OVERVIEW
The OK Franchise Division is a major buying, advisory and assistance organisation with a proven track record in the FMCG industry. The Group franchises five different types of retail formats and a wholesale and add-on liquor outlet, each with its own identity and personality and each offering shopping facilities appropriate to the market in which they trade. It currently operates in South Africa, Namibia and Botswana. The OK has been a well-known name in the retail industry amongst local consumers for many decades.
We are eager to tell you more and in order to give you the correct information we need to know a little more about you first. When enquiring please give us some information about yourself by supplying us with more information such as:
• Where are you situated?
• Do you currently own a supermarket?
• Or are you interested in buying a supermarket?
For more information please contact us at: franchise@okfd.com. Remember to include your contact details so that one of our representatives can be in touch.
| Or download our brochures | ||
| OK Foods |  |
|
| OK Grocer | |
|
| OK MiniMark | |
|
| OK Value | |
|
| Megasave | |
|
| Enjoy@OK | |
|
……………………………………………………………………………………………………………………
PRIME TARGET MARKET
OK Foods
OK Foods customers mainly fall in the 5 – 10 LSM categories of society that have more disposable income and that demand more than the basic services and product ranges.
OK Grocer
OK Grocer stores are mainly situated in neighbourhoods and their customers are mostly families that fall in the 4 – 8 LSM categories.
OK MiniMark
OK MiniMark superettes are convenience outlets, situated in residential and high traffic flow areas, attracting constant customer support.
OK Value
OK Value supermarkets are mainly situated in neighbourhoods and their customers are mostly families that fall in the 3 – 6 LSM categories.
Megasave
Megasave outlets are spread throughout Southern Africa and are represented in South Africa, Namibia and Botswana. Most of these outlets are community based in specialised markets. One of the great attractions of Megasave is that it caters for the demands of individual stores in particular communities.
……………………………………………………………………………………………………………………
STORE SIZE
OK Foods:
OK Foods stores vary in size with a minimum trading area of 800 m2 as well as adequate back-up and storage facilities.
OK Grocer:
The stores vary in size with a minimum trading area of 600 m2 as well as adequate back-up and storage facilities.
OK MiniMark
The stores vary in size with a minimum trading area of 300 m2 as well as adequate back-up and storage facilities.
OK Value
The stores vary in size with a minimum trading area of 300 m2 as well as adequate back-up and storage facilities.
……………………………………………………………………………………………………………………
SET-UP COST
The OK Franchise Division endeavours to keep the cost of establishment as low as possible by means of thorough planning and making use of the special prices on capital and other goods afforded to the Shoprite/Checkers group
……………………………………………………………………………………………………………………
IMAGE AND LAYOUT
OK Foods:
The layout of each OK Foods outlet is planned in a cost-effective way. The aim of the planning is to exploit every possible sales and profit opportunity through optimum customer flow and product exposure. It also takes the ergonomics of the store into account and contributes to the productivity of the staff. The layout furthermore plays a role in the creation of a practical and convenient store for the customers.
OK Grocer:
OK Grocer supermarkets portray a modern, aesthetically pleasing and service-orientated image. The layout of each OK Grocer outlet is planned in a cost-effective way. The aim of the planning is to exploit every possible sales and profit opportunity through optimum customer flow and product exposure. It also takes the ergonomics of the store into account and contributes to the productivity of the staff. The layout furthermore plays a role in creating a practical and convenient store for the customers.
OK MiniMark
OK MiniMark superettes portray a modern and service orientated image. The layout of each OK MiniMark outlet is planned in a cost-effective way. The aim of the planning is to exploit every possible sales and profit opportunity through optimum customer flow and product exposure. It also takes the ergonomics of the store into account and contributes to the productivity of the staff. The layout furthermore plays a role in creating a practical and convenient store for the customers.
OK Value
OK Value supermarkets portray a modern, value-conscious and service-orientated image. The layout of each OK Value outlet is planned in a cost-effective way. The aim of the planning is to exploit every possible sales and profit opportunity through optimum customer flow and product exposure. It also takes the ergonomics of the store into account and contributes to the productivity of the staff. The layout furthermore plays a role in creating a practical and convenient store for the customers.
……………………………………………………………………………………………………………………
RANGE AND NUMBER OF LINES CARRIED
OK Foods:
OK Foods supermarkets offer their customers a comprehensive variety in product range. At least 14 000 basic lines are carried, supplemented with speciality products as determined by the customer profile and location of the particular store.
OK Grocer:
Approximately 8 400 basic lines are carried, supplemented with speciality products as determined by the customer profile and location of the particular store.
OK MiniMark
As OK MiniMark is a convenience superette, approximately 4 500 lines are carried.
OK Value
Between 1 000 and 6 500 basic lines are carried, depending on the size of the store, the location of the store and the customer profile, supplemented by one or two service departments as per the requirements of the particular market within which the store operates.
