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