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Smaller, cheaper franchise models are opening business ownership to more South Africans

Col'Cacchio has cut the cost of a new outlet from up to R8 million to as little as R2 million.

Taiwo Banjoko
Johannesburg1 min read
Johannesburg's inner city seen from the Carlton Centre in 2015.
Johannesburg's inner city seen from the Carlton Centre in 2015. File photo: Andrew Moore / Wikimedia Commons (CC BY-SA 2.0)

South African businesses are reshaping franchising to make it cheaper to become an owner, from digital pizza stores to coffee bikes.

Franchising turns over an estimated R1 trillion a year in South Africa, and about one in five rand earned in the sector comes from food.

Digital counters, lower costs

Pizza chain Col'Cacchio, which has been trading for more than 32 years, is rolling out Col'Cacchio Go: small stores built around click-to-collect and delivery, with traditional kitchens but digital front counters. The company says this cuts the cost of opening an outlet from about R6 million to R8 million down to R2 million to R2.5 million, making it easier to expand into smaller towns.

Group CEO Etienne Pieterse says he calls his franchisees "partners". Stores in places like Kimberley can source fresh produce and wood locally if they meet quality standards, and owners can keep menu pages unique to their area. "It's local people, local owners putting [in] hard sweat," he told Daily Maverick.

Owning the equipment

Vladislav Priadko, founder of Coffee Bike World, argues for a different model: entrepreneurs buy the equipment outright, without franchise fees, royalties or compulsory purchasing. "I wanted to give people the equipment and knowledge to get started," he said.

Source: Daily Maverick, November 2026.

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