FAMOUS BRANDS LIMITED – SOUTH AFRICAN GIANT?
A. INTRODUCTION
So, you’re in the market for a burger and chips. Where do you go? Well, it all depends on exactly what you want – beef, fish or chicken burger? And of course what you’re willing to pay – R10,00, R20,00, R35,00? Add to that where and how you want to eat your burger. You can pick up a soya patty burger at a Wimpy for R25,00, a 100% beef burger at the privately owned take-away outlet down the street for R15,00 or you can take the family to a Spur and pay anything between R35,00 and R50,00 per head for a variety of burgers with chips. In South Africa you certainly have a wide choice.
Fast food in South Africa, according to Statistics South Africa (www.statssa.gov.za) a R7,5 billion rand industry and is roughly divided into restaurants and coffee shops, take-away outlets, caterers and other catering services. The industry has continued to show a total income increase between 2006 and 2008. However, the 11.9% growth in 2008 has been partly attributed to the “rising prices with food inflation having risen strongly” in the 2008 reporting period.
The focus of this study will be on quick service restaurants with specific reference to Famous Brands Limited (Fambrands). Fambrands is a South African company with representation in the United Kingdom and a number of African countries (www.famousbrands.co.za). The group’s main activity is operating as an integrated business for franchising of trademarks (www.wrightreports.ecnext.com). Fambrands had more than 1500 franchised restaurants as part of its brand portfolio, including brands such as Steers, Wimpy, Debonairs Pizza, FishAways, House of Coffees, Bimbo’s and Brazilian Café. Apart from these franchises, “the group also manufacture ...