South Africans will soon be dining at such well-known UK brands as Bella Italia, Café Rouge, Las Iguanas and Belgo, following a franchise deal between Gold Brands Investments and the UK restaurant operator, Casual Dining Group (CDG).
The first store is scheduled to open during the course of 2017 with a minimum 20 opening across the country in the next five years.
The agreement is in line with Gold Brands’ vision to become the leading franchise company, both within the South African market and internationally, by offering its customers “unique and authentic brands with unbeatable value”.
The CDG brands are complementary to Chesanyama, the company’s award-winning brand, which is increasingly gaining acceptance across higher-income customer segments. The new partnership will see Gold Brands’ exposure in these markets increasing further. As part of the deal, all products will continue to be sourced from local suppliers to deliver CDG’s recipes.
Global expansion strategy
The agreement also supports CDG’s international franchising expansion strategy and it is anticipated to present growth opportunities for Gold Brands’ home-grown brands in new markets. Furthermore, management expects that the partnership will transfer knowledge and experience gained by CDG internationally, to the benefit of the new and existing brands in the company’s portfolio.
Gold Brand’s CEO Praxia Nathanael, said, “We believe that this partnership will fulfil a need in the South African market for customers who want new, interesting and exciting dining experiences. CDG’s restaurants fit with the company’s existing brand portfolio and follow our proven track record in delivering relevant new concepts. This deal follows the consolidation of our Chesanyama store base, which will see us enhance the quality of our franchise network and deliver the best possible experience to our customers. With this process in place, combined with CDG’s proven concepts, we see exciting growth opportunities for the company.
“We’ll work closely with CDG to localise the outlets and will use our experience and local market knowledge to ensure we put the right restaurants in the right locations. This is an exciting development for both parties, with broader long-term societal benefits including job creation and new supply opportunities for local producers.”
Mark Nelson, CDG managing director of concessions and franchising, said, “We are delighted to have been able to agree this deal with Gold Brands, as we firmly believe the partnership is a significant strategic step for both groups. The social demographic and cultural fit between our restaurants and South African consumers’ diet, plus the country’s acceptance of casual dining, means it is an exciting market for us.
“This agreement also complements our franchising plans in other overseas locations, particularly North Africa and will help us achieve our initial target of 100-plus overseas outlets, as we continue to seek other partners interested in franchise agreements with CDG.”
Source: www.bizcommunity.com
