Durban - Scooters, the specialist pizza chain launched this month in KwaZuluNatal, aimed to capture 24 percent of the R1 billion local market within four years, Carlo Gonzaga, the managing director, said yesterday.
Challenging its major rivals, the company planned to roll out seven stores in KwaZuluNatal by December and 38 nationally by the end of next year, with a total of 70 outlets by the end of 2002.
The venture would be financed by private shareholders as well as Nando's Group Holdings, the fast food chain which had acquired a minority stake of about 27 percent, Gonzaga said.
Brian Sacks, Nando's managing director, said Scooters would complement a brand of which Nando's was already proud.
"It was an opportunity for Nando's to enter one of the fastest growing food sectors without shouldering too much of the risk," Gonzaga said.
"Nando's will also be able to enter the pizza market while remaining focused on its own successful brand."
He said Scooters would have managerial autonomy while benefiting from Nando's extensive resources and experience in the fast food market.
While certain fast food chains were reaching saturation point in terms of store numbers, Gonzaga believed that, from a rand-value perspective, there was room for another strong contender in the market, which was continuing to grow at a rate of about 30 percent a year.
Sacks agreed, saying there was "certainly room for everybody" and that good products would survive.
Claus Kuhl, the managing director of Debonairs, said any competition would affect existing Debonairs stores but he did not see the new chain as a major threat.
Gonzaga said the company would offer a superior quality, value-added product, with free delivery and prices pitched between 8 and 14 percent lower than its main competitors.
As an added bonus, Scooters promised delivery within 39 minutes or the customer would not have to pay for the order.
Delivery would account for about 70 percent of turnover, Gonzaga said.
Consumer reaction had been excellent, enabling the company to exceed its budget by 30 percent in the three weeks its Westville store had been open.
"Our vision is to become the preferred pizza provider in Africa by 2004 and to expand internationally to ensure sustainability," Gonzaga said.
"However, at this stage we have no plans to list, as companies in the food sector have not done particularly well and remaining non-listed will allow us more flexibility."