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Oliver Kazunga, Senior Business Reporter
BULAWAYO City Council-owned Ingwebu Breweries is franchising some of its beer outlets in line with the organisation’s turnaround strategy, which started in 2011.
The turnaround strategy entails that Ingwebu Breweries sticks to its core business of manufacturing and distributing traditional beer instead of retailing.
The commercialised undertaking comprises the brewery, retail/franchise business and farms.
“COBCE wishes to franchise some of its beer retailing outlets located in the high density suburbs of the City of Bulawayo. Applications are therefore invited from potential businesspeople who are interested in running these outlets,” said the company in a statement.
Potential businesspeople interested in running the outlets under the franchise arrangement are required among others to be resident ratepayers in Bulawayo for a period not less than 10 years, and must be able to support initial investment start-up capital of not less than $15 000.
The potential entrepreneurs should also demonstrate ability to acquire acceptable collateral and must also be able to pay franchise fee for allocated outlet before taking up business.
In the past, over 40 Ingwebu beergardens have been run as franchises. The franchising strategy also empowers local businesspersons to take part in the development of their city.
Businesspeople interested in running the beer outlets under the franchise agreement are also required to commit to the day-to-day running of the franchise business and must appreciate social and cultural roles played by such facilities.
In September, Bulawayo City Council announced that Ingwebu Breweries was struggling to operate profitably and the entity was not contributing any revenue to the local authority.
Ingwebu has been facing viability challenges in the face of falling demand for its product and the high cost of operating its obsolete machinery.
About $4 million is required for the brewery to refurbish its plant machinery and at the moment BCC is not able to inject the required capital.
Online Reporter