Sandton, Friday 12 February, 2016: Gold Brands Investments Ltd (“GBI”), owners of South Africa’s fastest growing fast food franchise, Chesa Nyama, with 300 stores currently, today listed on the AltX of the Johannesburg Stock Exchange. The company listed 110-million shares at R1 each, with 41.02% in the hands of founders Stelio and Praxia Nathanael, and 41.02% being held by Circle Food Group, while the remaining 17,96% were taken up by the public, franchisees and suppliers in a private placement.
The Centurion-based food franchiser is headed by Praxia Nathanael, CEO of Gold Brands Investments, and is supported by a board of directors led by non-executive chairman, Clifford Raphiri.
With stores in South Africa, and across southern Africa including in Zimbabwe, Swaziland, Botswana, Zambia, Namibia and Lesotho, the company has indicated that the R25m raised through the listing will be reinvested with plans ahead to establish two new distribution centres in KwaZulu-Natal and Limpopo.
Says Praxia, CEO of Gold Brands Investments: “Containing supply chain costs is critical to maintaining the great value for money offering which we deliver to franchisees and consumers. As we’ve grown, and with stores in KwaZulu-Natal and Limpopo doing well, the costs of distribution from the central kitchen and distribution centre in Centurion are rising. By establishing new distribution facilities in those two provinces, we will not only bring our supply chain presence closer to the franchises, but also to the farmers. We see a great deal of benefit in these expansion plans.”
The Limpopo distribution centre would also be ideally placed to service the franchise stores to the north, while KwaZulu-Natal would be able to service Mozambique and Swaziland as well.
The Gold Brands Investments portfolio includes 37 stores across its other franchise brands which include One plus One Pizza, Chicken Wild Wings, Pitaland and the original Blacksteer, the well-known and loved original steakhouse brand.
The company, founded as Franchising to Africa (Pty) Ltd in 2012, established its first and flagship brand, Chesa Nyama, with its first store at Wits University in 2012. The traditional flame-grilled meat franchise has grown to a current total of 300 stores in just three years and has created over 3,000 jobs. It was also awarded the RASA Rosetta Award for Best Take-Away Franchise in November 2015. It is committed to creating opportunities for financial freedom for black entrepreneurs and 85% of its franchisees are black.
The success of the operations has been guided by franchising expert and COO, Stelio, who began his career in franchising at age 16. Prior to Chesa Nyama, the Nathanaels founded The Fish & Chip Co. in 2009 which was later acquired by Taste Holdings.
Central to the popularity of Chesa Nyama is its value for money offering to cash-strapped consumers. From its core offering of brisket, chicken and boerewors meals, Stelio says diversification of products to offer burgers and pizzas through Gold Brands additional brands has been a success.
Speaking at the listing, Praxia says that it is the beginning of fulfilling a dream to be the leading franchise company in South Africa and international markets with its unique brands.
Chesa Nyama’ s current forecast estimates 320 stores by the end of February 2016, and a total of 400 by end 2016. This is well on track with 85 signed up franchisees in the chain already awaiting locations. Three new Blacksteer stores will open February and plans are underway for a year-end total of 25 stores.
Press release by PR Worx
