wholesale prices aren't standard, depends on your volume and markups as a whole is controlled as prices need to fall in-line nationally. Then each time there is a sale you have to pay between 1-5% as royalty. Some franchise also comes with targets so you need to guarantee them a certain amount each month or else.

I looked into several franchises before in the end realized it is better to start your own, market it well and do it well than to rely on a franchise unless you already own the premise you're not going to make money out of it. If you're really interested in doing a franchise business especially if it is your first time going into it, then look for Domino's Pizza instead... significantly easier and far less labour intensive and you can also operate it very small premises. The other alternative though rather risky is to bring in an American eatery that isn't yet present in UK... if they are interested in expanding internationally then they usually are quite good about it.... looking into the possibility of bringing in 2 right now, though into Switzerland first and then into UK.

Are you 100% sure its not individual franchises?

Thanks.

[Herr]

(Original post by Bill_Gates)
Are you 100% sure its not individual franchises?

Thanks.

Accurate till up to 8/11.... unless they have since changed their policies.

Was asking about it then as was looking into diversifying. But then decided to take a different route.

[Bill_Gates]

(Original post by Herr)
Accurate till up to 8/11.... unless they have since changed their policies.

Was asking about it then as was looking into diversifying. But then decided to take a different route.

Thanks pal!

[Herr]

(Original post by Bill_Gates)
Thanks pal!

Glad to help...

Thinking of diversifying or have some vacant commercial properties?

[Bill_Gates]

(Original post by Herr)
Glad to help...

Thinking of diversifying or have some vacant commercial properties?

Just wondering in general. First off im looking at an empty premises which im going to buy when i graduate and open a restaurant there. But just weighing up my options. I like the Nandos concept.

[Herr]

(Original post by Bill_Gates)
Just wondering in general. First off im looking at an empty premises which im going to buy when i graduate and open a restaurant there. But just weighing up my options. I like the Nandos concept.

If you're interested in this type of concept, there is an Australian chain called Opporto which is similar to Nando's though much tastier. They are looking into expanding into UK and Europe.

There are a few American chicken chains that are highly interested in the UK market, Look up Boston Market, Kenny Rogers Roasters and Popeye's are all very interested in expanding their presence.

Might be cheaper and easier to set those up. Was seriously considering the Boston Market as the franchise fees was very low and had full control of supply chain related matters but lost interest as I wanted to go into manufacturing.

[Bill_Gates]

(Original post by Herr)
If you're interested in this type of concept, there is an Australian chain called Opporto which is similar to Nando's though much tastier. They are looking into expanding into UK and Europe.

There are a few American chicken chains that are highly interested in the UK market, Look up Boston Market, Kenny Rogers Roasters and Popeye's are all very interested in expanding their presence.

Might be cheaper and easier to set those up. Was seriously considering the Boston Market as the franchise fees was very low and had full control of supply chain related matters but lost interest as I wanted to go into manufacturing.

lol, what are you currently in? Or looking into?

[Herr]

(Original post by Bill_Gates)
lol, what are you currently in? Or looking into?

Looking into :- Automotive business, trying to go into the manufacturing of automotive components and possibly car assembly.

An automated restaurant and catering system, currently our retail operation for this is hitting some snags.

Currently into :-

We are manufacturing solar shingles primarily for Swiss government buildings for now, this is our primary manufacturing activity.

We are in the midst of setting up a manufacturing facility for spray-in insulation foam. Hope to start by April.

We are the assembler of a certain American triple glaze smart window system.

We are the manufacturer of LED lighting systems for domestic and industrial usage. We don't sell them on our own though, primarily done by project basis only.

We are also the importer and installer of an American integrated HVAC system, primarily meant for commercial applications but we are currently trying to negotiate an agreement to do rebadge and local assembly of for a residential range.

Am also the sole proprietor of a small 20 bed Alpine lodge, I don't take part in the day to day running of it any longer though.

Am also actively involved in property development, primarily a buyer of old or historical buildings in dilapidated condition and refurbishing them for housing or commercial purposes.

[Maccees]

...wish I had some capital 0.o Really want to open my own restaurant and start property development :/

[The Real Quaid]

What a ridiculous question to post on a student forum

[tj_hinson]

But students love Nandos!

[Herr]

(Original post by Maccees)
...wish I had some capital 0.o Really want to open my own restaurant and start property development :/

Start very small and build your way up.

