moyo means heart, translated from the sand script African language Swahili. moyo is about the passion for all things African, from art and design to music, cuisine and crafts. Different African countries are regularly showcased at moyo too, so Africa lovers can experience an authentic taste of the diverse cultures of the continent. Moyo seeks to create an experience that inspires the magic and mystery of our ancient African continent.
What are the site criteria?
The selection of our sites is paramount to the success of the business. moyo restaurants are situated in beautiful evocative settings that brings the culinary diversity of Africa to our visitors. moyo seeks iconic sites with historic or traditional African significance. Although moyo is a destination venue we still look for sites with good visibility, into and out of the store and to passing trade. In addition the site must be at street/ground level with close proximity to convenient safe parking. The size requirements vary between 600m2 and 800m2 (square meters) with an additional outside seating. Our sites must send one message out – ‘welcome, come celebrate with us’.
What sites are available?
One of the factors attributing to the success of moyo has been the marriage of the operator to the right site. Although limited sites are available, our team works hard to secure the best site for our moyo franchisees. We will entertain proposals for new sites, provided the site meets the basic criteria, the rental is reasonable and it is easily accessible to the target tourist market.
How much does a moyo cost?
The average set up cost of a moyo is between R8 and R10 million depending on the size and location of the store. This excludes any potential Tenant Installation (TI) allowance received from landlords. This is for a ‘turn-key’ operation exclusive of Franchise Fee, opening stock, any form of deposit and VAT.
Cash Flow Needed is as Follows:
(These figures are estimates and are all exclusive of VAT)
R9 000 000 (ex vat) Cost of Store
R 300 000 (ex vat) Sign Up Fee
R 200 000 (ex vat) Initial Stock
R 9 500 000
R4 000 000 of these funds must be unencumbered funds. This means it must be shareholders capital or property that is not subject to any creditor claims or liens. The balance may be financed through any of the financial institutions.
When are funds needed?
- When you sign up R300 000 (ex VAT) is required.
- Thereafter the architect/designer will invoice for the design and layout. 50% of this fee must be paid to commence with design.
- From the completed designs a cost estimate will be done. This must be signed off and 50% of the total set up cost must be paid to commission the various contractors. This must be accompanied by a letter from the bank stating that the balance of the funds are available on completion.
- The balance remaining to be paid on handover before opening of the store.
What are the Franchise and Royalty Fees?
The upfront Sign Up Fee is R300 000 (ex VAT), payable on signature of the Franchise Agreement. The monthly Royalty Fee is calculated on 5% of turnover with a minimum of R30 000 (ex VAT).
The monthly Marketing Fee is calculated at 3% of turnover.
(All amounts quoted are exclusive of VAT)
Do I need restaurant experience?
Yes! Our requirements are not only for restaurant or culinary experience but also for strong management and business experience. It is a common misconception that by trading under a franchise brand name your business will do well. Our brand is about tradition, people and celebration; it requires you to give it personality. We need people with passion, drive and commitment. Operating a moyo involves hard work and long hours from people that are self-motivated achievers… are you one of those people?
If so, and you’re still excited about the prospect of owning a moyo please contact our Franchising team to set up an appointment to discuss the details.
Other Things I Should Know
There are 3 main criteria to be met. They are the following:
- Owner Operator: Operator of the store has to be at least a 25% shareholder in the business.
- Finance: Ensure that you have the required finance as stipulated above.
- Sites: These will be agreed upon by yourself as well as Fournews Developments.
For more information contact Alan van der Westhuizen on +27 11 452 8770 or firstname.lastname@example.org