Europa, Fego change hands

In line with its goal to get a bite out of the family casual dining sector, Famous Brands has acquired the Europa brand from family owned Antimo Foods for an undisclosed sum.

Famous Brands, whose portfolio includes Wimpy, Debonairs Pizza and Steers, has also bought Fego Caffé from Antimo Foods, to grow its repertoire in the breakfast and coffee segments.

Famous Brands CEO Kevin Hedderwick said: "These are really nice quality assets. They do two things for us - they give us the opportunity to get into the family dining environment through Europa. With breakfast and coffee a significant growth trend in South Africa, Fego Caffé gives us the opportunity to expand our presence in that category."

Europa and Fego Caffé consist of 31 and 27 restaurants respectively. The effective date of the transaction is December 1.

The acquisition, which includes the franchise agreements, trademarks and intellectual property of both brands, would be funded via short-term debt repayable over two years, the company said.

Antimo Foods CEO Salvatore Osato said the company was confident its franchisees would benefit from the know-how, infrastructure and support systems associated with Famous Brands. Over the next five years, Famous Brands, which is credited for introducing the franchise model to the local food industry, will grow Europa and Fego Caffé to about 50 restaurants each.

Hedderwick said: "Antimo has done a good job of populating Johannesburg and Durban, but outside of that I think there's certainly lots of scope. Our immediate focus would be to expand in the Western Cape, Eastern Cape, Free State and Mpumalanga, which is virgin territory for us for these products." Famous Brands - which is the biggest player in the market, dwarfing listed players Spur Corporation and Taste Holdings - said it would continue its strategy to acquire best-in-class brands.

South Africa's fast-food players have had a stellar run this year, reporting double-digit growth as aggressive and innovative value offers helped increase foot traffic despite disposable income coming under pressure because of escalating electricity tariffs, fuel costs and food inflation. - BDLive