Famous Brands Dips Into Some Mexican Salsa
Fast Food service franchisor Famous Brands has acquired a 51% stake in Mexican-concept restaurant “Salsa Mexican Grill”, this is their second investment in the sector in a month.
Salsa Mexican Grill has one franchise store in Fourways in Johannesburg, with plans to open two others in Parkhurst and Bedfordview this year.
The Salsa Mexican Grill franchise is a US concept and was brought to the country by businessmen George Nicolopoulos and Symeon Yiallouris.
Four weeks ago, Famous Brands purchased KwaZulu-Natal-based Italian-concept restaurant Lupa Osteria. Famous Brands CEO Darren Hele said the acquisitions fitted in with “our strategy in terms of our bouquet of brands”.
“The casual dining market is more premium by nature, it’s smaller in terms of size and reach. This is adding to and complementing our business, rather being a shift in focus. Our business primarily remains those mass-market brands,” he said.
Anthony Clark, a small and mid-cap analyst at Vunani Securities, said: “They (Famous Brands) are rapidly moving into the sit-down market because that market is more resilient and the price points that they charge enable them to pass on any food price inflation.”
“They are seeing that their low-end market is becoming saturated and, if they want growth, they have to move towards casual dining, where there is more scope to grow,” Clark said.
The group’s share price gained 2.09% to close at R112.30 on Monday, with Hele insisting that “We are acquisitive — our history has proven we are not going to rest on our laurels”.