SA Fried Chicken Co. Business Plan — Business Model & Revenue Streams

Section 6 · 6 of 18

Business Model & Revenue Streams

The model is a company-owned QSR estate monetised across three channels and multiple bundle tiers, with clearly defined future extensions into franchising and branded retail.

Revenue streams

  • Core in-store — dine-in and takeaway. The volume base: value combos, family buckets and the premium spicy range across flagship and express formats.
  • Delivery. Uber Eats and Mr D integration extends catchment well beyond the physical footprint; modelled to rise from 20% to 30% of revenue by FY2030.
  • Bundles & occasions. Family bundles, student specials and limited-time flavours engineered to lift both ticket and frequency.
  • Future — franchising. From Year 3, a franchise model shifts unit capital to franchisees while generating initial fees and ongoing royalties (the recommended de-risking lever for Phase 2).
  • Future — branded retail. Branded sauces and frozen products extend the brand into grocery, adding a higher-margin, lower-capital revenue line from Year 4.

Channel economics

Channel mix matters to margin, not just to reach. Delivery expands the addressable market but carries aggregator commissions of 25–30%; the model assumes menu and packaging engineering recovers roughly a third of that commission, so the net delivery drag is contained. Dine-in is the most margin-accretive channel and the one where the community brand experience is built.

Figure 6. Revenue by channel over the plan horizon — delivery mix rising to 30%.

Analyst flagDelivery is growth and margin risk in one

Every point of delivery mix expands reach but transfers 25–30% of that revenue to a third party the Company does not control. The plan treats delivery as a deliberate, priced channel — with delivery-specific menu pricing and packaging — rather than an uncosted convenience. If aggregator commissions rise or menu premiums fail to hold, blended margin compresses; this is monitored as a core KPI.

Pricing strategy

Pricing sits slightly below the incumbent on comparable items, with the value delivered through bundles rather than single-item discounting. This protects perceived quality while winning the price comparison at the household level. Menu architecture is engineered around a small number of high-margin anchor bundles that carry the mix.

Store formats

Format

Location

Footprint

Mature AUV

Role

Flagship

Malls, CBDs

Full dine-in + kitchen

R12.5m

Brand-building volume base

Express

Townships, transit hubs

Compact, takeaway-led

R6.8m

Reach, frequency, community presence