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INTEGRATED REPORT 2017

Passionate people building great brands

CAPTAIN DOREGOS

IT’S ALL GOOD

Captain DoRegos serves quality, quick-service food at an affordable price. We are experts when it comes to whipping up value-for-money meals that you can enjoy as a takeaway or in a comfortable sit-down environment.

 


  • promotions

  • – Woza Weekend hake and chips
    – Woza Family meals
    – Woza Weekdays meals

PERFORMANCE SCORECARD

Performance overview

The focus during 2017 was on consolidating existing stores and redeveloping the franchise model in the context of the severe strain on our target consumers, intense competition, sustained high food cost inflation and unreasonable increases in occupancy costs. During this redesign phase, we did not open any new outlets, closed eight outlets and relocated two.

Total restaurant turnover decreased by 17.6% to R114.0 million (2016: R138.3 million) and existing store sales fell by 17.6%. Franchise revenue decreased 38.0% due to the reduction in
the standard franchise fee towards the end of the 2016 financial year, which was implemented to ensure the sustainability of the model.

Refinements to the franchise model include smaller store size to reduce initial investment and ongoing occupancy costs, reducing input costs by localising core items, and menu engineering to reduce product holdings and equipment costs. The marketing strategy will be redesigned to release funds for local store marketing and operational expenses will be closely monitored.

The brand’s business model was refined to support franchisee profitability and the roll-out of new signage will be completed early in the financial year ahead. Sales staff received training to improve customer service, the menu was refocused on high-selling items and the marketing strategy was expanded to drive feet into the stores through value-adding campaigns.

Strategic outlook

In the financial year ahead, we aim to implement the franchise model refinements across outlets. With the consolidation phase complete, we will return to a more assertive expansion policy and aim to open four new outlets. We continue to investigate options to open outlets in alternative locations.