South African beauty brand Sorbet plans to open 400-500 stores in next five years

South African beauty salon and spa chain Sorbet is planning to construct a further 400-500 outlets in the next five years, according to a statement released last week by founder and chief executive officer (CEO) Ian Fuhr.

Rising costs are causing cautious consumers to increasingly seek affordable luxuries, spurring the growth of South Africa's beauty and food industries.

Having launched Sorbet in 2005, Fuhr has opened 6 stores, which together with 110 franchise stores achieved sales of around R365m in Feb, 2015. That same year, the opening of Britain's first Sorbet outlet was mentioned. Fuhr commented: "There could be an initial public offering (IPO). 

"Right now we don't have any specific plan. I suspect a deal will come together."

A royalty fee of 6% net turnover is paid by Sorbet franchisees to the group. Preferential rates are then negotiated with suppliers. Sorbet receives around 30 applications for franchises every week.

He said: "At the moment we're very concentrated in Johannesburg, Pretoria, Cape Town, and Durban. We have started in other areas such as Nelspruit, Polokwane, Heidelberg, and Witbank.

"We will have to modify our model slightly for the more rural areas, because Dermalogica (a US skincare brand) might be a bit expensive, so we'll just have our own brand and then Environ".

Partnering with Clicks Group, Sorbet launched a skincare line in conjunction with brands such as Dermalogica and Environ. This meant Clicks ClubCard holders could earn points at each purchase of Sorbet's treatments, products, and gift cards. There are over 160,000 members in Sorbet's own loyalty programme.

Sorbet has also launched an express hair salon offering nail treatments and blow-dries. The company is planning to add more such concepts to its banner.

Speaking of the characteristics that an entrepreneur must have, Fuhr asserts: "You have a little bit of intuition, a pioneering spirit, so you have to be bold because you have to go out there into uncharted territories. There are no maps for entrepreneurs."