MAHLAKISE CAFE

  • Background
  • Challenges
  • Solution
  • Results

Mahlakise Café Cc is a 100% black owned company based in Alexander, North of Johannesburg. The entity is owned and managed by Mbopha Mashigo. Mr. Mashigo is a member of the Alexander Greater Chamber of Commerce. The entity is a mini retail store that sells fast foods, groceries and beverages to the local community and the surrounding areas. It started selling fish and chips but has since grown into a mini retail store and restaurant. This business operated from the family-owned property and does not pay rent but pays water and lights to the municipality. The business is located at a busy intersection close to schools and churches. This factor gives it an edge over its competitors. Future plans for the business include opening another retail store which will include a butchery. Mahlakise Café employs six staff members and has its own transport for sourcing stock and delivery. Mr Mashigo has invested R20 000 in the business that was used to purchase two register machines, catering equipment and upgrades to the shop. The business has no marketing material except signage sponsored by Coca Cola. The other advantage to this retail store is the FNB ATM found inside the store.

This company was operating without a business plan. They had a desire to grow the business but lack of funding was a challenge. Similar to other small business businesses, they were using a manual system to keep their records. The area they were operating from was not re-zoned for that type of business.

GEP assisted by developing a business plan which resulted in sourcing funding. As a result, more outlets have since been opened around Alexander. GEP intervened by provid- ing Township Business Revitalisation programme at the costs of R40 000, 00. The money was used to purchase tables, chairs, a fryer and ice-cream machine on behalf of the business. Tools for marketing such as signage were provided the restaurant was be able to increase its market share. Through GEP’s advice, the business now has a financial management service system installed.

  • The business plan was submitted to GEP for funding to open more outlets in the area.
  • The funding was approved which enabled the client to open two more branches.
  • The company also benefited through our TBR programme for purchasing of equipment.
  • The business has now employed 12 permanent employees.
  • Annual turnover has surged from R200 000 in 2010-2011 to R280 000 in 2014-2015