DURBAN - The Franchise Association of South Africa (FASA) has announced the launch of a Food Franchise Forum that will represent household names in the casual dining and quick service restaurants (CDQSR) sector.
According to figures from 2016, the franchise sector generated R587m in sales, this translates to 13,3% of the South African GDP. Of the 13,3% the CDQSR sector contributed 29% to the total. Around 65500 people are employed through the CDQSR sector, a number of which were previously unskilled individuals.
It has been over 60 years since the CDQSR sector led to the development of modern franchising. Since then franchising has made strong advances into a dozen or more industries. Recent research has confirmed that the CDQSR sector continues to play a dominant role in franchising.
While FASA operates under a government gazetted Code of Ethics for its 17 different sectors. However, the establishment of a Food Franchise Forum with FASA has been created to communicate on issues that have the potential to impact the sector is a crucial step in the challenging the food environment.
The forum is bound by a supplementary code of ethics for the franchise food sector and will maintain a series of monitoring measures.
There have been signs that the food sector will continue on its pat to grow. This is of particular importance in the context of South Africa because it creates real, value-creating opportunities for the formulation of sustainable small businesses under franchise arrangements and further job creation. Additionally, the sector makes a crucial contribution to the country’s vibrant tourism industry.
Chairperson of the Food Forum Nazrana Hawa of Spur said: “Raising awareness about issues affecting our sector requires a united voice and a credible representative body mandated to speak on behalf of the sector”.
The food safety scare, the draft liquor policy and proposed smoking regulations are examples of matters that are causing concern to the South African CDQSR sector.
Hawa said that experience tells them that representations sent to the government by individual brands are unlikely to accomplish the desired results. In order for the sector to be heard a credible, representative organisation needs to speak for the CDQSR sector.
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- BUSINESS REPORT ONLINE