Grand Parade Investments (GPI) has revealed that it plans to launch its first Dunkin’ Donuts store within the next three months.
GPI reported its interim results for the six months ended December 2015, revealing how much it paid to get the Dunkin’ Donuts licence for South Africa.
The group, which also operates Burger King in the country, said it paid R12.3 million for a 10 year licencing of the Dunkin’ Donuts and Baskin-Robbins ice cream brands in the country.
According to the group, it aims to launch the first Dunkin’ Donuts store within the remainder of the current financial year, which ends in June 2016.
Under the licence agreement with Dunkin’ Donuts, Grand Parade will develop more than 250 Dunkin’ Donuts restaurants and more than 70 Baskin-Robbins shops in South Africa over the next 10 years, with an initial focus on Cape Town and Johannesburg.
Burger King still losing money
Grand Parade reported a R24.0 million profit from continuing operations for the period – a 150% increase from the R48.1 million loss reported in the prior period.
It’s biggest food brand, Burger King, continues to run at a loss, however, down R13.9 million. This however, is a 62% reduction from the R36.8 million loss reported in the prior period.
Burger King revenues increased by 66% to R224.4 million, it said.
The chain opened 17 new stores in the period, taking it to a total of 61 in the country – with the company well on its way to hit its target of 80 stores by the end of June.
The group said it expects the local economy to continue to come under pressure for the remainder of the financial year, with further increases in interest rates, continued food
price increases and the weakened rand.
“These factors will have an effect, both positive and negative, on GPI’s Food and Gaming and Leisure investments and GPI is confident that each investment is being actively managed so as to limit the impact on the respective businesses.”
Grand Parade has a 91% shareholding in Burger King in South Africa, and a 10% holding in Spur.