Conversations surrounding economic recovery seem to continue to plague most media platforms across South Africa and the world. Although the fatigue of the seemingly dismal future can be felt within personal, and professional environments, the reality is that those who choose to band together tend to see the light at the end of the 2020 COVID-19 tunnel.
The same is true of leading second hand, quality new goods and secure loans retailer, Cash Crusaders. Whilst some industries are still treading water to survive the economic recovery phase, Cash Crusaders has been encouraged by the level of growth and optimism experienced, not only as a group, but as a national franchising business.
“We have been humbled by how our business and franchisees have overcome this unprecedented time and how our business has not only shown growth, but has planned six new store openings in the next two months,” says Sean Stegmann, CEO of Cash Crusaders
Having listened to the conversations and discussions surrounding franchising on 702’s Franchising for Future Success webinar, the sentiment is not exclusive to Cash Crusaders, or their industry. According to Akhona Qenque, Chairperson for the Franchise Association of South Africa (Fasa), other franchised industries are also experiencing increased interest in the franchising business model. “Franchising is a trusted and ‘bankable’ business model. Funders love the concept of franchising and we’ve tended to fare better than other businesses post COVID-19 as during times of uncertainty, we’ve seen people gravitate towards brands that they know and trust, and brands that they know are to enforce processes and systems and standards – which is exactly what franchises do.”
Pavlo Phitidis – Business Expert and CEO of Aurik Business Accelerator says that an area of business that had been suffering even prior to the pandemic due to inconsistent infrastructure and regressing economic circumstances, is within the SME market. He says that the ‘overall general economy without an economic growth strategy in play, has meant that there’s been no growth’. Despite this view however, Pavlo says that, “businesses who have fundamentally changed their operations by introducing new ideas and ways of taking businesses into the worlds of their customers, have found themselves on the front foot in this economy.”
“To Akhona’s point about a franchising model, a franchise business centrally rolls out new systems and processes. A significant amount of training is developed from the franchisor’s perspective, which means that the level of service that the customer experiences across the store network is consistent and can be implemented collectively
Cash Crusaders has been incredibly proactive in the franchising space as they see how businesses and individuals have been negatively affected by the results of a tough economic climate, and believe that a franchised business is the key to future business success.