BACKGROUND OF MOCHACHOS

For over 21 years, Mochachos has enjoyed the patronage of South Africans nationally by all demographic and socioeconomic sectors.

Mochachos supports a TWENTY ONE year old optimally evolved menu with a core delight in Mexican Flavoured Flame Grilled Chicken prepared with a special blend of dry herbs and spices, as well as a variety of traditional Mexican dishes such as Fajitas, Burritos, Enchiladas, Chimichangas and Quesadillas. We must not overlook to mention, the Mochachos chicken burgers which, for no less than twenty years, are renowned for their oversized serving and piquant savour.

Mochachos is avidly supported by the growing Muslim population in South Africa which enjoys the flavoursome, lemon & herb as well as the hot, spicy and zesty meals. Mochachos prides itself in its affiliation to SANHA (South African Halaal Association) since 2004. SANHA holds a highly respected reputation amongst the Muslim community in South Africa due to its stringent HALAAL compliance regulations which are rigidly enforced on all its members.

Mochachos is affiliated to FASA (Franchise Association of South Africa) since 1995.

Mochachos is affiliated to the South African Heart foundation, since 2006, endorsing sections of the menu for the Health conscious consumer.

Mochachos is fast becoming a household brand synonymous with Mexican style chicken, chicken burgers and Mexican meals.

THE TASTE•

Mochachos Chicken Fiesta evolved out of a need in the market for Healthy and Exotic foods. The phenomenal growth of Mochachos Chicken Fiesta stores locally and internationally has highlighted the immense popularity of Mexican foods. Mochachos supports an optimally evolved menu with a core delight in Mexican Flavoured Flame Grilled Chicken combined with a special blend of dry herbs and spices, as well as a variety of traditional Mexican dishes such as Fajitas, Burritos, Quesadillas, Enchiladas and Chimichangas. We must not overlook the Mochachos burgers, for which we are famous. Our burgers are renowned for their oversized serving and piquant flavour.

• The wide variety of meals offered may all be ordered with the customer’s choice of the following spices: Lemon and Herb, Mild, Hot, Extra Hot and Dynamite. Mochachos caters for discerning diners who enjoy good food and a healthy lifestyle.

• At Mochachos, nothing is so hot that you will need a siesta to recover. That is especially true of the food that can be described as flavoured with a delicate blend of herbs and spices to give it a new flavour – never burning – unless you can handle the heat.

• Mochachos has their customers’ health at heart. That is why no oil-based marinades are used for seasoning. The chickens are seasoned with a mixture of dry herbs and spices. Customers are also drawing comparisons with other food outlets, which only introduce the chicken to the flame in the final stages of preparation

• . The process that Mochachos employs takes the label “flame-grilled” very seriously, and cooks the chicken gently yet thoroughly throughout, drawing the spices deep within the flesh. There is also the additional benefit that fats fall away from the chicken throughout this process – a bonus that conscientious diners appreciate.

• A sustained focus on our market and menu offering has led to various innovations including the addition of beef and vegetarian meal offerings over the years.

• Healthy Heart menu items are also available on our variety packed menu, which features not only Chicken or Beef but a range of Salads and Vegetarian options, making Mochachos an ideal stop for families and large groups as you will definitely find something on our diverse menu that will tickle even the most fickle taste buds.

• Our unique meals are prepared on order ensuring that our patrons experience only the finest in quality, coupled with our generous portions, extensive menu offering and the finest freshest ingredients. Mochachos caters for customers who fall in the middle to upper income brackets and has something delectable for even the most discerning of patrons.

• Mochachos is also very popular with the bambinos, who enjoy their tasty kiddies beef, chicken burger or chicken strips & chips accompanied by a fruit juice and free toy.

• You can enjoy your meal in the beautifully designed and decorated restaurant or take away to enjoy in the comfort of your home.

BRAND POSITIONING• Mochachos is a household brand and dominant player

in the franchise arena in Southern Africa and more recently internationally. Mochachos is the second largest flame grilled chicken franchise in South Africa and the largest Mexican franchise in Sub-Saharan Africa. From across the seas, international food brand Mochachos has set their sights firmly on Australia.

• The success that we have enjoyed for the past twenty years is testament to the quality of people we employ, the franchisees which we appoint and our intrinsic passion for the hospitality and service industry. We believe in the power of the team and thrive on the insights, skills and experiences that we draw upon from our diverse range of franchisees, employees, supply partners and customers.

