Spur acquires DoRego's
Johannesburg - Spur Corporation [JSE:SUR] has bought fast
food restaurant chain DoRego's for R30m in cash, it said on Monday.
"We plan to expand the business into a national chain
by capitalising on the current brand awareness and extending the footprint into
areas such as the Western Cape, KwaZulu-Natal and Mpumalanga," Spur
Corporation managing director Pierre van Tonder said in a statement.
DoRego's is a lower to middle market take-away chain
offering chicken, seafood and burgers.
It has 75 outlets, mainly in the Free State, Gauteng and
Spur Corporation will acquire the DoRego's franchise company
and its distribution centre in Bloemfontein. The transaction will probably be
effective from March 1 2012.
"We are planning a phased transition with the current
owners to ensure we benefit from their expertise in operating quick service
outlets and their knowledge of the brand and target market," Van Tonder
The first DoRego's store was opened in the 1970s and the
present owners, Gerald and Cedric Brown, bought the franchise company in 2005.
In six years the business has grown from 29 to 75 outlets,
serving over 5.2 million customers annually, Spur said.