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Johannesburg - Integrated food and beverage group Famous Brands (FBR) on Thursday reported a 21% increase in system wide retail sales - including new restaurants - for the three months ended September compared with the same period last year.
Famous Brands, which owns restaurant chains Wimpy and Steers, reported 13% increases in like-on-like sales and a further 20% increase in food services division.
The group said its franchise network expanded by 32 stores nationwide over the same period. The total network now comprises 1 237 restaurants, with approximately 30 further restaurants to be added by the end of the current financial year.
"There is no shortage of interest in the group. We receive up to 1 000 enquiries monthly from potential franchisees," CEO Kevin Hedderwick said.
He added that in line with the broader retail environment, there appeared to be a slight cooling in consumer spend, experienced particularly in the group's restaurants located in the major shopping malls.
"However we continue to benefit from the trends which contextualise our business - the demand for convenience, manifested by the shift to out of home consumption and the establishment of quick service restaurants and casual dining as a way of life," he said.
The successful conversion of Bimbos stores to Steers restaurants continued, with 16 of a potential 26 restaurants having undergone conversion.
The conversion of Whistle Stop outlets to Steers Diners restaurants also progressed well and will number nine by December, the company noted.
Revenue for Trufruit and Baltimore, the group's fruit juice and ice cream businesses, was ahead of the previous quarter and the prior comparative period.
Hedderwick said that management has high expectations of a strong performance from both these operations in the peak-trading season.
Looking ahead, Hedderwick said protein price increases; the current shortage of hake and further interest rate increases would pose challenges in the forthcoming period.
"Despite that, we are confident that holiday season trading will be favourable for the group."