expand more on
Executive Summary
Investment: 33.6M ETB ($600,000).
ROI Target: 20% annually (6.72M ETB).
Focus: Affordable, culturally tailored chicken meals for Ethiopia’s urban middle class.
Key Metrics: 560,000 ETB monthly cash flow, breakeven in 18 months.
**Executive Summary**
Boaz Trading PLC is launching a fast-food chicken franchise in Addis Ababa, Ethiopia, designed to capitalize on the country’s rapid urbanization, youthful population, and growing demand for affordable, convenient dining. With a **total investment of 33.6 million ETB ($600,000 at 56 ETB/USD)**, this project targets Ethiopia’s urban middle class by offering culturally tailored meals at prices aligned with local purchasing power. The franchise combines global operational standards with hyperlocal flavors, positioning itself as a leader in Ethiopia’s burgeoning quick-service restaurant (QSR) sector.
---
### **Investment Breakdown**
The **33.6 million ETB** investment is allocated across three core areas:
1. **Franchise Setup (16.8M ETB):**
- Kitchen equipment (imported energy-efficient fryers, grills).
- Location leases in high-traffic areas (e.g., Bole District, Megenagna).
- Initial inventory and staff training.
2. **Marketing (8.4M ETB):**
- Local digital campaigns (Telegram, Facebook).
- The “**Golf Around the World**” branding initiative to sponsor Ethiopian athletes, enhancing global visibility.
3. **Operations (8.4M ETB):**
- Mobile app development (1.2M ETB) for orders, loyalty programs, and payments.
- Partnerships with local suppliers (e.g., Amhara Poultry Farm) and eco-packaging providers.
---
### **ROI Target: 20% Annually (6.72M ETB)**
The franchise is projected to generate **67.2 million ETB ($1.2M) in Year 1 revenue**, growing at 25% annually, driven by:
- **Strategic Pricing:** Meals priced 10–15% below global competitors (e.g., KFC’s 220 ETB combo vs. Boaz’s 199 ETB).
- **Volume Sales:** Family packs (699 ETB) and loyalty programs (5% cashback) to incentivize repeat purchases.
- **Scalability:** A franchise model designed for rapid replication, targeting **10+ locations in 3 Ethiopian cities by Year 2**.
---
### **Focus: Culturally Tailored Affordability**
- **Menu Localization:**
- Signature dishes like *berbere-spiced chicken*, *injera wraps*, and vegan *shiro stew* resonate with Ethiopian tastes.
- Sides such as spiced fries and lentil salads align with dietary preferences.
- **PPP-Aligned Pricing:**
- Combos priced at **150–250 ETB**, representing just **3–4% of the average urban monthly income (6,000–15,000 ETB)**.
- Coffee + snack bundles at **99 ETB** cater to students and professionals.
---
### **Key Metrics**
1. **Monthly Cash Flow: 560,000 ETB**
- Assumes **500+ daily customers per location** (avg. spend: 200 ETB).
- Supported by delivery partnerships (Deliver Addis, Beymart) contributing 30% of sales.
2. **Breakeven in 18 Months:**
- Achieved through lean operations:
- **Local sourcing** (80% ingredients from Ethiopian suppliers) reduces costs.
- **IoT kitchen systems** cut energy use by 15%.
- **Risk Buffers:** 30% of capital held in USD to hedge against ETB volatility (12% inflation in 2023).
---
### **Growth & Sustainability**
- **Phase 1 (Years 1–2):** Dominate Addis Ababa with 5 franchises, leveraging the city’s 5M+ urban population.
- **Phase 2 (Years 3–5):** Expand to Bahir Dar, Hawassa, and Dire Dawa, targeting Ethiopia’s tier-2 cities.
- **Eco-Friendly Practices:** Biodegradable packaging and partnerships with Green Ethiopia reduce environmental impact.
- **Community Impact:** 2% of profits fund school meal programs, building brand loyalty.
---
### **Why Invest?**
- **First-Mover Advantage:** Limited competition in Ethiopia’s QSR chicken segment.
- **PPP Resilience:** Pricing strategies insulated against currency fluctuations.
- **Scalable Model:** Franchise blueprint easily adaptable to East African markets.
---
**Prepared for Investor Review | Q4 2023**
1
Executive Summary
Boaz Trading PLC is launching a fast-food chicken franchise in Addis Ababa, Ethiopia, designed to capitalize on the country’s rapid urbanization, youthful population, and growing demand for affordable, convenient dining. With a total investment of 33.6 million ETB ($600,000 at 56 ETB/USD), this project targets Ethiopia’s urban middle class by offering culturally tailored meals at prices aligned with local purchasing power. The franchise combines global operational standards with hyperlocal flavors, positioning itself as a leader in Ethiopia’s burgeoning quick-service restaurant (QSR) sector.
---
### Investment Breakdown
The 33.6 million ETB investment is allocated across three core areas:
1. Franchise Setup (16.8M ETB):
- Kitchen equipment (imported energy-efficient fryers, grills).
- Location leases in high-traffic areas (e.g., Bole District, Megenagna).
- Initial inventory and staff training.
2. Marketing (8.4M ETB):
- Local digital campaigns (Telegram, Facebook).
- The “Golf Around the World” branding initiative to sponsor Ethiopian athletes, enhancing global visibility.
3. Operations (8.4M ETB):
- Mobile app development (1.2M ETB) for orders, loyalty programs, and payments.
- Partnerships with local suppliers (e.g., Amhara Poultry Farm) and eco-packaging providers.
---
### ROI Target: 20% Annually (6.72M ETB)
The franchise is projected to generate 67.2 million ETB ($1.2M) in Year 1 revenue, growing at 25% annually, driven by:
- Strategic Pricing: Meals priced 10–15% below global competitors (e.g., KFC’s 220 ETB combo vs. Boaz’s 199 ETB).
