Çiğköftem, which started its business in 1993 by kneading and selling raw meatballs in front of consumers in hypermarkets, has today become a chain operating with 368 franchise branches. The company aims to open 65 new franchise branches by the end of 2020. There is no entrance fee in the Çiğköftem franchise model. At the same time, no royalty fee is requested from the branches based on monthly turnover. Although it varies depending on the product group, the profit margin of the dealers is between 130 percent and 150 percent. The monthly turnover target for branches varies between 50 thousand and 70 thousand TL in Turkey and between 60 thousand and 90 thousand Euros abroad. The first five cities targeted for franchising are Ankara, Izmir, Bursa, Adana and Antalya.
Stating that they have more than 100 branches in Germany, Belgium, France, Netherlands, England, Austria and Azerbaijan, EM Group Gıda Chairman of the Board Erdoğan Güner said, “We are planning to open 15-20 new branches abroad. The potential markets we target are Hungary, Poland, “Switzerland, Denmark, Czech Republic, Finland and Sweden,” he says. Stating that they closed 2019 with a growth of 38 percent, Güner states that they aim to grow over 50 percent in 2020. Güner says, “In 2020, we plan to increase the capacity of our raw meatballs production line by 30 percent and our stuffed meatballs production line by up to 170 percent and invest in marketing activities for the innovations we target in store configuration.”
ERDOĞAN GÜNER EM GROUP FOOD CHAIRMAN OF THE BOARD
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