The man behind a R6.2 billion fast food empire in South Africa

When a family man had a vision to create a successful family run business, little did he know that his work would morph into not only some of the most successful quick-service brands in South Africa, but Africa’s largest restaurant franchisor – Famous Brands.

The story of Milky Lane, Steers and ultimately Famous Brands (which now sports 2,552 restaurants across South Africa and a R6.6 billion market cap) traces back to serial entrepreneur – South African-born George Halamandres.

The Halamandres family emigrated from the Greek island of Lemnos at the end of the Anglo Boer War in 1902. Spiros and Malama Halamandres settled in Germiston and had five children, one of which was George who was born in 1911.

They established the Good Hope Café on Johannesburg’s Main Street, which quickly gained popularity for its diverse menu, which offered breakfast, lunch, and dinner to a growing clientele.

However, tragedy struck in 1927 when George’s father died of a heart attack, leaving George to take the reins of the family business at just 16 years old.

As outlined in From Corner Café to JSE Giant by journalist Cari Maas, upon returning from his father’s funeral, George was handed the keys to the café with the directive to manage it for the day.

This marked the beginning of a lifelong commitment to the South African food industry.

George’s responsibilities extended beyond the café; he was tasked with supporting his four younger brothers through school, and later through medical school, as insisted by their mother.

This intense pressure cultivated a strong work ethic in George, but it also imposed significant burdens.

As his youngest son, John Halamandres, told Maas, “the fact that my father had to leave school to help his mother in the business was something he never let his brothers forget.”

The early years in the food industry were challenging, with George often acknowledging the sacrifices he made. “It cost him a lot of blood, sweat, and tears,” John recalled.

In 1951, seeking new opportunities, George emigrated to California with his wife, Kaliope, and their 11-year-old son, Georgie.

Before leaving, he sold the Good Hope Café to a cousin but retained ownership of the building.

In California, George witnessed significant innovations in the food industry, notably during the rise of the McDonald brothers and their revolutionary assembly-line procedures.

Despite returning to South Africa filled with new ideas, George remained semi-retired until 1957.

Boredom prompted him to consider creating job opportunities for Georgie and his son’s friend, Arthur, both nearing adulthood.

This led to the opening of the first Milky Lane in 1958 on Esselen Street in Hillbrow.

Milky Lane introduced soft-serve ice cream to South Africa, a novelty that generated skepticism during its winter opening. Nevertheless, George’s innovative spirit prevailed.

Partnering with his brother-in-law, Chris Poulos, they designed the restaurant’s circular seating and tables, making the dining experience unique. Despite a slow start, Milky Lane flourished.

However, the political climate in South Africa changed dramatically after the Sharpeville uprising in 1960, prompting Chris to consider emigration.

This led to the sale of Milky Lane to Alfonso Calbacho, who took the brand to new heights.

While Milky Lane was gaining traction, George’s next venture came in 1961 with the opening of The Golden Spur in Rosebank, Johannesburg, the country’s first steakhouse.

This restaurant combined steak and ice cream, a concept that intrigued many but raised doubts about its viability in a competitive market.

To manage operations, George invited Nick Vladislavić, a Yugoslav acquaintance, to become a partner, ensuring the restaurant’s daily management was in capable hands.

George’s creativity shone through in the development of recipes that remain popular today, including barbecue sauce and Spanish dressing. Although Famous Brands later adapted these recipes, their origins trace back to George’s innovative spirit.

To everyone’s surprise, The Golden Spur became a massive success, paying for itself within just six months. Encouraged by this achievement, George expanded further by opening Seven Steers in Highlands North, which also enjoyed significant popularity.

He involved his family in the business, distributing shares among Georgie and other relatives, including his wife and sister-in-law Lulu, who managed kitchen operations.

The restaurants thrived, often so busy that they needed to serve at the entrance.

In 1969, Halamandres incorporated his concern as Steer Holdings.

In the early 1970s George opened his third restaurant, Black Steer, in Yeoville. His nephew, Peter Caradas, recalls the long queues and efficient table turnover, allowing diners to enjoy their meals in just about 20 minutes.

George’s three restaurants continued to prosper, solidifying his legacy in the South African food industry.

In 1970, Halamandres turned his attention to fast food, opening his first hamburger restaurant, called Steers, in Jeppe, South Africa, marking the beginning of what would become a widely recognised chain.

Soon he had help in growing the business through franchising.

By the mid-1970s they had grown the Steers chain to about 35 units and had spread beyond South Africa to Rhodesia.

The chain’s strong growth was stunted, however, when George, Jr., died, an event that had a profound effect on his father.

The business suffered, as a number of franchising licenses expired and were not renewed. In the late 1970s the remaining franchised units were sold to the franchisees, leaving the parent company with a Johannesburg distribution center and several company-owned units.

After George’s passing in the early 1980s, leadership of the chain transitioned to his nephews Peter, Theo, and Perry, along with his youngest son, John.

They revitalised the brand and sought new franchisees, leading to the opening of a Steers outlet in Sandton City.

A single newspaper ad generated hundreds of inquiries, resulting in the opening of 15 new restaurants in just two years.

In November 1994, Steers Holdings went public on the Johannesburg Stock Exchange at an initial offer price of R1.

The company grew rapidly, acquiring the Debonairs Pizza brand in 1997 and launching the Fishaways brand in 1998.

Kevin Hedderwick is seen as one of the key visionary leaders who propelled Famous Brands from a small family business to the multi-billion powerhouse in the food franchising industry.

Rising from a shelf-packer to its CEO, he transformed the company into Africa’s largest branded food service franchisor. Under his leadership, Famous Brands acquired Wimpy, Wakaberry, Tashas, Keg, Fego, Mugg & Bean and Milkylane, showcasing his sharp business acumen and effective management.

By the late 1990s, Steers expanded beyond South Africa, evolving its brand name from Golden Spur to Seven Steer, then Branded Steer, and finally Longhorn Steer, before settling on Steers.

Today, Famous Brands comprises 16 restaurant brands and operates 2,914 locations, including 714 Steers and 111 Milky Lanes, all thanks to George Halamandres’s impact on the South African food industry, undeniable.

Halamandres’ visionary approach to business, combined with a generous spirit, left a lasting legacy.

Peter Halamandres reflected on his uncle, saying, “He was not only a good businessman; he was a kind soul too. He looked after everybody, giving shares to those who worked for him; he wasn’t selfish.”

Read: The woman who turned a family recipe into one of South Africa’s most legendary brands