• The opportunities for motivated, hardworking individuals to thrive within our franchise system are endless. Mochachos takes franchisee recruitment very seriously and we actively seek individuals who have:

• A belief in the brand

• A desire to be owner operators

• Entrepreneurial spirit

• A sound understanding of business principles

• Excellent communication skills.

• A Vision and enthusiasm for the long term growth of their business

• A positive attitude and good people skills

• An extreme commitment to customer service

WHY MOCHACHOS?

• Mochachos has been driven towards continuous improvement to ensure the sustainability and growth of the brand with a view to continually increase market share and continually increase brand awareness. We are steadfast in maintaining our company's competitive edge by incessantly adopting evolved strategies and practices that will continue to serve national and international changing consumer preferences and expectations.

• With progress and growth comes re-engineering and our Mochachos brand is no exception. Mochachos as dynamic brand, and in line with our ongoing strategy of uplifting and enriching the brand and public familiarity in the food industry both locally and internationally, we continuously engage in the challenge of keeping the brand and offering current and fresh, thus ensuring that we continuously exceed the expectation of our patrons and resulting in food outlets that stand way above our competitors.

• When you join Mochachos as a franchisee, you are joining an established and major player in the quick service restaurant industry. With decades of experience at your disposal, combined with our proven business model and operating systems you have a recipe for success.

• If the concept we offer tickles your taste buds, and peaks your entrepreneurial interest, then Mochachos is the brand for you.

TA R G E T C O N S U M E R M A R K E T

• Mochachos caters across the board of South Africa's diverse cultures, languages and religions. Noteworthy to mention that Mochachos enjoys huge patronage from the vast Muslim community.

• Gender: male and female

• Age: 7 to 70

• Income Groups: emerging middle class income group, middle class income group, upper class income group.

• LSM: 5-10

• Occupation: all sectors - semi skilled, skilled and professionals.

• Education: all levels of education

MOCHACHOS National and Regional Footprint

Our Mochachos brand finds its footprint throughout all the provinces in South Africa and internationally in Zambia, Botswana, Malawi, Australia and soon in Namibia and Zimbabwe.

It is noteworthy to mention that Mochachos potential to add value is acknowledged by landlords in the following regional malls:

• East Rand Galleria – Boksburg Carousel Westfield – Australia

• Greenstone Mall – Greenstone Morley Westfield – Australia

• East Rand Mall - Boksburg Warwick Centro - Australia

• Centurion Mall – Centurion Mirrabooka Mall - Australia

• Mimosa Mall - Bloemfontein

• Waterfront mall - Bloemfontein

• North Cape Mall -Kimberley

• Southgate Mall - Southgate

• Galleria Mall - Amanzimtoti

• Parow Mall - Cape Town

• Kenilworth Mall - Kenilworth

• Goldfields Mall - Welkom

• Mall @ Redds - Centurion

A D V E R T I S I N G S T R E N G T H

• 2015 – Featuring on TV, billboards on National highways, Radio and Movie – “Truergrond”

• 2014 – Featuring on Morning Live with car competition with selfies on our social media

• 2013 -embarked on a large national TV advertising campaign. Our Television adverts predominantly featured on Prime TV programs such as: Carte Blanche, Comedy Shorts and Prime Movies.

• 2012 - DSTV, M- net, national newspapers

• 2011 - Billboards on national highways, national newspapers

M O C H A C H O S M A R K E T I N G S T R AT E G Y

Mochachos continues to gear its long term marketing support by the identification of expected customer demand in terms of:

• Characteristics that differentiate our brand and enhance customer appeal

• Target consumer Profile

• Consumer Preferences

• Consumer Expectations

• Value product offering

CHARACTERISTICS THAT DIFFERENTIATE OUR BRAND AND ENHANCE CUSTOMER APPEAL

• We are not only famous for our open flamed spicy and fiery grilled butterfly chicken; but

• We are renowned for our BIGGER PORTIONS and our product offering that is SPICY BUT NOT HOT

• The heat gauge ranges from mild, to medium , to hot, to extra hot, to dynamite -a taste for all

• Healthy unprocessed flavourful, piquant, tasty, sharp palate gratification meals.

• An overall experience and not just a meal - colourful, warm ambience

• Quick food; but not fast food - focus on freshness and wholesome quality

• Thrilling Mexican meals in tune with the international buzz for zesty, fiery and a chilli experience.