……………………………………………………………………………………………………………………
SERVICE DEPARTMENTS
OK Foods:
In addition to groceries, perishables and non-food products, these stores’ in-house bakery, butchery, deli, fruit and vegetables department and fast foods/home meal replacements department are indispensable to the success of the OK Foods format. OK Foods stores can also have a wine department and additionally, franchisees have the option to open an Enjoy OK liquor store, which has a minimum trading area of 80 m2.
OK Grocer:
To qualify as an OK Grocer supermarket the outlet must, over and above the normal groceries, toiletries, essential household hardware and fruit and veg departments, have at least three of the following in-house service departments:
- Bakery
- Butchery
- Deli
- Fast foods/home meal replacements)
- OK Grocer stores can also have a wine department and additionally, franchisees have the option to open an Enjoy OK liquor store, which has a minimum trading area of 80 m2.
OK MiniMark:
To qualify as an OK MiniMark superette the outlet must, over and above the normal groceries, toiletries and essential household hardware, have at least two service departments:
- Bakery – an on-premises bakery is one of the main attractions and a great profit spinner. Customer demand determines the bread and confectionery variety offered
- Fast foods/home meal replacements – equally popular is the fast foods department, which provides good traffic flow through the store and enhances profit opportunities
- Fruit and vegetables – this department offers a limited variety of fresh quality produce in season); Pre-packed fresh meat (pre-packed fresh meat is always in popular demand. Together with meat products like braai meats, boerewors and mince, it offers excellent sales opportunities
- Groceries and toiletries – on average 1 400 grocery and toiletry lines are carried
- Non-foods – a selection of essential non-food commodities like charcoal, braai accessories and smaller household items create further profit
- OK MiniMark stores can also have a wine department and, additionally, franchisees have the option to open an Enjoy OK liquor store, which has a minimum trading area of 80 m2
OK Value:
To qualify as an OK Value supermarket the outlet must, over and above the normal groceries, toiletries and essential household hardware, have at least one of the following service departments:
| • | Bakery |
| • | Butchery |
| • | Deli |
| • | Fast foods/home meal replacements; and Fruit and vegetables |
| • | OK Value stores can also have a wine department and additionally, franchisees have the option to open an Enjoy OK Liquor Store, which has a minimum trading area of 80 m2. |
……………………………………………………………………………………………………………………
COMPETITIVE ADVANTAGE
A comprehensive package has been structured to help franchisees manage a sound and profitable business:
| • | Price benefits – Franchisees enjoy a tremendous benefit over competitors as they acquire goods at Shoprite/Checkers negotiated prices on a national and regional basis. (Excludes the Easter, Birthday and Christmas campaigns and store-specific deals.); |
| • | Simple accounting – OK Foods franchisees deal with a single account, comprising a consolidation of the normal and the net account. This simplifies the financial side of the business. Payment is within 30 days of statement. (A complete list of net accounts is obtainable from the Divisional Office.) ; |
| • | Cash & stock control – Our supermarkets have scanning systems with sophisticated programmes that give a franchisee complete control over stock and point of purchase; |
| • | Minimum throughput requirement through the OK Franchise Division account is 60% of sales to qualify for the OKFD incentive scheme; and Incentives, terms and rebates have been structured to afford every OK Foods franchisee with the maximum opportunity to add extra value to the bottom line. The OKFD incentive scheme is one of the best in the FMCG business. |
……………………………………………………………………………………………………………………
SUPPORT ALL THE WAY
Some of the support benefits OK Foods franchisees enjoy:
- Regular trade visits by the Divisional Office;
- Merchandising, promotional and display advice and ideas;
- Training services through Shoprite/Checkers facilities, supplier expertise and specialists in certain operational fields;
- Computer support services;
- Each store format will receive a certain amount of leaflets , including free distribution of the pamphlets for every promotion (approximately 42 promotions per year);
- Media advertising for the OK by means of television and radio;
- and In-store advertising and promotional materials like posters, bunting, price and stacker cards and special display items, including competitions.
Enjoy OK Liquor Store
Store Requirements to add on an Enjoy OK Liquor Store
The franchisee must be an existing member of the OK Franchise Division. The franchisee must have the appropriate liquor licence. The liquor store must be a standalone outlet with its own entrance. It must have a minimum trading area of 80 m2 and must comply with certain minimum standards and requirements. The outlet must adhere to Enjoy OK Liquor Store signage specifications.
The benefits of adding an Enjoy OK Liquor Store
Convenience to customers: One-stop shopping of groceries and liquor in adjacent facilities. Increase in patronage in the supermarket and increased custom in the liquor outlet – a win-win situation. Increased profitability: Franchisees save on administrative costs and obtain better prices and added turnover through the OK Franchise Division account, which effects increased rebates and incentives.