Overview Of Chicken Licken Company: History, Growth And Challenges

History

George helped his father to manage his road side restaurant called, The Dairy Den in early 70s. He travelled to North America by means of his father. He spent time by taking in the 1980’s it was named Golden Fried Chicken but was quickly changed after a waiter registered the name Chicken Licken for an amount of R300. At R75, the logo was designed and is still being used today.

Financial and Physical Growth

As per George, franchising was the best way to extend the business, as he didn't possess enough cash-flow to open more than a couple of stores.

He had perceived how franchising functioned in the United States and understood that it was the means by which most chains extended. Being another idea, George attempted to motivate individuals to purchase a Chicken Licken establishment.

“People didn’t want to buy establishments. They thought ‘who’s this, they’ve got no experience’. And we were just winging it – we had no franchising agreement.

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He claimed that into establishments. The early establishments were not perfect. Majority of them have since dropped out, in light of the fact that as per George, they weren't reasonable. He clarified that these days potential establishments need to step through an exam to be evaluated regardless of whether they are perfect for the job or not. For George, there are not one but two key factors to a fruitful chicken drive-thru food establishment: chicken and marketing. The shamelessness of Chicken Licken's promoting campaigns have developed throughout the years.

The first ever commercial was taped by a 'wack producer' and cost R10 000 to make. The promotions were on Bop TV as he couldn't stand to be on SABC. In 1986 he procured a promotion establishment to produce a more expert ad. The establishment recommended utilizing Joe Mafela, who was a performer in a satire arrangement at the time. After the ads were communicated, the yearly deals expanded by 47%. "Deals went wild," says George. The ad was shot in the Booysens store. "There was no studio, and we didn't have music. After Joe had a couple of brandies he began playing the piano and thought of the jingle 'It's great, great, great, it's great it's decent'." This tune was spent until 1998. Ten years back, the yearly showcasing spending plan was R12 million. This year it has developed to a gigantic R64 million. Up to 95% of this spend is designated to TV. George says that individuals are more inspired by TV and that it influences an association to seem greater than it might really be – however it costs cash.

Challenges

To state that Chicken Licken served an undiscovered market is putting it lightly. In 1975, as the Dairy Den, George repudiated apartheid and began serving black individuals in the outlets. "When they saw they could get equivalent administration at our eatery, business blasted." The establishment's notoriety rapidly developed among its black demographic. George says it was just reliable that the subsequent stage was to grow the business into black zones like Soweto. Chicken Licken was delegated a township mark which prompted it obtaining the loyalty of a large number of clients, yet the drawback was that it was left with dishonor joined to it. The establishment needed to move and begin opening stores in the more upper market regions, in spite of the fact that there are still a few shops in the township regions, for instance at Maponya Mall in Soweto. The move into suburbia required a difference in menu, yet George says the wings ended up prevalent for a second time. The establishment's stores have additionally been repaired to depict a more upper market style.

Mauritius, yet these were pulled back because of conflicting chicken supplies and deceitful establishments. George doesn't have confidence in having too many stores, refer to Subway for instance of a fruitful establishment that just has one establishment claimed store. He has a strong belief that it is essential for the establishment to run a few stores to hold a specific proportion of control and to know "what's going on" in the establishments. At first George says his provider, Rainbow Chicken, thought he was managing a joke of a business yet when deals started to expand they considered him important. Chicken Licken offers around 100 000 chickens per week and with regards to Hot Wings, a standout amongst the most well-known choices on the menu, the establishment offers a large number of cases. Chicken Licken currently purchases such a large number of wings that Rainbow Chicken here and there battles to supply them. He has needed to import chicken from Brazil before. The establishment's yearly turnover is currently well over R1 billion and George predicts that in eight years it will turn over R3 billion, and soon thereafter he cheekily says he will leave the business, since then he "knows they can't foul it up any longer."