Johannesburg – Having covered a lot of ground in the quick-service market, Famous Brands is venturing into the leisure and casual dining segment.
While the conservative Spur Corporation [JSE:SUR] is a big player in the segment, the market remains largely fragmented, offering potential growth potential for the acquisitive Famous Brands [JSE:FBR], whose expertise lie in brand building.
The group announced on Tuesday that it has acquired a 51% stake in upmarket artisan bakery and café chain Vovo Telo.
Founded in 2006, Vovo Telo has three outlets – two in Port Elizabeth and another in Johannesburg.
Vovo Telo joins Famous Brands’ growing portfolio of casual dining and leisure chains including tashas and Mugg & Bean.
Kevin Hedderwick, CEO of Famous Brands said Vovo Telo operates “in an emerging category that nobody is (focusing on) in an organised manner”, which together with the low cost of entry and unique offering, represents significant upside potential for franchising.
Said Hedderwick: “Vovo Telo is a perfect fit for the group’s expanded strategic intent to grow our best in class franchised leisure brands. In our view, Vovo Telo is a best kept secret, which we are delighted to have discovered and look forward to sharing.”
The owner of franchised eateries including Steers, FishAways, and House of Coffees, Famous Brands also supplies its franchisees and the retail trade with a wide range of meat, sauce, bakery, ice cream, fruit juice and mineral water products.
The Vovo Telo acquisition follows shortly after the group acquired pub and restaurant chains Keg and McGinty’s as well as the flavoured chicken grill group Giramundo.
Hedderwick said Famous Brands wouldn’t “sit on the money” when “best-in-class opportunities” present themselves.
Effective on October 1 2010, the Vovo Telo transaction will not be material to Famous Brands’ earnings. The group plans to grow the chain to 50 outlets in the next five years.
- Fin24.com
While the conservative Spur Corporation [JSE:SUR] is a big player in the segment, the market remains largely fragmented, offering potential growth potential for the acquisitive Famous Brands [JSE:FBR], whose expertise lie in brand building.
The group announced on Tuesday that it has acquired a 51% stake in upmarket artisan bakery and café chain Vovo Telo.
Founded in 2006, Vovo Telo has three outlets – two in Port Elizabeth and another in Johannesburg.
Vovo Telo joins Famous Brands’ growing portfolio of casual dining and leisure chains including tashas and Mugg & Bean.
Kevin Hedderwick, CEO of Famous Brands said Vovo Telo operates “in an emerging category that nobody is (focusing on) in an organised manner”, which together with the low cost of entry and unique offering, represents significant upside potential for franchising.
Said Hedderwick: “Vovo Telo is a perfect fit for the group’s expanded strategic intent to grow our best in class franchised leisure brands. In our view, Vovo Telo is a best kept secret, which we are delighted to have discovered and look forward to sharing.”
The owner of franchised eateries including Steers, FishAways, and House of Coffees, Famous Brands also supplies its franchisees and the retail trade with a wide range of meat, sauce, bakery, ice cream, fruit juice and mineral water products.
The Vovo Telo acquisition follows shortly after the group acquired pub and restaurant chains Keg and McGinty’s as well as the flavoured chicken grill group Giramundo.
Hedderwick said Famous Brands wouldn’t “sit on the money” when “best-in-class opportunities” present themselves.
Effective on October 1 2010, the Vovo Telo transaction will not be material to Famous Brands’ earnings. The group plans to grow the chain to 50 outlets in the next five years.
- Fin24.com