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| Last traded |
R53.01 |
| Change |
R0.00 |
| % Change |
0.00% |
| Cumulative volume |
16,523 |
| Market cap |
R5.10bn |
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Cape Town - Fast food conglomerate Famous Brands [JSE:FBR] has taken another small bite of the casual dining market with Monday's announcement that it had acquired the Black Steer Restaurant and Bulldogs Pubs brands.
The brands, which were bought out of liquidation, initially formed part of the LeisureNet empire in the late 1990s.
LeisureNet, a health club operator which collapsed under a heap of contingent liabilities about 10 years ago, tried to build up a specialist food business (which also included the SA version of Planet Hollywood) with the aim of listing the company separately.
Famous Brands did not reveal the cost of the Black Steer and Bulldogs acquisitions, but the transaction was not material enough to warrant a Stock Exchange News Service (Sens) announcement.
Fin24.com understands Famous Brands looked at the Black Steer brand some years ago, but balked at the price tag.
Chief operating officer Kevin Hedderwick said the acquisitions were aligned to a strategic ambition to cautiously enter casual dining markets where the company had no representation.
The group's main brands include Steers, Wimpy, Debonairs Pizza, FishAways, House of Coffees, Brazilian Café, and Mugg & Bean.
Effectively the Black Steer acquisition would see Famous Brands entering the steakhouse territory dominated by Spur Corporation. The pub business in SA is fragmented but Kingco-owned McGinty's, the Keg as well as Basil O'Hagan's The Brazen Head would be the main "corporate" players.
Bullish about Black Steer
Hedderwick added that the deal also helped remove the confusion that could arise between the Steers and Black Steer brands.
He stressed Famous Brands was not taking over any of Black Steer's liabilities.
It seems Famous Brands is looking for the most mileage from Black Steer, which was founded in the early 1960s.
Black Steer holds 15 franchise agreements in Gauteng, North West Province, Limpopo, Eastern Cape and KwaZulu-Natal as well as Mauritius.
But there is only one Bulldogs Pub franchise left - an outlet that trades out of Rosebank, Johannesburg.
Hedderwick was bullish around Black Steer's potential. "We've made contact with franchise holders and they seem delighted that we are now involved."
Famous Brands' initial involvement in casual dining came via a recent acquisition of Mediterranean-styled eatery tasha's. Hedderwick is looking at opening another handful of tasha's this year, bring the total outlets to 10. However, he conceded the pub business would be a far tougher proposition.
- Fin24.com