- Volume Sales: Family packs (699 ETB) and loyalty programs (5% cashback) to incentivize repeat purchases.
- Scalability: A franchise model designed for rapid replication, targeting 10+ locations in 3 Ethiopian cities by Year 2.
---
### Focus: Culturally Tailored Affordability
- Menu Localization:
- Signature dishes like *berbere-spiced chicken*, *injera wraps*, and vegan *shiro stew* resonate with Ethiopian tastes.
- Sides such as spiced fries and lentil salads align with dietary preferences.
- PPP-Aligned Pricing:
- Combos priced at 150–250 ETB, representing just 3–4% of the average urban monthly income (6,000–15,000 ETB).
- Coffee + snack bundles at 99 ETB cater to students and professionals.
---
### Key Metrics
1. Monthly Cash Flow: 560,000 ETB
- Assumes 500+ daily customers per location (avg. spend: 200 ETB).
- Supported by delivery partnerships (Deliver Addis, Beymart) contributing 30% of sales.
2. Breakeven in 18 Months:
- Achieved through lean operations:
- Local sourcing (80% ingredients from Ethiopian suppliers) reduces costs.
- IoT kitchen systems cut energy use by 15%.
- Risk Buffers: 30% of capital held in USD to hedge against ETB volatility (12% inflation in 2023).
---
### Growth & Sustainability
- Phase 1 (Years 1–2): Dominate Addis Ababa with 5 franchises, leveraging the city’s 5M+ urban population.
- Phase 2 (Years 3–5): Expand to Bahir Dar, Hawassa, and Dire Dawa, targeting Ethiopia’s tier-2 cities.
- Eco-Friendly Practices: Biodegradable packaging and partnerships with Green Ethiopia reduce environmental impact.
- Community Impact: 2% of profits fund school meal programs, building brand loyalty.
---
### Why Invest?
- First-Mover Advantage: Limited competition in Ethiopia’s QSR chicken segment.
- PPP Resilience: Pricing strategies insulated against currency fluctuations.
- Scalable Model: Franchise blueprint easily adaptable to East African markets.
---
Prepared for Investor Review | Q4 2023
3
Company Description
*(Expanded for Strategic Depth and Local Context)*
---
### Background & Core Expertise
Boaz Trading PLC, founded in 2010, is a diversified Ethiopian enterprise with a proven track record in agriculture, logistics, and cross-border trade. Leveraging its decade-long expertise in supply chain optimization and market penetration, the company is strategically diversifying into the food sector through a franchised chicken concept. This pivot capitalizes on Ethiopia’s urban transformation, where 25% of the population now resides in cities, and demand for convenient, affordable dining is surging.
---
### Strategic Diversification into Franchising
1. Why Franchising?
- Scalability: Franchising allows rapid expansion across Ethiopia’s high-growth urban centers (Addis Ababa, Dire Dawa, Hawassa) with minimal corporate overhead.
- Risk Mitigation: Shared investment with franchisees reduces financial exposure while incentivizing local ownership.
- Local Empowerment: Targets Ethiopian entrepreneurs seeking low-risk, high-reward opportunities (average franchise setup cost: 1.5M ETB per location).
2. Synergy with Existing Operations
- Supply Chain Leverage: Utilizes Boaz’s established network of warehouses, cold storage, and distribution hubs to ensure 80% of ingredients (chicken, spices, teff) are sourced domestically.
- Ethiopian Poultry Partnerships: Contracts with Amhara Poultry Farm and Oromia Agri-Processors guarantee fresh, halal-certified chicken at 15% below import prices.
---
### Local Sourcing Commitment
*“From Farm to Franchise”*
- Ingredients Breakdown:
| Item | Local Source | Cost Efficiency |
|-------------------|-----------------------------------|---------------------------|
| Chicken | Amhara Poultry Farm (Debre Berhan)| 20% cheaper than imports |
| Spices (Berbere) | Addis Mercato suppliers | Supports 50+ local farmers|
| Teff/Injera | Cooperative unions in Bahir Dar | Stabilizes rural income |
- Economic Impact:
- Directly supports 200+ Ethiopian farmers and processors.
- Reduces foreign currency expenditure by 40% compared to import-reliant competitors.
---
### Cultural Adaptation & Global Standards
1. Menu Philosophy:
- Glocalization: Merges global QSR efficiency with Ethiopian culinary traditions.
- *Example*: “Doro Burger” (spiced chicken patty in injera bun) and “Shiro Bites” (vegan chickpea snacks).
- Halal Compliance: Certifications from the Ethiopian Islamic Affairs Supreme Council to cater to 95% Muslim-majority regions.
2. Quality Assurance:
- Training: Partnerships with Ethiopian Technical and Vocational Training Institutes (TVETs) to standardize food safety (HACCP) and customer service.
- Tech Integration: IoT sensors in kitchens monitor oil freshness and cooking temperatures, reducing waste by 15%.
---
### Franchise Model Structure
| Component | Detail |
|----------------------|---------------------------------------------------------------------------|
| Franchise Fee | 1.5M ETB per location (includes equipment, branding, and staff training).|
| Royalty | 8% of monthly sales, reinvested into national marketing campaigns. |
| Support | Centralized supply chain, 24/7 IT helpline, and quarterly audits. |
| Expansion Target | 10 franchises in Addis Ababa by 2025; 30+ across Ethiopia by 2027. |
---
### Alignment with National Priorities
1. Job Creation:
- Each franchise generates 12–15 jobs (4,000–5,000 ETB/month salaries), directly addressing Ethiopia’s 19% urban unemployment rate.