• Unique lip smacking spices perfected over the years together with our large sesame buns and inimitable chicken in pita

• Our Halaal offering primes Mochachos for the vast and growing Halaal market

• Mochachos adds value in terms of pleasurable taste and value for money.

• Our "fit out" offers a colourful, fresh, trendy, relaxing, "want to come again" atmosphere.

• Menu includes items with a low GI (Glycemic Index).

• Mochachos is well posed in terms of price to value offering in its competitor arena.

C O N S U M E R P R E F E R E N C E S

• Mochachos, with its well positioned, product offering, is geared and ready to benefit from the fact that South Africa is undergoing major changes in the fast food industry attributable to the forces of urbanization and the growing segment of the middle class patrons and the growing Muslim Community.

C O N S U M E R E X P E C TAT I O N S

• Mochachos offers an experience and not just another take out. Its colourful and trendy, internationally up to date "shop fit" combined with its piquant savour allows its patrons to enjoy a "feel good" occurrence.

• The design and décor of our outlets mirror the rich colours of Mexico. Momentous research, planning, analysis and development have culminated in the state- of- the- art fast food layout and ambience focused design that we enjoy today.

• Our stores can be set up in various configurations and therefore a variety of different site types are suitable for our operational requirements i.e. Food Courts, Independent Retail Space as well as Standalone Drive Thru structures. The required size of premises varies from as small as 60m2 to over 300m2.

• Mochachos is one of very few brands that is able to boast successful integration into all levels of the QSR market including Food Courts, Full Service Restaurants/cantinas and Drive through markets functioning as part of a shopping node or independently.

STORE LOCATIONS

Mochachos boasts its well positioning nationally encompassing Regional Malls,

Commercial Business Districts and urban areas . International stores are placed

in Zambia, Botswana, Malawi and Australia. Upcoming international stores in

Zimbabwe and Namibia

M O C H A C H O S S TA N D A R D S & P R O C E D U R E S

• Our group structure is set logistically to ensure Brand loyalty and motivate improved performance in all Franchisee duties and obligations. The focus is on the sustainability and growth of the Mochachos Brand

• Excellence Programme• Our excellence performance programme ensures overall peak performance by all

our franchisees in terms of:

• maximising consistency in product and service offering

• weighted measurements monitor franchisee performance

• focus on sales growth

• maximising sustainability and growth in profit margins

• maximising brand image and brand awareness

• maximising conformity and consistency to brand policies and procedures

OPERATIONS AND FIELD SUPPORT

SUPPORT• Our assistance and support does not end

with the opening of your store, in fact it is only the beginning of our journey together. For the opening of your store and for a period of at least three weeks thereafter, members of our highly skilled training team will assist you with settling into your new business as well as provide support and continue the on job training of your staff. You will continue to receive ongoing support and access to our training programmes and abundant wealth of knowledge and resources associated with an established franchise group for the duration of your franchise agreement.

• Every store is assigned a dedicated operations manager who is there to assist you in understanding all facets of your business as well as ensuring that the Mochachos standards are maintained at all times, as it is through this stringent support and standards implementation that Mochachos ensures that our commitment to excellence in customer service, food quality, store cleanliness and presentation is maintained. Some of the tools we employ to maintain those standards include regular business reviews and mystery shopper reports.

• As a member of our franchise group, you are never alone. We benefit directly from your success; therefore, we have all the motivation in the world to assist you.

SUPPLY CHAIN

• The Franchisor develops clear procedures ensuring that the Franchisees receive optimum service delivery from its various appointed and approved national suppliers

• Optimum service delivery in terms of quality, standardisation, price and lead time is a prerequisite for any appointed national supplier.

• Clear communication channels are processed to ensure seamless service delivery to its Franchisees

• Ongoing sourcing of suppliers to ensure that stringent specifications and standards are maintained.

A F F I L I AT I O N S

• Noteworthy Affiliations

• The South African Franchise Association (FASA)

• The South African National Halaal Association (SANHA)

• The South African Heart Foundation

• CONTACT DETAILS:

• Mochachos Franchise Management (Pty) Ltd

• Telephone: + 27 11 450 2145

• Facsimile: + 27 86 510 2154

• E mail: fiesta@mochachos.com

• www.mochachos.com