Capital?? Trust me if you say you're saving up to start a business you'll never be able to do it.... if you want to get into your own business then you got to start right away.

Property development isn't an easy thing to be into unless you are a builder or have at your disposal huge amounts of monies.

[Maccees]

(Original post by Herr)
Start very small and build your way up.

Capital?? Trust me if you say you're saving up to start a business you'll never be able to do it.... if you want to get into your own business then you got to start right away.

Property development isn't an easy thing to be into unless you are a builder or have at your disposal huge amounts of monies.

How did you start, if you don't mind me asking?

[Jennie1987]

(Original post by Pomppufiilis)
Well Nandos aren't doing franchise in the UK, you might have to move to South Africa.

Rep for the comment, rep for the sig.

[Herr]

(Original post by Maccees)
How did you start, if you don't mind me asking?

I started out really small, we have to remember that this was in 2003 when things were rather different then. I bought a home for my own stay and it was at a time when you could get a 110% mortgage easily. The home in question was a small cottage, what I did was I bought some paint, gave the place a coat of paint, went to the IKEA store and furnished it then rented it out to some international students whose parents paid me 12 months in advance.

I then used the 10% plus the profits from the rent to get a BTL mortgage which I then used it to buy 2 terrace houses that were in very poor condition, I got rather lucky here, because both the houses were next to each other and were being sold by the same person, she had inherited them recently, I knew she had a gambling problem and I knew she was rather desperate to sell those properties... I told her if she dropped the price by 30% each I would buy them both. I gave her 10% deposit in cash on the understanding that if I couldn't get financing then I get my money back minus 1% within 14 working days. 5 days later she calls me to ask me whether I was making progress on the loans or not.. I told her not yet, she said to hurry up as she wanted the money ASAP. I sensed a bit of desperation in her voice and had someone ask around only to find out she was a big time casino junkie. 2 days before the 14 working days were up I told her I couldn't get financing for 2 units and made up a story that the banks said no because the condition of the houses were in bad shape, so I wanted my deposit back unless she could either give me another 14 working days and I could try again elsewhere or maybe if she dropped the price down further I could be able to afford it. She dropped the price to the level that it was buy 1 and get the other for 90% off... essentially it came down to the fact that she didn't want to return my deposit because she had spent it already.. LOL

[Maccees]

(Original post by Herr)
I started out really small, we have to remember that this was in 2003 when things were rather different then. I bought a home for my own stay and it was at a time when you could get a 110% mortgage easily. The home in question was a small cottage, what I did was I bought some paint, gave the place a coat of paint, went to the IKEA store and furnished it then rented it out to some international students whose parents paid me 12 months in advance.

I then used the 10% plus the profits from the rent to get a BTL mortgage which I then used it to buy 2 terrace houses that were in very poor condition, I got rather lucky here, because both the houses were next to each other and were being sold by the same person, she had inherited them recently, I knew she had a gambling problem and I knew she was rather desperate to sell those properties... I told her if she dropped the price by 30% each I would buy them both. I gave her 10% deposit in cash on the understanding that if I couldn't get financing then I get my money back minus 1% within 14 working days. 5 days later she calls me to ask me whether I was making progress on the loans or not.. I told her not yet, she said to hurry up as she wanted the money ASAP. I sensed a bit of desperation in her voice and had someone ask around only to find out she was a big time casino junkie. 2 days before the 14 working days were up I told her I couldn't get financing for 2 units and made up a story that the banks said no because the condition of the houses were in bad shape, so I wanted my deposit back unless she could either give me another 14 working days and I could try again elsewhere or maybe if she dropped the price down further I could be able to afford it. She dropped the price to the level that it was buy 1 and get the other for 90% off... essentially it came down to the fact that she didn't want to return my deposit because she had spent it already.. LOL

Ah...back to the drawing board for me then haha.

[Herr]

(Original post by Maccees)
Ah...back to the drawing board for me then haha.

In today's economy, you're better off starting with something really small and something that is nice but cheap.... will be easier to buy as stock, add some value to it and then sell off.... if it is good value for money people will definitely buy it.

[rorydaredking]

(Original post by Megaross)
High level management roles are still high level management roles. No one goes from being an MD/ CEO to "I manage a nandos" because it's like taking a million steps down the ladder. Anyone can run a nandos after a 2 week training course at their local college, you don't need to be particularly skilled/ smart.

Well to get a McD franchise you have to have been a store manager 2 years or more, so I assume a similar rule may apply at nandos.