Vulcan Flame Grill Business Plan › Section 6 › The Steers Platform Rationale

Vulcan’s decision to build on the Steers franchise system reflects a
deliberate choice to de-risk demand while retaining the operating upside
of a professionally managed platform.

Why Steers

• Strong brand equity. Steers is one of South
  Africa’s most recognised QSR brands, with decades of market penetration
  and a loyal consumer base built on a consistent flame-grilled
  proposition.
• Flame-grilled differentiation. Unlike
  fried-product-led competitors, Steers owns a distinct flavour and
  quality positioning around flame-grilling — a credible premium-value
  claim in a price-competitive market.
• Famous Brands ecosystem. Central procurement,
  logistics, product innovation, national marketing, supply-chain
  efficiencies, franchise training and technology platforms are provided
  at group scale.
• Proven scalability. The franchise model has
  demonstrated success across urban high streets, drive-thru nodes, fuel
  forecourts, malls, townships and transport corridors.

Franchise economics

Steers offers multiple formats with materially different capital
intensities. Published industry estimates indicate an all-in
standard-store investment of roughly R1.7–R2.5 million and a drive-thru
investment of roughly R3.5–R3.9 million, alongside ongoing royalty and
marketing levies of approximately 11% of turnover. Vulcan’s capital plan
reflects a blended mix of formats weighted toward higher-volume
drive-thru and forecourt sites.

Table 10. Steers format options and indicative economics
(industry estimates).

Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of Vulcan Flame Grill Holdings (Pty) Ltd.