Chicken Licken Case Study
Dare to go where no one else would, take risks with new products and continuously innovating. This is what made Chicken Licken the success it is today. However, it does not end there. As the founder said, there is no time to sit back and let the business run itself, there is still a lot of work to be done.
Chicken Licken was founded in 1981 by the founder of the South African Fast Food Fried Chicken restaurant chain, George Sombonos. Unlike any other entrepreneur, George Sombonos grew up in a family which was heavily involved in the Fast food industry.
Growing up George helped his father in his store called the Dairy Den where he worked as an assistant and dealt with any matter his father commanded him to do.
In 1972, George was sent by …show more content…
He invited the owner with the purpose of retrieving the recipe for their chicken and after a long on-going negotiation, the owner agreed to sell the company’s secret recipe for $5000. Unfortunately for George he didn’t have enough money on him so he had to settle for an alternative and untested recipe that the company had.
After he returned back home, Sombonos changed the chicken coating recipe used at the Dairy Den with the new recipe. Keep in mind that the recipe was untested but sales and profits increased by over R200 000 a month. Later on, the business was renamed, Golden Fried Chicken and later changed to Chicken Licken by Sombonos. The company was then registered for R300 and the original logo, which is still used today, was designed for only R75.
With growth in mind, the best way to expand the business was franchising as he did not have enough capital to open more stores himself. While in the USA, he had learnt everything one needs to know about franchising, however, he had no official franchising agreement which resulted in people not purchasing Chicken Licken …show more content…
The franchise agreement had stated that no royalties would be charged in the first 6 months and R15 000 worth of stock and equipment would be given. However, this did not make him much profit but because of the brand’s wide existence and growth in townships, he attracted more people who were interested in franchising the restaurant. Overtime, during the apartheid era Chicken Licken developed a good standing reputation especially amongst its black clientele and as a result Chicken Licken was classified as a township brand.
Additionally, the company had violated the apartheid legislation while trading as the Dairy Den by serving black people silently in their cars. Business sales began to escalate rapidly as it was evident that colour did not matter to them, they supported equality. This led to Chicken Licken earning the loyalty of millions of
Chicken Licken was founded in 1981 by the founder of the South African Fast Food Fried Chicken restaurant chain, George Sombonos. Unlike any other entrepreneur, George Sombonos grew up in a family which was heavily involved in the Fast food industry.
Growing up George helped his father in his store called the Dairy Den where he worked as an assistant and dealt with any matter his father commanded him to do.
In 1972, George was sent by …show more content…
He invited the owner with the purpose of retrieving the recipe for their chicken and after a long on-going negotiation, the owner agreed to sell the company’s secret recipe for $5000. Unfortunately for George he didn’t have enough money on him so he had to settle for an alternative and untested recipe that the company had.
After he returned back home, Sombonos changed the chicken coating recipe used at the Dairy Den with the new recipe. Keep in mind that the recipe was untested but sales and profits increased by over R200 000 a month. Later on, the business was renamed, Golden Fried Chicken and later changed to Chicken Licken by Sombonos. The company was then registered for R300 and the original logo, which is still used today, was designed for only R75.
With growth in mind, the best way to expand the business was franchising as he did not have enough capital to open more stores himself. While in the USA, he had learnt everything one needs to know about franchising, however, he had no official franchising agreement which resulted in people not purchasing Chicken Licken …show more content…
The franchise agreement had stated that no royalties would be charged in the first 6 months and R15 000 worth of stock and equipment would be given. However, this did not make him much profit but because of the brand’s wide existence and growth in townships, he attracted more people who were interested in franchising the restaurant. Overtime, during the apartheid era Chicken Licken developed a good standing reputation especially amongst its black clientele and as a result Chicken Licken was classified as a township brand.
Additionally, the company had violated the apartheid legislation while trading as the Dairy Den by serving black people silently in their cars. Business sales began to escalate rapidly as it was evident that colour did not matter to them, they supported equality. This led to Chicken Licken earning the loyalty of millions of