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KP snacks on line
Page 15
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IN Snacks manufacturer KP Foods is preparing to launch its own 'Snack Line' franchise operation following a successful 15-month pilot run.
Each franchise will cost E5,000: for that the operator will get the territorial rights, a training programme, launch package, back-up administration and a liveried Luton boxbodied Mercedes 308D van.
"We have identified a huge gap in the market which we have not yet penetrated," says Parker. "There are over 300,000 independent outlets such as tenant pubs, hotels, school tuck shops, working mens' clubs, cafes and cornershops which we cannot get to because our vehicles are loaded with contract business.
"The best way to penetrate this market," he adds, "is to deliver door-to-door but to do that ourselves would need an investment of R4-5 million. As the average case drop would be much lower than we normally do there would be no substantial profit margin to recoup this investment."
The pilot franchise operation, in North Lancashire and South Cumbria, "has proved successful in a very competitive and rural area," says Parker. Now KP Foods plans to launch a further eight franchises by the end of the year, with another 20 to follow in 1990.