King Pie has revolutionised the pie industry with its avant-garde open plan concept. Now it aims, rather ambitiously, to conquer the world.
By Ian Armitage
It might sound like the stuff of dreams, or even a fairytale, but in just 15 years King Pie has conquered the South African pie industry, becoming, in the process, one of the country’s shining lights and most exciting prospects.
“King Pie opened its first franchise outlet in South Africa in December 1993 and within a year there were over 30 franchises,” explains Edmund Ritson, CEO of Khuseti, the company that today owns the King Pie brand. “By the end of 2007 there were almost 300 King Pie franchises around the country; so you see, it has been a very successful venture.”
King Pie South Africa is without a doubt the biggest and most successful pie franchise in the world and is now, rather importantly, a member of the listed Mvelaphanda Group. This has afforded King Pie the necessary means to become an even bigger force within the South African and worldwide fast food market.
“King Pie is a well known South African brand,” says Ritson. “We have truly revolutionised the pie industry with our open plan pie making concept. We’ve redefined what it means to eat a pie and the pie has enjoyed increased popularity.”
King Pie has blossomed – to put it lightly - and now has more than 300 outlets, as well as a growing international footprint in countries like Malaysia and Canada.
“We’ve found that our concept works and are reaping the rewards,” continues Ritson.
REAL OPPORTUNITIES
Fast food was once, and to some extent still remains, what King Pie calls “prohibitively expensive”. This has presented the ambitious firm a real opportunity to cater for the lower end of the market “A pie is a pie, if you’ll excuse my simplicity,” says Ritson. “And what I mean by that is that a pie, and our research supports this, appeals to all and is the most affordable of all take-out food items.”
By franchising this novel idea, creating the right concept and pioneering the fast food retailing and baking, King Pies has helped pies become an acceptable and appealing food item.
But it is not content; King Pie has already evolved several times, changing from “a pie maker” into a quick service food outlet, and it now plans to take on the establishment – McDonald’s, KFC and Burger King.
“We are now retailing combo meals consisting of freshly baked pies and chips, each portion separate fried, and this has the potential to challenge the likes of McDonald’s,” says Ritson. “We have a range of complementary products such as doughnuts, scones, and muffins, so our offering is really appealing and as a result, leads the pie industry.
“When we moved into the quick service industry with plans to take on the establishment, people laughed. They said to us ‘What? You want to do what? You’re a little pie shop, you’re crazy’. But we had a vision and we had a passion for that vision and have changed the whole concept – something like 33 elements – becoming a real alternative.”
And the awards are flowing too: it has won several FASA Awards for Excellence in Franchising, including the much coveted ‘Best Franchise’ Award two years running and Brand builder of the year
“We are now sitting down and planning what to do for 2010 , 2015 and 2020,” adds Ritson. “We are successful yes, but one of the reasons for that is that we truly believe in having a well thought through strategic plan. It gives us focus and we obtain much out of it, thanks to the objectives we set ourselves.
“We reached most, if not all, our previous targets and passed the first phase of our remodel. We now are looking on what’s next for us as a group and we have decided that, given where we are in the industry, two things make you successful in the long term – one is a quality product, and the other is to be able to offer the customer value for money.
“So that is our challenge. At the moment we are sitting on 330 outlets in South Africa and we have also opened outlets in Malaysia and Canada and we are busy with about 16 other countries, so we aren’t doing badly.”
WATCH OUT WORLD!
Ritson’s goal, it seems, is to take the highly successful concept developed in South Africa out into the international market. “We’re already doing it,” he says. “Isn’t it amazing that we can take a concept developed here in South Africa to international markets?
“Our extended vision is to become a major player in the long term. We know it will take time to get there, but the vision is to compete with KFC and Burger King on an international basis. That is our big dream; our vision for 2020.”
In what is a truly remarkable story, the pie shop that Kobus Niewoudt and Hennie Andrews started 15 years ago has, it appears, become the world’s biggest pie franchise. And while the pie may not have been invented in South Africa, it seems to have been franchised there first. Indeed, pies are popular everywhere but there are very few pie franchises in the world.
The company, though, is now much closer to international expansion, and has also managed to increase franchisees’ turnover and gross profit.
“As the popularity of pies rocketed in South Africa, we faced increased competition,” says Ritson. “This is why we decided to overhaul the business model. We changed from fresh pies made in 52 factories throughout South Africa, to a single factory in Midrand delivering frozen pies to all King Pie outlets. This has been another key factor in our growth – that’s in addition to adding whole meals to the range, as I said before.”
As part of the massive overhaul, King Pie is in the process of launching two new concepts: King Pie Express and a new sit-down store, the King Pie Café. “We dream that one day we’ll be known as being in the same league as the big boys,” says Ritson. “We have learnt some dear lessons in South Africa and are learning them in Malaysia, Canada and also in other international markets; but there is no reason why our franchises can’t be as successful globally as they are here.
“Indeed, the product and the concept are very suitable to other markets, particularly African markets and we’re already moving into Zambia, which will open in October.”
So, wonders Exec, why is it so successful? “You have to have a strategy and the people with the passion and vision to see it through,” answers Ritson. “You must also know your market, know your business and know your competitors.
“You must also be able to take risks; there is always a risk if you really want to go for the high stars, and you must be able to take that calculated risk in business. We are innovative and creative, and have taken a little product like pies, which was highly undesirable, changed the concept and are now competing at an unheard of level.
“We have been around 15 years this year and are already competing with KFC, McDonalds and Burger King. We have the belief and the daring.”