French bakery group Paul to cater for SA's upper crust

22 November 2015 - 02:00 By BRUCE WHITFIELD

Often in business, as in life, it's not what you know but who you know that counts. Famous Brands' most recent deal came about courtesy of an introduction by the South African spouse of the PA to the president of the French family-owned global bakery group, Paul. When Sarah Wentworth and South African-born husband Richard visited South Africa two years ago, she contacted Famous Brands CEO Kevin Hedderwick to inquire why the Paul brand, which is in 41 countries, had no presence in South Africa."She is, like all Paul employees, passionate about the brand. It was via this initial chance meeting that I was introduced to Maxime [Holder, president of the 125-year-old family-owned bakery chain]," says Hedderwick, known for seizing opportunities in the restaurant trade.Paul is Famous Brands' second attempt at bringing a foreign concept to South Africa. Its successful brands tend to be home-grown. The first attempt, Church's Chicken, bombed spectacularly and Hedderwick says it is an experience he will take to his grave.story_article_left1"Just as Paul has done a thorough due diligence job on Famous Brands, we have done the same on their business too. I think the big difference this time is that we are bringing to the South African market a brand that is unique and which will trade very much in a space of its own. It is not like trying to get into the fiercely contested mainstream chicken category."The first store will open in the northern suburbs of Johannesburg early in the second half of 2016, with plans for about five high-end shops a year.Hedderwick says there is a gap at the top end of the consumer market, where people are prepared to pay top dollar for a quality product.This is a clear indication that Famous Brands is intent on moving up the living standards measure charts into lower-volume, higher-margin businesses. Its Debonairs and Steers cater to a broad spectrum of lower- and middle-income South Africa while it is increasingly focusing on sit-down menus further up the income stream. It recently announced the acquisition of a controlling share in Mythos, the small Johannesburg chain of Greek-themed restaurants aimed at higher demographics, while it is reviving the 1970 s-themed steakhouse concept Turn 'n Tender.Hedderwick has long had the ambition of taking the group's flagship brands to new markets. While the group is expanding across African borders and Tasha's has made inroads in Dubai, it's proved tougher elsewhere. There are just two Steers outlets in the UK, while an attempt to rival Domino's with Debonairs in India ended in April.Hedderwick's new French connection may allow him to test other brands in that country. Famous Brands has struck up a good relationship with French fuel retailer Total in South Africa with a growing number of Mugg & Bean outlets on forecourts. Perhaps one day you'll fill up your Citroën at Total outside Nice and grab a cup of Mugg & Bean coffee and a not-so-French giant muffin too...

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