Ingwebu weans off more beer outlets

Senior Business Reporter
THE Bulawayo City Council’s commercial subsidiary, Ingwebu Breweries, plans to wean off more of its liquor outlets dotted across the city and place them under private franchise. Ingwebu has been running the franchise programme since 2011 as it had to contend with operational challenges and declining earnings in the wake of a harsh economic environment.

The opaque beer maker closed several of its beer halls in 2010 after the board failed to get approval from council to borrow money from the market and fund a turnaround strategy.

Yesterday, the company invited bids from potential investors who are interested in running the outlets to submit their applications.

According to the notice, bidders should be Bulawayo residents with not less than 10 years as council ratepayers and be able to support the initial investment start-up capital of not less than $15,000.

“Applicants who meet the following criteria must be able to support initial investment start-up capital of not less than $15,000, demonstrate ability to acquire acceptable collateral and be able to pay initial franchise fee for allocated outlet before taking up business,” said Ingwebu.

The brewery said sole traders and partnerships were required to include curriculum vitaes of the owners of the business while those in partnership should include a partnership agreement.

“Registered companies must include curriculum vitae of all directors of the organisation. One of the directors should be a managing director. In addition, a certificate of incorporation, and CR14 should be included,” it said.

Ingwebu said franchising of the outlets does not entail that the City Council was mortgaging its properties as “the beer outlets to be franchised would be protected through a franchise agreement between BMCU and the franchisees”.

Some of the outlets already under franchise operations include Nketa 8 Beer Garden, Hlanganani Bar Lounge, Mahadebe Beer Garden, Matshobana Beer Garden, Nkulumane Beer Garden, Phekiwe Beer Garden, Pumulani Beer Garden, Mandlovu Beer Garden, Congo Beer Garden, Totobisa Beer Garden and, Masilela Beer Garden, among others.