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Johannesburg - Famous Brands [JSE:FBR] on Wednesday
announced that it has made its first foray into the mass-based entry-level
market with pilot restaurant Blacksteer Home of Shisanyama.
The restaurant, which targets LSM 3 to 6 consumers, opened
last week and is situated in Jules Street in Malvern.
Menu items include pap and vleis, boerewors, Russian
sausages, stews, flame grilled and fried chicken, burgers, mash, chips, soft
serve ice-cream and a range of carbonated soft drinks - with price points under
R20.
"The group has never directly participated in the LSM 3
to 6 market segment in a meaningful and focused manner, but in line with our
ambition to constantly innovate and broaden our portfolio offering we have
identified this sector as one with vast potential," said CEO Kevin
Hedderwick.
Famous Brands acquired the trademarks and franchise
agreements of Blacksteer in 2010.
"The imagery of the black steer is extremely powerful
and its association with flamed grilled red meat is obvious.
"We have adopted the best elements of the original
branding and revitalised them for this purpose," said Hedderwick.
"Shisa nyama" is a Zulu phrase meaning to 'burn
the meat', and in many South African townships the term is used to describe an
informal braai where friends come together near a butchery, to grill meat on an
open fire.
According to Hedderwick, the key elements of Blacksteer's
business model are compelling, and include low set-up costs, low rentals and
limited staffing.
"The trading format is primarily quick service
take-away with limited seating, catering for customers seeking a convenient,
substantial meal," he said, adding that the new venture has an important
empowerment component.
"Blacksteer's offering, market niche and low start-up
costs, in the order of R500 000, position the business favourably for
investment by black entrepreneurs with finite capital but a keen insight into
the LSM 3 to 6 market," he said.
The franchisee of the first Blacksteer Home of Shisanyama is
Peaceful Ngcube, a former long-standing employee of Famous Brands.
Famous Brands' portfolio includes Steers, Wimpy, Debonairs
Pizza, FishAways, Mugg & Bean and Brazilian Cafe, among others.
