Gold Brands Investments announces intention to list on Johannesburg Stock Exchange
Gold Brands Investments Ltd (“GBIL”), owners of South Africa’s fastest growing fast food franchise, Chesa Nyama, announced its intention to list on the Johannesburg Stock Exchange AltX. This will make it the only fast food retail company on the AltX.
The company, founded as Franchising to Africa (Pty) Ltd in 2012, established its flagship brand, Chesa Nyama, with its first store at Wits University in 2012 and grew rapidly to a current total of 289 stores in just three years and creating over 3 000 jobs. The traditional flame-grilled meat franchise was also recently awarded the RASA Rosetta Award for Best Take-Away Franchise in November 2015.
Current stores in the pipeline will bring the flagship brand to around 300 by year end with a forecast 320 stores at end of February 2016. The Gold Brands Investments portfolio also includes One plus One Pizza, Chicken Wild Wings, Pitaland and the original Blacksteer, the well-known and loved original steakhouse brand. With its own food services distribution, in-house butchery and sauce manufacturing facilities, the group is well-resourced to control its supply chain costs, ensuring that its brands remain affordable for franchisees and consumers.
Says Praxia Nathanael, CEO of Gold Brands Investments: “Our goal is to the be leading franchise company in South Africa and international markets with our unique brands, while being committed to building wealth creation opportunities for our franchisees, of whom 85% are from previously disadvantaged backgrounds.”
At a purchase price of R500 000 for a Chesa Nyama franchise the affordability is key to its high penetration and rapid roll-out. Affordability for entrepreneurs is further enhanced by a franchise model which has a fixed monthly royalty fee in contrast to the standard percentage of turnover model.
According to Statistics SA, South Africa’s food and beverages industry is holding up better than many others in the economy, as both local and global companies continue to increase investment. Total income from the food and beverages industry increased by 9.2% to R4bn in September 2015 compared with September last year, following an 8.2% increase in August. The increases were driven by food and beverage sales at takeaway and fast-food outlets, and restaurants and coffee shops, showing that despite tough economic conditions that the industry has significant resilience.